hd MQORE Kin9Ston Smith BROMLEY & SHEPPARD'S COLLEGES CHARITY Registered Charity Number 210337 Registered Social Landlord Number A0352 TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 BROMLEY & SHEPPARD'S COLLEGES CHARITY INDEX Pay No. 1to7 Rgport ofthe Truslo•8 8 to 10 Audlt Report Stalgmenl of CoThyreh8nslve Incom6 12 St8tanwnl ol Change8 In Re88NO$ 13 B&lan¢o She•l 14 Statsmont ol Cash Flow8 1510 23 Not08 to tho Flnancl•l Statements BROMLEY & SHEPPARO'S COLLEGES CHARrrY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 The Tru8t8es present thdr raport tDJelhor ￿th the audited nnanci&l statements for the year ended 31 Dacomber 2021. L•g41 *nd Admlnlstratlve Informallon The charfty 18 regi¥tered in lh8 name of Brom* & Sheppartfs Coll8g•s Charrty. The ch8ri1l8 govemln9 Inslrum8nt 55 8 Charity Commi88ion Schemo Rol. CD ILdnl, 210337115883 whl¢h wa8 s6olod on 10 February 1997 and amended on 24 May 2004 to 8n8ble Ihe acqulslborn ol Trust88 Indemnity Ins￿r8n¢8. 11 was further ameThJed on 26 Mard) 2007 to Inco￿jrala Powers of Arnendmenl, the roqulremènt to appoint hvo elected Collogian Trustees and the facility lo appolnt non-voting Trust88 Advi88rs whare appropriato. A furth8r am8ndmanl on 5 Docetnb•r 2018 alt8r8d th8 age elloibllily ol co.opted T¢ust•è5, The Chartty 1$ 8180 a Reo18tsred Soclal Landbrd ￿th number A0352 and a member of Tho Almshou8• A88oclatlon, regislornd number 415. The Trustees are Incorpor8t8d by moans ol CortlfieAl$ of Incorporatkjn i8sued by Ihe Charily Cc¥nmS58hJn undgr Sectlon 50 01 Ihe Charftl05 Act 1993. The Certlllc8le refe￿nce Is 325194, whlch was sealpd on 14 July 9994. Thg TnJsle8 body conBists of no rnor8 than eighteen persons who moèt quart8rly, lo Indude 81x Ey-offklo Trusl•g8. not fewor than Sovon and not mor8 thBn 18n Coyted Truste￿ and two Coll8g18n Tru$lg98. Th0 Ex.ONlcki Trubteei hav¢ thg power to appc4nt D￿￿￿18. Th• Arehblshop ol Canterbury The Blshop ol London The B16hop ol Roch•sl•r Tho Chancellor of th• DIOC￿0 of Rochèst•r The Dean ol Sl Paul'8 The Archd8acon of Bromley and Be￿•Y Mr Rlchard Colllns Ichalrmanl Tony Bentby 8 Tlna Hlll Mr J8ffl￿ Pgar8on Iwe$lJned May 20211 Mr Chrt8tophor Scolt Mrs Lynda Sllrn8on Mr John Thorogood 8dDe Cllr Pgter Morgan FRICS mclA￿ (for the Dean of St Paul'$l r Darek Shllllng (for tho Bishop of London) Mlss Kathl88n Cra The Revd. Georg• B8i518y18ppointed March 20211 Pag8 One BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 Cha Th• R•vd. Jane Ku8tn8r Ire51gngd 31st August 20211 rktotheT Mrs Jo Frost18ppolnl8d 9th F8bFuary 20221 Mr Grahwn Brad$haw1gppolnlod 9th February 20221 Martifi Lee-WBmtr Adrlan Tulchlng$ FRICS MI88 Susan Gllder Th¢ registsred offke of the Ch&dty16 The Chap￿[n.É HouBe. Bromley c(￿10ge, London Road, Broml8y, Kont, 8R1 1 PE. Th• CharW• bank•r¥ •nd prgf•••lon•l *dvl••r• Ar• aB follgw•:_ Banker6 CAF Bank Ltd 2S Klngs Hlll Av•nue Klngs Hlll We81 M&lllng Kani ￿l94Ja S&ntand•r 8ank 800118 mor60￿ld0 L30 4GB Audlior8 KSJor¢ Klng6tcn Snlth LLP B•teh*t*rth Hou$• 57.eS ststbn Road Redhlll Surrey RH1 1DL Sto¢kbrok8r811nve8tmeni AoM$er• Br￿n Dolphln Seeurflle8 Llmit•d 12, Smilhrie￿ Street. London. EC1A 9BD. Pogo Two BROMLEY & SHEPPARD'S COLLEGES CHARI REPORT OF THE TRUSTEES FOR THE YEAR ENOED 31 DECEMBER 2021 stst•m•nt of TYusts•$ R•spon¥ibllltbD¥ Tho Trusieoy 8r8 r98ponslble for preparfng the Trustee8' Report 8nd the financlal staiernents in a￿Or￿ance with 8ppli¢ebl& Lgw ind United Kingdom Accounting Standards Iunited Kingdom Gonorally Accepted Accounting Pr8cIIcg1 includlng FRS 102'Th8 Financi81 Reporting Slandord 8pplicable in th6 UK and Republic of Ireland.. Ch8rlty18w and HousSng Assoclalon l¢gl¥latkJn requlre the Trustees lo prepare fin8n¢lal slatemenls for each financl&l year which give a truè and lalr view of the slat8 of affalrs ol the Ghartty and ol th8 Income and 8xpendltur8 of th& chadly lor that period. ln prrf)artng Ihos8 finan¢i818tslements. Ihe Trustets are requlred to.. 8elect 8u5tablt accoun￿n9 policie8 and apply th•m ¢on$islenlly; obs•rv0 the method8 and prfn¢lples in th8 Charttlg8 SORP., mBke Sud9em6nts And o$timal88 that 8re reasonable and prud8nl; stsle %thether 8ppllcable aceounkn'ng st8ndar(Is have been lollow•d, 5ubie¢l lo any moledal departuros dlBdosed an¢J oxplalned In th8 finan¢lal 8lalem8nts', pr8par8 the financ181 slatém•nt8 on the going ¢onc¢rn ba818 unlo68 itbs inoppropd8to to pre6ume Ihot tho ¢harSly wlll Conllnue In bu81ne&$. 8alJ5fy Ihamselves on an annual b&$15 that Ihgy gre complSant th• Governance 8nd FlnarKlal Vlèblllty Standard I$1￿d by the Hol￿$ & Commwllle8 Ag•ney Thè Trust88& arg r08pon81bl¢ lor rn8inlalnlng an 8dequ8te system of Internal conlrol and keoping propw accounUng rè¢ord$ whlch dlBckJ86 wllh r68sonJble 8ccuracy 8t any Ilm• th• fln8neial positlon ol the charfly and which en8bltr them lo en8uro that the ￿nanc￿l 8lalern8nls comply wllh the aCCoun￿n9 requlrem•nl$ of the Charlly Comm16skn SGheme5 datsd 10 February 1997 and 24 May 2004, tho Houslng and R•gèn8ralioTh Act 2008 And the Accovnung Dlre¢tkJn lor Privut• Regl¥t¢red Provlders ol Soc181 Houllng 2015. Thèy 8r8 r8spon81bl8 lor Sgfèguardlng the 0$8etB of th8 chai1ty and hèncè for taklng rea8oThobl• 8t•P8 for tho prev•nllon ond dètection olfr8ud and othèr irmgularit188. 8•lectlon and Inductlon of Tru•t• In selgclln9 new Tm6tte8, tho pilm8ry alrn of the exlsling Trusla•s Is lo find pgople who not only have sn Interest In the Colleges bul algo have thè ￿n￿edge and expenence lo ¢ontiibule lo or complement the range of Skills requlrod lo make up an elfectlve Tiustee team. Such people ai¢ Ilkely to havo knowledge ol ong or More ol Ihg legal, fthondal. Boclal servlceB, h88tth, houslno or local and na￿OnsI government fields. The Tru8100s regularfy a88ess wheth8r they and thos• thoy 8rnpk)y hav8 th8 lohl comp6tencles. axp8rl8nco and technlcal knowledge approprlate lo the 8iz8, 8¢81e and risk profilè of the organ188tlon logethar th need for furthèr trainlng or $uc¢968ion planning. Induction prog￿Mme8 Includè sasBbns vAlh the Chalrm8n the Cl8rk to thè Tnjstees and opporbJnttie$ to meet the Collegians. 8ecau$e ol the experiencg requlred, appoin190s may alroody havè held olher Irusleèshlps where th1$ Is nol Ihe case they wlll 9150 be glv8n brlefino on the du￿88 of Tru518es. l Trustees h8Ve the opportunity lo attend trainlng sesslon$ provided by the thshou$e8 A860claUon and olher relevant bodi88. Hlotorlcal Background Bromley Co118g8 W88 founded In 1666 by the WNI of John Wamer. Blshop ol Rochester. Tre fjrst bulkllngs - 20 houses. a chapel, and house8 for a Ch8plaln and a T￿asurer - were authorised by Act tsl Partiament in 1670. Tho ac¢ommodatlon was to Pfovlde housing for'Twentypoore wIdo￿5 olotthodoxe andloyall Cler￿eMen.. T￿nty more houses weft ion5tructed between 1794 and 180S funded by substand819lNs. P8ge Three BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 Sheppard's Colbgo was founded in 1840from glfts ol Mrs Shoppard. widowof DrThorn88 Sheppard, a Fellow of MaGdalen College. Oxlwd, to make similar provi8KJn for the unmarrled daughtets who h8d lived wilh th8ir mother5. M8jor modemi88tlon hnd ra-￿de￿n9 of the buildiThJs took place in the 1970s and 1980,5. and again morg e8nUy in 2005 to 2007. Both Colbges &re Ilsted bulldlng$'. Bromley College- Grade l. Shopp8rd's College- Gradg11'. B•n•llclarlos Charity Commlssion Scho￿5 in 1974. 19818nd 19g7 exten¢Jed tho cla5seBof ban8ficlary. These now InclJd& 811 revred Cl8th6 In Holy Orders Ima18 and female) of the Churche8 of England and Ireland, the Church Wales and Ihe S¢oth'$h Epl8¢opal Church and Ihelr 6POUBeS, log6th8r divorced antl ￿Parat•d spouses of Such C￿rkS and unmarrted daughtsr8 and 6tsTrdauohl&rn ol fomi•r Cdl8gl4n5. Oblocts and AdmlnlAtr•tlon ot th• Ch•rlty indic8led above. Ihe Charity eA61s lo provid• sholt8r8d hOu￿Tra for Ihe beneficlart&8 g16 deflTh•d In th• Govomlng Instrum•ni. Curr8nlly Ih8r8 are forty Col￿glan8' d￿llINg&, one gue81 nat and 8toff dwellings. In addttion, Ihero are two separatè dwellings whlch are18t on an opon martèt ba$l$. The Colleges aro adrnlnlstered by tho Tru8toe6 through Iho p8mi6Mnl marn￿18 of Blaff. Tha Tru8ta88 meot 8t1ga$tfour lim86 each yoarand del8rmin8 overall policy. Sub ¢ommltl••s cov•rSng finance. f8bric8nd welfara alBO me81 rggularly8nd d8y.104Jayadmini8tr8llon i# egrried oul by Ihe Clerk in consuttatlenwllh Ih& Cholrmon, Treasurer and Chair of th8 Fabric C¢)mmittee. There Is 8 1•8m of five full and part-tlmg 81aN. In addllion lo tho provlslon ol houslng, 51 1$ the pollcy of ihe Trustees to provlde as much support as resour￿8 albw 8nd a r•sponse to emergen¢l?$, ¥￿IhOUl ImpSnglng on the Ind8p8ndencg of tho Colleglans. Mod•st us• Is mgdè ol unpakl volJnte8rB. The ColloglanB benefit from the 8•rvl¢•s ol Cutslde ¥olunt8ry org4nl8aJon8 and Ih080 prothded by S¢d81 SeMie5 NHS Care In Ihe Communlly. The Tru8te•8 hav8 th• opt1￿ of appc4nllng a Chaplaln.11 was decSd•d on th• r•slgnallon ofthe188t Chapl8kn, to rea88Sgn Ihè dullès ol tha Ch8p18iTh among81 existSng $18ff. A review by tha Tru$lge$ will occur durlng 2022. It 18 not 8nll¢lpaled that a Cheplaln would bè appoln18d until the new 818hop of Roch88t•r and tho n•w ArChdea¢c￿ o18romloy And Bèxlèy. bolh 8x.offl¢lo Tru6tee6, are In $ltu. Publlc B•ngfft Tha Tru8tee8 have roferyed to the 9￿dance In the Charlty CornrnlsBlon general guldance on Publlc Bonefil. Bromloy & Sheppar4J's col￿g4$ Charlly exls18 for th8 benefit of poor and aglng cltrrgy ol Church of England, Ihelr wlve5 End wldow8 and In certAln ease8, thalr chllaren who hpvg glvon Ihelr Ilves over to th care of Ih8ir p8rent6. though non.profft rnoklng, the Trust onsur88 Ihgt thg famou$ gnd tr8dillDnal 17th century build￿95 are malnlainod for the bènefit of the g9neral publlc vtho vl8St the slte on regular occa8ion$, free of charge. The Ch8Po1 li a pla¢e ol putAlc worshlp lo whlch Any m•mb8r of the public Is ￿l£ome. Achl•v•m•nt• •nd P•rfornianc• Th8r8 W88 8 tot81015 vac8n¢le$ during the year and three nals vacBnt 8t the year end. It 15 policy lo fill a flat as seon as PD$sible foll￿ng a va¢anGy and a small wo11ing list 1$ malntalned to fBcilitat8 this. The In¢re8se In voids in 2020 8ThJ 2021 was due lo gr8alar refvrblshment ol th8 flats and not the availability ol new occupants. Wth the Ilftlng of lockdown reslrlctlons, there 8re now regular meetings between the Colleglan8 and Ihe Tru51885 lo enabb Cglleglans lo oxpross thelr views about the fac111￿eS prO￿ded and any proposed ehangès. Page Four BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 The Tru8t8e8 hav8 undertaken a rnview of their compllarKe Ihe Govomancè and Flnanclal Vlabiuly Sland8rd 8nd believe they meet the requlred Siandards Os they affe¢l an or9anisallon oflhelr size and nabJr•. ¢)verhèads ar$ st￿[￿Y controifed comm8nsurale ￿th provldln9 8 sulta￿& standard gf accommoda￿on and 58rvlco for Ihelr tonants and the TN5tees are s8ts'8fied Ihat the Coleg88 contlnue to ddlver value lor moroy and make good use of the asS8ts of Ihe Coll89$S. Monoy M•trl¢•'. In April 2018 th8 Regulator ol Soclal Housiro I'Regulatorfl Introduced a $8t of tommon mvtrlcs, whlch each pro￿d￿r Is mquitsd to publl8h gach yo8r. These metrlcs ar8 consIder￿ Ihg mostapproprlale set of moasums to capture performan¢e aer05s Ihe sector in a f8lr and CoMpar8b￿ way. Numbèr M•lrl¢ Roinv¢stm8nt % N8W SII 80¢14l housin New 8upply Inon-80dal housing V•lu• Not• No new rt188 a ulr8d or d8vekJ od No new ertlos a uirgd or develo No now propertie8 &Gq￿lrod Of devek)p8d 2# 2b Gearln EBITDA MRI int&re$t Covor % C88h and Cash ulvalents exceed total debt Very low Inlgro$1 charges. MRI MBlor Ro alrs inclLKlèd. Inelud co$18 086oelbl$d ith tho m8Inlen8nce of 4 Grado 1 171h e•nlury bulkjln 16,8081 H¢8dllng Soclal Hou8lNJ Coit É 11,664 Oporaung mèrgln (Boclal hou$ln9 1771 eb eratln m8r Rotum on Ca over41 It81 Em 77 12 No di8 salg ol 10 ertle& allve duo to dèflcll for the ar R•vl•w of 2021 The level Or￿¢￿Pan¢Y wa6 9S.S %{202￿ 94.4PAI and the average ogg 78 year812020- 781. Tha audlted a¢countg record i defldt for ts year to 31 December 2021 of £100.906.12019. £268,6831 The Tru9t•&s havo corntlnued th81r pollcy of carrylng out Internal rodecoratton of fl818 ￿en they be¢om vacant or on o 8even.year cycle, if appropri8le. Hl$tori¢ally, 8rranggmenl$ havg provld•d for èxternal 8r888 aNI intarnal communal areas to bg re(Jecora19d on a four-ye8r cycJ8, and olher maintenanc8 curried out on an &nnual b88is. Howèvor, followlng 8 rgview of noce$sary rernadial wc¥k, hcluding Improv8ments In firo safely, an Increased levgl of ￿lurb[Shmentls now in h8nd whlch bwll requlro utllisalon of a signifKanl part of th• Extmordin8ry Repair Fund over the ￿xt two y•ar6. Quoted Inv88tments are recogn15ed In the Balance Shegl at Market Value. Movements r85erv88 ar8 sel out in nolos 17 to 20 01 Ihg fin￿CIal statements. Dolalh of the resorves ar as fdlow8'. Underthe tsoverning Instrument, Ihe Twstees aro requirèd tts make an annual cOnt￿bU￿¢n to an Extraordlnary R8palr Fund. N￿￿ng was eontrlbuted In 2021 but translern ￿11 recommence In 2022. AI 31 December 2021, the Markel Value of Ihe und•rfw'ng 1Th￿Stm0nts represenllng the Fund stODd at £100,43612020, £288,328). Under Ihe ¢emis of a Chartty CommisBlon Scheme d8t8¢J 23 September 1981. and contlnugd under Ihe 1997 Page Five BROMLEY & SHEPPARD'S COLLEGES CHARiri REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 Gov8miThg Inslrument, th8 Trustsos Arè r8qulred to ¢cnI￿tsUte an annud 8mounl of £525 to a Recoupment Fund until 23 Sepl6mb8r 2041. At 31 Dècember 2021 £21.000 had been ¢onlributed in this way 8né Ihe Market Valu8 of th& und8rfylng Inv88tm8nts represenllng the Fund was £210,59512020. £179.9041. The DegSgnat8d Reserve, thg Charftsbb Fund Prwrty Res8rve, reprfr8on16 the net book v•lue ollhe t8n9ible fixed ass8ls netof Ihtsunamortised amouThtof d8ferrod capitalgr8nl$. Thyd d881gnallon 8ri8es a8, kn lh6oplnlon of the Tru$to88, these afflcunts do not r8pr8sent free reserves of the charity. Th8 Ireo mserve5 aro repr888nted by th8 Investrn8nl Rov8￿￿tIon Fund and the Incom& And Exp8ndtture R88ervg whl¢h total £438.179 al 31 December 202112020. £378.8841. How8V8r, the Trustse$ do Thot btrli•v8 that the levol of fr88 res6rv8s h8ld Is exces￿ve In Ihe context ofthe need to malnl81rn Istad buildlngs 08timated to bo worth opproxlmal8ly £11 million. Durin9 tho y88r, tha Trustsos have revlew8d the lev81 of re&erv8s laklng Inio account Ihe Th8lure ol the Incom %•thich couhl fall in the evenl of in8uffi¢ienl tenant5 and the level of rn81nlen8nce and Unexp￿ed expendlluie that oc¢up8llon ol a GrA¢Jo 1, seventeenth cenlury bulldlng may raqulr8. Thgy believe they 6hould Seek lo hold a free reBerve of the order of one ybarfs rent81 in re8pgCt of the fir81 of app￿xIM￿le1Y £225,000, 8nd a further sum of not loss Ihgn £200,000 ¢0 covor bulldlng ngods kn addhlon to the •xtr80rdlnary and recoupment fund reserve8. Tho fruit••s conllnued lo tsko Into conslder8tlon tho gffgct of Covkl 19 on tha charity. We h8vo not aXP8ri8nced any dlfflcutty in rnalntalnlng ¢xcupancy leve15, Inve81ment iThcome and returr8 hav8 not b•en s•riously affactgd although we rocogn+8e Ih9y coukl be Impacled by contlnulng economlc uncert8inll88. InvMkn•nt Poll¢y An Inv98tmenl pdlcy lo covèr 811 fund8 Iholdlng8 managgd on b•hall of Bromby & Sheppard's Coll8993 r￿U•re5 that Fund M&nagorn 808k to 8chreve a rat8 of re￿rTr commnsufate wlth th8 d8grg9 of rl8k and adhem to th8 folk)wlng ryilgrfa.. RSJk.. M•dlum Incom&.' A8 hlgh as18 reasonably achlevable. Capbt61 Growth.. D881r8ble, bul not at the 8xp8n8è of hlgh inwno and r16k, a8 d•fin8d abow. EK4udg(I InveBlmen18.' Companle8 in the ami$ indu61ry. Minag•m•nt Poll¢l••, Rhk• and Un¢•rtalnth# Tho Tru$lo0s reoularfy revlewthe rl8k$ and U￿rtaInl•S fa¢lthg th8 charfly. many ol %thlch aro eoncoined wllh tho upke8p of th8 properues. the saf8ly of r88klenls 8nd vhilors givon thè agt of the prop8the8, and tho 88legvarding olvulnergble adulls, Specific m8n898mtnt polkl88 are In placo to mltSg8tè thèsè ri6k8 and Ihgse re a6 follows.. Houslng Management Thg houslng managèment pollw 1$ to provlde an eronorn1c￿, 8ffici8nt and eff￿￿ve servi¢0 to th8 Coll8988' resld?nls, with duo ￿nSIderatiOn b81ng given to Ihglr physical safgty. Employmènt, Tr8lThlng Advancemènt ol D158blod PgrwnB We are a sm81 charfty￿th only a small admln151raUveteam, Al the pr6senltime ￿ hav8 nodhabled peoplg In amploymenl, but would Mnour our equal opportunltie$ wlicy if the need ar058. H•alth. Safety and WeMare al Work ol Employ888 Tho Trustees recogn09è th• Importance ofeffedve hoalth, safoty and we￿&re for thelr empws at Approprfatg polici&6 am In pla￿ for the proiectbon ol our staff m8rnberB, th8 Colleglan6 and vlslto to the Colleges. Page SIX BROMLEY & SHEPPARO'S COLLEGES CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 Ant14￿[al Behavkjur Poh'cy Th• Colbga8 conbnug to operats an AThti-Soclal BehovhJur Policy. Vulnerab18 Adults The Tnjsieas rgcognl3e the Importance of m81ntalnlng a wulnèrablo adutt8 policy and related pro¢8dur8s whlch ara rgviewed and confimwd 8nnually. Fir8 RIBk A8B88gFroiit Polcy Tha Colleges conth)w to opornte a Flr8 RlskA88988mont Pollty. Full Rlsk As8•s&ment Pollcy A Full Rlsk A888s8m¢nt Pdl¢y18 Sn ploe4. Vuh8rable Ad￿tt5 The Tru8lee8 recognlse lh• Importane• ol mainl81￿n[ A vulnerabl• gdults pollcy and r91ot¢d procedur85 whlch are revSewed and confirmed annualy. Flr¢ Riek As8e88menl Policy The College6 conllnuo to opgrg19 a FI￿ RIBk A66e88menl Polloy. Full R18k A88es8mont Policy A Full Rl$k A68es8menl Pollcy h In plac•. I￿1) On 8•h•W of th• Tru•t••¥'. Rlchard Collln8 Chaim)an Date.. 2022 Page Sèvon BROMLEY & SHEPPARD'S COLLEGES CHARrrY REPORT OF THE AUDITORS YEAR ENDED 31 DECEMBER 2021 Oplnlon W6 h8V8 8udlt8d tt)e fi•anci#l slatemenl8 of Broml8y & Sh8ppard's ¢oll•g•s Charllyfor Ihe year endad 31 Docomb8r 2021 %vhich comprfs8 th8 Summary In¢omo ond Expendilwo Accrojnt, thè Ststgment of total Chanw in Re8arv88, th8 B818n¢è Sheet. the Statement of Cash Flows and thts notes to the finana81 s18t8ments, In¢lu(¥np # summaryof significant accoUn￿ng poll¢S0$. Tho financial reporting frameV￿rk ihal has been applied in their prep8raUo+) is applicabk18w 4nd Unlled Kingdom Accounung Standards, Includlng FRS 102'Th0 FlnanGlal RgPDrtlno Stsnd8rd Appllcable In lh¢ UK 8nd lfftland, Iunlted Kingdom Gonfrrally Accepted Accounting PfBcli¢61 and tho Slatement of R￿emMendad pr￿[1¢8 lor Regist•red SOUBI ouslng Provldèrs 2018. In ouropinion the finand818t818mtrnts.. glvo a tlue and lair vw ol the 8talo olthe charflls •lfqir8 a6 al 31 D6¢¢mb812Q21, end of itts ir￿OrnirQ r8sourco antj eppllcHtlon of resources lor lh8 y88r thon &ndod,' have bean properfy prepared In accord8nce Unrt•d KIWOM GentrmllyAccepled A￿Oun￿n9 Pr8cdce,' and have boen pYepar8d In 8c¢ordBnc8 ￿41￿ Iho r8qulr8menl8 of th8 Charfll?& Act 2011,. Ihe Chartty Cornml88lon S¢hoTn& dated 10 Fabrt￿ry 1997,, tho Housing and R8gen•r8tion Acl 2008 and Atetyjniing Oir•clion for P￿vate Regislorod Provid8r8 of SoGl•l HDuslng 2019. B••l8 for oplnlon W• ¢ondu¢led our audll In 8ccord8n¢e with Intornavonal Standard8 on Audllno IUKI IISA$lUKII 8nd appllcablo18w. Our ro$pon$lblllti8s under those 8t8ndard8 ara hJth0r de$thbod In tho Audltor's Re8pon$lbllSUe8 t¢r the 4udil olflnoncial #t8lemont8 •e¢tion of our report. We are Ind8p6nd8nl of thè ¢harfly In accordance wlth the ethl¢al roqulremon15 Ihal aro r•l•vwnl to our audlt of th8 flnanclal 618t0ments In the UK, Indudlng Iho FR¢,$ Ethl¢81 Sl8nd*rd. and we have lulllllod Our oth8r8lhl¢al m$ponslbllll88 In accordance wllh the$& reqUIr￿ents. We b?liove th81 Ihe eudll evld8n¢• we hav• oblaln8d18 suificienl and appropdvle lo provide 8 basis for our oplnlon. Con¢ly•lon• r•lallng to galng cone•m In audlNng the fln8ncl81 gt8tsmtrnts, h*ve concluded that th? trustee8' of the g￿r@ concom ￿818 of 8ccounllng In the propamiigD of tho flnand81 Bt8lemont818 approp￿01•. 8•8011 on the wvrk we have Partottxod. ￿ h8vo nol 5dènl1￿0 any mBlod81 un¢•rt8inlle• r•lJling to 8venl8 or condiiions that. Indlvldually or colleciiv•ly. may c#$1 slgnlflcant doubl on Ihe ch8r11￿¥ Jblllly lo conllnue oo 8 golng concorn for a perlod ol al 19891 ￿01￿• months from when the financl$l •18lemonl$ th￿horIE8d for188Ug. Our ￿epo￿albIl[lloa and thè rn6pon&lbllll19? of Ihe tru$t••s ￿th r•iwcl to ￿Ing conc•m arn (leX￿bed In lh• Ml•¥ont 8•clloni of th15 roporl. oth•r InfomiAllon Th8 oM8r infomalion comprt8o8 th8 InformAiion In¢lud•d In the Bnnuol rgport, oth8r th811 th& Ilnan¢ial 81ai¢rn•nts and our audthls report thoroon. The Iru8tee8 ère respon&lble for tho other Infomallon. Our oplnion on the financlol slulemonls d￿$ not co¥ortho olh•r in1c￿￿tIon 8nd, exc8pt lo •xlento¢hoTh￿6• •xpliatty slated In our r6POrt, w8 do nottxpre Our reiponBlbllity Is lo read Ihe ¢lhor Informrylion and, dolng 80, con8lder wthelhtrthe olherlnform8llon ￿ rnater181ty Inconsi81enl wlth the flnHndBI statements or our kntsW￿dge obtslnqd in ihe course of Ihe 8udit or OlheN￿$0 0ppe4rs lo be rn41fyri8lly ml8slaled. If we Idgnlity $uGh rnaterfal Inconslstencles or apparanl mBt6rt01 mls$t4tsThnls. ￿ are requlred to da18￿1n0 wh6th&r Ihfrro is a malerial mi881818m8nt In the fin8nGi81 ¥talem8nlB themselves. M, b8s8d on the we hav• pertomi•d, ￿ eondwje th8t ther818 o moto￿81 mlsslaternenl of th15 0lh9r Inlormallon. we requlred to rewt that I￿t. We h8ve notNng lo report In thls regard. Mitt•r• on which w• ar• r•qulr•d to report by •X¢•Pibn We have nolhlng to roport In ro$pe¢l ol Ihe follo￿ng m8tter8 the Charfles Act 2011 requlreB US to report to ￿u. W, In ouroplnlon.. tho inforrnauon glven In the Try*¢￿3. Annual Roport is incon818lenl In alby tn8lerial rEsp9cI ￿1￿ Ihe finandal 51atement5,' or the charity has not kepl adequate recordB,' or the fln8nd818t81emeThts 8r• not In ogreement with the account4ng re￿rdS or r￿rn5'. or P8g& EwJht BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE AUDITORS YEAR ENDED 31 DECEMBER 2021 we have not receiv•d all the inlormgtbn 8nd explanatien5 w• required for our audit. R••pon¥lblll¢le6 of tru$t••s A8 8W8in8d morg fully In Iho Trustee's Re8ponslbilmeB St&t8menl, $01 out on page 2, Iho tw$lee$ ore iosponsiblo for thè preparation of financiol stslem8nl8 and for belrYJ saosfied that they glve a true and lair wew. and for such In16mal contrd a$ Iho tru5teg$ det&Tmlne Is n8ce&sary lo an81￿8 th8 pr8P8r811on of financlal staternents thHt are free from material m1881818ment, %tholher duo to fraud or errer. In preparlng the flnancial slatemenl8, the Iru$loes are respwslblo for a88e5sing the charills ablllty to conllnuè os a golng Thcern, d15c1051ng, as qppllc8ble, matlars related to golng wnc•m and uslng the golng concern b8818 of a¢¢ounllng unlo&8 lh& trusl•o8 elther intend to Ilquidate lh6 charlly or to c8ase opera￿an6, or have no r8a11511c 8h8m8tlv8 but lo (k) 80. AudStor'• r••ponAlbllhl•• eor th• •udlt of th• Ilnanchl •tat•m•nt• W• h&ve befrn apFK>inted a5 audllor under 88Ctbn 145 01 th8 Chorllles Act 2011 gnd r¥port In accordance wllh ragulBllon$ m8de under sectlon 154 of th81 Aot. Our obiecllv88 8r8 to obtsln re8wn8bl• atsuran￿ about whother the fin8ncl81 statements 8$ a whdfj are Ir88 Irom m8l•rfal mis$lJlemenl. whvthfrr duo lo fraud or error, 8nd lo18$ua an audltor'5 report Ihal Includ86 our opinion. R8880n8bl8 a88uranca 15 8 high ￿Ve1 of 8$8uran¢o, but 1$ not a gusranlee IhBt ￿ audit conduct8d in ac¢ord8nGo wSth ISA5 IVKI wlll alw8ys deleot malerlal mls8talement when tt aMl$ts. Ml8Èt8t&m8n15 4rfs• from fraud OT error 8nd 8re con81d6r8d malerlBI Ir, Indlvlduolly or In aogregale, Ihoy could reaBcffjably be expacted lo inllu•n¢o tho 8conL¥nic *kni8icfflB of uuors laken on the bosig of th¢$• nancial 8tat8m8nts. Ae part of an audft in accord8nce wlth ISA8 IUKI ￿ oxgrcl80 prof8•$len81ludgemoni #nd M•lntain prof•a8lonal sceOclsm throughout tha gudlt. Wg 8180.. Idenllfy ané 888888 the rfsk8 of mai•rfal mltsst8t¢rnenl of the flnonci818t81em8nl8, whelher duo lo frwd or •rror, dvslgn and perform audll pr￿edur•S re8pon61Vo lo Ihoso risk5, and obtaln audit 8vld8nce that 1$ 8uffl¢lont and 8pproprl&t• lo ovide a b8$1$ for our opinkn. The d8k of not d¢tKts"np 8 mol•dal mi$$lalernenl resulting from fraud is higher than for on8 resultlng from eror, a8 Iraud rnay Involve cdluBlon, forgery, Int8nllonal oml&8lon8, m18rowo$enlaUonB, L¥ the override of inlem81 control. Oblaln In undèrBtBndlng ol Intern81 control r818vant lo th• awjll In order lo doBlgn audll procedur08 th81 ar• approprlBte In Ihe ¢lrcum¥iances, tr￿1 nol for th• purpo8•8 of oypre$8lng an oplnlon on Ihe •ffects'ven88B of th• ch8rlty'8 Inlemal control. Ev8luate Ihe Spproprl•t￿•9l of accountinp policie8 wed 8nd the r?830r$o￿¢n•sj of 8rKounUng e$llmale• and relaltsd dl8ckxur•8 madè by the tru8t8es. CorKlude on the opproprl8t8no$s ol tho Iru$lges' Use of the golng concern b8818 of accounllng and, bas8tl on lh8 audll •￿denC6 obtainod, whether 8 m816ri81 uncartglnty exl81$ related lo events or Gondlllon5 Ihat may c8gt significant d￿bt on the charlty's abllily lo ¢onllnuo 85 8 gDlng conc•rn. If we conclude that a materlal uncgrt&inty exls16, Y49 are poqulred to draw allenllon In our Budlof'& report to the ro18led disclosures kn lh8 financial Blalem8nls or. If 8uch di8cIo8ure8 8re Inodequ#le. lo modrfy our oplnlon. Our concluslons are based on tho audit 0￿￿0￿Ge oblalnod up lo the dale of our audllorf8 ropul. How8Y&r. luture oV0ntB or condrtions rnay CBU8e th8 charity to tg ¢onllnuo a¥ u g￿ng concorn. Ev)lualo the overall pr858ntatJon. 51ruclurg and conlanl ol the financS8l $tal•moni¥. Including the d15closur88, and wh8lher th8 fin8ncl81 $l&ternents repvesenl the uThdertwng Ir8n88clions 8nd events In 8 m8nnerth¥l aGhieves folr pro&enlatlon. We communlc819 wllh Ihoo0 Charged with governance regarding. 8mong other matters, the pLfjnned uGope and kn.￿￿￿g of the al￿bt snd slgnlflc8nt audll flndlngs. Indudlng any slgnificant dtrfk46nclè$ In Ini$rnal control that we Id8nUfy IKJrfng our oudll, Pag8 Nln8 BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE AUDITORS YEAR ENDED 31 DECEMBER 2021 Explanatlon a$ to what oxlent the audlt was ¢onsldor•d Capable of detectlng Irra9ularftlo8, Includlng hud Irregularilles, Including fraud. ar8 Snstances ol non-compllance wllh laws and regulations. We design procedures in line wlth our responsibilities. outlined above, to de18Ct material mls8t8lem8nls In rospocl of irrtsgularid88. Including fraud. The extent to which our procedures aro capable of detecting irregu18ri1ies, Includlno fraud 15 detai￿d below. The oblecUve¥ of our audit in resp8cI of fraud, are., lo Idvnlfy and a88e88 the rfsks of materfal mlsststgm8nt ol tho 11nancl81 8t&ternent8 duo to fr?ud.. to obtain suffiGient appropriate audrt evid8n¢e reg8rdiTrg the a$8e5sed risks of material mi5St8t8mant due to fraud, throuoh dosSgning 8nd implementing appropriate rfrsponses to those a&8885ed risks.. and lo r8spond approprialety to Inslan¢e$ of fraud or susp8cled fraud Identmed during the audit. However, the pdmary r•$ponslbllityfor thè provènllon ènd det8clbn ol fraud re81s ￿th bolh rnanagernent and thoge ¢h8rged wilh governanco of the charlly. Our approach w8S 8$ follows.. We obtained 8n underslanding of the legal and regul8tory rgqulremgnts appllcabk8 to the charity and consld?red that the MOBI slgnlflcant afe Ihe Charitie8 Act 2011. FRS 102 SORP for Registèred Social Housing Proyidgrs 2018. and th• Accounlln9 Dlr8eUon for Private R8glBtered Provldors ol Socl&l Housing Housing 2019, and UK ffinanclal reportlng stand8rd$ a5 issued by Ihe Flnand81 R6POrting Counal. We obtaln¢d an understanding ol how the charlty eomplies wfth th989 rgqulrements by dlscumlons wllh man9￿ment and th088 chaiged with gov8rnanc•. We ass8ss8d thtr risk of material mis81al8n*nt of the finan¢lBI $t#toThnls, Includlng the risk ol motorfal ml8Stalern•ni du& to fraud and how It m8y occur. by holding dlsousslcns wtth managgrnont and those Charged wlth govom8nce. We inquir•d of menagom•nt and those charged wllh govgman¢e as lo any known knBtan¢8$ 9f non-￿rDpll￿n¢e or susp8￿ed non.complS6nce wrth laws and regul8tKJn8. Based on thls ¢JMder&landlng, wg de8lgned 8pecMc approp￿•1• èudlt pro¢èdureg to Id8nlfy instancos ol non- compllance wlth IBw8 and regulatlons. This In¢hJdad maklng enqulrlos of management *nd th060 chargvd wlth g¢)v•msnca and oblalnlno aLldttlon81 corroberatlve evid8ncg 08 required. There &re Inh•Mnl Ilmila￿on5 In Ihe audlt procedum6 de8crlbad gbov¢, We are less Ilkety to beeomfr 8wAr• ol Insl#nc•B of nonwan¢B for inprovom•nts In mortally rales In Ihg wllh the CMI 2018 vxtended model ￿￿th & lory lerrn annual ralg ol Improv•rn•nl of 1.5%, 8 8moolhlng piramtrter of 7 and in Inl1￿1 addllkn ID rn0rtal￿Y inpmomenlB ol 0.5% pa. Pag8 Nlnot68n BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Employee Infomlatlon Iconvdl Follo￿￿0 the 31 December 2018 v8luBtion. a reGts￿ry plan was put in p18C8 until 31 December 2022 and tha deflcll rocovery contributions p8yabl8 la8 a percentage ol penslonablg 8Upgnés18rg 88 8el out in the lable b&low. % of pon¥lonabl• 8tlp•nd8 January 2018 to 31 D•¢•mbor 2020 J*ntsary 2021 to 31 D•¢•mb•r 2022 Deflcit repalr contrlbulonl 11.9% 7.1% As at 31 Deetmber 2018 th8 defficit recovery contrIbU￿onS und•r tho recovery plan In f￿9 at that Ilme w6re 11.9°A ol penslonable stlpands until December 2025. As at 31 Docombor 2019 gnd 31 Oecember 2020 the d•ficlt rgCOVgry wntrlbutl¢ns under the recovery phn In force wefe a8 8&t OLrt In thè gbova t4ty1e. Fw stsnior offic• holdgrB. p?n85onable 6￿pendS ore adlu$l•d In th& ¢$l¢ulatlon6 by 8 multiple, a8 86t out in th8 8cheme ru￿8. Sodion 28.11A of FRS 102 roqulres agreed defldl reco￿ry poymènis lo ￿ r•cogn18ed 88 a Ilabllbty. The rnDV8ment In the Balanc6 She•l1I8billty Is yèt out in the tak￿6 below. 2021 2020 Balance sh8Ot Ilablllly at 1 Jjnupry 4.000 6,000 D•llclt eontrlbullon pald Remaining thange to the balance sheet Ilablllty. 11,0001 13.0001 13.0001 1.000 8al8nco 8h••l118blllty At 31 De¢grnber Comprl¥g8 ¢hang0 In agreed defidt recovery plan And changè In dl#¢ouni rple and a8siirnplion$ b8tsv8•n ye8r4ndi. This Ilabilily represent6 tho presènt valua ol the delcll contrlbuuons agre8d as al the accounllng dele and has been v8lued uslng Ihe followlng e8gumptlons. In 08nèral, theBe are $01 by reference to the durallon ol Ihe deficll recovery payments but as al 31 December 2021. under accounllng rule8 tho payments are not diBCOUnt8d sinc8 th8 remalning recovery plan Is18ss than 12 months. No pri¢9 inflallon 88sumption16 needed slnc8 p•nsionablg 811p8nés for thè r•maindgr ol the rocovery plan are alr•8dy known. D•c•mb•r 2021 09￿Mb•r 2020 D•e•mbor 2019 Dlscount rnie Prlce Innalion In¢r8a¥g to total penBion8bl• payrc41 0.00% nla -1.5% 0.2% 3.1% 1.6% 1.1%pa 2.8% pa 1.3%p4 The legal 5truclur8 of the Scheme 1$ Such that il onolhor Regponsible Body fails, Brornley & Sheppard's Coll8985 could bg¢)me responslble lor paySng a sh&re ol thot R￿POnSIble Body's pension Ilabllltles. Op•ratlng Id•ll¢StV •uwplu8 2021 2020 Stated aftw charging :. knount8 P8yable to audltorn.. Audit se￿ceS 10,800 10.380 Taxailon Bromley & Shoppard s Co118g8s Charity is a re9islered charfty, 8nd 1$ exèmpt for li8bility lo ¢axaUon on Its Income and capttal gBlns. Page Twenty BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 10. Hou$lng Propgrt19S Bromley Co118g8 Sh8PP8fd'8 College Totsl Cost At 1 January 2021 and 310ecemb8r 2021 1,191019 336,699 1527,718 Deproclallon At 1 January 2021 Charge for thè y8Ar At 31 Dec&mb8r 2021 531.762 24,353 149,908 6,058 681,670 30.411 N8t book valu& carrfed f¢)Trvard Al 31 Deeemb•r 2021 834,904 180,733 815,637 Nel book value cathod fotward At 31 Dec8mber 2020 659,257 186,791 846,048 The orlglnal cost of Iha Jand and bulldlngs IB not known and no Value 1$ attributed Ihereon. A v&luaUon W98 proYié8d In 2004 by Pèl•r L. Coling, FRICS, of Klnlelgh Folkard & Hayward, Ch8rterod Surveyors ol L•on8rd Hou88. 7 Newman Road, Bromlèy BR1 1 RJ. st6ling'A8 ol October 20041 valu8 811 the propertle8 knoym as, 8nd ¢omprlslng, Bromloy and Shgppar(I'¥ College8 on the basls ol the gxl¥bng u39 and wllh vacant possg8slon. in the 8um of £10,920,000 (tèn mllllon nlne hundred and iwenly thousand pouThd$l'. Th? gljove ar• all eomplèlèd hou?In9 propertl88. 11. Inv••tm•nt8 2021 2020 Quoted Inveslmonis M8rk•t valu8 811 January 2021 Sales procaeds 955,837 1260,5961 1,061,485 1230,3591 31, 135,683 Addl1￿)n5 al co81 43,982 9,22 Reallsèd galn on value ol Invoslments Unr88li88d Ibs61198ln on value of inv981mgnl8 Markot valu• 0131 Decernber 2021 13,104 94,399 53 846,726 955,837 Hlstcflc c081 at 31 Dacèmbor 2021 513,143 672,745 All arn UK invg8tmenlg apart from £553,57812020.' £334,5351 relatlng to ovor8•a$ Inv•$tm8nts. 12. D•btOf• 2021 2020 In18nan￿ cont￿￿tiOns. contrAI h•Atiwv4 and 8ervSce ch8rg88 receivable Income T8x rècov8rable Other debtors and prepayments 20,540 885 22,249 634 13,112 30,95 Pag8 T￿nty One BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 13. C￿h and ¢ash gqul¥4l•n 2021 2020 Bink currenl and deposit a￿Ount$ Church of England Financ8 Board deposit fund8 Cash in Hand 52.814 37 342 40,778 302 14. Cr•dltorn: Amount* falllnB due wlthln on• y••r 2021 2020 Trade cradltor8 m¥hou8e As$ocial¢on loans Deferrgd c8pltal grant (note 161 Tax and 90el8198curlty Accru819 16,742 8,558 21,518 8,150 21.518 2.623 69,846 15. Cr•dltor•: Amoun¢* falllng duo •ft•r rnor• than on• ￿lf 2021 2020 Pènslon scheme118bilily (note 71 Deferred capltal grant Inole 181 Almshou88 A980ciation loan8 4,000 560,806 56,750 529,288 51,030 2011 2020 Analy818 of loan8'. R8p8yablé ￿thIrt ong ygar Repayabto In t¥w to flv• y•ar8 Repayable In more than Ilve ye8r8 8.SS8 34,230 16.800 59.588 8,150 20,600 36,150 84.900 Th• Almhous• loan am unmeured IN￿re￿I fr•e loans, repayabh ov•r 10 year6 In 20 slx monthly Inslalm•nt$. As th• loan18 Inloresl freè. the chhrfly18 not Imp8Ct•d by th8 Intgr¥sl R•te 8on¢hmArk Reform. 16. D•f•rr•d caplt•l grants 2021 2020 AI 1 JBnu8ry Ro18088d to Ineomo during the yegr Al 3108¢èmb•r 572,324 21,519 593,842 121,518 2020 2020 Analy819 of grants.. Deferral ￿1th1n one year Deferral In two to five yè4rB Deferral In more than flva y8ars 21,S18 86,072 443.216 21,518 86,072 464,734 Paga Tw8nly Two BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 17. Dg•Sgnat•d Charltabh Fund Propgrty R•6•f4• 2021 2020 Balanc8 at 1 January Tran8fer to Incom8 & Expèndlturg Account Balance at 31 Deeèmb8r 318,189 318,189 18. Sp•clal Ful￿8 2021 2020 R•¢oupmenl Fund Balance al 1 Jlnuary Transfer from Incornè & Expendlture Aceount Tran81er Iromlltol Inv#slrngnl Revaluallon Fund Balanc8 al 3106c8mbèr 179,904 525 30,166 164.033 525 79,904 Th8 Recoupment Fund Is repreBentod by a 6pecffic COIF Inv•$lm$nt ￿th a market v8lu8 èqual to Ihe fvnd baLgnce. 19. Extraordlnary R•p•lr Fund 2021 2020 88lanc8 al 1 Jonuary Tr&n8fèr from Income & Expendlture Aceount Trpn8f8r fromlltol Inv8stmant R•valualion Reserv Balanca at 31 0￿?￿ber 288,328 371,610 5,000 88,282 288,328 187,892 100,438 20. Inv••tm•nt R•valuatlon Fund 2021 2020 A8 al 1 January 345,891 271,$48 Tran8f•r• from Incorne & Exp•ndlbJr8 Aceounl.. Unreall36d k)sse8 fmm pas1 perlod6 now realised on dlsposals of Investments Unr881ised g8in8111083e81 In tha currant ￿Or Transfer Itovfrom Rèeoupmonl Fund Tronsfer Itoyfrorn Extraordin8ry Rtpolr Fund 37,840 94.399 130,1661 187.892 12.434 111,0251 115,3461 88,282 A8 9131 D•c•mber 63S,8S6 345,891 21. A•4ocSat•d Fund• Th8 Colleglan Chaplaln's Fund 1$ 8 $op8ratg fund operAled by thé Coll•gl8ns. It Is nol un(Jer the control of th• Tru8t8e& and is nol Incorporat8d in Ihas• finenclal slatgments. 22. Conllngont Llabllltl•8 Ther8 w8r8 no ¢onllngenl1SablIlt￿s at 31 Dgcgmber 2021. Page Twonty Three