BROMLEY & SHEPPARD'S COLLEGES CHARITY Registered Charity Number 210337 Registered Social Landlord Number A0352 

TRUSTEES' REPORT AND UNAUDITED FINANCIAL STATEMENTS 

FOR THE YEAR ENDED 

31 DECEMBER 2023 



**BROMLEY & SHEPPARD'S COLLEGES CHARITY INDEX** 

|Page No.||
|---|---|
|1 to 9|Report of the Trustees|
|10|Independent Examiner's Report|
|11|Statement of Comprehensive Income|
|12|Statement of Changes in Reserves|
|13|Balance Sheet|
|14|Statement of Cash Flows|
|15 to 23|Notes to the Financial Statements|





BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES 

FOR THE YEAR ENDED 31 DECEMBER 2023 

The Trustees present their report together with the financial statements for the year ended 31[st] December 2023. 

## **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[th] February 1997 and amended on 24[th] 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. The Governing Instrument was further revised on 28[th] November 2018. 

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[th] 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 Mr David Thomas (Treasurer) 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) 

1 



BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES 

## FOR THE YEAR ENDED 31 DECEMBER 2023 

Collegian Trustees: Miss Kathleen Craig The Revd. George Baisley 

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. 

## **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 

Accounting advisers and Independent Examiners 

Stockbrokers and Investment Advisers 

Moore Kingston Smith LLP 6[th] Floor, 9 Appold Street London EC2A 2AP Brewin Dolphin Securities Limited 12 Smithfield Street, London EC1A 9BD. 

2 



BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES 

FOR THE YEAR ENDED 31 DECEMBER 2023 

## **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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business; and 

- satisfy themselves on an annual basis that they are compliant with the standards issued by the Regulator of Social Housing (the “Regulator”). 

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 Governing Instrument, 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. 

## **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 keep under review 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. Trustees themselves have the opportunity to attend training sessions provided by the 

3 



BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES 

FOR THE YEAR ENDED 31 DECEMBER 2023 

Almshouses Association and other relevant bodies, and any new trustees are inducted to the role as necessary. 

## **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 legal partners, together with divorced and separated legal partners of such Clerks and some unmarried children and step-children of deceased 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 full- and part-time staff (four in total for most of 2023). In addition to the provision of housing, it is the policy of the Trustees to provide as much support as resources allow and a response to emergencies, without impinging on the independence of the Collegians. Modest use is made of unpaid volunteers. The Collegians may also benefit from the services of outside voluntary organisations and those provided by Social Services and NHS Care in the Community. 

4 



BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES 

## FOR THE YEAR ENDED 31 DECEMBER 2023 

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 of these arrangements by the Trustees occurred during 2022.  A recruitment process has begun to find a new Chaplain and, subject to finding a suitable candidate, an appointment is expected to be made in 2024. 

## **Public Benefit** 

The Trustees have regard to the Charity Commission’s guidance on Public Benefit.  The purpose of the Charity is to provide sheltered housing for the beneficiaries in accordance with the Governing Instrument. 

In serving its purpose, the Charity maintains famous and traditional 17[th] and 19[th] century buildings with a prominent position in Bromley. The  general public visit the site without charge for regular organised events, including the annual Open House. 

## **Achievements and Performance** 

There was a total of 4 vacancies during the year and one flat 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. 

There are regular meetings between the Collegians and the Trustees to enable Collegians to express their views about the facilities provided and any proposed changes. 

The Regulator publishes three economic standards which apply to the Charity as a provider of social housing.  There is a Governance and Financial Viability Standard, a Rent Standard and a Value for Money Standard. The Trustees believe they meet these required standards as they affect an organisation of the size and nature of the Charity. 

5 



BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 

## **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. 

|**Number**|**Metric**|**Value**|**Note**|
|---|---|---|---|
|1|Reinvestment %|0|No new properties<br>acquired or developed|
|2a|New supply (social<br>housing units) %|0|No new properties<br>acquired or developed|
|2b|New supply (non-social<br>housing units) %|0|No new properties<br>acquired or developed|
|3|Gearing %|0|Cash and cash<br>equivalents exceed<br>total debt|
|4|EBITDA MRI interest<br>cover %|(23,094)|Very low interest<br>charges. MRI = Major<br>Repairs included|
|5|Headline Social<br>Housing Cost £|8,578|Includes costs<br>associated with the<br>maintenance of a<br>Grade 1 17thcentury<br>building|
|6a|Operating margin<br>(social housing<br>lettings) %|(8.7)||
|6b|Operating margin<br>(overall) %|(8.7)|No disposals of<br>properties|
|7|Return on Capital<br>Employed %|(1)|Negative due to deficit<br>for the year|



## **Review of 2023** 

The level of occupancy was 95.9 % (2022‚ 95.3%) and the average age of Collegians 78 years (2022, 78 years). The accounts record an operating deficit for the year to 31 December 2023 of (£14,164) (2022, deficit (£56,249)), but an overall surplus for the year to 31 December 2023 of £46,143 (2022, deficit £(97,516)). 

6 



BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES 

FOR THE YEAR ENDED 31 DECEMBER 2023 

The Trustees have a rolling programme of maintenance, renewal and redecoration of external and internal communal areas, and refurbishment and redecoration of flats is attended to when vacancies occur. 

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: 

- In accordance with the Governing Instrument , the Trustees maintain an Extraordinary Repair Fund (ERF) to which transfers were made during 2023.  At 31 December 2023, the market value of the investments representing the ERF stood at £25,505 (2022, £17,943). 

- The Governing Instrument also provides for the Trustees to contribute an annual amount of £525 to a Recoupment Fund until 23 September 2041 in accordance with the terms of a Charity Commission Scheme dated 23 September 1981. At 31 December 2023 £22,050 had been contributed in this way and the market value of the investments representing the Recoupment Fund was £215,419 (2022, £190,543). 

- The Designated Reserve, the Charitable Fund Property Reserve, represents the net book value of the tangible fixed assets net of the unamortised amount of deferred capital grants. This designation arises as, in the opinion of the Trustees, this amount does not represent free reserves of the Charity. 

- The free reserves are represented by the Income and Expenditure account, the Investment Revaluation Fund and the ERF which total £553,561 at 31 December 2023 (2022, £523,402).  However, the Trustees do not believe that the level of free reserves held is excessive in the context of the need to maintain the listed buildings and the considerable uncertainties surrounding the costs of doing so. 

## **Investment Policy** 

The Trustees keep under review investment  policy to cover all funds /holdings managed on behalf of Bromley & Sheppard’s Colleges. During 2023 a formal review of investment advice was conducted with the Charity’s investment adviser Brewin Dolphin. 

That review confirmed that Trustees seek sustainable and growing income from the investment portfolio, and that to reflect the nature of risks faced by the Charity, a long time horizon for investment is appropriate. The investment strategy does not aim to provide assured liquidity within this long-term portfolio. 

The portfolio, including the ERF but not the Recoupment Fund, is classified by their investment manager as “category 6” for risk allocation.  The Recoupment Fund, mandated to be invested solely in the COIF Charities Investment Fund, is considered “category 7”. 

In a category 6 portfolio typically two thirds of value will be held in internationally diversified equity risks, and in a category 7 portfolio the proportion of long term equity holdings will be higher still. 

7 



BROMLEY & SHEPPARD'S COLLEGES CHARITY REPORT OF THE TRUSTEES 

FOR THE YEAR ENDED 31 DECEMBER 2023 

## **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 include as follows: 

## **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. 

## **Financial Spending and Payments Delegation of Authority Policy** 

This delegates authorities to incur expenditures of various kinds and to authorise and make payments.  All spending authority not specifically delegated is reserved to the Trustees as a body. 

## **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. 

## **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. 

## **Anti-Social Behaviour Policy** 

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

## **Vulnerable Adults Policy** 

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

## **Fire Risk Assessment Policy** 

The Colleges continue to operate a Fire Risk Assessment Policy. 

## **Full Risk Assessment Policy** 

A Full Risk Assessment Policy is in place. 

8 



BROMLEY & SHEPPARD'S COLLEGES CHARITY
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 DECEMBER 2023
On Behalf of the Trustees:
Ri(*ard Collins
ChaiM￿n
Date: g t4 M '￿ 2024

## INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF BROMLEY & SHEPPARD'S COLLEGES CHARITY 

I report to the charity trustees on my examination of the accounts of Bromley & Sheppard's Colleges Charity for the year ended 31 December 2023. 

## Responsibilities of Trustees and Examiner 

The charity's trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). 

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. 

## Independent Examiner's Statement 

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of the ACCA, which is one of the listed bodies. 

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 

- 1) accounting records were not kept in respect of the Charity as required by section 130 of the Act; or 

- 2) the accounts do not accord with those records; or 

- 3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 


## James Saunders FCCA, DChA For and on behalf of Moore Kingston Smith LLP Chartered Accountants 

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

Date: 17 May 2024 

10 



BROMLEY & SHEPPARD'S COLLEGES CHARITY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
Not•
2023
2022
Turnover
347,943
319,989
Other in¢x)rr
37.738
49,615
Less.. opwating Ix)3ts
{3g9.A451
1425.8531
OFeratiro defiut
{14,1641
{56.2491
Intérest r￿l¥able investm￿* Incomg
5b
22.331
16.286
Unrèdisad ganl Ibssl on investrnenls
37,976
157,5531
surplusllo•f￿ltI •nd total comprehenslw ineom• for the ￿01
46,143
97.516
These finanaal stst8m8nts we 8pprov&J ty the board of Trustee5 on
signed on *ts behalf by..
3tL
and
R. Collins
Trustee
D. Thoma5
Trustee
11

## **BROMLEY & SHEPPARD'S COLLEGES CHARITY STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 DECEMBER 2023** 

|**Charitable FundExtraordinary Investment **<br>**Note**<br>**Property**<br>**Repair**<br>**Revaluation**<br>**Reserve**<br>**Fund**<br>**Fund**<br>**£**<br>**£**<br>**£**<br>Balance at 1 January 2022<br>318,189<br>100,436<br>635,856<br>Deficit from Income &<br>Expenditure Account<br>-<br>-<br>-<br>Actuarial gain on pension<br>scheme<br>7<br>-<br>-<br>-<br>Transfers<br>(62,251)<br>(82,493)<br>63,215<br>**Balance at 31 December 2022**<br>255,938<br>17,943<br>699,071<br>Surplus from Income &<br>Expenditure Account<br>-<br>-<br>-<br>Actuarial gain on pension<br>scheme<br>7<br>-<br>-<br>-<br>Transfers<br>(8,892)<br>7,562<br>11,102<br>**Balance at 31 December 2023**<br>247,046<br>25,505<br>710,173|**Charitable FundExtraordinary Investment **<br>**Note**<br>**Property**<br>**Repair**<br>**Revaluation**<br>**Reserve**<br>**Fund**<br>**Fund**<br>**£**<br>**£**<br>**£**<br>Balance at 1 January 2022<br>318,189<br>100,436<br>635,856<br>Deficit from Income &<br>Expenditure Account<br>-<br>-<br>-<br>Actuarial gain on pension<br>scheme<br>7<br>-<br>-<br>-<br>Transfers<br>(62,251)<br>(82,493)<br>63,215<br>**Balance at 31 December 2022**<br>255,938<br>17,943<br>699,071<br>Surplus from Income &<br>Expenditure Account<br>-<br>-<br>-<br>Actuarial gain on pension<br>scheme<br>7<br>-<br>-<br>-<br>Transfers<br>(8,892)<br>7,562<br>11,102<br>**Balance at 31 December 2023**<br>247,046<br>25,505<br>710,173|**Charitable FundExtraordinary Investment **<br>**Note**<br>**Property**<br>**Repair**<br>**Revaluation**<br>**Reserve**<br>**Fund**<br>**Fund**<br>**£**<br>**£**<br>**£**<br>Balance at 1 January 2022<br>318,189<br>100,436<br>635,856<br>Deficit from Income &<br>Expenditure Account<br>-<br>-<br>-<br>Actuarial gain on pension<br>scheme<br>7<br>-<br>-<br>-<br>Transfers<br>(62,251)<br>(82,493)<br>63,215<br>**Balance at 31 December 2022**<br>255,938<br>17,943<br>699,071<br>Surplus from Income &<br>Expenditure Account<br>-<br>-<br>-<br>Actuarial gain on pension<br>scheme<br>7<br>-<br>-<br>-<br>Transfers<br>(8,892)<br>7,562<br>11,102<br>**Balance at 31 December 2023**<br>247,046<br>25,505<br>710,173|**Charitable FundExtraordinary Investment **<br>**Note**<br>**Property**<br>**Repair**<br>**Revaluation**<br>**Reserve**<br>**Fund**<br>**Fund**<br>**£**<br>**£**<br>**£**<br>Balance at 1 January 2022<br>318,189<br>100,436<br>635,856<br>Deficit from Income &<br>Expenditure Account<br>-<br>-<br>-<br>Actuarial gain on pension<br>scheme<br>7<br>-<br>-<br>-<br>Transfers<br>(62,251)<br>(82,493)<br>63,215<br>**Balance at 31 December 2022**<br>255,938<br>17,943<br>699,071<br>Surplus from Income &<br>Expenditure Account<br>-<br>-<br>-<br>Actuarial gain on pension<br>scheme<br>7<br>-<br>-<br>-<br>Transfers<br>(8,892)<br>7,562<br>11,102<br>**Balance at 31 December 2023**<br>247,046<br>25,505<br>710,173|**Income and**<br>**Expenditure Recoupment**<br>**Account**<br>**Fund**<br>**£**<br>**£**<br>(197,677)<br>210,595<br>(97,516)<br>-<br>-<br>-<br>101,581<br>(20,052)|**Income and**<br>**Expenditure Recoupment**<br>**Account**<br>**Fund**<br>**£**<br>**£**<br>(197,677)<br>210,595<br>(97,516)<br>-<br>-<br>-<br>101,581<br>(20,052)|**Total**<br>**£**<br>1,067,399<br>(97,516)<br>-<br>-|
|---|---|---|---|---|---|---|
||255,938<br>-<br>-<br>(8,892)|17,943<br>-<br>-<br>7,562|699,071<br>-<br>-<br>11,102|(193,612)<br>46,143<br>-<br>(34,648)|190,543<br>-<br>-<br>24,876|969,883<br>46,143<br>-<br>-|
||247,046|25,505|710,173|(182,117)|215,419|1,016,026|



12 



BROMLEY & SHEPPARD'5 COLLEGES CHARITY
BALANCE SHEET
AS AT 31 DECEMBER 2023
2023
2022
Flx•d Ass•ts
TaThJible fix•J assets
Investments
10
11
754,815
746 284
1.501,099
785226
707 763
1.492.989
Curnnt A•Mts
DeDtors
Cash and cash 4uival8nts
12
13
44.238
35.494
98.899
115,913
Credltorn: Amounts falllny d
wlthln om >••r
63.80S
88.776
N•t Current ILia>ilili•syAsS•ts
Tota As5•ts L•ss Curr•nt Li•biliti
35.094
1,536.193
27.137
1,520,126
Cr9d￿018.. falllrwJ du• aft•r mor• th
>•ar
15
1520,1071
1550,2431
1.016.028
R•wrve8 and Special Funds
Des[g￿ted Reserv8S
Extraordtnary RepairFund
Investment Revaluati￿ Fund
Inctme aThl Exp*ThJSknJre A¢o)wt
Sp¥ial Funds
17
19
247.046
25.505
710,173
1182,1171
215419
1.016,026
255.938
17.943
699,071
1193.6121
190.543
969.883
18
These finandal slatwnents were approv•a by Ih8 b)3rd of Truste85 Cll
on its b8half by..
R. Cdllns
D. Thomas
Tru5188s
13

## **BROMLEY & SHEPPARD'S COLLEGES CHARITY STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2023** 

|**Notes**<br>**2023**<br>**£**<br>**Cash generated from operating activities:**<br>Net cash absorbed by operating activities<br>see below<br>(16,655)<br>**Cash flows from investing activities:**<br>Purchase of investments<br>11<br>(5,525)<br>Proceeds on disposal of investments<br>11<br>4,980<br>**Net cash provided by/ (used in) investing activities**<br>**(545)**<br>**Cash flows from financing activities:**<br>Cash inflow from new loan<br>14,15<br>-<br>Repayment of capital element of loan<br>14,15<br>(8,558)<br>**Net cash provided by/ (used in) financing activities**<br>**(8,558)**<br>Change in cash and cash equivalents in the reporting period<br>(25,758)<br>**Cash and cash equivalents at the beginning of the reporting period**<br>**80,419**<br>**Cash and cash equivalents at the end of the reporting period**<br>13<br>**54,661**<br>**Reconciliation of net surplus to net cash flow from operating activities**<br>**2023**<br>**£**<br>**Net (deficit)/ surplus (per the income and expenditure account)**<br>**46,143**<br>**Adjustments for:**<br>Depreciation charges<br>10<br>30,411<br>Release of deferred capital grant<br>16<br>(21,518)<br>Gain on disposal of investments<br>11<br>-<br>Unrealised (gain)/ loss on investments<br>11<br>(37,976)<br>Pension deficit contributions paid<br>7<br>-<br>Decrease in debtors<br>12<br>(8,744)<br>(Decrease) / increase in creditors<br>14,15<br>(24,971)<br>**Net cash (used in)/ provided by operating activities**<br>**(16,655)**<br>At 1 Jan<br>Cash<br>Other<br>2023<br>flows<br>non-cash<br>changes<br>Cash and cash equivalents<br>80,419<br>(25,758)<br>-<br>Loans due within one year<br>(8,966)<br>8,966<br>(8,558)<br>Loans due in more than one year<br>(45,310)<br>-<br>8,558<br>Net cash/(net debt)<br>26,143<br>(16,792)<br>-|**2022**<br>**£**<br>(39,261)<br>(525)<br>75,569|
|---|---|
||**75,044**|
||-<br>(8,558)|
||**(8,558)**|
||27,226<br>**53,193**|
||**80,419**|
||**2022**<br>**£**<br>**(97,516)**<br>30,411<br>(21,518)<br>6,366<br>57,553<br>-<br>(4,536)<br>(10,021)|
||**(39,261)**|
||At 31 Dec<br>2023<br>54,661<br>(8,558)<br>(36,752)|
||9,351|



14 



## **BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## 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 2023, 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. 

15 



**BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

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. 

16 



**BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## 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 the Income & Expenditure Account. 

## **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: 

- The expected useful life of fixed assets: the assets were broken down into components, and the useful economic life of each component has been assessed. During this assessment, the trustees considered the nature of the underlying assets acquired, the historic nature of the buildings, and the on-going programme of repair and maintenance. 

- The amortisation period of the deferred capital grants: the grants were split into separate amounts, each of which relate directly to an underlying component of fixed asset. The amortisation of the grants then follow the useful economic life of the underlying asset. 

- The Trustees' estimate of the defined benefit obligation is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the liability and the annual defined expenses (as analysed in Note 7). The net defined benefit pension liability at 31 December 2023 was £nil. 

|2.<br>**Turnover From Lettings**<br>Maintenance contributions from residents<br>Central heating charges<br>Treasurer's house<br>Lodge rent<br>Parking donations<br>Storage areas and guest flats<br>Less: Losses from voids|**2023**<br>**£**<br>267,609<br>55,080<br>13,033<br>12,475<br>2,528<br>11,945<br>362,670<br>(14,727)<br>347,943|**2022**<br>**£**<br>250,451<br>48,152<br>16,272<br>12,475<br>3,394<br>10,155|
|---|---|---|
|||340,899<br>(20,910)|
|||319,989|



The number of units of social housing accommodation in use during the year was 39 (2022 - 39) and all relates to Social rent for General Needs Housing. 

## 3. 

|**Operating Costs from Lettings**<br>Services<br>Salaries<br>General and water rates<br>Insurance<br>Gas and electricity<br>Grounds works<br>Other direct costs<br>Management<br>Fees and salaries<br>Audit and accountancy charges<br>Bank charges<br>Legal and professional fees<br>Architect's and suveyor's fees|**£**<br>**£**<br>28,363<br>14,633<br>20,260<br>85,560<br>20,021<br>282<br>169,119<br>33,966<br>14,250<br>88<br>5,344<br>-<br>53,648<br>**2023**|**£**<br>**£**<br>16,222<br>15,082<br>17,635<br>43,697<br>13,094<br>281<br>106,011<br>-<br>20,324<br>111<br>6,485<br>-<br>26,920<br>**2022**|
|---|---|---|



17 



## **BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## 3. **Operating Costs from Lettings (Cont'd)** 

|4.<br>5a. <br>5b.|Maintenance<br>Reactive Maintenance<br>54,438<br>Maintenance officers salary<br>19,441<br>Service Contracts<br>8,676<br>Planned Capital Projects<br>46,358<br>Operating costs from lettings<br>Other operating costs (note 5a)<br>Total operating costs<br>Summary of Income and Expenditure from lettings<br>Turnover (note 2)<br>Operating costs from lettings - as above<br>Deficit<br>**Other Income**<br>Sundry donations<br>Legacies<br>Release of deferred capital grant (note 16)<br> **Other operating costs**<br>Salaries<br>Telephone, postage and stationery<br>Computer supplies and support<br>Founders Day and functions<br>Office sundries<br>Subscriptions<br>Chapel sundries<br>Donations<br>Training courses and retreat fees<br>Chaplain's removal and recruitment costs<br>Housekeeping and TV<br>Depreciation<br> **Interest receivable and similar income**<br>Bank interest received<br>Gain/ (loss) on disposal of investments<br>Investment income|128,913<br>351,680<br>48,165<br>399,845<br>347,943<br>(351,680)<br>(3,737)<br>**2023**<br>**£**<br>16,220<br>-<br>21,518<br>37,738<br>**2023**<br>**£**<br>-<br>2,822<br>2,488<br>496<br>389<br>1,013<br>4,033<br>3,788<br>526<br>954<br>1,245<br>30,411<br>48,165<br>**2023**<br>**£**<br>1,168<br>-<br>21,163<br>22,331|41,440<br>23,076<br>49,032<br>90,699|204,247|
|---|---|---|---|---|
|||||337,178<br>88,675|
|||||425,853|
|||||319,989<br>(337,178)|
|||||(17,189)|
|||||**2022**<br>**£**<br>11,695<br>16,402<br>21,518|
|||||49,615|
|||||**2022**<br>**£**<br>43,284<br>2,257<br>2,124<br>494<br>2,274<br>-<br>1,074<br>5,595<br>-<br>-<br>1,162<br>30,411|
|||||88,675|
|||||**2022**<br>**£**<br>207<br>(6,366)<br>22,445|
|||||16,286|



18 



## **BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

6. **Officers and senior executives emoluments** 

|**Officers and senior executives emoluments**|||
|---|---|---|
|Emoluments<br>Pensions<br>Highest paid senior executive|**2023**<br>**£**<br>33,000<br>803<br>33,803<br>33,803|**2022**<br>**£**<br>32,256<br>741|
|||32,997|
|||32,997|



Under FRS102, officers and senior executives emoluments includes the emoluments of key management personnel. During 2023 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 (2022 - £nil) in the year. 

Trustee indemnity insurance was effected during the year for which the charity paid a premium of £666 (2022: £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 (2022 - £nil). 

|7.<br>**Employee information**<br>Staff costs during the year were :-<br>Wages and salaries<br>Social security costs<br>Pension costs|**2023**<br>**£**<br>80,170<br>277<br>1,323<br>81,770|**2022**<br>**£**<br>79,812<br>1,651<br>1,120|
|---|---|---|
|||82,583|



The average number of employees during the year was 4 (2022: 5). 

## **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 2021.  The 2021 valuation revealed a surplus of £560m, based on assets of £1,818m and a funding target of £2,160m, assessed using the following assumptions: 

- An average discount rate of 2.7% p.a.; 

- RPI inflation of 3.6% p.a. (and pension increases consistent with this); 

- Increase in pensionable stipends of RPI less 0.8% p.a. pre-2030; and 

• Mortality in accordance with 90% of the S3 base tables, with allowance for  improvements in mortality rates in line with the CMI 2020 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. 

19 



## **BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## 7. **Employee information (Cont'd)** 

Following the 31 December 2021 valuation, a recovery plan was no longer needed as there is now a surplus. 

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. 

## 8. 

|**Operating (deficit)/ surplus**<br>is stated after charging :-<br>Amounts payable to auditors:<br>Audit services<br>Independent examination|**2023**<br>**£**<br>-<br>5,400|**2022**<br>**£**<br>11,760<br>-|
|---|---|---|



## 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<br>At 1 January 2023 and 31 December 2023<br>Depreciation<br>At 1 January 2023<br>Charge for the year<br>At 31 December 2023<br>Net book value carried forward<br>At 31 December 2023<br>Net book value brought forward<br>At 31 December 2022|**Bromley**<br>**College**<br>**£**<br>1,191,019<br>580,468<br>24,353<br>604,821<br>586,198<br>610,551|**Sheppard's**<br>**College**<br>**£**<br>336,699<br>162,024<br>6,058<br>168,082<br>168,617<br>174,675|**Total**<br>**£**<br>1,527,718|
|---|---|---|---|
||||742,492<br>30,411|
||||772,903|
||||754,815|
||||785,226|



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. 

20 



## **BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

|11. **Investments**<br>Quoted investments<br>Market value at 1 January 2023<br>Sales proceeds<br>Additions at cost<br>Realised gain/(loss) on value of investments<br>Unrealised gain/(loss) on value of investments<br>Market value at 31 December 2023<br>Historic cost at 31 December 2023|**2023**<br>**£**<br>707,763<br>(4,980)<br>702,783<br>5,525<br>708,308<br>-<br>37,976<br>746,284<br>456,298|**2022**<br>**£**<br>846,726<br>(75,569)|
|---|---|---|
|||771,157<br>525|
|||771,682<br>(6,366)<br>(57,553)|
|||707,763|
|||453,082|



All are UK investments apart from £458,912 (2022: £339,003) relating to overseas investments. 

|12. **Debtors**<br>Maintenance contributions, central heating and service<br>Charges receivable<br>Income Tax recoverable<br>Other debtors and prepayments<br>13. **Cash and cash equivalents**<br>Bank current and deposit accounts<br>Cash in Hand<br>14. **Creditors: Amounts falling due within one year**<br>Trade creditors<br>Almshouse Association loans<br>Tax and social security<br>Accruals<br>Deferred capital grant (note 16)<br>Total|**2023**<br>**£**<br>26,561<br>-<br>17,677<br>44,238<br>**2023**<br>**£**<br>53,720<br>941<br>54,661<br>**2023**<br>**£**<br>-<br>8,558<br>1,564<br>32,165<br>42,287<br>21,518<br>**63,805**|**2022**<br>**£**<br>24,019<br>739<br>10,736|
|---|---|---|
|||35,494|
|||**2022**<br>**£**<br>80,045<br>374|
|||80,419|
|||**2022**<br>**£**<br>-<br>8,558<br>761<br>57,939|
|||67,258|
|||21,518|
|||**88,776**|



21 



## **BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## 15. **Creditors: Amounts falling due after more than one year** 

|**Creditors: Amounts falling due after more than one year**<br>Deferred capital grant (note 16)<br>Almshouse Association loans<br>Analysis of loans:<br>Repayable within one year<br>Repayable in two to five years<br>Repayable in more than five years|**2023**<br>**£**<br>486,252<br>33,915<br>520,167<br>**2023**<br>8,558<br>33,915<br>-<br>42,473|**2022**<br>**£**<br>507,770<br>42,473|
|---|---|---|
|||550,243|
|||**2022**<br>8,558<br>34,230<br>8,242|
|||51,030|



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** 

|16. **Deferred capital grants**<br>At 1 January<br>Released to income during the year<br>At 31 December<br>Analysis of grants:<br>Deferral within one year<br>Deferral in two to five years<br>Deferral in more than five years<br>17. **Designated Reserves**<br>**Charitable Fund Property Reserve**<br>Balance at 1 January<br>Transfer to Income & Expenditure Account<br>Balance at 31 December<br>18. **Special Funds**<br>**Recoupment Fund**<br>Balance at 1 January<br>Transfer from Income & Expenditure Account<br>Transfer from/(to) Investment Revaluation Fund<br>Balance at 31 December|**2023**<br>**£**<br>255,938<br>(8,892)<br>247,046<br>**2023**<br>**£**<br>190,543<br>525<br>24,351<br>215,419|**2023**<br>**£**<br>529,288<br>(21,518)<br>507,770<br>**2023**<br>**£**<br>21,518<br>86,072<br>400,180<br>507,770|**2022**<br>**£**<br>550,806<br>(21,518)|
|---|---|---|---|
||||529,288|
||||**2022**<br>**£**<br>21,518<br>86,072<br>421,698|
||||529,288|
||||**2022**<br>**£**<br>318,189<br>(62,251)|
||||255,938|
||||**2022**<br>**£**<br>210,595<br>525<br>(20,577)|
||||190,543|



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

22 



## **BROMLEY & SHEPPARD'S COLLEGES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

|19.**Extraordinary Repair Fund**<br>Balance at 1 January<br>Transfer from Income & Expenditure Account<br>Transfer from/(to) Investment Revaluation Reserve<br>Balance at 31 December<br>20.**Investment Revaluation Fund**<br>As at 1 January<br>Transfers from Income & Expenditure Account:<br>Unrealised losses from past periods<br>Now realised on disposals of investments<br>Unrealised gains/(losses) in the current year<br>Transfer (to)/from Recoupment Fund<br>Transfer (to)/from Extraordinary Repair Fund<br>As at 31 December|**2023**<br>**£**<br>17,943<br>5,000<br>2,562<br>25,505<br>**2023**<br>**£**<br>699,071<br>**-**<br>-<br>38,015<br>(24,351)<br>(2,562)<br>710,173|**2022**<br>**£**<br>100,436<br>-<br>(82,493)|
|---|---|---|
|||17,943|
|||**2022**<br>**£**<br>635,856<br>**-**<br>18,471<br>(58,326)<br>20,577<br>82,493|
|||699,071|



## 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 2023. 

23