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2022-12-31-accounts

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 2022

BROMLEY & SHEPPARD'S COLLEGES CHARITY INDEX

Page No.

1 to 10 Report of the Trustees 11 to 13 Audit Report 14 Statement of Comprehensive Income 15 Statement of Changes in Reserves 16 Balance Sheet 17 Statement of Cash Flows 18 to 26 Notes to the Financial Statements

BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their report together with the audited financial statements for the year ended 31 December 2022.

Legal and Administrative Information

The charity is registered in the name of Bromley & Sheppard's Colleges Charity.

The Charity's governing instrument is a Charity Commission Scheme Ref. CD (Ldn), 210337/15863 which was sealed on 10 February 1997 and amended on 24 May 2004 to enable the acquisition of Trustee Indemnity Insurance. It was further amended on 26 March 2007 to incorporate Powers of Amendment, the requirement to appoint two elected Collegian Trustees and the facility to appoint non-voting Trustee Advisers where appropriate. A further amendment on 5 December 2018 altered the age eligibility of Co-opted Trustees.

The Charity is also a Registered Social Landlord with number A0352 and a member of The Almshouse Association, registered number 415.

The Trustees are incorporated by means of Certificate of Incorporation issued by the Charity Commission under Section 50 of the Charities Act 1993. The Certificate reference is 325/94, which was sealed on 14 July 1994.

The Trustee body consists of no more than eighteen persons who meet quarterly, to include six Ex-Officio Trustees, not fewer than seven and not more than ten Co-opted Trustees and two Collegian Trustees. The Ex-Officio Trustees have the power to appoint Deputies.

The Ex-Officio Trustees are the holders, for the time being, of the following appointments:

The Archbishop of Canterbury

The Bishop of London

The Bishop of Rochester

The Chancellor of the Diocese of Rochester

The Dean of St Paul's

The Archdeacon of Bromley and Bexley

The Co-Opted Trustees:

Mr Richard Collins (Chairman)

Mr Tony Bentley

Mrs Tina Hill

Mr Christopher Scott

Mrs Lynda Stimson

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BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Mr David Thomas (Treasurer) (appointed 4th May 2022)

Mr John Thorogood

Appointed Deputies:

Mr Peter Morgan FRICS MCIArb (for the Dean of St Paul’s)

Mr Christopher Scott (for the Bishop of Rochester)

Collegian Trustees:

Miss Kathleen Craig

The Revd. George Baisley

Chaplain:

Position vacant (see below)

Clerk to the Trustees:

Mrs Jo Frost

Trustees’ Advisers:

Mr Graham Bradshaw

Mr Martin Lee-Warner

Mr Adrian Tutchings FRICS

Miss Susan Gilder

The registered office of the Charity is The Chaplain's House, Bromley College, London Road, Bromley, Kent, BR1 1PE.

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BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

The Charity's bankers and professional advisers are as follows:-

Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Auditors Moore Kingston Smith LLP Betchworth House 57-65 Station Road Redhill Surrey RH1 1DL Stockbrokers/Investment Advisers Brewin Dolphin Securities Limited 12, Smithfield Street, London. EC1A 9BD.

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BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102‚’The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

Charity law and Housing Association legislation require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for maintaining an adequate system of internal control and keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the accounting requirements of the Charity Commission Schemes dated 10 February 1997 and 24 May 2004, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2015.

They are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website.

Selection and Induction of Trustees

In selecting new Trustees, the primary aim of the existing Trustees is to find people who not only have an interest in the Colleges but also have the knowledge and experience to contribute to or complement the range of skills required to make up an effective Trustee team. Such people are likely to have knowledge of one or more of the legal, financial, social services, health, housing or local and national government fields.

The Trustees regularly assess whether they and those they employ have the right competencies, experience and technical knowledge appropriate to the size, scale and risk profile of the organisation together with the need for further training or succession planning.

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BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Induction programmes include sessions with the Chairman and the Clerk to the Trustees and opportunities to meet the Collegians. Because of the experience required, appointees may already have held other trusteeships but where this is not the case they will also be given briefing on the duties of Trustees.

All Trustees have the opportunity to attend training sessions provided by the Almshouses Association and other relevant bodies.

Historical Background

Bromley College was founded in 1666 by the Will of John Warner, Bishop of Rochester. The first buildings – 20 houses, a chapel, and houses for a Chaplain and a Treasurer – were authorised by Act of Parliament in 1670.

The accommodation was to provide housing for "Twenty poore widowes of orthodoxe and loyall clergiemen".

Twenty more houses were constructed between 1794 and 1805 funded by substantial gifts.

Sheppard's College was founded in 1840 from gifts of Mrs Sheppard, widow of Dr Thomas Sheppard, a Fellow of Magdalen College, Oxford, to make similar provision for the unmarried daughters who had lived with their mothers.

Major modernisation and re-ordering of the buildings took place in the 1970s and 1980s, and again more recently in 2005 to 2007.

Both Colleges are listed buildings: Bromley College - Grade I, Sheppard's College - Grade II*.

Beneficiaries

Charity Commission Schemes in 1974, 1981 and 1997 extended the classes of beneficiary. These now include all retired Clerks in Holy Orders (male and female) of the Churches of England and Ireland, the Church in Wales and the Scottish Episcopal Church and their spouses, together with divorced and separated spouses of such Clerks and unmarried daughters and step-daughters of former Collegians.

Objects and Administration of the Charity

As indicated above, the Charity exists to provide sheltered housing for the beneficiaries as defined in the Governing Instrument. Currently there are forty Collegians' dwellings, one guest flat and two staff dwellings. In addition, there are two separate dwellings which are let on an open market basis.

The Colleges are administered by the Trustees through the permanent members of staff. The Trustees meet at least four times each year and determine overall policy. Sub committees covering finance, fabric and welfare also meet regularly and day-to-day administration is carried out by the Clerk in consultation with the Chairman, Treasurer and Chair of the Fabric Committee. There is a team of five full and part-time staff. In addition to the provision of housing, it is the policy of the Trustees to provide as much support as resources allow and a

5

BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

response to emergencies, without impinging on the independence of the Collegians. Modest use is made of unpaid volunteers. The Collegians benefit from the services of outside voluntary organisations and those provided by Social Services and NHS Care in the Community.

The Trustees have the option of appointing a Chaplain. It was decided on the resignation of the last Chaplain, to reassign the duties of the Chaplain amongst existing staff. A review by the Trustees occurred during 2022. It is not anticipated that a Chaplain would be appointed until the new Bishop of Rochester and the new Archdeacon of Bromley and Bexley, both ex-officio Trustees, are in post.

Public Benefit

The Trustees have regard to the Charity Commission’s guidance on Public Benefit. The purpose of Bromley & Sheppard’s Colleges Charity is to provide sheltered housing for the benefit of poor and ageing clergy of the Church of England, their wives and widows and in certain cases, their children who have given their lives over to the care of their parents.

In serving its purpose, the Charity maintains famous and traditional buildings, dating from the 17th century onwards, with a prominent position in Bromley. The general public visit the site without charge for regular organised events, including the annual Open House. The Chapel within the Colleges is a place of public worship to which any member of the public is welcome.

Achievements and Performance

There was a total of four vacancies during the year and two flats vacant at the year end. It is policy to fill a flat as soon as possible following a vacancy and a small waiting list is maintained to facilitate this.

With the lifting of the pandemic lockdown restrictions of previous years, in 2022 regular meetings between the Collegians and the Trustees have resumed, to enable Collegians to express their views about the facilities provided and any proposed changes.

The Trustees have undertaken a review of their compliance with the Governance and Financial Viability Standard and believe they meet the required Standards as they affect an organisation of their size and nature. Overheads are strictly controlled commensurate with providing a suitable standard of accommodation and service for their tenants and the Trustees are satisfied that the Colleges continue to deliver value for money and make good use of the assets of the Colleges.

Money Metrics

In April 2018 the Regulator of Social Housing (“Regulator”) introduced a set of common metrics, which each provider is required to publish each year. These metrics are considered the most appropriate set of measures to capture performance across the sector in a fair and comparable way.

6

BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Number Metric Value Note
1 Reinvestment % 0 No new properties acquired or
developed
2a New supply (social housing
units) %		 0 No new properties acquired or
developed
2b New supply (non-social
housing units) %		 0 No new properties acquired or
developed
3 Gearing % (4) Cash and cash equivalents exceed
total debt
4 EBITDA MRI interest
cover %		 (67,789) Very low interest charges. MRI =
Major Repairs included
5 Headline Social Housing
Cost £		 8,224 Includes costs associated with the
maintenance of a Grade 1 17th
century building
6a Operating margin (social
housing lettings) %		 (26)
6b Operating margin
(overall) %		 (26) No disposals of properties
7 Return on Capital
Employed %		 (4) Negative due to deficit for the year

Review of 2022

The level of occupancy was 95.3 % (2021‚95.5%) and the average age 78 years (2021, 78). The audited accounts record a deficit for the year to 31 December 2022 of £97,516. (2021, £100,906)

The Trustees have continued their policy of carrying out internal redecoration of flats when they become vacant or on a seven-year cycle, if appropriate. Historically, arrangements have provided for external areas and internal communal areas to be redecorated on a four-year cycle, and other maintenance carried out on an annual basis. However, following a review of necessary remedial work, including improvements in fire safety, an increased level of refurbishment is now in hand which will require utilisation of a significant part of the Extraordinary Repair Fund over the next two years.

Quoted investments are recognised in the Balance Sheet at Market Value.

Movements on reserves are set out in notes 17 to 20 of the financial statements. Details of the reserves are as follows:

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BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

recommence in 2023. At 31 December 2022, the Market Value of the underlying investments representing the Fund stood at £17,943 (2021, £100,436).

During the year,the Trustees continued to take into consideration the effect of Covid 19 on the charity. We have not experienced any difficulty in maintaining occupancy levels. Investment income and returns have not been seriously affected although we recognise they could be impacted by continuing economic uncertainties, especially the continued inflationary pressures.

Investment Policy

An Investment policy to cover all funds /holdings managed on behalf of Bromley & Sheppard’s Colleges requires that Fund Managers seek to achieve a rate of return commensurate with the degree of risk and adhere to the following criteria:

Risk: Medium

Income: As high as is reasonably achievable.

Capital Growth: Desirable, but not at the expense of high income and risk, as defined above.

Excluded Investments: Companies in the arms industry.

Management Policies, Risks and Uncertainties

The Trustees regularly review the risks and uncertainties facing the charity, many of which are concerned with the upkeep of the properties, the safety of residents and visitors given the age of the properties, and the safeguarding of vulnerable adults. Specific management policies are in place to mitigate these risks and these are as follows:

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BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

(i) Housing Management

The housing management policy is to provide an economical, efficient and effective service to the Colleges' residents, with due consideration being given to their physical safety.

(ii) Employment, Training and Advancement of Disabled Persons

We are a small Charity with only a small administrative team. At the present time we have no disabled people in employment, but would honour our equal opportunities policy if the need arose.

(iii) Health, Safety and Welfare at Work of Employees

The Trustees recognise the importance of effective health, safety and welfare for their employees at work. Appropriate policies are in place for the protection of our staff members, the Collegians and visitors to the Colleges.

(iv) Anti-Social Behaviour Policy

The Colleges continue to operate an Anti-Social Behaviour Policy.

(v) Vulnerable Adults

The Trustees recognise the importance of maintaining a vulnerable adults policy and related procedures which are reviewed and confirmed annually.

(vi) Fire Risk Assessment Policy

The Colleges continue to operate a Fire Risk Assessment Policy.

A Full Risk Assessment Policy is in place.

Disclosure of information to auditors

The Trustees have taken all necessary steps to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

As far as the Trustees are aware, there is no relevant audit information that the charity’s auditors are unaware of.

9

BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

On Behalf of the Trustees:

Richard Collins

Chairman

Date: 6[th] June,2023

10

BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE AUDITORS YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of Bromley & Sheppard's Colleges Charity for the year ended 31 December 2022 which comprise the Summary Income and Expenditure Account, the Statement of total Changes in Reserves, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice for Registered Social Housing Providers 2018.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. 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 misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you, if, in our opinion:

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BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE AUDITORS YEAR ENDED 31 DECEMBER 2022

Responsibilities of trustees

As explained more fully in the Trustee's Responsibilities Statement, set out on page 2, the trustees are responsible for the preparation of 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 assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE AUDITORS YEAR ENDED 31 DECEMBER 2022

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

The report is made solely to the charity's trustees, as a body, in accordance with regulations in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Betchworth House 57-65 Station Road Redhill Surrey, RH1 1DL

James Saunders (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP Chartered Accountants Statutory Auditor

Date: 9 June 2023

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

13

BROMLEY & SHEPPARD'S COLLEGES CHARITY STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Turnover
2
Other income
4
Less: operating costs
3
Operating deficit
Interest receivable and investment income
5b
Unrealised gain/ (loss) on investments
11
Deficit and total comprehensive income for the year		 2022
£
319,989
49,615
(425,853)
(56,249)
16,286
(57,553)
(97,516)		 2021
£
310,144
31,541
(569,932)
(228,247)
32,942
94,399
(100,906)

These financial statements were approved by the board of Trustees on 6 June 2023 and signed on its behalf by:

R. Collins Trustee

D. Thomas Trustee

14

BROMLEY & SHEPPARD'S COLLEGES CHARITY STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 DECEMBER 2022

Charitable FundExtraordinary Investment
Note
Property
Repair
Revaluation
Reserve
Fund
Fund
£
£
£
Balance at 1 January 2021
318,189
288,328
345,891
Surplus from Income &
Expenditure Account
-
-
-
Actuarial gain on pension
scheme
7
-
-
-
Transfers
-
(187,892)
289,965
Balance at 31 December 2021
318,189
100,436
635,856
Surplus from Income &
Expenditure Account
-
-
-
Actuarial gain on pension
scheme
7
-
-
-
Transfers
(62,251)
(82,493)
63,215
Balance at 31 December 2022
255,938
17,943
699,071		 Charitable FundExtraordinary Investment
Note
Property
Repair
Revaluation
Reserve
Fund
Fund
£
£
£
Balance at 1 January 2021
318,189
288,328
345,891
Surplus from Income &
Expenditure Account
-
-
-
Actuarial gain on pension
scheme
7
-
-
-
Transfers
-
(187,892)
289,965
Balance at 31 December 2021
318,189
100,436
635,856
Surplus from Income &
Expenditure Account
-
-
-
Actuarial gain on pension
scheme
7
-
-
-
Transfers
(62,251)
(82,493)
63,215
Balance at 31 December 2022
255,938
17,943
699,071		 Charitable FundExtraordinary Investment
Note
Property
Repair
Revaluation
Reserve
Fund
Fund
£
£
£
Balance at 1 January 2021
318,189
288,328
345,891
Surplus from Income &
Expenditure Account
-
-
-
Actuarial gain on pension
scheme
7
-
-
-
Transfers
-
(187,892)
289,965
Balance at 31 December 2021
318,189
100,436
635,856
Surplus from Income &
Expenditure Account
-
-
-
Actuarial gain on pension
scheme
7
-
-
-
Transfers
(62,251)
(82,493)
63,215
Balance at 31 December 2022
255,938
17,943
699,071		 Charitable FundExtraordinary Investment
Note
Property
Repair
Revaluation
Reserve
Fund
Fund
£
£
£
Balance at 1 January 2021
318,189
288,328
345,891
Surplus from Income &
Expenditure Account
-
-
-
Actuarial gain on pension
scheme
7
-
-
-
Transfers
-
(187,892)
289,965
Balance at 31 December 2021
318,189
100,436
635,856
Surplus from Income &
Expenditure Account
-
-
-
Actuarial gain on pension
scheme
7
-
-
-
Transfers
(62,251)
(82,493)
63,215
Balance at 31 December 2022
255,938
17,943
699,071		 Income and
Expenditure Recoupment
Account
Fund
£
£
32,993
179,904
(100,906)
-
3,000
-
(132,764)
30,691		 Income and
Expenditure Recoupment
Account
Fund
£
£
32,993
179,904
(100,906)
-
3,000
-
(132,764)
30,691		 Total
£
1,165,305
(100,906)
3,000
-
318,189
-
-
(62,251)		 100,436
-
-
(82,493)		 635,856
-
-
63,215		 (197,677)
(97,516)
-
101,581		 210,595
-
-
(20,052)		 1,067,399
(97,516)
-
-
255,938 17,943 699,071 (193,612) 190,543 969,883

15

BROMLEY & SHEPPARD'S COLLEGES CHARITY BALANCE SHEET AS AT 31 DECEMBER 2022

Note
Fixed Assets
Tangible fixed assets
10
Investments
11
Current Assets
Debtors
12
Cash and cash equivalents
13
Creditors: Amounts falling due
within one year
14
Net Current (Liabilities)/ Assets
Total Assets Less Current Liabilities
Creditors: Amounts falling due after more than
one year
15
Net assets
Reserves and Special Funds
Designated Reserves
17
Extraordinary Repair Fund
19
Investment Revaluation Fund
20
Income and Expenditure Account
Special Funds
18		 £
£
785,226
707,763
1,492,989
35,494
80,419
115,913
(88,776)
27,137
1,520,126
(550,243)
969,883
255,938
17,943
699,071
(193,612)
190,543
969,883
2022		 £
£
815,637
846,726
1,662,363
30,958
53,193
84,151
(98,797)
(14,646)
1,647,717
(580,318)
1,067,399
318,189
100,436
635,856
(197,677)
210,595
1,067,399
2021		 £
£
815,637
846,726
1,662,363
30,958
53,193
84,151
(98,797)
(14,646)
1,647,717
(580,318)
1,067,399
318,189
100,436
635,856
(197,677)
210,595
1,067,399
2021
1,662,363
(14,646)
1,647,717
(580,318)
1,067,399
318,189
100,436
635,856
(197,677)
210,595
1,067,399

These financial statements were approved by the board of Trustees on 6 June 2023 and signed on its behalf by:

R. Collins

D. Thomas

Trustees

16

BROMLEY & SHEPPARD'S COLLEGES CHARITY STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2022

Notes
Cash generated from operating activities:
Net cash absorbed by operating activities
see below
Cash flows from investing activities:
Purchase of investments
11
Proceeds on disposal of investments
11
Net cash provided by/ (used in) investing activities
Cash flows from financing activities:
Cash inflow from new loan
14,15
Repayment of capital element of loan
14,15
Net cash provided by/ (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
13
Reconciliation of net surplus to net cash flow from operating activities
Net (deficit)/ surplus (per the income and expenditure account)
Adjustments for:
Depreciation charges
10
Release of deferred capital grant
16
Gain on disposal of investments
11
Unrealised (gain)/ loss on investments
11
Pension deficit contributions paid
7
Decrease in debtors
12
(Decrease) / increase in creditors
14,15
Net cash (used in)/ provided by operating activities
At 1 Jan
Cash
2022
flows
Cash and cash equivalents
53,193
27,226
Loans due within one year
(8,558)
8,150
Loans due in more than one year
(51,030)
-
Net cash/(net debt)
(6,395)
35,376		 Notes
Cash generated from operating activities:
Net cash absorbed by operating activities
see below
Cash flows from investing activities:
Purchase of investments
11
Proceeds on disposal of investments
11
Net cash provided by/ (used in) investing activities
Cash flows from financing activities:
Cash inflow from new loan
14,15
Repayment of capital element of loan
14,15
Net cash provided by/ (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
13
Reconciliation of net surplus to net cash flow from operating activities
Net (deficit)/ surplus (per the income and expenditure account)
Adjustments for:
Depreciation charges
10
Release of deferred capital grant
16
Gain on disposal of investments
11
Unrealised (gain)/ loss on investments
11
Pension deficit contributions paid
7
Decrease in debtors
12
(Decrease) / increase in creditors
14,15
Net cash (used in)/ provided by operating activities
At 1 Jan
Cash
2022
flows
Cash and cash equivalents
53,193
27,226
Loans due within one year
(8,558)
8,150
Loans due in more than one year
(51,030)
-
Net cash/(net debt)
(6,395)
35,376		 2022
£
(39,261)
(525)
75,569
75,044
-
(5,312)
(5,312)
27,226
53,193
80,419
2022
£
(97,516)
30,411
(21,518)
6,366
57,553
-
(4,536)
(10,021)
(39,261)
Other
non-cash
changes
-
(8,558)
5,720
(2,838)		 2021
£
(199,227)
(43,982)
260,596
216,614
-
(5,312)
(5,312)
12,075
41,118
53,193
2021
£
(100,906)
30,411
(21,518)
(13,104)
(94,399)
(1,000)
5,037
(3,748)
(199,227)
At 31 Dec
2022
80,419
(8,966)
(45,310)
(6,395)
35,376		 26,143

17

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting Policies

The association is a Registered Social Landlord registered under the Charities Act 2011. The registered address is The Chaplain's House, Bromley College, London Road, Bromley, Kent, BR1 1PE.

The financial statements have been prepared in accordance with applicable law and UK accounting standards (United Kingdom Generally Accepted Accounting Practice) which for Bromley & Sheppard's Colleges Charity includes FRS 102 and the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers and the Accounting Direction for Private Registered Providers of Social Housing 2019.

Bromley & Sheppard's Colleges Charity is a public benefit entity in accordance with FRS 102.

The financial statements are presented in Sterling (£), which is the financial currency of the charity. Monetary amounts in these financial statements are rounded to whole pounds.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the charity's accounting policies.

The following principal accounting policies have been applied:

Basis of Accounting

The financial statements have been prepared on the historical cost basis of accounting, modified to include certain financial instruments at fair value.

Going concern

The trustees have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity’s forecasts and projections. There has been no difficulty maintaining occupancy levels throughout 2022, and investment income and returns have not been seriously affected. The trustees do not expect much change in these conditions and after making enquiries they have therefore concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and meet its liabilities as they fall due, and that there are no material uncertainties about the charity's ability to continue as a going concern. Accordingly, these financial statements have been prepared on the going concern basis.

Turnover

Turnover represents maintenance, central heating, service contributions, Treasurer's house rent and lodge & basement rent receivable.

Housing Properties

The old quadrangle of Bromley College was constructed between 1670 and 1672 and the new quadrangle was constructed between 1782 and 1805. Sheppard's College was constructed around 1840. Although amounts contributed towards the cost of construction of Bromley College are known, there is no reliable record of the construction costs of either Bromley College or Sheppard's College. The housing properties' costs relate to modernisation costs carried out in the mid 1970's on Bromley College and between 1984 and 1986 on Sheppard's College, which were funded by Social Housing Grants (SHG), grants from the Historic Buildings Council, mortgage loans from the Greater London Council and the Housing Corporation and from Bromley and Sheppard's Colleges own resources.

Housing properties are stated at cost less depreciation. Depreciation is charged on the following basis:

Building costs 100 years straight line
Capitalised professional fees, finance charges and equipment 100 years straight line
Chaplain's House 100 years straight line
Lift to common room 30 years straight line
Kitchens and bathrooms 30 years straight line
Pipe lagging and loft insulation 30 years straight line

Other Assets

Other assets are written off to the Income and Expenditure Account in the year in which they are acquired.

Investments

Investments are stated at market value.

18

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

  1. Accounting Policies (cont'd)

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.

Recoverable amount of rental receivables

The charity estimates the recoverable value of rental receivables and impairs the debtor by appropriate amounts. When assessing the amount to impair, it reviews the age profile of the debt, historical collection rates, and the personal circumstances of the debtor.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, and deposits held at call with banks.

Deferred capital grants

Social Housing Grants (SHG's) were paid by Homes England to reduce the cost of development. The SHG's are repayable under certain circumstances, primarily the sale of a property but will normally be restricted to the net proceeds of the sale.

In applying this model, such grants have been presented as deferred income to be recognised over the expected life of the underlying asset.

Cyclical Repairs and Maintenance

Bromley & Sheppard's Colleges has established a regular programme of cyclical repairs and maintenance. Costs are charged to the Revenue Account in the year in which they are incurred.

Extraordinary Repairs

Costs of extraordinary repairs, unless representing improvements to the properties, are charged to the Revenue Account in the year in which they are incurred.

Extraordinary Repair Fund

This fund, previously maintained out of the income of the charity, is established to provide for the extraordinary repair, improvement or rebuilding of the college buildings. From 1999 this is shown as a transfer from General Reserves.

Charitable Fund Property Reserve

This represents the net book value of the tangible fixed assets net of the unamortised amount of deferred capital grants.

Value Added Tax

Bromley & Sheppard's Colleges Charity is not registered for Value Added Tax. In these accounts, where applicable, expenditure is shown inclusive of VAT.

Apportionment of Management Expenses

Finance and administration costs are apportioned between management and service costs based on the estimated amount of time spent by individual staff members on management and services.

Pension Costs

There are currently no employees on the multi-employer defined pension scheme. As information is not available to use defined benefit accounting in accordance with the requirements of FRS 102, the charity accounts for these payments as if it was a defined contribution scheme.

The charity's contribution to this scheme is recognised as a liability and an expense in the period in which the salaries to which the contributions relate are payable.

The charity also recognises its liability in respect of deficit reduction arrangements of the multi-employer defined pension scheme.

19

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting Policies (cont'd)

Special Funds

The sum of £525 is transferred each year to the Recoupment Fund which is invested to recoup the proceeds from the sale of the land which has been utilised in modernisation of the colleges. From 1999 this transfer is made from General Reserves.

Critical accounting estimates and areas of judgement

In the view of the trustees in applying the accounting policies adopted, key judgements were made in respect of the following:

2.

Turnover From Lettings
Maintenance contributions from residents
Central heating charges
Treasurer's house
Lodge rent
Parking donations
Storage areas and guest flats
Less: Losses from voids		 2022
£
250,451
48,152
16,272
12,475
3,394
10,155
340,899
(20,910)
319,989		 2021
£
234,130
47,985
16,272
12,475
8,045
3,750
322,657
(12,513)
310,144

The number of units of social housing accommodation in use during the year was 39 (2021 - 41) and all relates to Social rent for General Needs Housing .

3. Operating Costs from Lettings
Services
Salaries
General and water rates
Insurance
Gas and electricity
Ground works
Other direct costs
Management
Fees and salaries
Audit and accountancy charges
Bank charges
Legal and professional fees
Architect's and suveyor's fees		 £
£
16,222
15,082
17,635
43,697
13,094
281
106,011
-
20,324
111
6,485
-
26,920
2022		 £
£
25,008
11,056
16,772
16,180
13,226
1,308
83,550
9,493
19,000
3,369
11,772
12,830
56,464
2021

20

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

3. Operating Costs from Lettings (Cont'd)

4.
5a.
5b.		 Maintenance
Day to day
41,440
Maintenance officers salary
23,076
Cyclical Maintenance
49,032
Extraordinary
90,699
Operating costs from lettings
Other operating costs (note 5a)
Total operating costs
Summary of Income and Expenditure from lettings
Turnover (note 2)
Operating costs from lettings - as above
Deficit
Other Income
Sundry donations
Legacies
Release of deferred capital grant (note 16)
Other operating costs
Salaries
Telephone, postage and stationery
Computer supplies and support
Founders Day and functions
Office sundries
Chapel sundries
Donations
Chaplain's discretionary & Common room
Chaplain's removal and recruitment costs
Housekeeping and TV
Depreciation
Interest receivable and similar income
Bank interest received
Gain/ (loss) on disposal of investments
Investment income		 204,247
337,178
88,675
425,853
319,989
(337,178)
(17,189)
2022
£
11,695
16,402
21,518
49,615
2022
£
43,284
2,257
2,124
494
2,274
1,074
5,595
-
-
1,162
30,411
88,675
2022
£
207
(6,366)
22,445
16,286		 77,589
27,323
106,246
127,032		 338,190
478,204
91,728
569,932
310,144
(478,204)
(168,060)
2021
£
10,023
-
21,518
31,541
2021
£
42,105
3,499
2,465
1,573
1,425
3,884
2,210
80
3,227
849
30,411
91,728
2021
£
9
13,104
19,829
32,942

21

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

  1. Officers and senior executives emoluments
Officers and senior executives emoluments
Emoluments
Pensions
Highest paid senior executive		 2022
£
32,256
741
32,997
32,997		 2021
£
21,072
2,621
23,693
23,693

Under FRS102, officers and senior executives emoluments includes the emoluments of key management personnel. During 2022 there was one employee who served as a member of key management personnel.

No employees earned more than £60,000 during the year. The Trustees received reimbursed expenses £nil (2021 - £nil) in the year.

Trustee indemnity insurance was effected during the year for which the charity paid a premium of £665 (2021: £665).

There are no current members of the Church of England Funded Pension Scheme.

During the year, the aggregate compensation for loss of office of key management personnel was £nil (2021 - £nil).

7.

Employee information
Staff costs during the year were :-
Wages and salaries
Social security costs
Pension costs		 2022
£
79,812
1,651
1,120
82,583		 2021
£
92,114
2,332
6,484
100,930

The average number of employees during the year was 5 (2021: 6).

Church of England Funded Pensions Scheme

Bromley & Sheppard's Colleges Charity participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme was a defined contribution scheme. The pension costs charged to the Statement of Comprehensive Income in the year are contributions payable towards benefits and accrued in that year, plus any impact of deficit contributions (see below).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out as at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumptions:

• Mortality in accordance with 95% of the S3NA_VL tables, with allowance for improvements in mortality rates in line with the CMI 2018 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% pa.

22

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7. Employee information (Cont'd)

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions payable (as a percentage of pensionable stipends) are as set out in the table below.

% of pensionable stipends January 2018 to January 2021 to
31 December 2020 31 December 2022
Deficit repair contributions 11.9% 7.1%

As at 31 December 2018 the deficit recovery contributions under the recovery plan in force at that time were 11.9% of pensionable stipends until December 2025.

As at 31 December 2019 and 31 December 2020 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the scheme rules.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the Balance Sheet liability is set out in the table below.

Balance sheet liability at 1 January
Deficit contribution paid
Remaining change to the balance sheet liability*
Balance sheet liability at 31 December		 2022
£
-
-
-
-		 2021
£
4,000
(1,000)
(3,000)
-

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. In general, these are set by reference to the duration of the deficit recovery payments but as at 31 December 2022, under accounting rules the payments are not discounted since the remaining recovery plan is less than 12 months. No price inflation assumption is needed since pensionable stipends for the remainder of the recovery plan are already known.

December 2022 December 2021
Discount rate 0.00% 0.00%
Price inflation n/a n/a
Increase to total pensionable payroll -1.5% -1.5%

The legal structure of the scheme is such that if another Responsible Body fails, Bromley & Sheppard's Colleges could become responsible for paying a share of that Responsible Body’s pension liabilities. When a Minor Responsible Body’s last active member leaves service, under a legal agreement in force, the CEFPS pension liabilities which would otherwise have been attributed to the Minor Responsible Body are instead apportioned on a pro rata basis to all the Major Responsible Bodies.

23

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8.
Operating (deficit)/ surplus
is stated after charging :-
Amounts payable to auditors:
Audit services		 2022
£
11,760		 2021
£
10,800

9. Taxation

Bromley & Sheppard's Colleges Charity is a registered charity, and is exempt for liability to taxation on its income and capital gains.

10. Housing Properties

Cost
At 1 January 2022 and 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value carried forward
At 31 December 2022
Net book value brought forward
At 31 December 2021		 Bromley
College
£
1,191,019
556,115
24,353
580,468
610,551
634,904		 Sheppard's
College
£
336,699
155,966
6,058
162,024
174,675
180,733		 Total
£
1,527,718
712,081
30,411
742,492
785,226
815,637

The original cost of the land and buildings is not known and no value is attributed thereon. A valuation was provided in 2004 by Peter L. Coling, FRICS, of Kinleigh Folkard & Hayward, Chartered Surveyors of Leonard House, 7 Newman Road, Bromley BR1 1RJ, stating "As of October 2004 I value all the properties known as, and comprising, Bromley and Sheppard's Colleges on the basis of the existing use and with vacant possession, in the sum of £10,920,000 (ten million nine hundred and twenty thousand pounds)".

The above are all completed housing properties.

11. Investments

Investments
Quoted investments
Market value at 1 January 2022
Sales proceeds
Additions at cost
Realised gain/(loss) on value of investments
Unrealised gain/(loss) on value of investments
Market value at 31 December 2022
Historic cost at 31 December 2022		 2022
£
846,726
(75,569)
771,157
525
771,682
(6,366)
(57,553)
707,763
453,082		 2021
£
955,837
(260,596)
695,241
43,982
739,223
13,104
94,399
846,726
513,143

All are UK investments apart from £339,003 (2021: £533,578) relating to overseas investments.

24

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

12. Debtors
Maintenance contributions, central heating and service
Charges receivable
Income Tax recoverable
Other debtors and prepayments
13. Cash and cash equivalents
Bank current and deposit accounts
Church of England Finance Board deposit funds
Cash in Hand
14. Creditors: Amounts falling due within one year
Trade creditors
Almshouse Association loans
Tax and social security
Accruals
Deferred capital grant (note 16)
Total
15. Creditors: Amounts falling due after more than one year
Deferred capital grant (note 16)
Almshouse Association loans
Analysis of loans:
Repayable within one year
Repayable in two to five years
Repayable in more than five years		 2022
£
24,019
739
10,736
35,494
2022
£
80,045
-
374
80,419
2022
£
-
8,558
761
57,939
67,258
21,518
88,776
2022
£
507,770
42,473
550,243
2022
8,558
34,230
8,242
51,030		 2021
£
20,540
885
9,533
35,995
2021
£
52,814
37
342
53,193
2021
£
16,742
8,558
944
51,035
77,279
21,518
98,797
2021
£
529,288
51,030
580,318
2021
8,558
34,230
16,800
59,588

The Almhouse loan are unsecured interest free loans, repayable over 10 years in 20 six monthly instalments. As the loan is interest free, the charity is not impacted by the Interest Rate Benchmark Reform.

16. Deferred capital grants
At 1 January
Released to income during the year
At 31 December		 2022
£
550,806
(21,518)
529,288		 2021
£
572,324
(21,518)
550,806

25

BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16. Deferred capital grants (contniued)

Analysis of grants:
Deferral within one year
Deferral in two to five years
Deferral in more than five years
17.Designated Reserves
Charitable Fund Property Reserve
Balance at 1 January
Transfer to Income & Expenditure Account
Balance at 31 December
18.Special Funds
Recoupment Fund
Balance at 1 January
Transfer from Income & Expenditure Account
Transfer from/(to) Investment Revaluation Fund
Balance at 31 December		 2022
£
318,189
(62,251)
255,938
2022
£
210,595
525
(20,577)
190,543		 2022
£
21,518
86,072
421,698
529,288		 2021
£
21,518
86,072
443,216
550,806
2021
£
318,189
-
318,189
2021
£
179,904
525
30,166
210,595

The Recoupment Fund is represented by a specific COIF investment with a market value equal to the fund balance.

19.Extraordinary Repair Fund
Balance at 1 January
Transfer from Income & Expenditure Account
Transfer from/(to) Investment Revaluation Reserve
Balance at 31 December
20.Investment Revaluation Fund
As at 1 January
Transfers from Income & Expenditure Account:
Unrealised losses from past periods
Now realised on disposals of investments
Unrealised gains/(losses) in the current year
Transfer (to)/from Recoupment Fund
Transfer (to)/from Extraordinary Repair Fund
As at 31 December		 2022
£
100,436
-
(82,493)
17,943
2022
£
635,856
-
18,471
(58,326)
20,577
82,493
699,071		 2021
£
288,328
-
(187,892)
100,436
2021
£
345,891
-
37,840
94,399
(30,166)
187,892
635,856

21. Associated Funds

The Collegian Chaplain's Fund is a separate fund operated by the Collegians. It is not under the control of the Trustees and is not incorporated in these financial statements.

22. Contingent Liabilities

There were no contingent liabilities at 31 December 2022.

26