Ci()()deii()Ligsli _• C()Ile,4fe Goodenough College (A company limited by guarantee) Annual Report and Financial Statements for the 17 months ended 31 August 2021 Company Registration No. 00246919 Registered Charity No. 312894 (England and Wales} and SC039173 (Scotlandl Goodenough College Trustees, Annual Report and Strategic Report for the 17 months ended31 August2021 Goodenough College Chairman's Personal Welco]ne l am delighted to inlroduce this Annual Report and Financial Statements for the seventeen months ending 31 August 2021, a period during which we saw the arrival of a new College Director, the Honourable Walpole OBE, to repla￿ Ms Rebecca Matthews. I would like to pay tribute to Ms Matthews for her commitment to the College during her tenure. Prior to joining us on 12 April 2021. Ms Walpole served as United Nations Assistant Secretsry General in Iraq, before which she enjoyed a long and distinguished career with the Foreign and Commonwealth Offi￿. Ms Walpole's skills, energy and enthusiasm are evident in abundance and I look forward to continuing to work with her in steering the College through the challenges imposed by the global COVID pandemic and on to a successful and financially secur8 future. During the reporting period, y￿ faced unprecedented challenges. Collega life was materially restricted by the pandemic and. in common with many other organisations, we had to make difficult decisions in the face of declining income. Our hotel closed,. our rental income diminished as a result of signtficanlly reduced Member occupancy., our short stay and sabbatical business suspended for 2020 and extemal events were Can￿lled or postponed. Despite all of those pressures, our Members maintained an extraordinarily positive attituda. helping each other and our broad community in the best traditions of the College. Given the challenges they fa￿d, they showed remarkable spirit, strong values and visible commitment to facing the daily challenges together and to making the mosl of the situation they were in. I hope that they consider themselves fortunate to have been at Goodenough College during the pandemic rather than in a less supportive environment. The impact of the pandemic was also keenly felt by our staff. especially during the lockdown periods. Some agreed to move into the College,. some moved to working from home., under the Government's Coronamrus Job Retention Scheme. some were placed on furlough" and we had lo make the dtfficult decision to say farewell to others of our staff who had been employed lo manage and operate the now-closed hotel. Throughout this, our employed staff remained admirably focused on what was best for the College and its Members, as did our contracted stsff from Holroyd Howe, CBRE and ESS, vtho. alongside our Reception team. have provided a séamless Servi￿ to us al5. Our staff ensured that we were able to maintain a safe and comfortable environment for our Members under extremely difficult circumstances. Major achievements included the provision of an ex￿PtIOnal programme of intellectual, cultural and social events largely online,. enhanGed welfare seNces' and effective hygiene measures that resulted in a very low Inciden￿ of infection. On beha￿ of the Board of Trustees, I would like to pay tribute lo all our Members and staff for their fortitude during this period, and for their commitment to the College and to each other. Goodenoush College Trustees, Annual Report and Strategic Report for the 17 months ended31 August 2021 Use of The Bum, our Scottish academic rotreal, was also severely restricted during the reporting period although, later in that period. it proved a valuable amenity for College Members and guests looking lo escape Ihe confines of their lockdown location. The Burn remains indebted lo its dedicated team of slaff for their conslruclive approach during a difficult Irading period, and to the many Scottish universities and their representatives who continué to support the venue and are planning io return soon. l am happy to report that, following an Equality, Diversity and Inclusion {EDI) review of Ihe College in late 2020. the Board approved the establishment of an EDI Advisory Committee, with broad stakeholder representation, to identify and deliver measures to maximise diversity al the College. We are committed to ensuring that we are able to maintain momentum and progress in this area. Though the financial impact of Ihe pandemic on the College has been significant, the College's solid financial base has enabled us lo maintain liquidity and a stable budgetary position. Reassuringly, occupancy ratès forthe 2021-22 academic yearare at maximum levels. Though substantially poorer post-pandemic, the College's ambitions for future growth and improvement remain. In particular, our plans to renovate 43-47 Mecklenburgh Square will continue lo be developed, despite the loss of the funds set aside for this project. We will look to our kind supporters and to the capital markets lo realise that ambition On￿ conditions allow. Finally, I would like to pay warm tribute to my predecessor. Mr Eric Tracey, who stepped down in October 2020 after fifteen years on the Board of the College and a professional association wilh the College stretching back to 1980. 1 am delighted that Eric remains with us as Emeritus Governor and conlinL*es to be a generous supporter of the College. Eric is a wonderful colleaguè and his knowledge of the College and his wise couns81 have been greatly appreciated. vlyi _ Stuart Shilson LVO DL Chair of the Board 25 January 2022 Goodenough College Th￿eeS, Annual Report and Strategic Report for the 17 months ended31 August 2021 Contents Page Goodenough College Chaiman's Personal Welcome Trustees, Annual Report and Strategic Report Company infomation Structure, govemance and management strategic Report Objectives and activities Achievements and perfO￿nanCe Financial review 4-7 8-10 10-13 13-21 Plans for future periods Statement of Trustees, Responsibilities 21-23 24-25 Independent Auditorfs Report 26-30 Financial Statements Consolidated statement of financial activities 31 Balance sheet 32 Consolidated cash flow statement 33-34 Chaiity slatement of financial activities Statement of financial activities for the year ended 31 March 2020 35 36 Notes to the financial statements 37-58 Goodenough College Trustees, Annual Rew>rt and Strategic Report for the 17 months ended 31 August2021 Th8 Boarrl ofTruslees present Iheir Report and audtt8(l Financral Statements forth& 17 rn￿thS ended 31 August 2021 undgrthe Charilies Act 2011 and the Companies Act 2006. COMPANY INFORMATION PATRON Her Majesty Thè Quggn TRUSTEE BOARD Stuart Shilson LVO- Chaiman18ptK)inled ChaiM￿n from 13 October 2020) Eric Tracey- Chaimian lunb"113 Ortober 20201 Darne Maura McGowan D8E- Vi(* Chair{frc¥n 13 0(lober 20201 Alex Acland Hugh Crossby {until 18 February 20211 Jane Ashcroft CBE lfrom 7 Juty 2020 to 28 January 20211 Dr Grahame Dawes Dawd Brooks Wilson lunlil 13 (ktober 2020) James tkwlas Andrew Brown QC Charfes McGr8gor{until 20 April 2021) Roger Cha¢￿￿k OBE Meredith Pieryx Hunter Corey Cook Maitin SGhwab Ptesident Graham Ward CBE Elected Governors Alex Acland Jane Ashcroft CBE lfrom 7 Juty 2020 to 28 January 20211 Lord Bilimoria CBE David Brooks Wilson luntil 13 October 20201 Robert 8Lqe 2.7 Conthce Jthon 4 GrwJory Jones QC Goifam Khoshkhour*jad 4 John LotheriTrJton Dame Judith Mayhew Jonas 08E luntsl 13 October 20201 3 Mccahon 2 Dame Maura McGovrdn DBE 2.4 Charfes McG￿0T luntil 20 April 20211 2 Meredrth Pierce Hunter Anni RovAan(kCampbdl Marlin Schvrab Deborah Scott (until 21 Septemtxr20211 5 Stuart Shilson LVO 5.8 Eric Tra￿Y luntil 13 Octdjer 20201 2,9 Prof Stuartward Fiona Wilknnson BA FCA (from 13 October 20201 Sir Damd Wwtton Andrew Brown QC Roger Chadwick OBE Chris Cobb (until 6 December20201 Corey Cook Hugh Crosslay Dr Grahame Dawes (v￿ President} Ch8ntsl ￿Mee Doerries Lindsay Dodsworth lfrorn 13 ￿)V 2020} J8m8s Dougl88 Jane French Alan Gemmell OBE Sir William Goodenough Deborah G(xKl%%in (unlil 20 May 2020) 1,6,9 4,5,8 4.6,7 6,7,8 Siudent Governors Tess Buckley (from 8 Novemt*r 2021} Jake Bransgrove lfrorn 29 Od 2020 untl 31 July 20211 Beatrice Jambria Carwco lfrom 7 Juty 2￿20 untll 27 Marth 2021 Showyu Chong lfrcffn 8 November 20211 F81ix Graf luntil 21 June 20201 Ariana Huebner {Ltntil 8 November 20211 tlrnitar {Di￿ltnI Jakmovskn (from 8 November20211 l. M8mb8r ofA(¥demic C(Mnnytt8e 2. Member ofAudit Committee 3. Member ofBurn Management ConwThtlee 4. Member of Estates Commitlee 5. Memberoflnvestment Commthe 6. M&Fnber crfNominations C(wnmitee 7. Member ofR&murtoratK>n Committee & Member ofFinanc8 Ccynmittee 9. Member EqualAty, Dwer8ityand Inclus Goodenough College Th￿eeS, Annual Report and Strntegic Report for the 17 months ended31 August 2021 COMPANY INFORK4TION (continued) Ex4)ffiao Governors (until i May 2020) Thg vic￿chance110rQflhe UnNerwty of Oxford The Vice-Chan¢dlorofthe UnNewstty of Cambridge Thg Vice-ChanGdlorof the UnNerwty of London The PrinGipal of the Un￿9[￿ of Glasgow The Pr85ident oflh8 Royal College of Phygcians The Chainnan of the General Councal of the Bar of England & Wales The President of the In8btute of Chartered Accountants in England and Wales The Chief Executive ofthe British Counal The Chairman of the Fioyal (her-seas League Professor Louise R￿hard9)n Professor Stephen Toope Professor Wendy Thom9)n Professor Anton Muscatelli Dr Andrew Goddard Amanda Pinto QC Fiona Wi*in9 Sir Ciaran Devane Hon ￿e￿nder [AA￿er AC Seniorstaff College Director The Hon Aice Walpc4e OBE (from 12 April 20211 Rebecca Matthews {until 7 December 20201 Intsrim College tlrector Chris Ccbb (7 E*cember2020 unul 12 April 20211 Director of Finance arKI Resources (Company Secretary,. Deputy to the Direck¥) Rich￿ Barker Director of Operations Director of Development and External Relations Dean Registrar Bursar, The Bum Janine Binks Hannah thj Gray The Rev DrAlan McComia( Camline Persaud DavNJ Tumer OBE Address and Regtstered Office London House Mecklenburgh SqLtare London WC1N 2AB WobsFts: www. oodenou h.ac.uk ProfesslonalAdvlser8 Auditor.. BDO LLP 55 Bakar Str8èt London W1U 7EU Legal Advlsers.. Crlpps P&m￿rtOn Gmnl$h Number 22 Mount Ephraim TunbrithJe Wells, Kent TN4 8AS In￿sImOn1 Manag•rs: Rathbonè Brothers Pl¢ 8 Finsbury Circus London EC2M 7AZ Bankers". Barcla￿ Bank PLC 1 Chu(thill Place Canary Wharf Londoft E14 5HP Goodenough College Thistees. Annual Re￿>rt and Strategic Report for the 17 months ended 31 August2021 STRucfuRE, GOVERNANCEAND MANAGEM&Yr The full name of the Charity is Goodenough College I'the College.). The College was fomied as a company limited by guarantee without share capitsl on 28 March 1930, registered company number 246919. It is registered with the Charity Commission. Charity number 312894 (England and Wales) SC039173 (Scotland). The College's purposes are set out within its Memorandum and Articles of Association. In accordan￿ with the Memorandum of Association, every member is liable to contribute sum of one guinea {appr0￿matelY £1) in the event of the company being wound up. At 31 August 2021 there were 30 members {2020." 44 members). On 1 May 2020 the Adwsory Council resolved "In accordance with Article 25.1 andArticl& 25.2 of the College's Articles of Association, the Advisory Council determines that. wtih effect from the passing or this resolution, there shall be no holders of o)Tices that shall bo Ex-OffiGIO Governors of Goodenough College and that all cu￿ent holders of the office of Ex-officio Governor shall vacate the offiGe of Ex-officio Govemor of Goodenough College at that same time.. There were nine Ex-OfFicio Govemors holding office at the time of the resolution. The names at the date of this report of all the Govemor5 fomiing the Advisory Council at the balanc8 sheet date, the Trustees at the balance sheet and of those Trustees held office during the year. together with details of the Senior Staff and Advisers of the College. are given on pages two and Ihree. The main features of the College governance structure are: A Board of 11>15 Board Govemors who are legally and financially responsible for the management of College affairs. These ar8 the charity Trustees and the Directors of the company. The Board meets no less than four times per year. One nominated Student Govemor attends the College Board. A broader College Advisory Council, comprising 20-50 Govemors (being Elected Governors, the Chair of the Members. Coun￿1 of the College and up to two other Student (Member} Govemors nominated by resident Members of the College). The Advisory Council is held not16ss than twi￿ per year. The College's Arkncles of Association allow each Board and elected Admsory Council Governor lo serve for up to five tems of three years. At its meeting of 17 September 2019 Ihe Board resolved to make a policy to limit the length of Govemor (and Trustee) appointments lo a maximum of 12 years. Andrew Brown {12) and Martin Schwab (10) have served as Trustees for nine or more years at the balan￿ sheet date. The Board believes that the Trustees who have served for nine years or more and who continue to promde substantial skills and contribution towards the govemance of the College can be extended. Andrew Brown is specifically welcomed in this regard for his substantial support of, and contribution to. the College's operations at The Bum in Scotland, Martin Schwab GU￿entlY chairs the College's Finan￿ Committee. Goodenough College Trustees, Annual Report and Strategie Report for the 17 months ended31 August 2021 The Trustees are satisfied that current govemance prorEsses enable the College to deal effects'vely with the financial and administrative challenges it fa￿s. The Trustees consider that they have paid due regard to the Charity Commission's guidance in respect of their duties and obligations as Trustees of Goodenough College. The Board continues to implement changes lo its govemance arrangements to comply better with the Charity Governance Code for larger charrf(ies. The Board V￿11 continue to remew the College's governan￿ arrangements during 2021122. Election of Governors The prO￿sS for the election of Govemors and Board Directors is set oui within the College's Artides of AssO￿ation. Board Govemors and Elected Advisory Council Govemors shall be elected on the recommendation of the Nominations Committee at Annual General Meetings of the College. Board Govemors are appointed at Annual General Meetings of the College on the recommendation of the Nominations Commtttee. The Board. on nomination from the Nominations Committee. may appoint Govemors and Directors to fill a casual vacancy or as an additional Elected Govemor or Director who shall retire at the next Annual General Meeting but will be eligible for re*lection. Nominations may be made to Ihe Nominations Committee at any time. Any Ex-officio Govemor positsons may be resolved by the Admsory Council. On 1 May 2020. the Council resolved there to be none. No Govemor or Trustee has any financial interest in the Charity or any group companies. Trustee Board The Trustee Board has ultimate responsibility for the govemanca and strategic direction of the College, ensuring that the Charity upholds its ethos and valuas and delivers its objectives. The Board has a written schedule of matters reserved for decision by the whole Board and delegates certain responsibilities to Board Committees. The Trustee Board meets quarterly. New Trustees have induction programmes familiarising them wtth the College, its objectives and its structure, alongsido their roles and responsibilities under legislation and College govemance. Committees Trustees and Govemors may serve on one or more Board Committees as set out below: Academic Committee Audit Committee Burn Management Committee Estates Committee Equality Diversity and Inclusion Committee Finance Committee Investment Committee Nominations Committee Goodenough College Trustees, Annual Report and Strategic Report for the 17 months ended31 August 2021 Remuneration Committee Details of the composition of each Committee are to be found on page Iwo. Management Operational management of Ihe College is delegated by the Tnjstees lo the College Director, who is accountable to the Trustee Board for the slewardship of the Charity. The College Director and the senior leadership team (the Executive Committee} attend fomial Board and Committee meelings. The College sets the pay of its key management personnel through the work of its Remur7eration Committee supported by the Director. The Committee makes refer8nce to general inflation. comparative salaries and pay awards within the charity, Higher Education and hospitality sectors and historical increases in pay. The remuneration of the Director is sel by the Board. Group structure and relationships The College has two vtholly ¢Jwned subsidiary companies, both registered in England and Wales: Goodenough Club Limited (Company No. 02684378) provides ovemight accommodation. The subsidiary takes on responsibility for the trading ofThe Goodenough on Mecklenburgh Square and the prowsion of 'Short Stay accommodation in London House and William Goodenough House. Its annual profits are donated to the College as qualifwng distributions under deed of covenant. and Goodenough Ventures Limrfed (Company No. 09342926) prowdes events, venue hire and atering and commercially let accommodation at The Bum. Its annual profits are also donated to th8 College as qualifying distributions under deed of covenanl. The Bum. in Angus. Scotland (a property donated to the College in 1947} is used by many of the Scottish universities as a centre for reading parties, study groups and for educational events and seminars and by Members of the College for educational and recreational 8Ctiwties. The Bum's assets are a restricted fund of Ihe College. Investment powers and policies The Trustees are pemitted to invest the monies of the College not immediately required for its purposes in or upon such investments. securities or property as may be thought fit, subject nevertheless to such conditions (rf any) and such consents (rf any) as may for the time being be imposed or required by law. The Trustees wish lo pursue a policy that prowdes revenue for its current purposes and enhan￿S income and capital growth overthe longertemi, thereby enabling them to meettheir current and future objectives in accordance with the purposes of Goodenough College. Inveslment management is overseen by the College's Investment Commiltee. Investment management is delegated to and managed by Rathbones. The Trustees require the managers lo pay attention to the slandard investment criteria, namely the suitability of the class of investment and the need for diverstfication insofar as is appropriate to the circumstsnces of Goodenough College. Any restrictions on the type of investments or markets Goodenough College Trustees, Annual Report and Strategie Report for the 17 months ended 31 August 2021 in which the manager would invest on the clienfs behalf are set out in writing. The Trustees have normallyagre8d investment mandates matthing the timing ofthe College's expected call on those funds. In August 2020 the Trustees decided to redu￿ the exposure to equity investments to reflect possible future calls on funds as a result of COVID-19 in excess of those then éxpected. Sto(*s which are nol quoted on a rec•ognised stock exchange or otherwise actively traded may not be held by the investment manager. wtthout prior approval of the Trustees. srRATEGIC REPORT The Companies Act 20C6 (Strategic Report and Directors, Report) Regulations 2013 require the College to prepare a stralegic report. The Strategic Report comprises the foltowing sections: Objectives and activit Achievements and perfomiance Financial Review Plans for future psriods Goodenough College Trustees, Annual Report and Strategic Report for the 17 months ended31 August 2021 The history of what is now Goodenough College began in 1930 when Frederick Craufurd Goodenough, Chaimian of Barclays Bank. established the first student residence in London for international postgraduate studenls. Goodenough's then vtsion was the creation of a hall of reSideTr￿ for male students from Commonweallh countries. offering a collegiate setting in the heart of London to enhan￿ intemational understanding and prevent sludents from feeling isolated in the capital. The College has expanded greatly since that time and now consists of a community of postgraduates from any county worldwide. The College's charitable objects, as set oui in its Memorandum and Articles of Association, are.. The objects for which the College is estsblished are to organise, encourage and assist the education in England of students {'Residenl Members of the College.) from any part of the world, giving preferen￿ to students from the Commonwealth (wilh priority for students from those nations less able from time to time to provide resources and facilities of their own}. Now, looking to the future, we will continue to build upon these strong foundations to achieve our current vision and mission.. ]sion A fellowship of global citizens with shared values of tolerance, respect, understanding, service and togetherne&8 (reflecting the spirit of the UK and the pnnciples of the Commonwealth). Mission To create a stimulating, inclusive and mutually sUp￿tive, re&dential communty in the heart of London where outstanding postgraduate students exchange ideas, openly debale values and fom7 lasting friendships. Due to the COVID-19 pandemic crisis, the College was forced to delay the implernentation of its 202Lk2025 Strategic Plan, the key objectives of Ihe plan are to: Enhance the Resident Member's experience to deliver our Mission and maximise thè charitable benefrt we deliver. Recruit (especially Commonwealth) Members who will benefit most from what we offer and best conlribule to the life of the College. Build a stronger fellowship of Alumni and other5 closely associated wtth the College. These three key objectives are underpinned by seven enabling objectives, which will help the College to achieve its ambilions. As part of the 202[￿2025 strategic planning pro￿sS, a new set of values were agreed for the College, which are tolerance, respect, understanding? sersryce and togetherness. Goodenough College Trustees, Annual Report and Strdtegic Report for the 17 months ended 31 August 2021 values that have always been part of the Goodenough experien￿. These values are fvrther articulated by the College's Equality, Diversity and Inclusion Adwsory Committee. The College presents its 2020121 expandilure in pursuit of the following previously adopted strategic goals= To attract outstanding postgfaduate students from a wide geographic, academic and social base giving Preferen￿ to those from the Commonwealth,. To transfomi College Members through the experience of living in a values-based community which inspires intellectual engagement and endeavour. encourages cross- cultural understanding and offers an exceptional social environment,. To raise the College profile, intemationally and within the UK. by developing key opportunities and pursuing strategic partnerships consistent with our values and ambitions; and To suslain the College as an enduring institution which is underpinned by secure finan￿S, a well-maintained estate and high-quality staff, with a commitmenl to minimising its 8nwronmental impact. The College measures its perfornian￿ through Key Perfomiance Indicators {KPlsl that assess the success in the reporting period compared to prior years. These KPIS cover areas inGluding ocGupancy'. diversity of membership-, numbers of cultural. social. sporting and educats'onal events- numbers and levels ofscholarships and Bursaries. and numberofAlumni ontacts. Further information is containe(J within the Financial Review and Achievemènts and perfornan￿. The College serves over 40 of the academic and professional institutions in London. It maintains a balance between the broad facullies of medicine and natural sciences, law, business. political and social sCien￿S and the arts and humanities. The College attracts scholars from a wide range of intemational schemes including Chevening, Fulbright, Commonwealth and Marshall. The College prowdes a wide public benefit. The Trustees are aware of and have regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant. College Members retum to their home nations or elsewhere with a broadened perspective on the wodd and a much-expanded knowledge of and affection for the cultures and politi￿ of the UK. This contribution to inlemational lolerance and understanding serves an even greater purpose in todals world of political and economic uncertainty. The College frames its distinctive domestic paradigm through the vectors of 'commensality' and 'convivialiV- common eating and common limng. The experience of College Members is framed entirely residentially and together they negotiate the joys and the trials, the ups and the downs, of lrfe. Members engage in many intellectual, social, experiential and developmental actiwties. 'Port talks. where esteemed and intemationally renowned individuals lecture and share knowledge and lrfe experience are a regularfealure ofthe College calendar. A series of'GoodSkills' weeks also take pla￿ to refine the non-academic skills base of College Members. In shori, College Members work, play and dine amongst a broad spread of social, Goodenough College Trustees, Annual Report and Strategic Report for the 17 months ended31 August2021 national and economic backgrounds, developing und6rstandirwJ and empathy across a wde spectrum of experience within a rich peer group. An extemal 'representstion' programme is additionally coordinated by the College staff lo enable College Members to grow their capacity for fluenl nelworking across a range of extemal institutions in the Cities of London and Westminster and beyond. The College seeks to secure and provide an increasing level of Scholarships and Bursaries to support those who stwggle to meet the costs of their accommodation at the College. The College adapted the application of 'commensality' and 'conviviality' in light of the restrictions of the COVID-19 global pandemic, but our Members who were with us during this b'me reported that they still felt part of a warm supportive community, albeit much of it wrtual. In nomial limes The Bum, our Scottish academic retreat and holiday centre actively supports Scottish universities and offers its facilities to national and intemational students and study groups. Serving to enhance the leaming experience. The Bum also and wÈll often organise events to bring the academic and local communities together. The Bum has been closed to the public during much of the pandemic. but has continued to play a key role in supporting th& local community through the provision of meals to isolated individuals. As restrictions eased over the summer. the College also took the opportunity to arrange four pasloral trips to The Bum for Members who had been with us throughout the pandemic. The provided a valuable opportunity for them to relax amongst their peers. build friendships and tske pleasure in the natural world. The College is also normally open to the public for concerts, operas, conferences and lectures. A large number of extemal organisations and individuals also use the College's facilities for their own events and activtties. but again much of this has been curtailed during the pandemic. The College also works in partnership with a number of organisations that share the College's aims such as Cara (the Council for At-Risk Academics), Windle Inlemational. Chevening and SOAS University of London. ACHIEVEMETh AND PERFORMANCE During the extended 17 month period of 2020121 College life was materially damaged by the global COVID-19 pandemic. This significantly o)nstrained the College's ability to provide a vibrant and transfomiative College experience to Members.. the primary focus being on securing the wellbeing, health and welfare of the College community that remained on the Square. College Member occupancy reduced to less than 50 /0 of the normal level, and the College programme of physical events was suspended. with resident Members confined to their rooms during the official national lockdown. Following the initial lockdown in March 2020 all but core staff worked from home, until retuming in Ihe majorrty frotn September 2021. Core operational and welfare se[w￿S were maintained on site throughout the pandemic. After government enforced dosure from March 2020 the hotel remained closed until 4 July 2020, re-opened briefly until 5 November. but has since remained closed awaiting a major bedroom refurbishment. Commercial events were predominanlly Can￿lled or postponed, and the short slay and sabbatical business was suspended for 2020, retuming to a lesser degree in 2021 generating just 20% of 2019 summer revenue. 10- Goodenough College Trustees, Annual Report and Strategic Report for the 17 months ended31 August 2021 This situation severely I￿rtalIed Ihe College's ability to deliver its core Charilable aims and led to an operating deficit of £3m in the period, a shortfall of £6.4m against nomial operations. This has curtailed the College's ability to apply Ihe College Development Reserve in pursuit of its development ambition with a further £3.7m of the £7.6m reserve held al 1st April 2020 diverted to support core operations and contributions to the Assel Repla￿men1 Plan. In common with many other organisations. the College had to make drfficult decisions in the face of dedining income. To help manage the situation. we made use of the Govemment's Coronavirus Job Retention Scheme (CJRI and furtoughed staff who were not required to run our essential sermces during this period. In total the College re￿iVed £492k in payments from the Government CJR Scheme and £81k in olher pandemic grants. The Strategic Plan published in January 2020 was suspended following the pandemic and is now subject to further consideration following the change in College leadership from May 2021. The College's 'Commemorative Biennium, was abandoned in April 2020. The statement of Financial Activities shows 2020121 College charitable expenditure against the same strategic goals as prior years. The impact on Members is a growth in Confiden￿ through their experience at Goodenough College. with broadened perspectives, strong cultural. social and professional ne￿orkS and a positive image of the UK and the Cofflmonwealth. Supported by Ihis growth we expect our Alumni to be outstanding leaders in their fields. engaged global atizens and advocates of the College. The independent study commissioned by the College in 2019 to quantify the impact of the College's Scholarship and Bursary programme on the Membership concluded that for every £1 invested into the Goodenough College programme and facilities, £2.04 is returned in social value created. This is a healthy retum particularfy given that part of the inveslment required lo make outwmes happen involves buildings costs as well as programme costs. The report also concludes that overall postgraduate students have an overwhelmingly positive experien￿ and that the College is creating substantial impact for its stakeholders. We will consider how this study may influence our work going forward. During 2020121 £10.5m (2020.. £7.4m) was spent againsl the goal of 'Transfoming College Members,, reflecting the operating costs of the College buildings (that so influence College lifel alongside the influential Dean's programme. The increase on the prior year is predominantly due to the extended 17 month period. The Dean's programme for the full extended 2020121 academic year delivered (including member led activities) 17 sporting fixiures.. 72 cultural. music and arts events, most of them delivered online- 153 evening lecture 'Port Talks,, trdnsfomiative skills based sessions (the 'GoodSkills' programmesl and academic occasions. 112 of them delivered wholly online. As may be seen from the above. the extreme phyEical restrictions created by the pandemic fOr￿d much of the extended Academic year's programme to migrate to the online space, with a consequent drop in Member participation. A restricted physical programme was devaloped wherever possible and resulted in 50 OLrtdoor educational actimties, chiefly a series of'Dean's Perambulations, around London and the Home Counties. The Dean's Office carried out an extensive and tailored programme of actiwties to support indiwdual Member wellbeing through the lockdowns. 11 Goodenough College Trustees. Annual Report and Strategic Report for the 17 months ended31 August 2021 During 2020121 Ihe College maintsined its accreditation against the National Code for Assured Accommodation, which demonstrales the College's commitment to the highesl standards in delivering its accommodation and supporting its community. The College sought to follow all government guidan￿ throughout the pandemic, and was in regular contacl wth Public Health England and the London Coronavirus Response Cenlre. The College received posilive feedback on the College's Outbreak Plan and f(s actions to minimise infections within Ihe College Community. The activities of The Bum provided a different (but no less imporlanl} experience for the students attending activities al this venue, funded from its restricted fund. The Bum's work continued to form ever closer and more effective bonds wth Scottish Universities. Though the use of The Bum was severely restricted by the impact of the pandemic. it was well guided by its Universityslakeholders throughout the period. The Bum prowded an ever more valuable facility for College Members and guests. during times when foreign travel was severely restricted. The Burn's operations were delivered in line with spectfic regulations and advice provided by the Scottish devolved govemment. The £1.5m costs of 'Attracting outstanding postgraduate students. {2020". £1.1 m) ￿flect the costs of our vital student registry function alongside our Scholarship and Bursary schemes and marf(eting actiwty. The College spent £739k on Scholarships and BLbrsaries in 2020121. {£548k in the 2020121 academic year. a 17 % increase on the £470k spent in the prior financial year) with the longer period countered by lower occupancy. Scholarships, Bursaries and Mecklenburgh (hardship) funds are awarded by the College to individual current and potential College Members. predominantly as reductions in rent, on the basis of financial need, the College saw additional demand for such funding during 2020121 and responded accordingly. The College recognisès the irnportan￿ of being able lo support Members with limited financial means and it was thanks to the generosity of friends and Alumni. who responded to our emergency appeals. that we were able to provide additional emergency funding to Members during the pandemic. The Collage received 1.238 applications {2020121'. 937), three applications for each available place at the College for its 2021122 academic year intake (2020121: 1.81. During the 2021122 period Members came from 80 {2020121.' 67) countries (UK 14%; Canada 100k' India 90A', China 6Yo, USA 5Yv}. of which 500A (2020121: 44Vo) were from the Commonwealth. These Members were studying at 37 {2020121'. 33) academic institutions (UCL 250/0- LSE 21 /o.' Kings 11 % ),' with 660/0 {2020121= 57Yo) undertaking Masters Courses., 280h12020121: 36 % I PhD and other research programmes., and 6% (2020121: 80k) otherfomis of postgraduate qualtfications. Their academic subject matter continued to be as diverse as their backgrounds. Applications fomi EU countries decreased to 11 % (2020121.. 18Yo) and applications from Commonwealth countries increased to 470A {2020121'. 42%). The College continued to invest in additional marketing and engagement actions to maintain and develop the number of suiiable applicants lo Ihe College and the appropriate Commonwealth representation. The College spent £0.5m12020'. £0.5m) in raising Ihe College's profile. The traditional work of the Dean's Orr1￿ in the Cily of London was tenninated during the extended 2020121 academic year, with only very sporadic incursions possible. Members engaged minimally in representational events Sin￿ very few opportunities presented themselves during the period. In summer 2021. with the retum of a degree of in- 12- Goodenough College Trustees. Annual Report and Strategic Report for the 17 months ended31 August 2021 person gathering, Members were able to make four trips to The Bum House for four educational retreats subsidised by the College. Induding the £1.8m 2020121 (17 month) interest costs of the College's debt {2020.' £1.2m) and the Gosts of supporbng the development and the slralegic financial management of thg College, £3.2m was spent on 'Suslaining the College, during the year {2020= £2.2ml. Excluding loan interest, the College spent £1.4m on sustaining the College (2020.. £1.Om). The College applied capitsl funds of £1.6m (2020.. £1.2m) in replacements and enhan￿MentS to the College estate and IT services. Fundraising costs were £317k for the 17 months of the 2020121 pertod {2020: £286k). The extended period included hyo emergency fundraising appeals during the pandemic to support Member wellbeing {an online counselling sermce and additional emergency financial support) and to enhan￿ the Scholarship programme. These appeals raised just under £80K and £118K respectively. We also received a donation of £164k from our Canadian Alumni Association as a result of the completion of a capital fundraising campaign. Fundraising costs decreased across the 17 months. compared lo £286k for the 2019120 12 months period due to planned overseas travel. Alumni and cultivation events not taking place due to the pandemic along with samngs in staff costs due to recruitrnent delays. The subsidiary companies were severely impacted by the closure of ServI￿S and the downtum in the marf(el described above. The companies generated combined losses of £659k. These losses have been supported by a combination of historically accumulated assets within Goodenough Club Ltd and the provision of £0.1 m of net debt arrangements by the College to GoodenoLtgh Ventures Limited. These trading actiwties previously provided valuable revenue to the College and delivered many opportunities to enhan￿ the experience and opportunities of College Members. Alumni and friends. The College continues lo consider its investment in these companies to be beneficial to the future of the College. During the year the College reviewed its govemance a￿angements for its subsidiary companies and the directors of the subsidiaries regularfy rewewed their Confiden￿ over their going concem. The College generated group revenues of£10.7m in the 17 months to 31 August 2021 {2020'. £13.8ml. Income from tharitable actiwties (predominantly income generated from rents from Memberaccommodation, alongside COVID grantfunding of£O.5m)was £7.4m (2020.. £7.7m)', income from Member rents in the 2020121 academic yearvms £5.1m, £2.1 down on the £7.2m generated in Ihe 2019120 financial year due to significantly reduced Member occupancy during the pandemic. Average Member occupancy in the 2020121 academic year was 62.50 compared to the 92.6% achieved in the pre pandemic year of 2018119. Consolidated income from trading actiwties (predominantly the hotel, short stays, catering and event and venue hirel for the 17 months of 2020121 was £0.8m (2020: £4.6m) as a result of Ihe hotel closure, lack of commercial events, reduced catering and reduced short stay business as a result of the pandemic. Consolidated revenues from the Goodenough Club Ltd were £0.2m {2020: £3.3m), generating a loss of £536k. Short Stay accommodation incom8 was £0.1 m (2020.. £0.9m). Goodenough Ventures Limited generated consolidated revenues of £1.2m (2020.. £2.1m). wth £0.2m generated from Events and Venue Hire12020.' £1.Oml' £0.9m from prowding catering to College Members12020: £0.8m) and £0.01m from providing breakfast to hotel guests (2020: £0.2m). 13- Goodenough College Trustees, Annual Report and Strategie Re￿)rt for the 17 months ended31 August2021 Due to the losses generated by the College's two subsidiary companias totalling £0.7m over the 17 months (2020.. £1.8m surplus) there will be no surplus donation to the College for 2020121. The Trustees and Directors remain confident of the potential for the subsidiary companies to general8 surpluses to be donated lo the College in fulure years, though did nol happen in 2020121 (and may not happen in 2021122) the Trustees and the Directors of the subsidiary companies continue to monitor perfomiance of the companies. On 4 August 2021 the Directors of G¢)odenough Ventures Limited approved a budget for the 2021122 financial year showing a break even posilion and a business plan showing substantial surpluses from 2022123. On 21 Oclober 2021 the Trustees of Goodenough College approved a terrtporary loan facility to Goodenough Ventures Limited to cover losses or shortfalls of cash that arise between 1 April 2020 and 31* August 2023 up to a maximum of£S00,000. The loan was agreed on the Gondition that ti is repaid by 31 January 2025. On 4 August 2021 the Directors of Goodenough Club Ltd approved a budget for the 2021122 financial year showing a £0.1 m surplus and a business plan showing substantial surpluses from 2022123. On 21 October 2021 the Trustees of Goodenough College approved temporary loan facility to Goodenough Club Ltd to cover losses or shortfalls of cash that aris8 between 1 April 2020 and 31 August 2023 up to a maximum of £500,000. The loan was agreed on the condition that it is repaid by 31 January 2025. The Consolidated Statement of Financial Activities for the 17 month period of 2020121 shows a £7.1 m loss before gains and losses on investment assets and financial instruments12020- £0.5m loss). The College bore £1.7m in loan interest charges (2020: £1.2m) and depreciation of £3.4m {2020.' £2.3m) demonstrating an EBITDA loss (excluding debt and asset impaiment costs) of £2.Om12020= £3.Om gain). The loss was caused by the impact of the COVID 19 pandemic on the College's income and operations as set out above. On 20 July 2021 the Trustees approved a consolidated budget for the 2021122 academic year showing an EBITDA surplus of £0.7m. The Trustees remain confident that the College will retum to an operating surplus in 2021122. The College holds investment porffolios wth Rathbone Brothers PIC under four separate mandates. Where appropriate, composite benchmarks for the funds are developed by the Investment Manager in consultation with the Investment Committee, recognising agreed asset allocation ranges, along wth separate long-temi performance objectives. All long-temi perfomanc8 objectives are after f88s. The College main portfolio includes the College reserve and the Asset Replacement Reserve and is invested for the longer te￿ with a long-tem perfornian￿ objective of CPI + 50/0 (net of fees). In August 2020 £4.9m was withdrawn from the main portfolio and was transferred into a low-risk investment strategy {£2.Om was transferred in to the No.2 fund and £2.9m into the No.3 fund) to provide additional availability of short temi liquidty should it become required as resull of the effects of COVID-19. The Bum portfolio is invested on a similar horizon but. reflecting the annual requirement for income and draw down from that fund to support The Burn's operations,. it has a long-term perfomiance objective of CPI + 3.50kn (net offees). As at 31 August 2021 this fund held £1.5m under investment. 14- Goodenough College Trustees, Annual Report and Strategic Report for the 17 months ended31 AUg￿$t 2021 The total retum on the College main fund over the period was a gain of 51.7%. and for The Bum portfolio, a gain of 32.90h,' Ihe composite benchmarf( perf0mlan￿ measures for these funds were a gain of 39.70h and 28.3% respectively. These funds have achieved a total return of 56.00/0 and 36.90h respectively over the last five years. against composite benchmarks of 45.2YD and 35.9Yo respectively. Their long-temi perfomance objectives were 41.2 % and 31.4¥0 respectively over the same period. As at 31 August 2021 this fund held £9.7m under investment. The College No.2 portfolio held funds anticipated to be drawn in the medium term from, the College Development Reserve along with General Funds, and has a long-temi performance objective of CPI. The fund was established in 2016 and achieved a lotal retum of 19.30kn for the year. As at 31 August 2021 this fund held £6.9m under investmenL The College No.3 portfolio was established in 2017 and holds funds anticipated to be required in the shorter temi from the College Development Reserve Funds Reserve and General Funds. The fund is invested primarily for capital preservation and achieved a gain of 5.4010 for the year. During 2020121 £6.6m was withdrawn frorn this fund to provide cash to support the College's operations during th8 pandemic. As at 31 August 2021 this fund held £3.7m under investmènt. The perfomiance of th8 investment porifolios and the inveslment manager is reviewed regulady by the College's Investment Committee and the Trustees continue to be satisfied with their management and the perfornance of the funds over the long temi. All investments acquired during the year were in accordance with Trustees, powers. The Value of Ihe portfolio at 31 August 2021 is shown in note 11. Worknng through the Investment Committee and with its investment managers the Trustees continue to review the investment Performan￿ and strategies of its funds under investment as the College's financial perfomiance, reserve position and capital ambition develops. Funds and reserves The College's reserves are diwded belween unrestricted and restricted funds. Unraslricted funds are further divided into designated and other unrestricted funds. Unrestricted funds total £141.Om (2020.. £142.6m), vthich includes designated reserves of £132.4m (2020.. £133.5m), general funds of the charity of £8.5m (2020.. £8.5m) and general funds of the subsidiaries of £0.1 m (2020: £0.7m). See Notes 16 and 17 for further details. The Trustees have designated the value of the College's non-inveslment fixed assets {nel of funding from the long-term loan) as the Tangible Fixed Asset reserve. The value of this reserve is adjusted annually to reflect the nel value of these assets and stands at £116.8m at the year-end {2020= £118.5ml. The Truslees have designated the value of the College's investment properties {recognising the College's strategy to retain investment properties for the benefit of future beneficiaries) as the Investment Property Reserve at £3.5m {2020= £3.2m). reflecting the revaluation of the investment properties at the balance sheet dale and the sale of the freehold of 12-13 Mecklenburgh Square under enfranchisement in February 2021. 15- Goodenough College Trustees, Annual Report and Strategic Report for the 17 months ended31 August 2021 During 2016 the College established a long temi foretxst, which enabled the College to agree a revised framework for the management of its unrestricted funds and to quantify the level of liquid assets required to sustain the College as an enduring institution. The College has established a plan to ensure that SLrficient levels of cash are available lo secure a well maintained estate. This established the requirement for an Asset Replacement Reserve {ARR) to support the costs identified for the replacement and refurbishment of the buildings. fixtures, fittings and equipment of London House. William Goodenough House and Ihe hotel over a 30-year period to 2046. The required value of this fund was agreed to be designated from the available funds accumulated by the College from annually generaled operating surpluses and drawn down against relevant costs. In light of the impact of the COVID-19 pandemi¢ on the College and Hotel financial performan￿ the Trustees designated an additional sum of £1.4m into the ARR, representing the ARR contribution that would have been generated by the College and Hotel under nomial operations over the 17 months of 2020121. After debiting appropriate asset replacement expenditure and accounting for income. gains and losses, the value of the ARR stands al £7.5m on 31 August 2021 {2020'. £4.Om). TheTrustees will review the value ofthis designated fund annually as il accumulates and is utilised for Assel Replacement. The ARR is represented by investment funds wth investment mandates las overseen by the Investment Committee) matching the investment objectives and horizons of this reserve. Following the completion of the debt restructuring exercise in June 2017. the Trustees designated £11.9m of funds secured in excess of thal required to settle the previous long lenn loan and swap arrangements, as a designated fund referred lo as the College Development Reserve {CDRI. The Trustees originally aimed to apply these additional funds, secured at a 3.102 % interest rate, lo take opportunities to further develop the College's activities and its estate over future years. The CDR is represented by investmenl funds with an investment mandate (as overseen by the Investment Committee) matching the investment objectives and horizons of this reserve. This fund bore the interest cost of this excess bO￿owing. During 2020121 the Board approved the redirection of funds held within the CDR in support of shortfalls in College surpluses to maintain the value of the College's General Funds (its freely available reserve} and to maintsin the prewously planned contribution to the Asset Replacement Reserve. Having released £3m of the CDR to the General Funds as at 31 March 2020 (in anticipation of the 'least worst, scenario of the crisis on the College), Trustees undesignated a further £3.7m of the College Development Reserve as at 31 August 2021. With £6.7m of CDR funds redirected for this purpose. the total value of the support pro￿ded from the CDR to mitigate the impact of the pandemic fell short of the uppennost scenario anticipated in the 2019120 accounts of £7.4m. On 4 March 2021 the Board also approved the allocation funds from the College Development Reserve to fund the refurbishment of the hotel's 65 bedrooms planned for 2021122. On 21 July 2021 the Board approved an allocation of £1.9m to be made from the CDR in support of the budgeted 2021122 shortfall of College and hotel surpluses against nomal operations. lo further maintain the value of the College's General Funds (its freely available reserve) and the prewously planned contribution to the Asset Rep1a￿rnent Reserve. The value of the CDR stands at £4.3m on 31 August 2021 (2020: £7.6m). On 22 December 2021 the College signed a contract with a contractor to carry out works to refurbish the hotel's bedrooms. The value of the contract remains commercially confidential, but the Trustees are confident that the value of the CDR is in excess of that required to provide for the hotel project and the budgeted 2021122 shortfall. Goodenough College Trustees, Annual Report and Strdtegic Report for the 17 months ended31 August 2021 The Trustees have revtewed the College's reserves policy. The policy considers the nature of the income and expenditure streams, the need to match variable income with fixed commitments and the need to provide for known essential estste maintenance expenditure. To allow the College to be managed efficiently and to provide a buffer against interrupted semces, the policy requires that general reserves in the range from £5 million £8 million should be maintained. This range is based on managing to sustain core College actiwty if there were a fall in Member income of 250h for three years {c£5 million) and a loss of 50P/o of Goodenough on Mecklenburgh Square net revenue for tr40 years {c£2 million). In addition, minimum of £1 million is considered necessary lo deal with major estate issues. such as a failure of heating, plumbing or electrical Serw￿S in either House. In light of the financial impact of the COVID 19 pandemic, the Trustees have resolved to seek lo secure additional funds lo further secure the College from any future pandemic and its actimties thereafter. Trustees will balance a tsrget increase in reserves against the developing post pandemic 8conomiG environment. The Trustees have therefore resolved to seek additional borrowing to prowde replacement funding for the hotel bedrooms refurbishment and to release such funds and any further unallocated balan￿ of the College Development Reserve against the College's freely available funds. as such become available. The College reserve investrnent fund was £8.2m on 31 August 2021 (2020.. £9.3m). Aftèr taking account of other balan￿S within the College's general funds. the College's freely available funds, stand at £8.5m on 31 August 2021 (2020: £8.5m, see note 17 for more details). The Trustees have assessed the value of reserves and the operations of the College, and the remaining impact of COVID-19, and do not consider that there remain material Un￿rtaIntieS related to these or other events or conditions that cast signrficant doubt on the College's ability to continue as a going concem. The College remains very financially stable with freely available funds of £8.5m,' other unrestricted designated reserve funds of £12.1m and unrestricted investment properties valued at £3.5m. The Board has recognised that it is no longer able to provide for the refurbishment of 43-47 Mecklenburgh Square from wthin the College Development Resetve. these funds hawng been redirected to support operating shortfalls as a result of the pandemic and its ongoing impact. The Board has resolved to seek further borrowing to support ils ambition for Ihe site where such ambition cannot be met from the generous contributions from its donors, when such borrowing is available lo Ihe College on commercially attractive terms. The ongoing risks of holding 43-46 Mecklenburgh Square as vacant properties over an extended period have been mitigated through arrangements for their occupation by property guardians. The College conlinues to develop its plans for the site under the guidan￿ of its Steering Committee. The Truslees have established a designated fund to support the refurt)ishment of 43-47 Mecklenburgh Square from those funds already generated diredy in support of Ihat project. This fund stood at £250k at 31st August 2021. Other designated reserves include funds donated to the College for 'greatest need, and were fully allocated against College aclimties during 2020121. 17- Goodenough College Trustees, Annual Report and Slrategie Report for the 17 months ended 31 August2021 RestrACted funds are represented by assets and investments that can only be used or spent for a particular purpose as stated by the donors. The total value at 31 st August 2021 was £12.7m (2020.. £12.3m). See Note 16 forfurther details. Restricted funds include The Bum Fund of £12.1 m (2020". £11.9m) and other restricted funds of £0.6m (2020.. £0.4m}. The Bum fund includes the operating land. building and assets of the site represented by a tangible fixed assets reserve of £10.3m (2020: £10.4m}- invesknent properties reserve of £0.8m (2020= £0.7m) and a general restricted fund of £1.Om12020= £0.8m). The general restricted fund is represented by The Bum investment porfolio. The other restricted funds have been donated to the College for a number of restricted purposes including restricted Scholarships and Bursaries funds of £582k {2020.' £306kl. The College has adopted a policy lo increase the level of support to ils important Scholarships and Bursaries activity provided through donations. Expenditure on Scholarships and Bursaries from restricted or designated donated funds rose again to £490k12020.' £214k) in the year. Borrowin&s and bank faci]ities On 2 June 2017, the College secured a £40m non-amortising 30-year loan with Rothesay Lrfe al a fixed inleresl rate of 3.102°A. The loan is secured against London House and William Goodenough House. During 2020121 the loan Agent completed a iriennial market valuation of the loan security which, due lo a 330h in the value of the security, redU￿d the Loan lo Value from 26.4Yr* lo 19.8%. The College holds a £250,000 overdraft facility with Barclays Bank. Principal risks and uncertainties To optimise the College's management of risk, College Govemors and staff are briefed on the nature of risk and accept responsibility for risks associated wilh their area of authority. Senior management provides appropriate support. assistance and commitment to ensure that both operational and strategic risk is managed on a daily basis to the besl of the College's ability- This risk management prO￿sS provides reasonable. but not absoluté, assuran￿ that the organisation is protected. We define key strategic and operational risks as those that, wthout effecttve and appropriate mitigation, would have a severe impact on our work, our reputation or our ability to achieve our ambitions. The College continually improves the prO￿sS by which il rewews, registers and mitigates risks Ihal may impact on College lrfe and operations. These risks (including likelihood, impact and mitigation measures) are listed in a Strategic Risks Register, which is regularly reMew8d by the College Board and senior management. The risk management process encourages the Trustees to challenge any assumptions senior management has madé about risks and interrogate the context in which decisions are taken. This helps ensure that the most serious risks are being managed effectTrvely. Revenue shortfall. primarily through downlum in Member application numbers. has been identified as a fundamental finan￿al risk for Goodenough College. Vigorous promotion of the College through public outreach, strategic partnership building and enhancing the College's digital presence is given high priority in order to miligale this risk- logether with market sensitive pri￿ng of accommodation and a robusl admissions policy making maximum use of search engine optimisation. peer rewews, advertising and approaches to educational institutions and Scholarship bodies (within London, the UK and intemationally). 18 Goodenough College Trustees. Annual Report and Strategic Report for the 17 months ended31 August 2021 Application numbers are remewed on a regular basis and the admissions strategy adjusted on the basis of findings. The maintenance of a diverse College community (including enabling access for students with limited financial resources) is recognised by the Trustees as a key area of risk. The College will continue to focus on targeting its outreach on less represented geographic areas and socio-economic groups. It continues to enhance its Scholarships and Bursaries schemes (including developing partnership schemes with other scholarship providers) to support less affluent studenls. The ColSege maintains its focus on fundraising for Scholarships and Bursaries (including hardship funds allocated as The Mecklenburgh Fund). The College rewews its rent annually and any increases applied are based on sound market information and consultation wth the College Member community. Since March 2020, the College has recognised the potential impact of the COVID-19 global pandemic on ils ability lo safeguard its beneficiaries, fulfil its charitable objectives and deliver its financial targets. The College managed its overall response to the pandemic through COVID Management Team meetings, and COVID Recovery Action Planning meetings dealing with the immediate and the medium tem response. respectively. In June 2020, the College published a statement confirming its compliance with the Govemment's guidan￿ on managing the risk of COVID-19. With regard to the safeguarding risks for its Members, the College continued to exercise its duty of care towards Members who remained resident on Mecklenburgh Square during the 'lockdown'. The College applied appropriate measures in line with Govemment advice. sector best practice and advic8 from Public Health England. The College received a positive rewew from Public Health England of ils a￿angeMentS for deaning, social distancing and the isolating of 'households'. There were particular challenges in managing arrangements for thos8 Members wth shared bathroom and food preparation facilities. The Colleg8's caterer, Holroyd Howe, maintained an effective, flexible arrangement for providing food to College Members throughout the crisis. A key strategic objective of the College, to deliver an exceptional Member experien￿. faced unprecedented challenges during the peri¢)d under review. Wilh Members largely confined lo their rooms and severely restricted in their activities through the requirements of social distancing, the College's ability to transfomi College Members through community. cross-cultural understanding and an ex￿ptional inlellectual and social enwronment was sharply curtailed, safeguarding taking the higher priority. Although some impact was unavoidable. the College maintained a vigorous online programme throughout the crisis and continued lo look for imaginative ways to engage with Members within the law and guidance, reverting to a comprehensive in-person programme of inlelleGtual, cultural, SOGial and sporting actiwties for the membership as soon as Govemment regulations relaxed in July 2021. The College implements a rigorous process of risk assessment for all activities. t￿ether wth impact reviews and ROI assessments of enrichment activities. The College has prewously recognised that securing sufficient funds to implem8nt its Asset Repl3￿ment Plan represents a key risk to the College. The College considers that it has substantially mitigated that risk through development of a comprehensive Asset Replacement Plan, long te￿￿ financial planning and the securing of £40m of 30-year nor amortising debt. The Finance sub-commtttee of the College Board reviews the long-temi financially sustainable performance of the College and provides further diligence on the 19- Goodenough College Trustees. Annual Report and Strategic Report for the 17 months ended31 August 2021 application of available funds. The impact of the COVID-19 global pandemic crisis has severely tested the level of the College's reserves and thus its confidence in delivering ils Asset Replacement Plan. alongside other estate development ambitions over the longer term. However, the College has demonstrated lo itself, through challenging scenarios and stress testing, Ihat it will be able to meet its Assel Repla￿ment Plan for at least the next 15 years. The level of the College's unrestricted freely available reserves. combined with its designated funds (see below), prowde the College wsth comfort as to its going concem, in July 2021 the Board approved the application of a further £1.9m College Developm8nt Reserve (CDR) funds and enhan￿ment of Asset Replacement Reserve funds. The 30-year fixed-inlerest debt has minimised the College's exposure to variations in debt financing costs. Further details can be found in Nbte 15. As the College's main base of operations is in central London, the College recognises that terrorisl activity both local to the College and woddwide has the polential for high impact on the College through restricting physical access to the College. reducing future applications to the College,. and directly on the welfare of College Members. The College exercises care in maintaining its access control and security arrangements, holds financial reserves, specffic appropriate insurance cover, effective business continuity plans and robust welfare systems in order to mitigate that risk. Wilh accommodation at rts heart. fire risk management foms a key consideration in the College's operation and development. The College regulady revrews its fire management policies and carries out annual fire risk assessments and complies with with all statutory obligations and best practice. To wunter the risk of diminishing revenue generated by the College's wholly-owned hotel, The Goodenough on Mecklenburgh Square. the College remains committed to maintaining that accommodalion to a markel-competitive stsndard and C￿ntinUIng a proactive sales and marketing policy. As at the balance sheet date the hotel remains closed. The College has commissioned an exlensive refurbishment of the hotel's 65 bedrooms in 2021122. during a downtum in the market. The College is confident of this asset (operated through its subsidiary company} retuming to substantial surplus after reopening. With the majority of the College's income streams generated in-year from Member rents. holel charges. letting of a lease lo a comMe￿al venture and other business income. the impaci of these trading enwronments will affect the finanual performance of the College. The College is confident that its planning, risk management and operational management activities sufficiently manage these risks and enable the College to put in place appropriate mitigation measures. The College takes safeguarding very seriously. The College is confident that it provides a safe and trusted environment and promotes an organisational culture that prioritises safeguarding. The College considers that it maintains adequate safeguarding policies, procedures and measures to protect people. These are rewewed regulady, and kept up to date in line with Govemment guidance and best practice. The College has remewed its safeguarding g0Veman￿ and management arrangements wtthin the last 12 months. -20- Goodenough College Trustees, Annual Report and Strategic Report for the 17months ended31 August2021 In response to the Corporale Criminal Offence of Failure to Prevent the Facililalion of Tax Evasion introduced by the Criminal Finances Act 2017, the College carried out a risk assessment and made a Top Level Commitment to a zero tolerance to the criminal facilitation of tax evasion at its Board meeting in March 2018. The College continues to apply due diligence,. apply and communicate ils procedures,. and monitor and review ils position. Goodenough College continues to assess the requirements of the General Data Protection Regulations {GDPR) and the Privacy and Electronic Communications Regulations {PECR). building on its previous programme of work to achieve compliance. The Trustees remain ntent that sufficient progress has been made in complying with the Regulation. Fi]ndraising standards The College's fundraising activitias ar8 undertaken by its Development and Extemal Relations team. Any extemal fundraising consultants or suppliers are employed to support activities rather than lead them, ensuring we have full control of all activities. The College is a memberof The Council for Advan￿rnent and Support of Education (CASE), a professional association serwng educational institutions and the professionals who work on their behalf in Alumni relations. communications. development, marketing and allied areas. As part of its work, CASE sets slandards arKI an ethical framework for the fundraising profession which the College follows. This year the College t)onations Adwsory CommÉttee also remsed and updated its the College's Ethical Fundraising Policy. now referred to as a Gfft Acceptan￿ Policy. This Donations Advisory Committee wll meet at least annually to review large gifts and any considerations around gift acceptance. One of the core fundraising campaigns is the College's Annual Appeal to Alumni and friends, which is now nJn through digital means. Those contacts vtho are deemed lo have a legitimate inlerest in Goodenough College are encouraged to give but those who have opted out of fundraising appeals are exempted from this programme of acliwty. Above and beyond securing a donalion, we seek always to put the needs of the indiwdual first, and to help supporters to reengage and reKinneGI as well as making an infornied decision about supporting the College finacially. We do not accept donations where we have reason to believe that Ihe donor may be vulnerable andlor accepting the donation would be ethically wrong or cause hami to the donor. To help infomi our approach, we use the Fundraising Regulatorfs Code of Practice and the Chartered Institute of Fundraising's statement on vulnerable donors. We frequently review industry standards to ensure we are meeting requirements. This year, no complaints have been received by CASE, the Charity Commission. the Fundraising Regulator or by the College about its fundraising activities. PLANS FOR FLfwRE PERIODS As the College moves fotward into the 2021122 academic year, the business and academic environments in which we function are far less predictable than they were before the global pandemic, whose impact on our operations remains considerable. Nonetheless, plans for the 21 Goodenough College Trustees, Annual Report and Strategic Report for the 17 ￿OnthS ended31 August 2021 future of the College. including the Strategic Plan. the Asset Replaoment Plan, the Governance Remew and the College investrnent plans, remain largely on track. Member occupancy has retumed close to pre-pandemic levels.. and the intelleclual. SOGial and cultural enrichment programme for Members is the most ambitious ever delivered by the College. College staff are physically back worknng on College premises. The long-temi impact of the COVID-19 crisis on the College has primarily been in the financial domain, as detailed in the Finanaal Review section of Ihis report, with College rese￿eS significantly depleted, a continuing lad( of incorne from the hotel, which remains closed, and the events, short stay and sabbatical businesses still substsntively affected by the reduclion in travel and socialising. The College's Scottish estste, The Bum, has seen ils business hosting Scottish university groups evaporate- there is every indication that such business will not start to rally until 2022 at the eadiesL In the immediate future, the College will consider how to mitigate this loss of income relating to the pandemic. We will make use of the hotel closure to refurbish ils bedroom and prepare an energetic relaunch in Spring 2022. We will work to raise the profile and profilabilily of our events business. The Bum management team is exploring innovative ways of attracling a new clientele and marketing a broader range of events. We will develop the College's eslate. including explotting the opportunity to expand our Member accommodation offer presented by our r￿¢qUisItion of Houses 43-46 Mecklenburgh Squar8. We are currently looking at how we might secure philanthropic investment from our Alumni and friends to help fund the redevelopment of these properties. We will continue to seek to identfy sufficient funds to ensure that the College's Asset Replacement Reserve is SLrfficient to maintain the College's assets in perpeluity. As the effgcts of th8 parKlemic SI0￿Y diminish, keeping our community safe and well remains our priority. Consistently guided by UK Govemment advice, we are continuing a phased resumption of business, involwng gradual, incremental changes matched with careful monitoring of thè changing situation. We will continue to focus on mental health awareness and safeguarding for both Members and stsff and on staff professional and individual development. We will continue to look for cost*ffective ways to raise the College's public profi18, building on valuable new partnerships now being established with scholarship bodies. academic charities and educational institutions, among others. to ensure we continue to attract and secure as many talented intemational postgraduate students as possibla. Through our Alumni engagement and fundraising strategies, we are looking at ways in which we can reconnect the College's Alumni. wherever thèy may be based in the world, using channels such as digttal communications. events and volunteering. On the back of this engagemenl and reconnection. we aim to increase voluntary income to enable as many postgraduate students as possible, i￿eSpeCtive of background. lo have a Chan￿ to join the College wmmunity. Volunlary income will also support the provision of our emergency financial assistan￿ fund (The Mecklenburgh Fund). student wellbeing {online counselling service) and other College capital projects. Our digital Alumni ne￿orkIng website. Goodenough Global, was suc￿sSfUllY launched in May 2021. So far, we are out perfomiing other Higher Education establishments in terms of sign ups. likes, shares and active posls. Most users are between the ages of 25-39 so it is -22- Goodenough College Trustees. Annual Report and Strategie Re￿rt for the 17 months ended31 August 2021 likely that this platform wll be an important tool through which we can keep younger, more recent Alumni engaged with the College until such times as when they are able lo give back financially. Going forward we plan to market the site further through a postcard campaign. We also need to ensure a steady stream of unique content to keep those already signed up mming back to the site and to encourage as much of it as possible to be Alumni rather than Colleg&led. The Board will complete tts remew of the Co118ge's govemance arrangements, in line with the Charity Governance Code. and then work wth College senior managemenl to implement any recommendations. with a view to embedding best governan￿ practice for the sustainabla long-lemi management of the College. The College will also embed equality, diversity and inclusion initiatives across our operations to ensure we deliver fully on our diversity commitments. The College remains extremely grateful to its Govemors, Fellows and other stakeholders who continue to offer their tirne, expertise and financial support lo enhance our College community. Without their engagement and commilment, Ihe College would nol continue to thrsve. 23- Goodenough College Trustees, Annual Report and Strategic Rep)rt for the 17 Tnonths ended 3J August 2021 STATEMEKf OF TRusfEFS' RFSPONSIBIiifIFS The Trustees (who are also directors of the College for the purposes of mmpany law) are responsible for preparing the Annual Report. incorporating the Strategic Report, and the Financial Slatements in accordance with the Companies Act 2006, including (The Stralegic Report and Directors, Reporl) Regulations 2013 and the Charities (Accounts and Reports} Regulations 2008. the Charities army Trustee Investment (Scotland} Act 2005 and for being satisfied that the Financial Statements give a true and fair wew. The Trustees are also responsibla for preparing the Financial Statements in accordance with United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice). Company law and charity law requires the Trustees to prepare financial statements for each financial year in accordance wth United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law and charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair wew of the state of affairs of the group and charity and of the incoming resources and application of reSoUr￿s, including the income and expenditure. of the group and charity for that period. In preparing these financial statements the Trustees are required to.. Select suitsble accounting policies and then apply them consistently.. Make judgements and accounting estimates that are reasonable and prudent,. stste whether applicable UK accounts'ng standards have been followed, subject to any malerial departures disdosed and explained in the financial statements. and Prepare the financial statements on the going cOn￿M basis unless it is inappropriate to presume that the Charity and group will continue in business. Thè Tnjstees are resF)onsibl8 for keeping adequate and proper aGwunting records that are sufficient lo show and explain the charitable companls transactions and which disdose with reasonable accuracy at any time the financial position of the charitable company and group and to eriable them to ensure that the accounts comply with the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005. They are also responsible for safeguarding the assets of the charitable IX*mpany and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the charivs website in accordan￿ with legislation in the United lQngdom goveming the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity's website is Ihe responsibility of the trustees. The trustees, responsibility also extends to the ongoing integrity of the financial statements contained therein. The Trustees have Ihe authority conferred by the memorandum and articles of association to invesl as they think fit any of the College's money that is not immediately required. They delegate day-l04ay management of the College to the College Director, Officers and senior staff. Disclosure of information to auditor In the case of each of the persons who are directors of the company at the date when this report was approved: So far as each of the directors is aware, there is no relevant audit infomiation (as defined in the Companies Act 2006) of whith the companvs auditors are unaware., and -24- Goodenough College Trustees, Annual Report and Strategic Report for the 17 months ended 31 August 2021 Each of the directors has taken all the steps that helshe ought to have taken as a director to make himselflherself aware of any relevant audit information (as defined) and lo establish that the companls auditors are aware of that information. This confirmation is given and should be interpreted in accordan￿ wilh the provisions of S418 of the Companies Act 2006. BDO have signified their willingness to provide audit services for the coming year. Auditors are appointed at the College AGM. The Trustees, Report and Strategic Report were approved by the Trustees in their capacity as Directors of the Charitable Company and signed on their behalf by= )} _i{Ll,_ Stuart Shilson Chairman 25 January 2022 2S- INDEPENDE￿r AUDrroR'S REPORT T() THE MEMBERS AND TRUSTEES OF GOODENOUGH COLLEGE Opinion In our opinion, the finanaal statements= give a true and fair wew of the state of the Group's and of the Parent Charitable Company's affairs as at 31 August 2021 and of the Group's incoming resources and application of resources for the 17 month period then ended: have been properly prepared in accordance wtth Uniled Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirements of the Companies Act 2006. the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charili6S Awounts (Scotland) Regulations 2006, as amended in 2010. We have audited the financial statements of Goodenough College ("the Parent Charitable Compan￿) and rts subsidiaries {Xhe Group.) for the 17 month period ended 31 August 2021 which comprise the consolidated statement of financial actiwties (incorporating an income and expenditure account), the Group and Charity balance sheet, the consolidated cash flow statement, the charity statement of financial activtties and notes to the financial statemenls, including a summary of significant accounting policies. The financial reportiThJ framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). Basis for opinion We conducted our audit in accordance with Intemab'onal Standards on Auditing IUKI (ISAS {UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remain independent of the Group and Parent Charitable Company in accordan￿ with the ethical requiremenls that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fU￿illed our other ethical responsibilities in accordance with these requirements. Conclusions related 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 perfom7ed, we have not identtfied any material Un￿rtaIntieS relaling to evenls or conditions that. individually or collectively, may cast significant doubt on the Group and the Parent Charitable Company's ability to continue as a going GOn￿M for a period of at least ￿e1ve months from when the financial ststements are authorised for issue. Our responsibililies and the responsibilities of the Tnjstees with respect to going concem ar8 described in the relevant sections of this reporL -26- Goodenough College Independent Report of the Auditor {continued) lor the 17 months ended 31 August 2021 Other inforniation The Trustees are responsible for the other infomation. The other infomiation comprises the information included in the Annual Report and financial statements. other than the financial statements and our audilorfs report thereon. The other infomalion comprises Trustees. Annual Report and Strategic Report and the Goodenough College Chaiman's Personal Welcome. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other infomiation is materially inconsistent with Ihe financial statements or our knowledge obtained in the audit or otherwtse appears to be materially misstated. If we identify such malerial inconsistencies or apparent material misstatements, we are required to determine vthether there is a material misslatement in the financial statements or a material misstatement of the other information. If, based on the work we have perfomied, we conclude that there is a material misstatement of this othar infomiation, we are required to report that fact. We have nothing to report in Ihis regard. Opinions on other njatters prescribed by the Companies Aet 2006 In our opinion, based on the work undertaken in the course of the audiL' the infomiation given in the Trustees, Report. which includes th8 Dirertors, Report and the Strategic report prepared for the purposes of Company Law, for the financial period for which the financial ststements are prepared is CA)nsistent with the financial statements,. and the Strategic report and the Directors, Report. which are included in the Trustees. Report. have been prepared in accordance wth applicable legal requirements. In the light of the knowledge and understanding of the Group and the Parent Charitab18 Company and its enwronment obtained in the course of the audit. we have not identrfied material misslatement in the Strategic report or the Trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities and Truslee Investment (Scodandl Act 2005 requires us to report to you rf. in our opinion.. proper and adequate accounting records have not been kept by the Parent Charitable Company, or retums adequate for our audit have not been received from branches not visited by us,. or the Parent Charitsble Company financial statements are not in agreement with the accounting records and returns- or certain disclosures of Directors, remuneration specrfied by law are not made., or we have not received all the infomiation and explanations we require for our audit. -27- Goodenough College Independent Report of the Auditor (continued) for the 17 months ended 31 August 2021. Rosponsibilities of Trustees As explained more fully in the Trustees, responsibilities slatement. the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees detemiine is necessary to enable the preparation of financial statements that are free from material misstatemenl. whether due to fraud or error. In preparing the financial statements. Ihe Truslees are responsible for assessing the Group's and the Parent Charitable Company's ability to continue as a going concem, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic altemative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 4411 XG) of the Charities and Trustee Investment {Scolland} Acl 2005 and under tha Companies Act 2006 arKI report in aGcordanGe wilh the Acts and relevant regulations made or havsng effect thereunder. Our objectives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free frorn material misstatement. whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuran￿ is a high level of assurance, bul is not a guarantee thal an audit conducted in accordance with ISAS {UK) will always detect a material misslatement when it exists. Misstaternents can arise from fraud or error and are considered material individually or in the aggregate, they could reasonably be expected to Influen￿ the economic decisions of users taken on the basis of these financial ststements. Ftttent to which the audit was Capable of detecting irreguknties, including fraud Irregularilies, induding fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl material misstatements in respect of I￿egUlarl11e$, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detsiled below.. As part of the audit we gained an understanding of the legal and regulatory framework applicable to the Group and the sector in which it operates. and considered the risk of acts by thè Group that were contrary lo applicable laws and regulations. including fraud. We considered the Group's own assessment of the risks that irregularilies may occur either as a result of fraud or error. the Group's compliance with laws and regulations Ihat have a direct impact on the financial stalements such as the Companies Acl 2006. Charities Act 2011. the Charities and Truslee Investmenl {Scotland) Act 2005 and other laws and regulations applicable to the group such as employment law, taxation legislation, data protection, health and safety legislation. We considered financial performan￿, key performance indicators and other perfomance targets. We also considered the risks of non- compliance with requirements imposed by the Charity Commission. and other regulators, and we considered the extent to which non-complian￿ might have a material effect on the group financial statements. We also communicated relevant identrfied laws and regulations. potential fraud risks and thal there were no known matters of significant nonacompliance with laws and regulations, to all engagement 28- Goodenough College Independent Report of the Auditor (continued) for the 17 months ended 31 August 2021 team members including intemal speaalists audit teams, and remained alert to any indications of fraud or non-complian￿ with laws and regulations throughout the audil. We considered management's incentives and opportunilies for fraudulent manipulation of the financial statements {including revenue recognition and the risk of override of controls). and detemiined that the principal risks were related to posting inappropriate joumal entries to manipulate financial results and management bias in accounting estimates. Our tests included= Reviewing the financial slalement disclosures and tested to supporting documentation to assess Complian￿ with relevant laws and regulations discussed above" We made enquiries of the Audit Commtttee and Senior Management Team. Review of minutes of meetings of those charged with govemance" Reviewing correspondence with HMRC. Challenging assumptions made by managernent in relation to the recA)gnition of grant and donation income . Enquiries of third parties, where infoThation from that third party has been used by tha Group in the preparation of the financial statements. reviewed any Serious In￿dent Reports submitted to th8 Charity Commission and other correspondence with the Charity Commission.. performed audit procedures lo idenlrfy any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud., In addressing the risk of fraud through management override of controls, we tested the appropriateness of joumal entries and other adjustments,. assessed whether the judgements made in making accounb'ng estimates are indicative of a potential bias. considered completeness of related party transactions. and evaluated the business rationale of any significant transactions that are unusual or outside the nomial course of business- and We challenged assumptions made by management in their signtficant accounting estimates in particular in relab'on to the assumptions related to the valuation of investment properties as this is where management may feel pressure to meet loan to value covenants. Our audit procedures were designed to respond to risks of material misslatement in the financial statements, recognising that the risk of not detecting a malerial 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, misrepresentations or through (rillusion. There are inherent limitslions in the audit prO￿dureS perfomied and the further removed non-complian￿ with laws and regulations is from the events and transactions reflected in Ihe finaneial statements, the less likely we are to become aware of it. A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council's ('FRC's') website at: httpSj￿.frC.Org.uk1audIt0rsresponSIb11ltias. This descriplion forms part of our auditorfs report. Use of our report This report is made solely to the Charitable Companls members, as a body, in accordan￿ wth Chapter 3 of Part 16 of the Companies Act 2006. and to the Charitable Company's trustees, as a body, in accordance with the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charitable Company's members and trustees Ihose matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent pemitted by law, we do not ac￿pt or assume responsibility to anyone other than -29- Goodenough College Independent Report of the Auditor (continued) for the 17 months ended 31 August 2021 the Charitsble Company, the Charitsble Companys members as a body and the Charitable Company's trustees as a body. for our audit work. for this reporl, or for the opinions we have fomied. Do¢uSpJrrtd by.. 73D88T8FE9AC4C9 Jill Halford (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor London, UK Date.. 26 January 2022 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 30- Goodenough College Consolidated statement of financial artivities (incorporating a consolidated Income and Expenditure account) for the 17 Tnonths ended31 August 2021 CONSOLIDATED STATEMENf OF FINANCIALACTIvrrIES FOR THE 17 MoKfHS ENDED 31 AUGUST 2021 Notes Unrestricted Funds 17 months 2021 £'ooo Restricted Funds 17 months 2021 £'ooo Total Funds 17 months 2021 £'ooo Total Funds Year to 2020 £'ooo Income from.. Llonalions and legacies Chsrilable activities: College community accommodation Trading aclivilies.. Commercial accommodatK)n Catering, Events and Venue Hire Investments Other income Total 113 550 663 265 138 7.434 7,696 281 536 1.318 257 9,801 281 536 1.456 257 10,627 3.321 1.274 1.275 138 826 13,831 Raising funds Investment management Fundraising Trading activities Charitable aclivilies.. Allracting outstanding poslgraduale sludents Transfomiing College Members Raising the College's profile Sustaining the College Total 13 177 317 1.476 317 1,476 286 2.762 233 1.527 10.506 1,087 7,432 470 2.182 14.373 10.007 277 1,022 3.221 17.711 16,689 Net {loss) before other gains I (losses) 16,888) 11961 {7.0841 15421 Net gains l {losses) on investments 5.223 618 &841 (1,597) Net lexpenditurg) l income (1,6651 (1.243} 12,139} Transfers betsveen funds 16. 17 115) 15 Net movement in funds {1.680) 437 11,2431 {2,1391 Reconciliation of funds: Totsl funds brought forward Nel movement in funds Total funds carried forward 142,631 1,680 140.951 12.305 437 12.742 154.936 1,243 153.693 157,075 2,139 154,936 Reconryliation of funds for yoar end￿ 2020 Total funds brought forward Nel movement in funds Total funds carried foThvard 144.324 1,693 142.631 12,751 446 12.305 157,075 2,139 154,936 157,191 116 157,075 All results derive from continuing operations. Al gains and losses recognised in the period are included above. The notes on pages 37 10 58 fom) part of these Financial Statements. 31 Goodenough College Balance Sheet QS Qt 31 August 2021 Company Registration No- 00246919 BAL4NCE SHEET AS AT 31 AUGUST 2021 Group Charrty 31 March 2020 £'ooo Notes 31 August 2021 £'ooo 31 March 2020 £'ooo 31 August 2021 £'ooo FIXED ASSETS Tangible assets Freehold land and buildings Heritage assets Fixtures, fillings plant & equipment Ioa Iob IOC 165.495 310 1,322 167,127 26.112 167,239 310 1,366 168.915 26,551 165,495 310 1,322 167,127 26,112 250 193,489 167,239 310 1,366 168,915 26,551 250 195,716 Investments Investments in subsidiaries Ilb 12 193,239 195,466 CURRENT ASSETS Stocks Debtors Cash al bank and in hand 10 1,313 2,201 3,524 12 442 1,263 1.717 10 1,531 1,945 3,486 12 662 256 930 13 CURRENT LIABILITIES Amounts falling due within one year 14 13.070) 12,2471 (3.331) 12,4181 NET CURRENT ASSETSIILIABILITIES) 454 15301 155 11,4881 TOTAL ASSETS LESS CURRENT LIABILITIES 193,693 194,936 193,644 194,228 CTedilors'. amounts falling due after more than one year 15 (40.0001 140,0001 {40.0001 140,0001 TOTAL NET ASSETS 153,693 154,936 153,644 154,228 Restricted funds Designated funds General funds 16 17 17 12,742 132,431 8,520 12,305 133,460 9,171 12,742 132,431 8.471 12,305 133,460 8,463 TOTAL FUNDS 153,693 154,936 153.644 154,228 The deficit for the period for Companies Act purposes, comprising the net expenditure for the period, was £1,243,00012020.. £2,139,000). The notes on pa9es 37 to 58 form part of these Financial Slalements. These Financial Slalemenls were approved and authorised for issue by the Trustees on 25 January 2022 and edonlh ir behalf by.. Stuart Shilson Chairman 32- Goodenough College Consolidated Statement of C&sh Flows for the 17 months ended31 August2021 CONSOMDATED STATEMEiYf OF CASH FIA)WS FOR THE 17 MONTHS ENDED 31 AUGUST 2021 Notes 17 months (pages 33 2021 and 34} Year lo 2020 £'ooo £'ooo Cash flows from operatlng actlvltles: Net cash provided by 0￿rating activities Interest paid on loan Loan costs Net cash (oufflowyinllow generated from operatlng activitie5 (a) (3.9541 (1,2411 18 1,936 {1,2441 (5.213) 689 Cash flows from investing activities: Dividends, interest and rents from investments Purchase of property, plant and equipment Prcwds from sale of investments Purchase ol investments 1.456 11.583) 12.858 6.192 6.539 1.275 (1,1651 5.274 6,631 (1,2471 Net cash generated from /{used In) Investing activities Change In cash and cash equivalents in the r9PQrting period 1.326 15581 Cash and cash equwalenls at the beginniThJ of the reporting period 3.932 Cash and cash equlval•nts at tho end of thg reporting pgriod Ibl 5.258 3,932 17 months 2021 Year 2020 £'ooo £'ooo (a) Reconciliation of nat incomg to net cash loutflowl l inflow from operating actlvities Net lexpenditurel for the reportiro period Adjustments for.. Depreciab"on charges Losses Igainsl on investments Dividends, interest and rents from irNestment Interest payable on loan Loan costs Oecrease ill stock {Increasel in debtors Increase in creditors {1.243) (2,1391 3,372 15.841) 11,456) 1.761 18 2,253 1,597 (1,2751 1.244 12 {96} 337 1871) 304 Net cash {ouffiow) l inflow from opgrating activities 3.954 1,936 33- Goodenough College Consolidated Statement of Cash Flows for the 17 months ended31 August 2021 {bl Arialysis of Cash and Cash Equivalents 31 March 2020 £'ooo Cash flows £'ooo 31 August 2021 £'ooo Cash in hand Notice deposrts Total Cash and cash aquivalents 1,263 2.669 3,932 938 388 1,326 2,201 3,057 5,258 {c) Analysis of changes In net debt 31 March 2020 £'ooo Cash flows £'ooo 31 August 2021 £'ooo Cash Cash equivalents 1,263 2,669 3,932 938 2,201 3.057 5,258 1,326 Loans falling due after more than one year {40.￿0} 140,000) Total 36,068 34.742 Goodenough College Charity only statement of financial activities for the 17 TnontlLS ended31 August2021 CHARfrY ONLY STATEMENf OF FINANCIAL AcfIviTIES Reslricted Funds 17 months 2021 £'oTr) Total Funds 17 months 2021 £'ooo Note Unreslricled Funds 17 months 2021 £'ooo Total Funds Year lo 2020 £'ooo Income from: Donations and legacies Charitable activities.. College community actommodatton Investments Other income Total 113 550 663 2,098 7,296 1,318 257 8.984 7.434 1.456 257 9,810 7.696 1,275 138 826 11.069 Expenditure on: Raising funds Investment management Fundraising Charitable aclNlties-. Attracting outstanding postgraduate sttjdents Transfomiing College Members Raising the College's profile Sustaining the College Total 164 317 13 177 317 154 286 1.294 10.007 487 2.944 15.213 233 1,527 10.506 1.087 7,432 470 2,182 11,611 277 1,022 3.221 16.235 Net (losses before other gains l (losses) 16.229) (196) 16,425) {542} Nel gains l {lossesl on investments 11 5.223 618 5.841 {1,597} Net (losses} I Income 11,006) 422 (584) 12,139} Transfers btheen funds {15} movement in funds 1.021 437 2,139 Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carrled forward 141,923 1.021 140.902 12,305 437 12,742 154.228 156,367 2,139 153.644 35- Goodenough College Consolidated Statement of Financial Activities for the year ended 31 March 2020 CONSOIIDATED STATEMENf OF FINANCIALAcrivrrIFS FOR THE YEAR ENDED 31 MARCH 2020 Unre5tricled Funds Restricted Furids Total Funds 2020 £'ooo £'O(K) Income from: Donations and legacies Charitable activities.. College communityaccommodat Trading aclivilies.. Commercial accommodation Catering, Events and Venue Hire Investments Totsl 210 265 342 7,696 3,321 1,274 1,173 13.177 3,321 1.274 1.275 13,831 102 Expenditure on: Raising funds Investment management Fundraising Trading activities Charitable activities= Allracting outstanding postgraduate students Transforming College Members Raising the College'5 profile Sustaining the College Total 145 286 2.762 154 286 2,762 195 658 1.087 7.432 470 2.182 14,373 6,774 470 2,143 13.472 39 901 Not (l￿OsI before other (losses) (2951 (247) (542) Nel {los8es) on investments {1,337} (260> (1.597) Net {expendlturel (1.6321 (507) (2.139) Transfers between funds 161) 61 Ngt movernent In funds 1.693 2.139 Reconciliation of funds: Total funds broLFght forward Nel movement in funds Total funds carried forward 144,324 1,693 142.631 12,751 446 12.305 157.075 2,139 154,936 36- Goodenoush College Notes to the Financial Statements (continued) For the 17 months ended31 August 2021 AccouNfiNG POLICIES (a) Basis of preparation The Financial Statements have been prepared under the historical c05t convention, a5 modffied by the inclusion of investments and investment properties at fair value al balance sheet date. The financial statements have been prepared in accordance wth Accounting and Reporting by Charities.. Stalemenl of Recommended Practice aP￿Icable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191- (Charities SORP IFRS 102)). the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 and the Companies Act 2006 and the Charities Act2011. They also comply with the charl￿eS and Trustee Investment (Scotland) Ael 2005 and the Charities Accounts (Scotland) Regulations 2006 and applicable actounting stand2rds. The accounting policies have been applied consislenuy throughout the a(￿unts. The Tnjstees reviewed the College's plans in July 2021 and were content that these plans were affordable and that the a(xounts should be prepared on a going conwn basis. However. given the impacl of the COVID-19 outbreak and its financial effect, Ihe Executive team and Trustees continue lo review finanryal plans for the next 12 months to ensure that the College can continue ils business-critical activities and remain a going Con￿M. The lockdown has had a significant effect on the College's finanaal situation. This is across all areas of income. including member rents as well as the hotel an¢Y commercial events. There have been some onsequenlial reductions in costs and the furfough scheme has enabled the recovery of an element of staff salaries, but the net losses against the budget for 2020121 were £7.4m. In July 2021 the Board of Trustees approved a cautious budget showng the College reluming lo a consolidated operating surplus in 2021122. There has been a high volume of ap￿￿tionS for places in the College for the 2021122 academic year. with occupancy levels exceeding budget. The holel remains closed for the refurbishment project until May 2022 however commercial event bookings have been strong. Due to the Hotel closure budgeted lolal income remains signrficanlly lower than il would Other￿Se have been. Business performan￿ is being carefully monitored against budget and financial stsbility reviewed as matters progress. Current 2021122 financial perfomiance is ahead of budget. Excluding 4346 Mecklenburgh Square, the Cdlege hdds in ex(xs of £23m in unrestricted funds rK)t representing current operating assets, of which £3.5m is in investment propety and just under £20m in liquid investments m8n8ged through our investment managers. The invested portfolio includes in excess of £11m invested in short and medium term funds where capital preservation is the key nveslment strategy. In total these reswes a￿ well in excess of the annual tumover and annual cash flow requiremenls of the College. Given the strength of the balance sheet and the availability and liquidity of unreslricled investments the Trustees believe that, while uncertainly exists. this does not pose a material uncertainly that would cast doubl on the charitys ability lo continue as a going concem. The Trustees. therefore, consider it appropriate for the accounts to be prepared on a wing COn￿M basis. Further detail on the availabilty of unrestricted funds and the potential financial impact of COVID-19 can be found on p15 of the Trustees, Report. The impact of the COVID-19 uisis is reviewed extensively in the Report. 37- Goodenough College Notes to the Financial Statements (continued) for the 17months ended31 August2021 i. ACCOi]NfING POUCIFS (continued) The group statement of financial activibes {SOFAI and balance sheet, consolldate the Financial Statements of the Charity and its wholly 0￿ed subsidiaries, 811 of which were made up to 31 August 2021 on a line by line basis. Ib} Company $tstus The Charity is a company limtied byguaranlee. The members ofthe company are the Govemors named on pages two and three. The Directors of the Company are the Trustee 8oard named on page ￿0. In the event of the Company being wound up. the liability in respect of the guarantee is limited to one guinea per member of the Company. (c) Key assumptions and estimates Key assumptions and estimates are (￿tinuallY evalua￿ and are based on historical experience and other factors, induding expectations of future events that are believed lo be reasonable under the rcumstances. The assumptions and estimates Ihal are likely lo cause any material impact to the accounts are set out below.. Valuation of Investment Properties as disclosed in note 11. the fair values of the investment properties are reviewed at the balance sheet date lo determine any changes in value. This is done by ieviewing key property price indicators for the local area or an external valuation by RICS registered valuers. Depreciation- Fixed Assets are deweci8ted on a straight line basis as set out in note 1 i) Tangible Fixed Assets. (d) Income All income is recognised in the SOFA when the Charity has mel conditions for receipt, receipt is probable and the amount can be quantified wth suff￿lent reliability- Investment income is accounted for when receivable. Legacies.. Legaryes are deemed receNable from the dale of nolrfication, provided that suFficient information has been received to enable the Group lo calculate eRtitlement and receipt is probable. G￿8 in Kind.. Donations in kind are recognised at their value lo the Charrty when they are received. No amounts are inctuded for Servi￿ donated by volunteers. Govemm8nl grants.. Income from Govemment and other gran15. whether 'capital' gran15 or 'revenue' grants. 15 recognised when the charrty has entillemenl to the funds, any perfomiance ondrtions attached to the grants have been meL il is probable that the income will be received and the amount can be measured reliably and is not deferred. In respect of the fudough grant,. all conditions, wlh respect lo the eligible costs being daimed. need to be mel. (e) Expenditure All expenditure is accounted for on an accnjals basis and has been classffied under headings that aggregate all costs related lo that category. Investment Management cthls represent the fees incurred on raising Investment Income. Fundraising costs represent expenditure in relation to fund-raising and publicity costs. Direct expendrture incurred on charrtable activities is identrfied against one of the four strategic goals of the charrty. SuptM)rt costs represent expenditure incurred in general management, Trustee related (x)sts and audtt coslg and are apportioned across the four strategic goals. See note 6 for fvrther information. 38- Goodenough College Notes to the Financial Statements (￿)ntinued) for the 17 months ended 31 August 2021 i. AccouNfiNG POIJCIFS (continued) (O Fund aecounting The College maintains various types of funds a5 follows- i) Restricted funds The Burn Restncted funds inctude donations received which were allocated by the donor for the upkeep of The Burn, a Scottish study arKI holiday centre for students and graduates. In addition other donations whth are earmarked for partI￿lar purposes are Irealed as restricted funds. ii) UnrestrActed funds DeS￿nated reSe￿oS are amounts bthich have been pul aside at the discretion ofthe Tnjslees and comprise- Tangible fixed assel reserve representing the value of all reserves used for operating tangible fixed assets lexduding those of The Bum, vthich are reslrictedl and only realisable by the disposal of these frxed assets. Investment ly0￿rty resgrve represents the value of all resefves held in investment properties and only realisable by the disposai of these fixed assets. Asset Replac&menl Reselve (ARR) has been established to hold the current level of funds idenltfied for Ihefuture replacement and refurbishment of the buildings, fixtures, fillings and equipment of London House, Williaffl Goodenough House and the Club in support of the Asset Replacement Plan curre[)￿Y (xJveriThJ a 30 year period lo 2046. College Development Reserve (CDR) was established to hold the funds in excess of those required lo settle previous ￿)rrOWn9 when the College's debt was restnjctured in June 2017. These funds have been designated by the trustees to fund the further development of Goodenough College above and beyond the refurbishment and replacement of existing assets as provided for in the Assel Replacement Reserve and lo indude investment in 'intangible' matiers other Ihan fixed assets. The final crtteria for ils use would be detemiined through the development of the College Strategy. 4&47 Mecklenburgh Souare Reserve was estsblished by the twslees to support Ihe future development of 4347 Mecklenburgh Square. Other designated fvnds reserve represents other fvnds designated by the Imstees for particular purposes. Generalunrestricted funds representfunds sthich are expendable al the discretion of IheTrustees in the furtherance of the objects of the company. Such funds may be held in order to finance working capital or capital investment and include the College's reseNe. (g) Financial instruments Financial assets and financial liabilities are recognised when the College becomes a paty to the conlraclual provisions of the instnjmenl. Ml financial assets and liabilities are inrtially measured at transaction price (including transaction costs). Basic financial instruments are initially recognised at transaction value and subsequently measured al their settiement value. Trade and other debtors are recognised al the settlement amount due after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. Creditors and provisions are recognised where the College has a present obligation resulting from a past event that wll probably result in the transfer of funds lo a third party and the amount due to setde the obligation can be measured or eslimaled reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 39- Goodenough College Notes to the Financial Statements (continued) for the 17month5 ended 31 August 2021 I. ACCOUNfiNG POLICIES (continued) Other financial instnjments are initially recognised at fair value and any changes lo their fair value are subsequenuy recognised in the SOFA under'nel gains I Ilossesl on financial instruments.. (h) T￿ation Goodenough College is a Charity wtihin the meaning of Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corwration lax purposes. Accoréingly the company is FK)lenlially exempt from taxation in respect of income or capital gains received Mthin Ixlegories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the exlent that such income or gains are applied exdusively to charrtable purposes. The subsidiaries make qualrfying donations of all taxable profrt lo Goodenough College. Income from Gift Aid tsx redaimed is recognised in relation lo qualtyng donations received. The College is registered for Value Added Tax (VAT). Any irre¢xiver8ble VAT is ¢harged lo the ststemenl of Financial Activities. (l) Tanglble fixed assets The College has elected to present the deemed cost of its freehold assets al the value held at 1 April 2014. as permitted under the FRS102 transitional arrangements. Where there is an indication of an asset being impaired the re(x)verable amount is idenlrfied and the impairnienl loss is recognised as expenditure in the Statement of Financial Actwities. Depreuation oll fixed assets is charged so as to write down the value of properties and material components over their expected useful lives, on a straight line basis as follows.. Lrfe (years) Freehold buildings R¢)of work Lrfis Bathrooms, heating, water, electrical and gas systems. and boiler equipment CCTV Venlilalion and fire detection systems and fire stopping works Access and telephone system Vehicles Computer and other Off￿ equipment Computer sofiware Furniture Improvements to Freehold lillcluding room refurbishment} Other plant and equipment and other fixtures and fittings 100 15-50 25-30 10-25 5-20 10-15 10 8-20 6-15 4-15 (i) Heritage knsets The College has elected lo present the deemed cost of its Heritage Assets al the value held al 1 April 2014, as permitted under the FRS102 transitional arrangements. Heritage Assets are not depreciated. The College has reviewed its Heritage Assets and doe5 not consider that any impairment al 31 August 2021 is necessary. -40- Goodenough College Notes to the Finaneial Statements (continued) for the 17 months ended 31 August 2021 i. ACCoU￿1NG POLICIFS (contimied) (k) Investments Investments are valued at bid value as at the balar￿ sheet date and the surplus or deficit arising from this revaluation is shown ￿thin 'net gains l (losses) on investments. on the face of the SOFA. Realised gains and losses represent the drfferen￿ between the sale proceeds and the opening market value of an investment or cost rf purchased during the year and are also shown within this line. O) Investtnent properties Investment properties are held inthally al cost and SubseqUen￿Y at fair value at the reporting dale. Any Gains or Losses are recognised under'Net gainsl (Ios5es) on investments, on the Stalementof Financial Activities. Investment properties are not depreciated. (rn) Stocks Stocks are stated al the lower of cost and net realisable value and comprise consumable wds. {n) Operating le￿eS Rental costs under operating leases are charged to the SOFA in equal amounts over the period of the lease. {0) Borrowing costs Interest and charges are expensed and charged lo the SOFA when incJJrred. (p) Pension a¢cowiting policy Goodenough College operates a defined contribution pension scheme. Contributions are charged to the SOFA as they become payabte. They are analysed across expenditure according lo the activity of the scheme members. 41 Goodenough College Notes to the Financial Statements (continue(O fvr the 17 months ended31 August 2021 2 DONATIONS Unrestr￿ted funds 17 months lo 2021 £'cK)o Restricted funds 17 months lo 2021 Totsl funds Year lo 2020 £000 Total funds 17 months to 2021 £'ooo Donations 113 113 550 550 663 663 265 265 Of the total furKIs stated for 2020. £210k was restricted and £55k unrestricted. Of these donations £69,9￿ {2020 . £40,5CK)) was received from Trustees. Total funds 17 months to 2021 Totsl funds Y8ar to 2020 funds 17montsto 2021 funds 17 monlhs tr) 2021 ro £￿00 £￿0 IrKome from UK listed investments Ir￿me from overseas listed investments Rent from propety Other intere51- short-le￿n deposits 216 81 59 29 275 340 116 611 207 857 214 214 1.318 138 1.456 1,275 or the total funds staled for 2020, £102k was restricted and £1.173k unrestricted. 4 TRADING INCOME Trading income (x)mprises income arising from the College's ￿ trading subsidiaries as detailed in note 12. Included within trading In￿Me is £41.000 arising from C(￿OnavI￿uS related business grants received by Goodenough Club Limited. -42- Goodenough College Notes to the Financial Statements (continued) for the 17 montlLS ended 31 August 2021 5 INCOMING RFSOURCFS FROM COl￿E CHAR￿ABLE AcrivrrIES Unrestricted tunds 17 n￿nthS to 2021 Restn"cted funds 17 months tr) 2021 Total funds 17 months to 2021 Totsl lunds Year to 2020 rooo £'ooo College syoss aCcommodat￿n income 7.296 7,354 The Bum inc￿rne 138 138 342 7,434 7,696 Included within incoming resources from college charitable activities for the period is £492,000 relating to the Coronavirus Job RelentiTrn Scheme and £40,LK)O relating to other coronavirus grant funding. OF the total funds stated for 2020. £342k was restn"Ct￿I and £7,354k was unrestricted. Dirw Costs 17 months to 2021 Suppcfft Costs 17 months to 2021 T<)tsl 17 months to 2021 Total Year tr) 2020 £wo £￿00 £'cKJo Attracting outstanding postgraduate students Transfomiing College Members Raising the College's profile Sustaining the College 1,273 8,832 254 1.527 1.087 1,674 82 10,506 7,432 470 405 2,978 243 3.221 2,182 13,488 2,253 15.741 11,171 The College has paid £760k12020'. £470k) trj College members as scholarships and bursaries, including hardship funds. -43- Goodenough College Notes to the Financial Statements (continu￿) For the 17 months ended31 August 2021 SUPPORT COSTS 17 months to 2021 £'ooo Year lo 2020 £'ooo Finance 524 402 610 264 48 820 331 HR Governance Other general oVert￿ad$ 619 357 2,358 1,681 These support costs are splFt across the following areas.. Raising funds Charitable activities 105 209 2,253 2,358 1,472 1.681 GOVERNANCE cosrs 17 months to 2021 Year to 2020 £'ooo £'ooo Support costs Council and Board meeting costs Fees payable to the auditors- College 35 33 35 36 Dlrect costs Fees payable to the auditors- SubsKliary Compan Total govemance costs 29 12 Fees payable lo the CoMpan￿S auditors: Statutory audit Advisory services 33 12 24 45 Goodenough College Notes to the Financial Statements (continued) for the 17months ended31 August 2021 17 months to 2021 rooo Year to 2020 £'ooo Net outgoing resources for the year are stated after charging . Amo*Jnls payable lo auditors IGroUpXr￿Ie 7) Depreciation of tangible fixed assets Operating lease charge 45 2,253 28 3,372 2021 No. 2020 Average number of employees (full time equivalentl during the period: College Hotel The Burn 62 64 11 79 12 87 2021 2020 No. Average number of employees {headcount) during the period: College Hotel The Bum 71 80 11 22 113 23 loo 2021 £'ooo 2020 £'ooo Wages and salaries Social security costs Pensions 4,199 431 202 832 3,045 305 3.498 -45- Goodenough College Notes to the Financial Statements (continued) For the 17 months ended31 August 2021 INFORMATION REGARDING sfAFFAND TRusfEES (continued) The number of staff paid over £60,￿0 during the reporting period {salary plus taxable benefits excluding pension contributions) was.. 17 months to 2021 Year to 2020 No. £60.(K)1- £70.000 £70,001 - £80,000 £80,001- £90,000 £90-001- £100,000 £100.001- £110,000 £110,¢)01 - £120,000 £120,001- £130,000 £140,001 -£150.000 £150,001-£160.000 £170,001 -£180,000 Whilst the above table is requir&fj for disclosu￿ purposes, the 17 month period means that staff are included in bandings in excess of ￿ere tt)ey would be in a comparable 12 month financial period. If the table were presented the current financial year calculated on the basis of the 12 months lo 31 August 2021 it would show the f￿10￿￿9 CL)mparison. Year to 2021 No. Year lo 2020 No. £60,001- £70,000 £70,001 - £80.000 £80,001 - £￿,000 £90-001- £100,000 £100,001- £110.¢xJo £120,001 -£130.￿0 £150,001 - £160,IxIo Trustees, rgmungration Members of the Board of Trustees (who are all directors I￿1h1n the meaning of the Companies Act 21X)61 receive no remuneration or tsx8ble benefrts for their services. During the year three12020: four) Trustees were reimbursed or had amounts paid on their behalf for sundry Board expense9 incurred totalling £321 12020.. £3.239 relating to travel and sundry Board expensesl. Pension schemes The Company operdtes stakeholder penS￿n schemes administered by Legal and General. The employerfs contributions are 10Qkn of pensionable salary for senior staff and are matched lo those of the qualrfw'ng employees to a maximum of 50A of pensionable salary for other staff and amounted lo £201.83712020.' £148.0751. At 31 August 2021 outstanding payTnenls due lo the scheme were £21,170 12020.. £19,753). -46- Goodenougb College Notes to the FinancAal Statements (continue(O for the 17 months ended 31 August 2021 INFORMATION REGARDING STAFF AND TRusfELS ((x)ntinued) mana ement ersonnel Key management personnel of Goodenough College (x)mprise the Trustees and those ernployees making up the Executive team. consisting of the Director. the Director of Finan{￿ 2nd Resources, the Director of Operations. the Direclor of Development and Extemal Relations. the Dean, the Registrar and the Bursar lo the Bum. The aggregate compensation (remuneration plus benefits and employer's National Insurance Contributions} paid or payable to 'key management personnel, during this reporting period was.. £1.160,175 {2020'. £813.484}. Redundanc ents Total payments fftade during this year in relatM)n to redundancy pay were £37,878 {2020'. £34.2001. The ounting policy is lo recognise termination payment liabilities on communicalion of redundancy and when quantifiable. Such payTnents are accx)unle(I for as staff costs. io TANGIBIE FIXED ￿SETs (a) Freehold propertles Consolidated and company cd The Bum Assèts und on$truction £'o(10 Total Land and buildings at deemed c(>st rooo £'ooo £'ooo Brought forward deemed cost al 1 April 2020 155.440 11,059 35 10 11.104 11,263 443 51 11,655 177,762 1,139 Addf(ions Transfers At 31 August 2021 41 156.142 178,901 Depreciation Brought forward at 1 April 2020 Charge for the year At 31 August 2021 9,842 2.727 12.569 10,523 2,883 13,406 837 Net book value at 31 August 2021 143.573 11,655 165,495 Nel book value al 31 March 2020 145.598 167,239 Freehold properties consisted of student 8(thmmodatKJn, the hotel IThe Goodenough on Mecklenburgh Square) and The Burn. They were all the subject of independent valuations, for indusion in the accounts al 31 March 2013, provided by Orivers Jonas Deloitte, Willis Ltd. Ecdesiastical, Bell Ingram and Alpha Browell Ta￿or. 47- Goodenough College Notes to the Financial Statements (continue(r) fvr the 17 months ended31 August2021 io TANGIBI￿ FIXED ASSETS (continued) Assets under construction consist mainly of the properties al 4346 Mecklenburgh Square, previously held as investment properties. The lease on the properties expired on 26 November 2019 and the intention of the College is to convert them into add[t￿nal siudent accommodation. Accordingly they are no longer held as investments and were transfefred lo freehold properties al a value of £11,003,(X)O in the year ended 31 March 2020 and are Irealed as being al deemed cost. This is based on a valuation provided by Alpha Browett Ta￿or included in the accounts al 31 March 2018 and confimied by them in June 2019. Further work on the project as well a5 renoval￿n$ at the hotel and other ongoing works at the college premises during the year amount to £443,000. No depreu21ion is applied to these assets as they are not in operational use. Atso included in Freehold Properties are the Cotlege's Royal Albert Hall seats, held at historic cost of £350. The seats were purchased by the College in 1967 and are held on a 999 year lease from 1867. Excluding 4346 Mecklenburgh Square, the historical cost net book value of the land and buildings if the revaluation had not tsken place would be £30.235.00012020- £30.867.0001. The historical (x)st of 43- 46 Mecklenburgh Square cannot be detemiined. One of the College's properties is used by Goodenough Club Ltd, trading as The Goodenough on Mecklenburgh Square, a wholly owned subsidiary of Gocrfjenough College. 11 is a mixed use property, in that il provides ovemighl accommodation for businesses and private individuals but also for those involved in College ath"vities, induding College Aumni, providing College Alumni the opportunity lo be a part of the College communty even after they are no longer full time residents. At 31 August 2021 the net bcx)k value of the mixed use property is £14,279k, awjmulaled depreciation of £1.494k and an in-year depreciation charge of £360k. (b) Horitsgg assets Consolidated and company The Burn £'ooo College £'ooo Total £'ooo Deemed cost at 1 April 2020 20 310 Additions Al 31 August 2021 310 Heritage asse15 comprise paintings and furnrture whth are available for use and enjoyment of College members, staff and guests Ihroughout the College and Bum. The Director of Finance and Resources leads on the preservation and management of Heritage assets. The College maintains an asset register which details the location. value and description of the assets and ensures that they are IorAtwJ in an appropriately secure and managed environment. A valuation of the herfjtage assets was carried out in 2013 and is treated as deemed cost. The Tru51ees do not consider that any impairnent at 31 August 2021 is rtecessary. -48- Goodenough College Notes to the Financial Statements (continued) for the 17 months ended 31 August2021 io TANGIBIE FIXED ASSETS (continued) {c) Fixtures. r￿ing$. plant and equipment Consolidated and company Asse15 under construction £'ooo The Bum £'ooo Colleg8 Total £'ooo Cost al 1 April 2020 Additions Transfefs At 31 August 2021 2,734 87 111 36 (108) 39 2,932 445 108 3.251 87 3.377 Depreciation al 1 April 2020 Charge for year Al 31 August 2021 1,491 75 1,566 1,975 2,055 Ngt book value at 31 August 2021 1.276 39 Nel book value at 31 March 2020 1.243 12 111 The Bum Colkg Total (a) Investment properties Land and tNJildings at valuation.. £'ooo Carried forsvdrd at 1 April 2020 Disposa15 Revaluation At 31 August 2021 3,212 {491 357 3,520 700 3,912 {49) 467 4,330 110 810 The College investment properties were the subject of an independent market valuation for inclusion at 31 March 2018 by Alpha Browell Ta￿Or, RICS registered valuer with the necessary knovledge and expertise lo provide this valuation. In each of the subsequent years an internal exercise was carried out lo assess rf the value of similar properties in the local area had changed during the financial year. In 2020121 the College investment properties were revalued upwards by £357k as a result {2020'. £254kl. The Burn investment properties were the subject of an independent market valuation for indusion 8t 18 January 2018 by J & E Shepherd, RICS registered valuer with the Tr￿Ssary kno￿edge and expert4se lo provide this valuation. An intemal exer￿Se was carried out lo assess if the market had changed during the financial year, and the properties were revalued upwards by £110k12020.' no change was idenlifiedl. -49- Goodenough College Notes to the Financial Statements (continued) for the 17 months ended 31 August 2021 Consolldated and Company 31 August 2021 31 March 2020 (b) Llstgd investments £'ooo £'ooo Market Value at 1 April Addtiions al cost Proceeds from disposals Realised gainlllossl Unrealised gainlllossl Market value at 31 August 19.970 6.192 (12.8021 136 5,229 18.725 20,463 6,631 (5,274) {221 1,828 19.970 Llsted Investments comprlse the followTng: Investments listed on a recognised stock exchange- Equrties Investments lisle(l on a recogniwj stock exchange- Bonds Allernalwe Funds Market value at 31 August 10.293 1.429 7.003 18.725 9,819 5,946 4,205 19,970 Investment assets in the United Kin9Jom Investment assets outside the Unrted Kingdom Market value at 31 August 13,564 5.161 18,725 15,143 19,970 Cost at 31 August 14.199 20,104 Total investments Listed investments {m2rkel value) Short term deposits in the portfdio Investment properts.es Imarket value) Investments at 31 August 11b 18.725 3.057 4.330 26,112 19,970 2,669 3,912 26,551 11a 50- Goodenough College Notes to the Finaneial Statements (continue(O for the 17 months ended3iAugust 2021 12 SUBSIDWiY UNDERTAKtNGS The College owns 100OA of the issued capital of the followng companies. Company In￿stMent at Qst Subsldiary undertaklng Goodenough Club Limited Goodenough Ventures Limited 250,¢)00 250,002 Summarised financial results of GocMJenough Club Limited (Company Registration 26843781 are set out below and are included in the consolidated SOFA. All activities relate to continuing operations. The following inlercompany transactions are inciuded wthin the subsidiary results. The £281k 12020.. £3,325k} Turnoverf indudes £89 {2020.- £4k) for sales to the parent company. Commercial accommodation income of £281 k {2020= £3,321 k} has been included within the consolidated statement of financial actwities in relation to the activities of this subsidiary. The £817k12020: £1,834k) 'Cost of Sales. indudes £174k {2020= £31 Skl in charges to the subsidiary by the parent company for the use of parent company resources. £8912020-. £4kl in costs of providing services lo the parent company and £10k {2020.. £215k} in charges from Goodenough Ventures for the provision of services. Trading aclivrty expenditure of £807k12020.. £1,615k) ha5 been induded wlhin the consolidated statement of financial activit￿$ in relation to the 8Ctrvities of this subsidiary. 17 months to 31 August 2021 Year to 31 March 2020 £'ooo £'ooo Turnover Cost of sales 3,325 1.834 1,491 817 {5n) 41 Other income Qualrfying distribution under deed of covenant {Lossyprofit 1,491 $36 Assets Liabilities Shareholders. funds 516 95 421 1,119 161 958 51 Goodenough College Notes to the Financial Statements (continued) for the 17 Tnonths ended31 August 2021 12 SUBSID￿{yUNDERTAKtNGs (continued) Goodenough Ventures Limited (Company Registration 093429261 is an events and venue hire business wh￿h commenced trading in October 2015. Summarised finarrial results of Gwderw)ugh Ventures Limited are set out below and are induded in the consolidated SOFA. Al activities relate lo continLting operations. The folloTrMng intercompany transactions are induded wlhin the subsidiary results. The £1,179k12020.' £2.059kl 'Turnove¢ inclu¢Yes £633k12020.. £570kl for sales to the parent company, and £10k12020'. £215k} for sales lo other group entslies. Catering Events and Venue Hire income of £536k12020= £1,274kl has been included wthin the consolidated statement of financial aclimties in relation lo the actwilies of this subsidiary. The £1,302k12020.' £1,717k}'Cosl of Sales. includes £104k (2020.. £170k} in charges lo the subsidiary by the parent company for the use of parent company resources and £633k {2020.. £570kl in costs of providing catering supplies for the parent company. Trading aclivrty expenditure of £669k 12020.. £1,147kl has been induded within the Cons￿l￿ated statement of financial activities in rela￿n lo the activities of this subsidiary. The nel liabilities of the subsKliary are covered by an interest bearing loan10.1 %) from the parent charity. which is repayable by September 2023. 17 Months to 31 August 2021 Year to 31 March 2020 £'ooo Turnover Cost of sales 1,179 1.302 (123) 2,059 1,717 342 342 Qualrfying distribution under deed of covenant {Lossyprofrt 123 Assets Liabilities Shareholders, funds 405 528 123 621 621 52- Goodenough College Notes to the Financial Statements (continued) for the 17 Tnonths ended 31 August2021 DEBTORS Consolidated 31 August 2021 Company 31 August 2021 31 Ma￿h 2020 31 March 2020 £'ooo £'ooo £000 Trade debtors Amount due from subsidiary undertakir Other debtor5 Taxes recoverdble Prepayments and aC¢rn￿ Income 519 206 88 359 39 95 81 359 15 181 15 40 95 101 224 555 1.313 442 1.531 The amounts presented above are net of provisKM for doubthjl recoverabilty and foreseeable losses. The amount due from the subsidiary urKlertaking to the Charity represents the amount due from Goodenough Ventures Limited. Induded wthin Ihis is an amount due after more than one year of £123k. CREDrroRS: amoimts falling due within one year Consolidat 31 August 2021 £'ooo Cgmpany 31 Au9U8t 2021 £'ooo 31 March 2020 31 March 2020 £000 Trade creditors Amounts due lo subsidiary undertaking Taxation and social securty Other creditors Accruals Deferred income Other defe￿ed discount 1.823 1.303 1.703 451 77 124 934 1,020 479 86 129 679 129 129 704 42 18 2,247 18 2,418 3,070 3.331 The amount due to the subsidiary undertaking from the Chartty represents the amount due to Goodenough Club Ltd. 53- Go(Klenough College Notes to the Financial Statements (continued) fvr the 17 months ended31 August 2021 14 CREDrroRS: amounts fa]ling due within one year (continued) Deferre¢Y income consists entirely of commercial rent r￿1Ved from tenants in advance. Prior year deferred income related in full to income recognised in 2020. A reconciliation is sel out below.. Movgrnent In deferred In¢ome in year Consolldated 31 August 31 March 2021 2020 Company 31 August 31 March 2021 2020 £'ooo £'ooo £'ooo Balance brought forward Released.. Added Balance carried forward 115 {115) 111 {111) {7} 42 42 (71 CREDrroRS: amounts falling due in greater than one year 31 August 2021 31 March 2020 £'ooo £'ooo Bank borrowlng Falling due in more than 5 years 40.000 40.000 Total 40,000 40,000 Bank borrowin On 2 June 2017 the College secured a £40m non amortising 30 year loan with Rothesay Lrfe al a fixed interest rale of 3.102¥ts. This loan is repay8ble in full in June 2047. The Rolhesay ban is secured against London House and William GC￿Jden0￿gh House. Finan¢lal Instruments At the balance sheet dale the College held no comtAex financial instruments. Goodenough College Notes to the Financial Statements (continued) fvr the 17montlLS ended31 August 2021 1 Aprf20 Transfer Ir￿me Gains I k)sses Expendrture 31 Aug'21 2020121 £'ooo £,￿0 £'ooo Burn Fund General fund Specific donations Investment property reserve Tangible fixed asset reserve Total Burn Fund Other restricted funds Scholarships and Bursaries Specrfic donab'ons Total other restricted funds Total restricted funds 811 142 272 325 {508} 1.042 700 10.421 11.932 110 810 10,294 12,146 127 15 272 435 508 306 362 192 150 33 183 {236) 278 514 582 14 596 373 12,305 15 826 618 1.022 12,742 1 W19 Transfer Incune Gains l E¥pendibJre losses 31 Mar'20 2019120 ecw £'ryJo £'ooo £'ooo Burn fun General fund Specffjic donations Investment property reserve Tangible fixed asset reserve Total Burn Fund 169 16) 443 (197} 16641 811 700 10,523 12,289 700 10,421 11,932 102 61 197 Other restricted funds Scholarships and Bursaries Specific donations Total other restricted funds Total restricted funds 354 108 462 197 {48) {1971 40 237 306 14 373 12,751 61 654 260 901 12,305 rhe Burn Fund represents the assets and liabilities of The Bum. induding a tangible fixed assets reseNe. an investment property reserve and a general restricted fund. A transfer of £127k has been made from the tsngible fixed assets reserve to the general restricted fund representing the movement in the nel book value of fixed assets in the year. A transfer of £15k has been made from the Charity's general fund5 to The Burn general restricted fund representing the element of profrt from Goodertough Ventures Limited activity that was generated al The Burn. Scho18rships 8nd 8urs8ries are donations specifically made for providing schdarships and bursaries lo qualrfw'ng members. Specific donatAons are those to support specific aspects of College activty and projects. -55- Goodenough College Notes to the Financial Statements (continued) for the 17 months ended31 August 2021 Gainsl Incune (losses) ExF*nditurp 31 Au9'21 1 Arf20 Transfer 2020121 £'ooo £'LK)o £'ooo £'ooo Tangible fixed asset Long temi loan Tangible fixed asset reserve Investment propwty reserve Asset Replacement reserve College Development Reserve 43-47 Mecklenburgh Square Reserve Other designated reserves Total deslgnated rnserves General funds of the Charitable Company Total funds of the charitable company 158.495 40.000 118.495 3.212 4.011 11.662) 156.833 40,000 116.833 3,520 7,517 4.311 250 {1.662) (49) 1,430 (3,7431 250 357 1.969 774 144 {371 14091 93 133,460 117 256 17021 132.431 13.774) 301 3.146 3.759 8,683 2.077 14,511 8,471 141,923 {15) 8,984 5.223 {15,2131 140,902 Gener81 fund$ of the subsidiaries 708 817 {1,476} Total consolidated unrestrfded funds 142,631 15 9.801 5,223 16,689 140,951 Gainsl Inwme Ilossesl Expenditure 31 Mar'20 1 Aprf19 Transfer 2019120 £'ooo £'ooo £'ooo Tangible r￿ed asset Long term loan Tangible fixed asset reserve Investment property reserve Asset Replacement reserve College Development reserve Other designated reserves Total designated reser4es General furKls of the Chanlable Company Total funds of the charitablè company 148,478 40.000 108.478 13.961 3,365 11.172 10.017 158.495 40,000 118.495 3.212 {241 4,011 14331 7,649 33 93 I4￿) 133.460 10,017 111,CKJ31 1.038 (3,209} 254 14721 1155) 31 104 274 55 137,172 (3.251) 433 1404) 12.744 932 12,983 8,463 143.616 (61) 13,177 (1,336) 113,4731 141,923 General fvnds of the subsidiaries 708 708 Total consolidated unrestricted funds 144324 61 13.177 1.336 13,473 142,631 56- Goodenough College Notes to the Financial Statements (continued) for the 17months ended 31 August 2021 17 UNRESTRICTED FUNDS (continue(O The designated reserves are further disojssed in the finanaal review on pages 15 to 17. The transfer of £1.661k to the tangible fixed assets reserve represents the movement in the net bcok value of tangible fixed assets during the year. The transfer of £1,430k to the Asset Replacement Reserve represents the cash Surplus for the year excluding investment income and the element of loan interest charged lo the College Development Reserve. £3m has been transferred from the College Devdopmenl Reserve. This aims to ensure that the Cdlege maintains sufficient Freely Available Funds after the impact of the 'leasl worst. S￿nariO of the Covid-19 crisis on the College. A further transfer of £209k has been made to support the preparatory work on the renovation of 4346 MeC￿enbUrgh Square as wdl as the refurbishment of the hotel. The Trustees also transferred £250k into a fund for the supp(Kt of the 4347 Mecklenburgh SqLsare project. 2020121 Restricted Funds- Restrtcled The Bum Funds - other £'ooo Designated reserves £'ooo General Funds £'ooo Charity Total £'ooo Tangible fixed assets Investments Investment properties Investments in subsidiaries Amounts due to subsidiaries Other current assets Cash at bank and in hand Current and long lerni liabilities 10.294 1.520 810 156.833 11,828 3.520 167,127 21,782 4,330 250 {92) 1,182 1,945 42,880 153.644 246 8.188 250 {921 28 78 250 1,517 2,296 8,471 40,000 132.431 12,146 Restricted Funds- ReStr￿ted Designated The Bum Funds - other reserves General Funds Charity Total 2019120 £'ooo £'ooo £'ooo Tangible fixed assets Investments Investment properties Investments in subsidiaries Amounts due lo subsidiaries Other current assets Cash al bank and in hand Current and long lemi liabilities 10.420 1.198 71x1 158,495 11,753 3.212 168,915 22,639 3,912 250 (120) 315 256 41,939 154,228 -57- 373 9,315 250 {1201 213 244 102 12 40.000 133,460 1,439 8,463 11.932 373 Goodenough College Notes to the Financial Statements (continued) for the 17 months ended 31 August2021 19 I￿ING COMMrrMEN13 At 31 August 2021 the charitable company had the followng amounts payable for equipment under rK)n- cancellable operating leases. 2021 £'ooo 2020 £'ooo Operating lease5 which expire wlhin one year Operating leases which expire belween one and five y8ars 19 74 93 28 35 These lease$ provide printers and photocopiers lo support the College's operations. As at 31 August 2021 the Ccdlege had no capital ￿mmitments. Christopher Cobb was appointed Interim Director of Goodenough College betsveen December 2020 and April 2021. As part of this role he a150 served as a director of Goodenough Club and Goodenough Ventures Limited. During this period, transacb.ons lotslling £26,500 relating lo his service as Interim Director of the College took place between GooderKJugh College and Cobbco Ltd, a company of which Christopher Cobb has been a director since August 2020. There have been no other related paty transactions during the year other than those disGlosed with group entities in notes 12. 13 and 14. 58-