Ci()()dLJii()Lillli _• C()IleATe Goodenough College (A company limited by guarantee) Annual Report and Financial Statements for the year ended 31 August 2022 Company Registration No. 00246919 Registered Charity No. 312894 (England and Walesl and SC039173 (Scollandl
Goodenough College Trustees, Annual Report and Strategic Rewlrt for the year ended August 2022 Goodenough College Chairman's Personal Welcome It's a pleasure to introduce our Annual Report ar)d Financial Staternenls for the year ended 31st August 2022, a period during which we saw a welcome steady consolidation of the College's social and financial recovery following the favages of the Covid pandemic. The Trustees set a cautious budget for the reporting period, mindfvl of possible conlinuing reduced revenue to the College. Member occupancy for 2022-23 uncertain and our holel closed Ifirsl during the pandemic. then for refurbishment). l am deligmed to report that, in the event, the College maintained high occupancy Ihroughout bolh the academic year and the ensuing summer season". our short-stay and extemal events operations both secured a good level of business; the College management worked hard to rationalise expenditure- and the result has been an operating surplus signlficantty higher than expected. This is rt to say that the College did not continue to field unprecedented challenges. The surge in the Omicron variant at the end of 2022 saw cases of Covid infection rise rapidly among Members= support for all those isolating, including individual delivery of three daily meals. placed a huge rden on the College administration. r(seW depleted by the virus. A second rapid uplid( in Covid infection in June 2022 threatened to derail end-of-year celebrations for our Members but was fortunately of brief duration. Meanwhile. an overheated job market has made recruitinent and retention of slaff a rnajor challenge, and the College found Itself carying a number of vacancies over the reporting period. Inflation in the UK economy made il increasingly difficult to hold down rents and catering costs for our Members,. a small {but growing) number faced finarrial difficutties vthi¢h required recourse to our emergency fund. A key theme for the College leadership during the reporting peri1 has been how to attract to our community the very best intemational scholars coming to study in London. We have taken steps to raise the College's visibilty wilh scholarshipa%&varding bodies in the UK and overseas, and wtth British diplomatic missions overseas and the London-based intemational diplomatic community. Meanwhile. in tune wder GUural shifts in UK and elsewhere, the College has been reviewing its strategy for embeddiThJ equalty. diversity and inclusion across our community. Nol least, promoting access to the College for exceptional students of limited financial means through an enhancement of our scholarships programme, a judicKsus expansion of our emergency fund. and facilrtated access to accommodation for Chevening and Cornmonwealth scholars from lower-income backgrounds and countries. The College has worked hard to deliver an exceptional enrichment programme. wth a we8Mh of intellectual, cultural and social content. There were exp8nded opportunities during this reporting period for our College Members to engage in sludy Irips and cros$4isciplinary collaborations 8t seminars with scholars from respected academic inslilutions across the UK. We are proud, too, of Ihe mentsl health and welfare services that the College continued to provide to Members, drawng on the skills of professional providers and trained College staff. Extensive use was made of The Bum. our Scottish academic treat, during the reporting period. It proved 8 valuable amenty for College Members wishing to relax, try new intellectual and physical pursuits and enjoy communal activf(ies. The Bum's business operation (primarily the provision of academic retreats for Scottish university study groups) continued lo be adversely affected by the constraints facing the Scottish academic sector. Terrible stomis during the winter of 2021-22 devastated much of The Bum's V0dland estate and restr(ution has been slow and costly.
Goodenough College Trustees, Annual Report and Strategic Rep)rt for the year ended August 2022 The College took advantage of the enforced closure of'The Goodenough. hotel to undertake much-needed refurbishment of ils bedrooms. The renovations precipitated myriad further tasks, from roof-lining repairs to repainting ceilings with fire retardant. We are proud thal the project was concluded on time. on budget. and has led to our best*ver levels of revenue on the hotel reopening. Looking ahead, we wll continue tr) focus on maintaining full occupancy ofour accommodation, selecting as our Members those who wll most benefrt from. and contribLrte to. our collegiale community- A new College IT Strategy and Strategic Plan. the resurt of a substantive review of our IT capabilities during the reporting period. will be implemented over coming months. We will pursue our plans to renovate 47 Mecktenburgh Square as fvrther accomrnodation for Members. /_IqLI,- Stuart Shilson LVO DL Chair of the Board 24 January 2023
Good¢nough College Thtee$, Annual Report and Stratryc Report for the year ended August2022 Contents Page Goodenough College Chaimian's Personal Welcome Trustees, Annual Report and Strategic Report Company InfOnatiOn Structure, govemance and management Strategic Report Objectives and activities Achievements and perforniance Financial review 6-8 8-10 10-16 Plans for future periods Statement of Trustees. Responsibiltties 16-17 17-18 Independent Auditorfs Report 1&22 Financial Statements Consolidated statement of financial activities 23 Balan sheet 24 Consolidated cash flow statement 25-26 Charity statement of financial activities Statement of financial activities for the 17 months ended 31 August 2021 Notes to the financial ststements 27 28 29-50
Goodenough College Trustees, Annual Report and Strategic Report for the yeor ended 31 August 2022 Th8 Board of Truslees pr8s8nt their Report and audit8d Financial Statements for the year ended 31 August 2022 under the Charities Act 2011 and the Companies Act 2006 COMPANY INFO111TION PATRON Queen Elizabeth11 TRUSTeE BOARD Stuart Shilson LVO- Chaimian Darne Maura McGowan DBE- Vieè Chair Alex Acland Andrew Brown KC David Sulman (Appointed 1 Septber 20221 Roger Chadwck OBE Corey Cook Grahame DavieslResigned 26 July 20221 Lindsay Dodsworth IAppoinled 1 September 20221 James Douglas Guy Par50ns IApry)inted 26 July 20221 Meredith Pierce Hunter Martin S¢hwab Dani8118 W8es8 IApFK)inted 1 S8Ptember 20221 Senior Stsff COlle Director Director of Finance and Resour5 (Company Sgcretary,. Deputy lo th8 Dir8ctor) Director of Operations Director ol Developrnent and Alufflni Relalions Dire¢tor of Devek)prnent and External Relations Dean Registrar Bursar, The Bum The Hon Alic8 wpOl0 OBE Richard Bather Janine 8inks Andrew McGowan Ifrorn 5 D8cember 20221 Hannah Ou Gray luntil 24 June 20221 The Rev Dr Alan Mccormack Caroline Persaud David Turner OBE Address and Registered Office London House Mecklenburgh Square London WC1N 2AB W•b$it8: wwi. oodenou h.ac.uk ProfessionalAthrysers Auditor.. BDO LLP 55 Baker Street London W1U7EU L¢gal AdvlsoTS: Cripp8 LLP Number 22 Mount Ephraim Tunbridge Wells, Kent TN4 8AS Investment Managers- Rathbone Brother5 PIC 8 Finsbury Circus London EC2M 7AZ Bznkers= Barclays Bank PLC 1 Churchill Place Canary Wharf London E14 5HP
Goodenough College Trustees, Annual Report and Strdtegic Report for the yeor ended31 August2022 The full name of the Charty is Goodenough College {Ihe College,). The College was formed as a company limited by guarantee voUt share capital on 28 March 1930, registered company number 00246919. It is registered Vth the Chartty Commission, Charity number 312894 (England and Wales) and SC039173 (Scouand). The College's purposes are sel OLrt within its Articles of Association. on 25th January 2022, the Board of Trustees resofved to implement the remmendatIOnS of a 2021 governance review of the College, which had recommended streamlining the College's governance structure. The Board noted that a meeting of the College's Advisory Council on 161h November 2021 had expressed support for the dissolution of the Advisory COU1[ and Ihe retention of the Board of Trustees as the College's single goveming body. The Board would act as Members of the Company under the Companies Acts and continue to a(A as Directors and Trustees of the Charity. AcLordingly. on 24th January 2023, the Company Mernrs met in General Meeting and resolved to adopt a revised set of Articles of Association for the Company. the goveming document of the Charity, replacing those last amended on 15 October 2019. The revised articles set outthe following main features of the govemance strtUre of the College: A Board of 15 Directors are legally and financialty responsible for the management of College affairs. These are the charity Trustees and the Directors of the company. The Board holds meetings on a regular basis an expectation of four meetings being held over the course of a calendar year. The Articles of Association require each Director to be appointed for temis not exceeding three years. A Director shall not nomially remain in office after the ninth annNersary of the date of their first appointment (wth the provision that any director in office on 24th January 2023 shall remain in office until the erKJ of their current tem)). In accordance vthh the revised Memorandum of knocialion, every Member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 August 2022, there were 26 members {2021.' 30 members).. on 24th January 2023 there were 13 members. The Trustees are satisfied that the revised govemance prOse$ enable the College to er¥Jage more effectNely wth its mission and objectives. The Truslees consider thal they have paid due regard to the Charity Commission's guidan in respect of their duties and obligations as Trustees of Goodenough College. The Board will continue to review the College's governan arrangements during 2022123 in further consideration of the Charity Govemance Code for larger charities.
Goodenough College Trnstees, Annual Report and Strategi¢ Report for the year ended31 August 2022 Appointment of Direetors The pro(*ss for the appointment of Board Directors is set out wthin the College's Articles of Association. Appointrnenls are made on the remmendatIon of the Nominakn'ons and Remuneration Commtttee at Board meelings. No Trustee has any financial interest in the Charity or any group companEs. During the year and up to the date of approval of the Annual RetK)rt and Financial Statements, there was a qualifying third paty indemnity in place for directors. as allowed by Section 234 of the Companies Act 2006. Board of TrSteeS The Board of Trustees holds ullimate respx)nsibility for the governance and strategic direction of the College, ensuring that the Chartty upholds Its etkK)s and values 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 quartedy. New Trustees undertake an induction programme to familiarise them th the College. its objectives and its structure. aksngside their roles and responsibilities under legislation and College govemance. The Board has adopted revised temis of reference for its own operation. based upon recommendations set out wilhin the Charity Govemance Code. Committees Trustees, Fellows and advisors May serve on one or more Board Committees. as set out below.. Academic Committee Audit & Risk Advisory Committee Bum Management Committee Donations Advisory Committee Equality, Diversity and Inclusion Committee Finance & Inveslment Cornmittee Nominations & Remuneration Committee Subsidiary Company Boards The Board vieWed and updated the terms of reference of each of tts Committees during 2022. Details of the comt)OStbon of each Comrnttiee are held by the Governance Officer. Management Operation81 management of the College is delegated by the Trustee5 to the College Director, tho is accountable to the Board of Trustees for the stesvardship of the Charity- The College Director and the senior leadership team (the Executive Committee) atteThJ fomial Board and Committee meetings. The College sets the pay of its key staff through its Nominations and Remuneration Committee, supported by the College Director. The Committee makes reference to general inflation, comparalive salaries aThJ pay ardS within the charity, HMJher Education and hospitality sectors and historical increases in pay. The MuneratiOn of the College Director is sel by Ihe Board.
Goodenough College Trustees, Annual Report and Str4tegic Report for the year ended31 August 2022 Group structure and relationships The College has wholly-ovffled subsidiary companies. both registered in England and Wales: Goodenough Glub Limited (Company No. 026843781 provides ovemighl accommodation. The subsidiary tskes on responsibility for the trading of The Goodenough on Mecklenburgh Square and the provision of 'Short Stay. accommodation in London House and William Goodenough House. Ils annual proffts a donated to the College as qualfying distributions under deed of covenant,. and Goodenough Ventures knmited (Company No. 09342926) provides events, venue hire and catering and commercially-let accommodation at The Bum. Its annual profits are also donated to the College as qualifying distributions under deed of covenant. At its meeting on 26th July 2022, the Board of Goodenough College resolved to transferthe 8Ctivitie5 currentiy caNied out by Goodenough Ventures Limiled to Goodenough Club Limited from 1st September 2023. subject to the relevant approvals of the Company Boards. The Bum estate in AThJus, Scotland la propety donated to the College in 1947) is used by Members of the College for educational and recreational activities, as well as by many Scottish universities as a centre for reading parties, study groups and for educational events and seminars and. The Burn's assels are a restricted fund of the College. Investment powers and policies The Trustees have the authortiy conferred by the articles of association to invest the monies of the College not immediately required for tls purposes in or upon such investments, securtties or property as may be thought ftt, subject nevertheless to such conditions (rf any) and such consents Irf any) as may for th8 time being be imposed or requir by18W. The Trustees wsh to pursue a wlicy that provides revenue for rls current purposes and enhances income and Capital growth over the longer terrn, thereby enabling them to meet their current and future objectives in accordance with the purposes of Goodenough College. Investment management is overseen by the College's Finance arKI Investment Commtttee. Investment management is delegated to and managed by Rathbones. The Trustees require the managers to pay attention to the standard investment crtteria. namely the suitability of the class of investment and the need for diversification insofar as is appropriate lo the circumstances of Goodenough College. Any restrictions on the type of investments or markets in which the manager would invest on the client's behalf are set out in wrtling. The Trustees have normally agreed investment mandates matching the timing of the College's expected call on those fvnds and their attitude to risk. Stocks not quoted on a recognised stock exchaThJe or othemise actively traded, and sub investment grade or unrated tonds, may not be held wthin the wrtfolKI, Without prior approval of the Truslees.
Goodenough College Trustees, Annual Report and Strategic Report for the year ended31 AugUSt2022 STRATEGIC REPORT The following sections comprise the strategic rerK)rt reqUIj by the Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013.. Objectives and activities Achievements and perfomance Financial Review Plans for future period. The history of the institution that is now Goodenough College began in 1930 when Frederick Craufurd Goodenough, Chaimian of Barclays Bank, established a student residence in London for international postgraduate students. Goodenough's vision was the creation of a hall of residence for Imale) students from Commonwealth countries. offering a collegiate community in the heart of London to promote friendships and enhare intemational understanding. The College has expanded greatly since that time and now consists of a six hundred-strong MMunity of postgraduates. some th accompanwng families. from across the world. The College's charitable objects, as set out in its Memorandum and Articles of Association. are: "To organise. encourage and assist the education in England of stLKlents ('Resident Members of the College,) from any part of the worfd, giving preference to students from the Commonwealth {with priority for students from those nations less able from time to time to provide resources and facilities of their own). We will continue to build uwn our stroTrJ foundations to achieve our current vision and mission= Vision A fellowship of global citizens with shared v81ues of tolerance, respect, understanding, seNice and togetherness (refleGting the spirit of the UK and th8 principl8s of th8 Commonwealth). Mission To creat8 a sfimulating, inclusiv8 and mutually supportive, residential communty in the heart of London where outstanding postgraduate students exchange ideas, openly debate values and form lasting friendships. Our kéy objectives. as outlined in the College's 202(2025 Strategic PL8n. are to.. Enhance the Resident Memberfs experien to deliver our Mission and maximise the charitable benefft we deliver; Recruit (especialty Commonwealth) Members 171 benefft most from what we offer and best contribute to the life of the College- Build a stronger fellowship of Aumni and others closely associated wth the College.
Goodenough College Trustees, Annual Report and Strategic Rert for the year ended 31 August 2022 These three key objectives are underpinned by a series of enabling objectives focusing on, inter alia. governance, the College estate. financial managemenL communication and delivery, which will help the College to achieve its ambitions. The College pre$enls its 2021122 expendtture in the pur5Utt of our strategic goals: To attracl outstanding postgraduate students from a wide geographic. academic and soctal base. giving preference 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 CroSUural understanding and offers an ex¢eplional swal environment: To raise the College profile, intemationally and wlthin the UK, by developing key opportunrties and pursuing strategic partnerships consistent th our values and ambitions. and To sustain Ihe College as an enduring instltution. underpinned by secure finances, a well- maintained estate and high-qualty staff. with a commthent to minimising f(s environmental impact. The College measures its perfornian through regular Key Perfomian(t Indicators {KPls) that compare surKess in the rerM)rting r[0d prior years. These KPIS cover areas including OCCUP8ncy; diversity of membership.. delivery of cultural, social, sportiry and educational events., volume of Scholarships and Bursaries; and number of Alumni conlacts. Further infomalion is contained wthin the Financial Review and Achievements and PerfoThance. College members attend over forty academic arKI professional institutions in London. The College works to maintain a balance been the broad faculties of medicine and natural sCiens, law, business. wlitical and social sciences. and the arts and humanthes. The College attracts scholars from a wide range of international schemes including Chevening. Commonwe8tlh. Monash, Windle and Marshall. The College provides a wide public benefft. The Trustees are aware ofarKI have regard to the Ch8rtty Commission's public berefft guidance when exercising any powers or duts'es to thich the guidance is relevant. College Members retum to their home nations or elsewhere wbth a broadened perspective on the wodd and a much*xpanded krw[edge of and affection for the culture and politics of the UK. This contribuiion to intemational toleran and understanding serves an ever greater purpose in todals world of polrtical and economic Unrtainty- The College frames its distinctNe paradNJm through the vectors of'commensality, and 'convivi81ity- common eating and common living. Members jointly engage in many intellectual. cuttural, social, experiential and developmental acttvities. Talks. seminars and cnlloquia. where renowned individuals lecture and share knowledge and lrfe exFerience. are a regular feature of Ihe College calendar. A series of 'GoodSkills' weeks take place to refine the non-academic skills base of College Members. College Members live and work amongst a broad spread of social. national and economic backgrounds, developing urKlerslanding and empathy across a wide spectrum of experience within a rich peer group. An external programme enables College Members to grow their capacity for understanding of the UK - and nerkIng across a rarKJe of extemal institutions in Ihe Cities of London and Westminster and beyond. The College seeks to secure and provide an increasing level of Scholarships and Bursaries to support tPM)se VAKJ strwgle to meet the costs of their accommodation at Ihe College.
Goodenough College Trustees, Annual Report and Strategic Report for the yeor ended31 August 2022 The Bum, our Scottish estate and academic retreat, ky)th welcomes College Members, in study groups or privately. and 8¢1ively supports Scottish universilies, offering its facilities to national and intemational students and academic groups. As social and travel restrictions have eased in the wake of the pandemic, The Bum has provided a valuable opportunty for Tts guests to relax amongst their peers, undertake quiet or group study, build friendships and take pleasure in the natural world. The College is opened to the public for concerts. operas. cOnferere$ atMI thtures. A large number of external organisations and individuals also use the College's facilf(ies for their own events and aclivities. After reduced Mernber occupancy in 2020121 the College saw occupancy return to normal levels during the 2021 Michaelmas tenn and higher than pre-pandemic levels over the summer period. The project to refurbish the Hotel bedrooms achieved practical completion on 28th July 2022 and the Hotel reopened on 131 September 2022. The Bum continued lo see dUd a¢tivty wth Scottish University and commercial activibes not retuming to p pandemic levels. Excluding the Hotel and The Burn, the College's operating income and surplus retumed to pre pandemic levels. The College conlinues to review its Str8tegtc Plan in light of changing priorities as a result of the impact of the COVID 19 pandemic. The impact of the College's activtties on Members is a growth in confidence through their experience at Goodenough, wilh broadened perspeclives, strong cultural, sockql and professional netwofks and a positive image of the UK and the Commonwealth. Supported by this growth we expect our Alumni to be outstanding leaders in their fiehjs. eroaged global citvzens and advocates of the College Postgraduate students o)ntinue to have an overbthelmingly positive experience at Goodenough College. During 2021122 £7.6m {17 Months to 2021= £10.5m} was spent against the goal of 'Transforming College Members,, reflecting the operating costs of the College buildings (that so infiuence College lrfel alongside the influential Dean's programme_ The reduclion on Ihe prior period is predominantly due to the extended 17 month prior year period in 2020121. The Dean's programme for the 2021122 academic year delivered (including Member4ed activities) 33 sporting fixtures.. 161 CUral. music and arts-based events., 120 evening lecture 'Port Talks,, transfom18tive skills-based sessions {the 'GocKISkills' programmes) and academic seminar segments and Study trips, all of them delivered in perwn, wth a small number of blended events. A very full Dean's programme was run through Ihe traditionalty quiet summer months of June, July and August in response lo the greaterthan usual Ve1 of Member occupancy in College during these months. This resulted in many more programme outputs. The Dean's offi carried out an extensive and tailored programme of activities to support individual Member wellbeing through the academic year. Particular guidance and support was provkled during the period of national mouming attendant upon the death of Her late Majesty The Queen. During 2021122 the College maintained its accreditatron against the Nation81 Code for Assured Accommodation, vthich demonstrates the College's commitment to the highest standards in delivering its accommodation and supporting its communty. The College vras again awarded the Global Student Living IrKJex Best Speaalist Accommodation Award in OCtor 2022. Previously
Goodenough College Trustees, Annual Report and Strntegic Report for the year ended31 August 2022 awarded by the National Student HousiTrJ Survey. the College has been the winner of this award every year since 2012. Throughout the period The Bum has continued to suptKJrt the Higher Education (HE} sector by offering a unique academic retreat venue to enrich and enhance the student experience. This period has seen a transthon away from the restriclÈve practices of the COVID pandemic and the return to the more familiar academic rhythms. As a restricted fur)d wthin the Gochdenough College portfolio, The Burn has continued lo drive towards the goal of long-leTh sustainabilty by increasing its operating income. Full recovery from the COVID-19 pandemic is expected to take longer than anticipated but the bonds vthh Scottish univers5ties remain stroThJ. The Bum now plays a more prominent role in support of GoTrlenough College aThJ The Bum 'eXperien. is considered to be a key highlight within the member programme. The £1.2m costs of'Attracting outstanding postgraduale students, {17 Months to 2021.. £1.5ml reflect Ihe costs of our vital student registry fun¢lion ak)ngside our Scholarship and Bursary schemes and marketing aclivty. The College spent £597k on sChorShips and Bursaries in 2021122. (£739k in Ihe 17 months to 2021). Scholarships, Bursaries and Mecklenburgh (hardship) funds are avrdrded 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 2021122 and responded accordingty. The College recognises the imp)rtance of beiThJ 8ble to $uptKJrt Members with limited financial means thanks to the generosty of friends and Atumni. During the period the College received 1.598 applutÈons {2021122- 1,2381 for its 2022123 academic year intake. three and a half applicalions for each available pla at ihe College {2021122= 31. The prowrtion of applications from EU counlries stayed steady at 11 % {2020121= 11 ty/ol and applications from Commonwealth countries increased to 49 % (2021122.. 470/0). The College continued to invest in additional marketing and engagement actions to maintain and develop the numIr of suitable applicants to the College and the appropriate Commonweatth representation. During the 2021122 academic year Members came from 95 {2020121: 80} counlries (India 10 /.' UK 9410 Canada 9°/o', China 50/0. Pakistan 5°hl, of which 51.6/. {2020121= 50/1 were from the Commonwealth. These Members We studying at 38 {2020121: 37) academic institutions {UCL 29 /', LSE 23 /LTr'. Kings 100/•}- vAth 66.1012021122: 66°/0) UlertakIng Masters Courses- 29°/. {2020121= 28 /0) PhD and other research programmes.. 5¥0 (2021122.. 6010) other fomis of postgraduate qualrfications. Their academic subject matter continued to be as drverse as their backgrounds. The College spent £0.3m (17 Months to 2021.. £0.5m) in raising the College's profile. Member represenlational visits to institutions in London arKI throughoLrt the UK were resumed. Members made six lrips to The Burn for 4 day long educational retreats. subsidised by the College. Including the £1.2m 2021122 interest costs of the College's debt (17 Monlhs lo 2021= £1.8m) and the osts of supportiThJ the development and the stralegic financial management of the College, £2.3m was spent on 'Sustaining the College, during the year117 Months to 2021.. £3.2ml. Excluding loan interest, the College spent £1.1 m on sustaining the College {17 Months to 2021: £1.4m). The College applied funds of £2.4m {17 Months to 2021: £1.6m) in replacements and enhanments to the College estate and IT services. the majority of vthich related to the refurbishment of the Hotel bedrooms.
Goodenough College Trustees, Annual Report aDd Strategic Report for the year ended31 August2022 Fundraising costs were £179k for the year {17 Months to 2021: £317kl. Fundraising costs have not yet retumed to pre pandemic levels due to reduced aclivity levels on events such as overseas travel. Following a review of the College's fundraising and extemal relations ambitions during the period. a new Executive 8ppointment W8s created and the new Director of Development and Alumni Relations joined the College staff on 5 December 2022. The College's commercial actNitses (operated through its subsidiary companies) were severely impacted by the closure of services and the downtum in the market during the pandemic. Both subsidiary companies relumed to profrt in 2021122. despile the closure of Ihe Holel throughout the year, making a combined surplus of £162k before the payment of taxable profits to the College. The companies generated combined losses of £659k in the prior period. The provision of £0.1 m of net debt arrangements by the College to Goodenough Ventures Limited at 31 August 2021 vras repaid during the year. The College continues to consider its investment in these companies to be beneficial to the future of the College. During the year the College rewewed its govemance arrangements for its subsidiary Companies and the directors of the subsidiaries regulady vieWed their confidence overlheir going concern. In the interest of operational efficiency the Tnjstees have made the decision to combine all of the College's trading activtties thin one subsNliary from 1 September 2023. The College generated gmup revenues of £11.3m in the year to 31 St August 2022 {17 months to 2021.. £10.6m). Income from charttable activtties (predominantly income generated from rents from Member accommodation) was £8.2m117 months to 2021.. £7.4m}" wth in¢reased occupancy and higher rents countering the shorter accounting period. Average Member occupancy in the 2021122 academic year vras 91.40/0 compared to the 62.50A achieved in the prior year and 92.6QA in the pre pandemic year of 2018119. Consolidated income from tradiro activrf(ies (predominantly short stays, catering and event and venue hirel for the year was £1.8m {17 Months to 2021.. £0.8ml as desprte the closure of the Hotel, commercial events. catering and short stay business cked up as pandemic restrictions were lifted. Consolidated VenUeS from the Goodenough Club Ltd were £0.7m (17 Months to 2021.. £0.3ml. Revenue in 2021122 consisted of StrK)rt Stay accommodation income of £0.7m {17 Months to 2021". £0.3m). Goodenough Club Limiled generated a profit of £42k for the year {17 months to 2021.. a loss of £536kl. Goodenough Ventures Limited generated consolidated revenues of £1.1 m {17 Months to 2021.. £0.5m), wth £0.7m generated from Events and Venue Hire (2021.. £0.2m).' and £0.4m from providing catering to College Members (2021." £0.3m).Goodenough Ventures Limited generated profit of £128k for the year {17 months to 2021- a loss of £123k) The Trustees and Directors remain confident of the potential for the subsidiary companies to generate surpluses to be donated to the College in future years (subject to the planned cessation of activities through Goodenough Ventures Limited) and continue to monitor perf0mlan of the companies. On 25 August 2022 Ihe Directors of GoTrlenough Ventures Limtied approved a budget for the 2022123 financial year showng an £89k profrt and a business plan showing substantial surpluses thereafter. On 21 October 2021 the Trustees of Goodenowh College approved a temporary loan facility to Goodenough Ventures Limtted to cover losses or shortfalls of cash that arise between 1 April 2020 and 31st August 2023 up to a maximum of £500,000. The loan wa5 agreed on the condf(ion that tt would be paid by 31 January 2025 and superseded the previous facility. An amount of £123k was drawn down at 31 August 2021 but repaid priorto 31 August 2022. 10
Goodenough College Trustees, Annual Report and Strat¢gic Report for the year ended 31 August 2022 On 25 August 2022 the Directors of Goodenough Club Ltd approved a budget for the 2022123 financial year showng a £1.Om surplus and a business plan showng increasing surpluses thereafter. Whilst a temporary loan facilty had been agreed with College in October 2021, Ihis was not utilised and is not expected to be going forwards. now that the Hotel has 0pened. The Consolidated Ststement of Financial Activities for the year shows a £2.Om loss before g8ins and losses on investment assels and financial instruments {17 Months to 2021: £7.1 m loss). The College bore £1.2m in loan interest charges {17 Months to 2021.. £1.7m) and depreciation of £2.4m {17 Months to 2021.. £3.4ml demonstrating an EBITDA gain lexduding debt and asset impaimient costs) of £1.6m {17 Months to 2021.. £2.Om lossl. The gain was due to the move towards nomial operating conditions (except for the Hotel business) as set out above. On 26 July 2022 the Trustees approved consolidated budget for the 2022123 academic year showng an EBITDA surplus of £2.2m. The Trustees remain confident that the Colwe will achleve a significant operating surplus in 2022123. The College holds investment t)ortfolios with RathiK)ne Brothers PIC under four separate mandates. Where appropriate, composite benchmarks for the funds are developed by the Investment Manager In consultation with the Investment CornMee. recognising agreed asset allocation ranges, along with separate long-term perfomiance objertives. All long-term perfoThance objectives are after fees. The College main wrtfolio includes the College reserve and the Asset Replacement Reserve and is invested for the longer term with a lorvJ-temi performance objective of CPI + 5.10 (net of fees). As at 31 August 2022 this fijnd held £9.2m under invesknenL The Burn portfolio is invested on a similar horizon bul. reflecting the annual requirement for income and draw down from that fund to support The Bum's operations,. it has a long-tem perfomian objective of CPI + 3.5°k (net of fees). As at 31 August 2022 this fund held £1.1m under investment. The tolal turn on the College main fund over the period was a loss of -8.3D/ty. and for The Bum portfolio, a gain of 0.8 %, the composite benchmark perfomiance measures for these funds were a gain of 0.6 % and loss of -2.0 /0 respectively. These funds have achieved a total return of 27.00/¢ and 24.4°/o respectively over the last five years. against CA)mpo$f(e benchmarks of 33.4 % and 21.60/0 respectively. Their long-tem perfomiance objectNes were 51.4 % and 40.9°A respectively over the same period. The College No.2 portfolio held funds anticipated to be drawn in the medium tenn from, the College Development Reserve along wth General Funds. and has a long-temi perfomance objective of CPI. The fvnd was established in 2016 and achieved a total retum of 0.9°/o for the year. As at 31 August 2022 this fund held £7.Om under investment. The College No.3 portfolio 4$ established in 2017 and holds funds anticipated to be required in the shorter tenn from the College Development Reserve Funds Reserve and General Funds. The fund is invested primarily for capital preseThation and achieved a total retum of 0.0 /0 for the year. During 2021122 £1.6m was wthdrawn from this fund to provide cash to support the project to refurbish the Hotel bedrooms. As at 31 August 2022 this fund hekl £2.1 m under investment. The perfomance of the investment portfolios and the investment manager is reviewed regularty by the College's Finance and Investment Commtttee and the Trustees continue to be satisfied with their management and the perfomance of the funds over the long tem. All inveslmenls acquired during the year were in accordance with Trustees. powers. The value of the portfolio at 31 August 2022 is shown in note 11.
Goodenough College Trustees, Annual Report and Strategic Rert for the year ended31 August2022 Working through the Finance and Investment Committee and with its investment managers the Trustees continue to review the investment perfomiance and strydtegies of it5 funds under investment as the College's financial perfomiance, reserve postlion and capital ambition develops. Funds and reserves The College's reserves are dNided behveen unrestricted and restricted funds. Unrestricted funds are further divided inlo designated and other unrestricted fUJs. Unrestricted funds total £137.6m (2021: £141.Om}, whh includes designated reseNes of £129.3m (2021.. £132.4m). general funds otthe charity of£8.2m {2021: £8.5ml and general funds of the subsidiaries of £0.2m {2021'. £0.1 m). See Not8 17 for further details. The Trustees have desynated the value of the College's non-investrnent fixed assets (net offunding from the long-terni loan) as the Tangible Fixed Asset reserve. The value of this reserve is adjusted annually to reflect the net value of these assets and stsnds at £116.6m at the year-end 12021: £116.8m). The Trustees have deswJnated the value of the College's investment properties Irecognising the College's strategy to retain investment properties for the benefit of future beneficiaries} as the Investment Property Reserve at £3.1m12021.' £3.5m). reflecting the revaluation of the investment properties at the balance sheet date. During 2016 the College established a lorKJ temi forecast, enabled the College to agree a revised framework for the management of ils unrestricted funds and to quantfy the level of liquid assets required to sustain the College as 8n erKluring institution. The College has established a plan to ensure that sufflent levels of cash 8re available to secure a well maintained eslale. This established the requirement for an Asset Repl8ment Reserve {ARRI to suptM)rt the costs identified for the replacement and refurbishment of the buildings, fixtures. fittings and equipment of London House, William Goodenough House and the hotel over a 30-year period to 2046. The required value of this fund was agreed to be deswJnated from the available ftJr)ds accumulated by the College from annualty generated operating surpluses and drawn do against levant costs. In light of the continuing imp&t of the COVID-19 pandemic on the Colwe and Hotel financial perfomance Ihe Trustees designated an additional sum of £1.Om into the ARR, representing the shortfall in anticipated ARR contribution compared to that which would have been generated by the College and Hotel under nornial operations over the year. After debiling appropriate 8sset replacement expendrture and accounting for income. gains and losses, the value of the ARR stands at £7.9m on 31 August 202212021.. £7.5m). The Trustees review the value of this designated fund annually as IÈ accumulates and is Lrtilised for Asset Replacement. The ARR is represented by investment funds with investment mandates las overseen by the InveStnnt Commtttee} matching the investment objectives and horizons of this reserve. Followng the completion of the debt restructuring eXerse in June 2017. the Tnjstees designated £11.9m of funds secured in excess of that required to settle the previous long lemi loan and swap arrangements, as a designated fund referred to as the College Developmenl Reserve ICDRI. The Trustees originally aimed to apply these additional funds. secured at a 3.102 /0 interest rate. to take opportunities to further develop the College's activities and its estate over future years. The CDR Ss represented by investment funds ¥Mth an investment mandate las overseen by the Finance and Investment Committee) matching the investment objectives and horizons of this reserve. This fjjnd bore the interest cost of this ex5$ borrowing. 12
Goodenough College Ttees, Annual Report and Strategic Report fvr the year ended 31 August 2022 During 2021122 the Board approved the reduction of funds held 1h1n the College Development Reserve by £3.6m in support of the refurbishment of the Hotel bedrooms. shortfalls in College surpluses to maintain the value of the College's General Funds lils freely available reserve} and to maintain the previously planned contribution to the Asset Rep1arnent Reserve. The value of the CDR stands at £0.7m on 31 August 202212021.. £4.3m). The Board furtherdesignated an additional £0.8m to the 4347 Mecklenburgh Square Reserve from General Funds. The Trustees have reviewed the College's reserves policy. The policy considers the nature of the income and expenditure streams, the need to match vari8ble income Yth fixed commitments and the need to provide for known essential estate maintenance expenditure. To allow the College to be managed efficiently and to provide a bLJffer against inlerrupted services, the policy require8 that general reserves in the range from £5 million- £8 million should be maintained. This range is based on managing to sustsin CO College activty rf there were a fall in Member income of 250/0 for three years {c£5 million) and a loss of 50°/0 of Goodenough on Mecklenburgh Square net revenue for years {c£2 million). In addition. a minimum of £1 million is considered neSSary to deal wth major estate issues, such as a failure of heating. plumbing or electrical seNices in either House. The College wll further consider the fvnds now available to deliver the planned refurbishment of 4& 47 Mecklenburgh Square in addition to the £883k of designated funds held in support of this project. The College continues to develop tts plans forthe site under the guidance of its Steering Committee. The Trustees continue to consider the value ofthe College's General Funds in light oflhe experience of the COVID-19 pandemic. The College's freely available funds, stsnd at £8.2m on 31 August 2022 (2021.. £8.5m, see note 17 for more detsils)- The Trustees have assessed the value of reserves and the operations of the College and do not consider that there remain material uncertainties related to these or other events or Conditions that cast signrficant doubt on the College's ability to conts'nue as a going concem. The College remains very financially stable with freely available funds of £8.2m; other unrestricted designated reseNe funds of £9.4m and unrestricted investment properties Valued at £3.1 m. Restricted funds are presented 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 August 2022 was £12.7m (2021.. £12.7m). See Note 16 for further details. Restricled funds include The Bum Fund of £12.2m {2021.' £12.1 m) and other restricted funds of £0.5m12021.' £0.6ml- The Bum fund includes the operating land. building and assets of the site represenled by a tangible fixed assets reserve of £10.2m {2021.' £10.3m)', investment properties reserve of £0.9m {2021.' £0.8m) and a general restricted fund of £1.2m {2021: £1.Om). The general restricted fund is represented by The Bum investment portfolio. The other restricted funds have been donated to the College for a number of restricted purposes including restricted Scholarships and Bursaries funds of £472k {2021. £582k). The College has adopted a policy to increase the level of support lo its important Scholarships and Bursaries activity provided through donations. Expenditure on Scholarships and Bursaries from reslricled or designated donated funds was £437k in Ihe year compared to £490k in the preceding 17 rnonths. 13
Goodenough College Trustees, Annual Report and Strategic Report for the year ended August2022 Borromryngs and bank facilities On 2 June 2017, the College secured a £40m non-amortising 30-year loan wilh Rolhesay Life at a fixed interest rate of 3.1020/0. The loan is secured against London House and William Goodenough House. Principal risks and uncertainties To optimise the College's management of risk. the College Board and staff are briefed on the nature of risk and accept responsibility for risks associaled wtth their area of authority- Senior management provides appropriate support. assistance and (x)mmitment to ensure that both operational and strategic risk is managed on a daily basis to the best of the College's ability. This risk management process provides reasonable. but not absolute, assura thal the org8ni8ation is protected. We define key strategic and operational risks as those that, without effective and appropriate mitigalion, would have a severe impact on our wt)rk. our reputation or our ability to achieve our ambitions. The College continually improves the Process by which il reviews. registers and rnitigates risks that may impact on College lrfe and operations. These risks {including likelihood, impact arKI mitigation measures) are listed in a Strategic Risks Register, which is regularly reviewed by the College Board and senior managemenL The risk management prOsS encourages the Trustees to challenge any 8ssumptions senior management has made atout risks and interrogate the context in which decisions are tsken. This helps ensure thal the most serious risks a being mitigated effectively. Revenue shortfall, primarily through a downtum in Member application numbers, has been identrfied as a fundamental financial Tisk for Goodenough College. OrOuS promolion of the College through public outreach, strategic partnership building and enhancing the College's digital presence is given high priority in order to mitigate this risk.. tcwJether Vth market-sensitive pricing of accommodalion and a robust admissions policy maknng maximum use of search engine optimisation, peer reviews. advertising and approaches to educational institutions and scholarship bodies {within London. the UK and internationally). Application numbers are reviewed on a Ular basis and Ihe admissions str8tegy adjusted on the basis of findings. The maintenance of a diverse College communty (including enabling access for students wllh limited financial resources) is recognised by the Trustees as a key area of risk. The College wll 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 ¥Mth other scholarship providers} lo support sS affluent studenis. The College maintains tis focus on fundraising for Scholarships and Bursaries (including hardship funds allocated as The Mecklenburgh Fund). The College reviews its rent annually and any increases applied are based on sound market infoTmalion and consultation th the College Member communty. A key strategic objectNe of the College is to deliver a transfoThative experience for co16 Members through community. cross-cuttural understanding and an exceptional inlellectual and soci81 programme. The College's ability lo provide such an experience fad unprecedented challenges during the Covid pandemic, and has infomied the College's efforts to expand the ways in which the programme is delivered in future. The College implements a rigorous process of risk assessment for all activities. toJether with impact reviews and ROI assessments of enrichment activities. The College has previously recognised that failing to secure SLtffictent fvrKls to implement its Asset Replacement Plan represents a key risk to the Co[e. The College considers that it has 14
C(KJdenough College Trustees, Annual Report and Strategic Report fvr the year ended31 August 2022 substantially mlligated Ihal risk through development of a comprehensive Asset Replacement Plan, long temi finan81 planning and the securing of £40m of 30-year non-amortising debt. The Finance and Investment sUc0M[ee of the College Board reviews the long-term financially suslainable perf0rrnan of the College and provides further diligence on the application of available funds. The College has demonstrated to itself. through ch8llenging scenarios and stress testing. that it will be able to meet its Asset Replacement Plan for at least unlil 2046. The level of the College's unrestricted freely available reserves. combined with its designated funds (see below). reassure the College as to ils going concem. The 30-year fixed-interest debt minimises the College's exposure to variations in debt financing costs. Further details can be found in Note 15. As the College's main base of operations is in central London, Ihe College recognises that terrorist activity, trM)th local lo the College and woddwde, has the potential signrficanuy to affect the College, through restricting physical asS to the College- reducing fuiure applications to the College- and directly on the welfare of College Mernbers. The College exercises care in maintaining its access control and se¢urity arrangements. holds financial reserves. specrfic appropriate insUrare cover, effective business conlinuty plans and robust welfare systems in order to mitigate that risk. With accommodation at its heart, fire risk management fomis a key consideration in the College's operation and development. The College regulady reviews its fire management pK)licies and (2rries out annual fire risk assessments and complies yth all slalutory obligations and best practi. To counter the risk of diminishing revenue generated by the College's wholly-owned hotel, The Good8nough on Mecklenburgh Square, the College undertook an extensive refurbishment of the hotel's 65 bedrooms in 2021122, followng reopening on 1 * September 2022 this asset loperaled through its subsidiary company) has fetumed to substantial operating surplus. Wtth the majorrty of the College's income streams generated in-year from Member rents, hotel charges, letting of a lease to a commercial venture and other business in(x)me. the impact of these trading environments will affect the financial perfomiance of the College. The College is confident that its planning, risk m8n8gement and operab'onal management activities sufficiently manage these risks and enable the College to put in place appropriate mitigation measures. The College takes safeguardirvJ very seriously. The College is nfident that it provides 8 safe 8nd Irusted environment and promotes an organisation81 culture that prioritises safeguarding. The College considers that it maintains adequate safeguarding r)olicies, prOdureS and measures to protect people. These are reviewed regulady. and kept up to date in line wth Govemment guidance and best practice. The College has reviewed ils safeguarding govemance and management arrangements wthin the last 12 months. In response to the Corporate Criminal Offence of Failure to Prevent the Facilitation of Tax EvasK)n introduced by the Criminal FInareS Act 2017. the College carried out a risk assessment and made a Top Level Commitsnent 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 its procedures., and monitor and review ils position. Goodenough College continues to meet the reqU1MentS of the G8neral Data Protection Regulations (GDPR} and the Privacy and Electronic Communications Regulations {PECR). building on its previous programme of work to achieve compliance. The Trustees main content that the College is fully complying wth the Regulations. 15
Goodenough College Trustees, Annual Report and Strategic Report for the year ended August 2022 Fundraising standards The College's fvndraising activtlies are undertaken by its Development and Alumni Relations team. The College does not use third party fundraisers or commercial participators. The College is a member of The Council for Alanment and Supwrt of Education (CASE), a profession81 association serving educational inslTtLrtions and the professionals who work on Iheir behalf in alumni relations, communications. development. marketing and allied areas. As part of its work, CASE sets standards and an ethical framework for the fundraising profession, which the College follows. The College has established a Donations Advisory Committee that meets as neSSary to review the acceptance of any large gtfts. During the porting period, the Donations Advisory Committee revised and updated the College's Grft Acceptano Policy. During 2021-22. the College's fundraising programme was supplemented by a 'Safe Haven, appeal in February 2022 to raise funds in support of offering College acwmmodation to Ukrainian academics. Contacts Ytho are judged to have an interest in Goodenough College are encouraged to make a donation. Those who have opted out of fvndraising appeals are, of course, exempted from thls programme of activity. There is a clear focus on enabling supporters to reengage and reconnect wth the College. as well as making an infomed decision on supporting the College financially. The College does not accept donations where we have reason to believe that the donor may be vulnerable. or where we judge aciEpting the donalion would be ethically wrong or cause hann to the donor. To help infomi our approach, we refer to the Fundraising Regulator's Code of practi and the Chartered Institute of Fundraising's slaternent on vulnerable donors. We regularly review industy standards to ensure we are meetiro requirements. No complaints have been received by CASE, the Chartty Commission, the Fundraising Regulator or by the College about its fundrdising activ(iies in either the year ended 31 August 2022 or the 17 months ended 31 A$t 2021. PLANS FOR FtrruRE PERIODS As the College moves forward into the 2022-23 academic year, the business and academic environments in which tt funcbons m81n less prediclable than they were before the global pandemic, whose imp8Ct on our oper81ions remains considerable. Nonetheless. plans for the future of the College, including the Strategic Plan, the Asset Replacement Plan. 8 Staffing review, implementation of the re1 Govemance Review and the College investment plans, remain on track. The College has retumed to full occupancy.. the hotel has reopened, the extemal events and short-stay operatsons are securing ample business.. and the intellectual, social and cultural enrichment programme for MemtrRrs is the most ambitious ever delivered by the College. The long-term impact of the COVID-19 crisis on the College has primarily been in the financial domain, as detailed in the Finanual Review sectTron of this report, wtth College reserves significantly depleted- a continuing lack of income from the hotel during the reporting period- and the College's Scottish estate. The Bum. still feeling the effects of pandemic restrictions on the Scottish academic sector. Tuming to the future, we will develop the College's estate. including exploiting Ihe opportuntty to expand our Member accommodation offer presented by the retum of Houses 43-46 Mecklenburgh Square to College control. We are currently looking at how we might secure philanthropic 16
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2022 inveslment from our Alumni and friends to help fijnd the redevelopment of Ihese properties. We will continue to seek to idenlify sufficient funds to ensure thal the College's Assel Replacement Reserve is sufficient to maintain the College's assets in perpetuty. The Burn management team is exploring innovative ways of attracting a new clientele to our Scottish estate through more effective and ambitious marketing. As the effects of the pandemic slowty diminish, keeping our community safe and well remains our priority. We will continue to focus on mentsl heah awareness for both Members and staff, and on staff professional and individual development. We will continue lo look for cost-effeclive ways to raise the College's public profile, building on valuable new partnerships now being established with scholarship bodies. academic charities, educalional instrtulions and diplomatic missions. among olhers, to ensure we continue to attract and secure the most talented intemalional postgrdduate students. Through our Alumni engagement arKI fundraisir@ strategies. we are looking at ways in which we can build connection with Alumni, using channels such as dNJital communications, events and volunteering. On the back of this eruagement and reconnection, we aim to increase voluntary income lo enable as many postgraduate students as rx)ssible. irrespective of background. to have a chance lo join the College community- Voluntary income wll also support Ihe provision of our emergency financial assistance fund (The Mecklenburgh Fund) and College capital projects. Followng completion of the Board's review of the College's governan arrangements, in line with the Charity Governance Code, College senior management are working lo implement its recommendations, wth a view to embedding best govemance Practi for the sustainable long- temi management of the College. The College will also embed equalty, diversty and inclusion inf(iatives across our operations to ensure we deliver fully on our diversity MMitMents. The College remains extremely grateful to tts Trustees. Fellow3, Alumni and other stakeholders who continue to offer their time. expertise and fin8ncial support to enhan our College communty. STATEMENT OF TRusfEES' RFSPONSIBIiifIFS The Trustees {who are also directors of the College forthe purposes of company law) are responsible for preparing the Annual Report, incorporating the Strategic Report. and the Financial Statements in accordance wth applicable law and regulatiorns. Company law requires the Trustees to prepare finanoal statements for each financial year in accordance with Untled Kingdom Generalty Accepted Accounting Practice {United Kingdom Awounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied thal they give a true and fair view of the stste of affairs of the group and charity and of the incnming resources and application of resources, including the income and expenditure. of the group and charity for that Feriod. In preparing these financial statements the Trustees are required to.. Select suitable accountir¥J policies and then appty them consistentty" Make judgements and accounting estirnates that are reasonable and prudent., Slale whether applicable UK accounting standards have been followed. subject to any material departures disclosed and explained in the financial slatements- and 17
Goodenough College Trustees, Annual Report and Skntegic Report for the yeor ended 31 August 2022 Prepare the financial statements on the goir¥J concem basis unless it is inappropriate to presume that the Charity and group wll continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable companls transactions and tch disclose wth asonable accuracy at any time the financial position of the charitable company and group and to enable them to ensure that the accounts compty wth the Companies Act 2006. They 8re also reswnsible for safeguarding the assets of the charitable company and group and hence for taking reasonable sleps for the prevention and detection of fraud and other irregularities. Financial statements are published on the charity's website in accordance legislation in the Unlted Kingdom goveming the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrrty of the charity's website is the responsibilty of the Irustees. The trustees, responsibilty also extends to the ongoing integrity of the financial statements contained therein. DISCU)SURE OF INFORMATION TO AUDrroR In the case of each of the persons who a directors of the company at the date when this report was approved: So far as each of Ihe directors is aware, there is no relevant audrf( infomiation (as defined in the Companies Act 2006) of thich the company's auditors are unaware., and Each of the directors has taken all the steps thal helshe ought to have taken as a director to make himselflherseff aware of any relevant audit infomation las defined) and to establish that the company's audilors are avrare of that infoTmatiin. This confirnation is gtven and should be interpreted in accordan with the provisions of S418 of the Companies Act 2006. The Trustees. ReFX)rt and Strategic Report were approved by the Trustees in their capactty as Directors of the Charitsble Company and signed on their behatf by.. O.ILI,-. Stuart Shilson Chalrman 24 January 2023 18
INDEPENDEKf AUDrroR'S REPORT TO THE MEMBERS AND TRUSTEES OF GOODENOUGH COILEGE Opinion In our opinion, the financial statements.. give a true and fair view of the state of the Group's and of the Parent Charitable Company's affairs as at 31 August 2022 and of the Group's incoming resources and application of resources for the year then ended; have been propedy prepared in aCrancE wtth Uniled Kingdom Generally Accepted Accounting Practice: and have been prepared in a(xx)rdanc8 wlh tho requirements of the Companies Act 2006, the Charities and Trustee Investment IScotland} Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland} Regulations 2006, as amended in 2010. We have audited the financial statements of Goodenough College {"the Parent Charitable Company") and ils subsidiaries (Yhe Group) for the year ended 31 August 2022 thich comprise the onsolidated statement of financial activities (incorporating an income and expenditure account), the Group and Charity balance sheet. the consolidated (zsh flow statement. the charity slalement of financial activities and notes to the financial statements. including a summary of signrficanl accounting wlicies. The financial reportiTrJ framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial ReFM)rting Standard 102 The Financial Rewrttng Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). Basis for opinion We conducled our audtt in accordan th Intemational Standards on Auditing IUKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further descritsed in the Auditor's responsibilities for the audtt of the financial statements section of our report. We believe that ihe audit evidence we have obtained is suffiaent aThJ appropriate to provide a basis for our opinion. Independence We remain independent of the Group arml Parent Charitsble Company Sn accordance wth the ethical requirement$ that are relevant to our audr( of the financial staternenls in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethiral responsibilities in a(Lordance with these requirements. Conclusions related to going eoncern 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 perfonned, we have nol idenlified any material uncertainties relating to events or conditions that. indivUallY or collectively. may (2st sKJnrficant doubt on the Group and the Parent Charitable Company's ability to continue as a going concem for a period of at least twelve months from en the financial statements are authorised for issue. Our responsibilities and the SponSIbl11t1eS of the Trustees wtth respect to going concem are described in the relevant sections of this reFQrt. 19
Goodenough College Independent Report of the Auditor (continued) for the year ended 31 August 2022 (ther InforntiOn The Trustees are responsible for the other infonnation. The other infoThalion comprises the information included in the Annual Report and financk81 ststements, other than the financial statements and our auditorfs report thereon. The other information comprises Trustees, Annual Report and Strategic Report and the Goodenough College Chairman's Personal Welcome. Our opinion on the financial statements does not cover the other infoThation and. eXpt to the extent otherwise explicf(ly staled in our re[. we do not expr8ss anYf0 ofassurance conclusion thereon. Our responsibilty is to read the other infomiatron aTKJ, in doing so. consider whether the other information is materially incon5islent wth the financial statements or our knowledge obtained in the audit or otherwse appears to be materially misstated. If we identify such material inconsistencies or apparent material rnisstatemenls, we are required to detemiine whether there is a material misstatement in the financial statements or a material misstatement of the other infomiation. If, based on the work we have performed. we conclude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Report. which includes the Directors, Report and the Strategic reKM)rt ppared for the purposes of Company Law. for the financial year for which the financial ststemerts are prepared is consistent with the financial statements" and the Strategic report and the Directors. Report, which are included in the Trustees. Report, have been prepared in accordan vAth applicable legal requirements. In the light of the knowledge and understanding of the Group and the Parent Charttable Company and tts environment obtained in the course of the audf(. we have nol identrfied material misstatement in the Strategic report or the Trustees, report. We have nothing to report in respecl of the follwng matters in relation to which the Companies Acl 2006 and the Charities and Trustee Investment (Scolland) Act 2005 requires us to report to you rf, in our opinion; prOr and adequate accounting records have not been kept by the Parent Charttable Company. or retums adequate for our audil have not been red from branches not visited by us- or the Parent Charitable Company financial statements are not in agreement with the accounting cords and retums,. or certain disclosures of Directors. remuneration specified by law are not made" or we have not received all the information and explanations we require for our audiL 20
Goodenough College Independent Report of the Auditor (continued) for the year ended 31 August 2022 Responsibilities of Trustees As explained more fully in the Truslees, responsibilthes ststement, the Trustees {who are also the directors of the charitable company for the purtx)ses of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such inlemal control as the Tnjstees detenine is necessary to enable the preparation of financial statements that are free from material misstatement, ether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Group's and the Parent Charitable Company'5 abilty to continue as a going cOnr, disclosing. as applicable, matters related to going concem and using the goiThJ concem basis of accounting unless the Truslees either intend to liquidate the Group or the Pant Charitable Company or to cease operations, or have no realistic aRemative trNJt to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 44{1 Xcl of the Chaiitses and Trustee Investment {Scotlandl Act 2005 and under the Companies Act 2006 and port in accordance wth the Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assuran atout whether the financial slatements as a whole are free from material misstatemenl. whether due to fraud or error. and to iSSLJe an audltorfs report that includes our opinion. Reason8bte assurance is a high level of assurance, but is not a gu8rantee that an audtt conducted in aCcOrdae with ISAS (UK) wll always detect a material misstatement when tt exists. Misststements can arise from fraud orerror and are considered material individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial ststements. Exttent to which the audit pable of detecting irregularities, induding fraud Irregularities. including fr8LKI, are instsnces of nOnMplIan Trmth laws and regulations. We design procedures in line wth our responsibiltties, outlined ab)ve. to detect material misstatements in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecling irregulartlies, including fraud is detailed below. enquiry wtth Those Charged wtth Govemance aThJ management regarding kwn or suspected instances of rn-Compliance with laws and regulation and fraud, including aclual or potential Ittigalion arKI claims- reviewing minutes of meetings of Those Charged wth Govemance and corresF)oThJence th regulators" assessing the design and operatirBJ effectiveness of conlrols and procedures relevant to the pparatIOn of the financial statements and the detection and prevention of irregulartties and fraud", reviewing financial statement disclosures and testing to supporting documentation to assess Complian wth applicable laws and regulations.. challenging the 8ssumptions and judgements made by management for key estimates. In particular the assumptions used to value investrnent properties- 21
Goodenough College Independent Report of the Auditor (continued) for the year ended 31 August 2022 identifying and lestiw the appropriateness of journal entries and other adjustmenls, with particular focus on large and unusual ioumals, for example unusual account combinations. and incorporating unpredictabilrty into our testing approach through amending the nature and extent of audit procedures. Our audit procedures We designed to respond to risks of material misstatement in the financial statements, recognising that the risk of nol detecting a material misstalemenl 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 collusion. There are inherent limitations in the audit prOdureS performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements. the less likely we are to become aware of it. A further description of our resw)nsibilities for the audit of the financial statements is located at the Financial Reporting Council's ("FRC's"} website at.. httpsJlwww.frc.org.ukJauditorsresponsibilities. This description fonns part of our auditorfs report. Use of our report This report is made solely to the Charitabk Companvs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. and to the Charitable Company's trnstees, as a body, in accordance ¥Mth the Charities and Trustee Investment {Scotlandl Act 2005. Our audit work has been undertaken so that we might stale to the Charrtable Company's members and trustees those matters we are required to stste to them in an audrtorfs report and for no other purpose. To the fullest extent pemiitted by law. we do not accept or assume responsibility lo anyone other than the Charitable Company, the Charitable Company's members as a l)ody and the Charilable Company's trustees as a body. for our audit work, for this report. or for the opinions we have fomed. Do¢u8pJr*d by.. 73DeB T8FE9AC4C9 Jill Haword {Senior Ststutory Auditor} For and on behalf of BDO LLP, Statutory Auditor London, UK Date.. 30 January 2023 BDO LLP is a limited liabilty partnership registered in England and Wales (with registered number OC305127).
Goodenough College Consolidated statement of financial activities (ineorpordting a eonsolidated Incorne and Kypendtture account) for the year ended31 August 2022 CONSOLIDATED STATEMENf OF FINANCIAL AcrIvrTIFS FOR THE YEAR ENDED 31 AUGUST 2022 Notes Unrestricted Funds Year to 2022 Restricted Funds Year lo 2022 Total Funds Year to 2022 Total Funds months 2021 £'ooo £'ooo £'o £'ooo Income from.. Donations and legacies Charitable activities.. College ¢ommuntty accommodation Trading actiwlies.. Commercial accommodation Catering, Events and Venue Hire Investments Other income Total 331 365 7,851 318 8,169 7,434 733 1.058 733 1.058 1.005 281 107 1,456 257 10,627 10.574 756 11.330 Expendlture on: Raising funds Investment management Fundraising Tr8ding a¢tiwties Charitable acliwties.. Attrdcting outstanding poslgrdduate students Transfomiing College Members Raising the College's profi Sustaining the College Total 97 179 1,621 104 179 1,621 177 317 1,476 407 1.248 7.582 341 2.294 13.369 1,527 10,506 7.180 341 2,280 12,539 14 830 3,221 17,711 Net Iloss) before other gains I Ilo$sesl (1.9651 1741 12,0391 17,0841 Net Ibssesl I gains on investments 11 {1,3531 11,3471 5,841 Net {expondlture) {3.3181 168 13,3861 11,2431 Transfers betsveen funds 16, 17 141 Not movemont in funds {3.3221 164} 13,3861 11,243} Re¢on¢illatlon of funds: Total funds brought lorvrard Net movement in funds Total funds carried forward 140,951 3,322 12.742 153,693 3,386 150,307 154,936 1,243 153 693 12,678 R•¢on¢lliation of funds for ar endod 2021 Total funds brought forvdrd Net movement in ftjnds Totsl 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 I results derive from continuing operations. gains and105ses recognised in the period are induded 8bove. The notes on pages 29 10 50 form part of these Finanaal Statements. 23
Goodenough College Balance Sheets as at31 August2022 Company Roglstratlon No: 00246919 BALANCE SHEEfs AS AT 31 AUGusf 2022 GIDUP Charity Notgs 31 August 2022 31 August 2021 31 Au9USt 2022 £'ooo 31 August 2021 FIXED ASSETS Tangible assets Freehold land and buildings Heritsge assets Fixiures, fittings plant & equipment 165,3SI 310 1,130 166.797 19.341 3,928 165,495 310 1,322 167,127 21,782 4,330 165.357 310 1.130 166,797 19,341 3.928 250 190,316 165,495 310 1,322 167,127 21,782 4.330 250 193,489 lob ioc Investments Investment properties Investments in subsidiaries Ilb 17b 12 190.066 193.239 CURRENT ASSErs Stocks Debtors Cash al bank and in hand 10 1,313 2,201 3.524 10 1.531 1.945 13 1.160 2.741 3.9 1,079 2,157 3,244 CURRENT LIABILITIES Amounts falling due within one year 14 13.6681 (3.0701 13,424) 13,331 } NET CURRENT ASsS1LIABlLrnES) 241 454 {180) 155 TOTAL ASSETS LESS CURRENT LIABIUTIES 19),307 193,693 190.136 193.644 Creditors.. amounts falling due after more than one year 15 140.0001 (40.000) {40.0001 140,0001 TOTAL ASss 150.307 153.693 150,136 153,644 Restricted funds Designated funds General funds 16 17 17 12,678 129.259 8.3TO 12.742 132,431 8.520 12,678 129,259 8,199 12,742 132,431 8,471 TOTAL FUNDS 1S0.307 153.693 150,136 153,644 The notes on pages 29 to 50 form part of these Finanaal Statements. These Financial Statements we apprn and authorised for issue by the Trustees on 24 January 2023 and edonlh r behalf by. uart Shilson Chairman 24
Goodenough College Consolidated Statement of Cash Flows for the year ended August2022 CONSOLIDATED STATEMENf OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022 17 Months 2021 Notes Year to 2022 £'ooo £'ooo Cash flows from operating adivities: Net cash provided by operating activities Interest paid on loan Loan costs {a) 1.726 {1.2411 (3,954) 11.241) 18 15.213} Ngt cash generated fftvm /(used In) operating a¢livitses 477 Cash flows from Invostlng adlvitles: Diwdends, interest and nIS fr(m investsnents Purchase of property, plant and equipment Proceeds from sale of inve51ments Purchase of investments 1.005 12.4121 2.498 1.779 16881 1,456 11.583) 12.858 6,192 6,539 N8t cash (us8d in) /generat8d fn)m invesling a¢tfvltles Change in cash and cash gquivalents in thè rnporting pwlod 12111 1,326 Cash and cash equrvalenls al the beginning of the reporting period 3.932 Cash and Cash equivalents at the ond of the reporting period Ibl 5.258 Analysis of changes in nat d8bt 31 August 2021 £'ooo Cash 31 August 2022 £'ooo £'ooo Cash Cash equivalents 2.201 3,057 5358 2,741 751 {211) 5,047 Loans falling due after mtye than one year {40.1) 140.0001 Total 34.742 211 34,953 25
Goodenough College Consolidated Statement of Cash Flows (continued) for the year ended 31 August2022 17 Months 2021 £'ooo Year to 2022 £'ooo la) Reconciliation of net income to net cash (oufflowl l inflow from operating activities Net lexpenditurel for the reporting Ftriod Adjustments for: Depreciation ¢h8rges Losses I Igainsl on invesknents Di1dendS. interest an¢J rents from investsnent Impairnient Loss on disposal Interest payable on k)8n Loan Costs Decrease in stock Decrease I Ilncrease) in deblo Increase in creditors (3.3861 {1,243} 2,425 1.373 (1.0051 3,372 {5.841} {1.4561 21 1.241 1,761 18 153 18711 304 Net cash inflow I louffi¢Av) from operating activities 3,954 (bl Analysis of Cash and Cash Equivalents 31 August 2021 Cash flows £'ooo 31 August 2022 £'ooo Cash in hand Cash held by investsnent manager Tot Cash and cash aquival•nts 2,201 3,057 5,258 2,741 751 211 5,047 26
Goodenough College Charity only ststement of financiaj aetivities fvr the year ended31 August2022 Total Funds 17 Months 2021 £'oDo Unrestricted Funds Year to 2022 £'ooo Restricted Funds Year to 2022 £'ooo Total Funds Year to 2022 £'ooo Note5 Incom• from: Donations and legacies Charitable activities.. College community acwFnmodatiL Investments Other income Total 331 413 7.851 318 107 8.169 1,005 7.434 1,456 257 9,810 8.831 756 9.$87 Expendlture on: Raising funds Investment management Fundraising Charitable activities.. Attracting outstsnding p)stgraduale stydents Transforniing College Member5 Raising the College's profile Sustainin9 the College Total 97 179 104 179 177 317 407 402 1,248 7,582 341 2,294 11,748 1,527 10.506 7,180 341 2,280 10,918 14 830 3,221 16,235 Net (losses beforè othw gains I (losses) 12.087) 1741 (2.161) 16.4251 Net Ilossesl I gains on investsments (1.3531 {1,3471 5,841 Not Ilo$se$) 13,4401 (3.5081 (5841 Transfers betsveen funds (4) Not movement In funds 3,508 584 Raconclliation of funds: Total funds brought forward Nel movement in funds Total funds ¢arried fonvard 140.902 12.742 153,644 3,508 150.136 154.228 584 153.644 137,458 12,678 27
Goodenough College Consolidated Statement of Financial Activities for the 17 months ended 31 Auwt 2021 CONSOLIDATED STATEMENf OF FINANCIAL AcrIvrriFS FOR THE 17 MoNfHS ENDED 31 August 2021 Unrestricted Funds Restricted Funds Total Funds 2021 £'ooo £'ooo £'ooo Income from: Donabons and legacies Charitable activities.. College community accommodation Trading activities.. Commercial accommodation Catering, Events and Venue Hire Investsnents Other income Total 113 550 7,296 138 281 536 1,318 257 9M01 138 257 10,627 826 Expendltura on: Raising funds Investrnent management Fundraising Trading aclivilie5 Charitable activities.. Attracting outstsnding postgraduate students Transforming College Member5 Raising the COlge.5 profile Stjstaining the College Total 164 317 1.476 13 177 317 1,476 1.294 10.007 233 499 1,527 10,506 277 1,022 3,221 17,711 16.689 Net Ilos$l before other galns l (los$) {68881 11961 17.0841 Nel gains on investments 5.223 618 5,B41 Net (expenditure) l incomo (1.8651 {1,2431 Transfers bett•en funds {151 Net movement in funds 437 1.243 Recon¢lllatlon of funds: Total funds brought for¥vdrd Net movement in funds Total funds carriad forward 142,631 12.305 437 12.742 154,936 1,243 153.693 140,951 28
Goodenough College Notes to the Financial Statements For the year ended August 2022 ACCOUNfING POLICIFS (a) Ba815 of Preparation The Financial Statements have bèen prepared under Ihe historical cost convention, as modified by the inclusion of investmenls and investment properbes at fair value at balance sheet date. The financial statements have been prepared in accordance wth A¢Unting and RepDrbng by Charities.. Statement of Recommended Practi appticable to charities preparing their accounts in accordance wth the Finanual Reporbng Stsndard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191- (Charibes SORP IFRS 10211, the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 102) and the Companies Act 28 antj the Charities Ac12011. They also comply with the Charities and TnJslee Investrnent (Scollandl Act 2005 and the Charities Accounts (Scolland) Regulations 2006 and applicable aixounting slandards. The accounting policies have been applied Consistenlly throughout the accounts. Concem The Trustees reviewed the cole'S budget for the year 2022r23 and the subsequent long term forecast in July 2022 and were contenlthal these plans were affordable and thatthe ac¢ounls should be prepared on a going COnM basis. However, given the impact of the COVID-19 outbreak and its finanaal effect, the Executive team and Trustees continue to rewew financial plans for the next 12 months to ensure that the College can continue its busine5S-critical acb'wb"e5 and remain a going concem. The ntinUIng closure of the Hotel has had a grfanI eff1 on the cole'S financial situation despite the return towards nomi81ity of all other areas of income. In July 2022 the Board of Trustee5 approved a cautious budget shos*ing the College achiewng a significant consolidated operating surplus in 2022123 followng the opening of the Hotel. There has been a high volume of appiicalions for pl8ces in the College for the 2022123 academic year, with occupancy levels achiewng extatIOns. The Hotel has reopened in September 2022 and ha5 oulperfomied budget by a signrficant margin. Business perfonnance is being ¢areftJlly monitored against budget and finanaal stability reviesyed as matters progress. CUrn1 2022123 financial perfomance is ahe&l of budgeL The Colle holds in ex$ of £21m in unrestricted funds not representing Current operating assets, of whh £3m is in investrnent propety and £18m in liquid invesknents managed through our investment managers. The invested portfolio includes in excess of £9m invested in short and medium lemi funds where capital preservation is the key investsnent str8tegy. In lotsl these reserves are wetl in excess of the annual lumover and annual cash flow qUIrementS of the College. Given the strength of the balance sheet and the availability and liquidity of unrestricted investments the Trustees believe that, while uncertainty eSts. this does not pose a material uncertainty that would cast doubt on the charity5 8bilty lo continue as a going concem. The Trustees, therefore. consider it appropriate for the accounts to be prepared on a going cOnM basis. Further detsil on the availabilty of unrestri(Xed funds can be found on p12 of the Trustees, Report 29
Goodenough College Notes to the Financial Statements (continued) for the year ended31 August 2022 I. ACCOUNTING POLICIES (continued) {a} Basis of preparation (eontinued) The group statement of finanal activilies {SOFAI and balance sheeL con501idale the Financial Statements of the Charity and its wholly OVA1 subsidiaries. all of which were made up to 31 August 2022 on a line by line basis. Ibl Company status The Charity is a company limited by guarantee. The Members of the Company are the Trustee Board named on page Iwo, who are also the Directors of the Company for the purrK)ses of company law. In the event of the Company being Und up. the liability in se¢l of the guarantee is limited to one pound per Member of the Company. (c) Key suMptiOnS and estinteS Key assumptions and estimates are continually evaluated and are based on historical experience and other factors, including exwtations of future events that are believed to be reasonable under the circumstances. The assumptions and estimates that are likety to cause any material impact to the accounts are set out below: Valuation of Investment Properbes - as (Jisdosed in Th)te 11. the fair values of the investment properties are rewewed at the balae sheet dale to detennine any changes in value. This is done by revievAng key property price indic8tor5 for the local area or an external valuation by RICS registered valuers. Depreciation- Fixed Assets are depreaated on a straight line basis as set OLrt in note 11) Tangible Fixed Assets. (d) Incolne income is recognised in the SOFA when the Charity has mel condilions for receipt, receipt is probable and the amount can be quantified with suffiuenl reliability. Inv8slment income.. Invesbnent income is accounted for vthen receivable. L8gacies.' Legacies are deemed receivable from the date of nottfication, promded that sufficient infomiation has been received to enable the Group to calculate entiuemenl and receipt is probable. Gifts in Klnd.. Donations in kind are recognised at their value lo the Charity when they are rewved. No amounts are included for semces donated by volunteers. Government grants.. Income frrAn Govemment and other grants, whether 'captial' grants or 'revenue' grants, is recogniwj when the charity has entiuemenl lo the funds. any perfomian condibons attached to the grants have been me( il is probable that the income will be re1Ved and the amount (3n t* measured reliably and is not deferred. In respect of the furtough 9rant,' all conditsons, wlh reswl to the eligible costs being daimed, need to be mel
Goodenough College Notes to the Financial Statements (continued) for the year ended & August 2022 i. ACCOUNfiNG POLICIES (continued) (e) Expenditure l expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cos15 related lo that category. Investment Management Costs represent the fees incurred on raising Investment Income. Fundraising costs present expenditure in relalw)n to fund-ralsng and publicity costs. Direct expenditure incurred on Charitsble acb"wties is identsfied against one of the four strategic goals of the charity. Support costs repsent expenditu incurred in general management, Trustee related costs and audit sts and are apporbowj across the frrtjr strategic goals. See nots 6 for further information. (f) Fwld accounting The College maintains various types of funds as follovts: i) Restricted funds The Burn Restricted funds include donations re¢eived which were allocated by the donor for the upkeep of The Bum, a S)ttiSh study and holsday centre for students and graduates. In addition other donations whKh are earmarked for particular purrM)ses are treated as reslricted funds. ii) Unrestricted ndS Designaledr8s&rves are amounts Ythich have been put a$ide at the discretson of the Trustees and comprise.. Tangible fixed a&set reserve represenbng the value of all reserves used for operating tsngible fixe(J assets {ex¢luding those ofThe Bum. which are restricted} and only aLisable by the disposal of thtse fixed assets. Inveslmenl ryoperty reserve represents the value of all reserves held in investment properties and only realisable by the disp1 of these fixwj 8s5els. Asset Replacemenf Reserve (ARRJ has been established lo hold the current level offunds idenlffied for the future replacement and refurbishment of the buildings. fixtures, fittings and equipment of London House. William Go(Klenough House and the Club in support of the Asset Replacement Plan currently covering 8 30 year period to 2046. College DevelopntentReserrfe (CDR) was establishe(I to hold the funds in excess of those required lo settle preVu$ borrowing when the College's debt was restructured in June 2017. These funds have been designated by the trustees lo fund the further development of Goodenough College above and beyond the refurt)ishmenl and replacement of existing assets as provided for in the Asset Replacement Reserve and lo include invesbmenl in 'inlangible' matters other than fixed assets. The final criteria for its use would be delerwnined through the development of the College Strategy. 4347 Mecklenburgh Square Reserve vrds established by the trustees to support the future development of 4347 Me¢klenburgh Square. (Xh8r deswnaled funds reserye represents other funds desvJnated by the trustees for particular purwses. General unreslridedfvnds represent funds vknich a expendable atthe dIretiOn ofthe Trustees in the ftjrtherance of the objects of the cofflpany. Such funds may be held in order to finance working capital or capital investrnent and include the Colge'S reserve. 31
Goodenough College Notes to the Financial Statements Iwntinued) for the year ended 31 August 2022 i. AccouNfING POLICIES (continued) Financial assets and financial liabilities are recognised when the College becomes a party lo the contrathjal provisions of the instnjment Al finan¢ial assets and liabilities are initially measured at transaction price (including transaction $ts1- Basic financial instruments are inits.ally recognised al transaction value and subsequently measured at their sewernenl value. Trdde and other debtors are recognised at the setdement 8mounl due after any trdde discount offered. PrepayTnents are valued al the amount prepaid net of any trade discounts due. Creditors and promsions are recognised where the College has a present obligabon resulting from a p8s1 event that will probably resu in the transfer of funds lo a third party and the amwnl due lo settle Ihe obligation can be measured or estimated reliably. Creditors and provisions are nomlally reo)gni5ed at their Settrnent amounl after allowng for any trade discounts due. Other financial instruments are initially recognised at fair value and any changes to their fair value are subsequently renIS& in the SOFA urthr'net gains l {losses) on fina181 instruments,. (h) T&tion Goodenough Cdlege is a Charttywithin the meaning of Paragraph 1 Schedule 6 Finance Act 2010 and therefore il meets the definition of a Charitab company for UK corpM)ratson tax purposes. Accordingly the company is potentially exempl from taxation in respect of income or pital g8ins received within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of ChargeaNe Gains Act 1992. to the extent that sud) irvJ)me or gains a applied exclusively to eharitable purposes. The subsidiaries mae qualIf.g donations of all taxable profit to Goodenough College. Income from Gift tax reclaimed is recognised in relation to qualifying donations received. The College is regislefed for Value Added Tax (VATI. kny irreLa)verable VAT is charged lo the ststement of Finarrial Activtiies. {1) Tangible fLTed assets The College has elected to present Ihe deemed cost of its freehold assets al the value held at 1 April 2014. as pemiitted under the FRS102 transibonal arrangements. Where there is an indication of an asset being ifflpaired the recoverable amount is idenbfied and the impairment loss is recognised as expenditure in the Slalement of Financial Aclivities. Deprecialion on fixed assets is tharged so as to Yntte down the value of properties and material components over their expected useful lives. on a 5trdight line basis as follows: Lrfe {yearsl 100 15-50 25-30 10-25 10-15 10 Freehold buildings Roof yrk Bathrooms. heating, water. electrical and gas systems. and boiler equipment Venlilalion and fire dele¢tion systems and fire stopping rI[S Access and telephone system Vehicles Cornputer and other office equipment Computer sofivftre Fumiture Improvements to Freehold {including r¢)om refurbishment) Other plant and equipment and other fixtyres and fittings 8-20 6-15 4-15 32
Goodenough College Notes to the Financial Statements Icontinued) for the year ended 31 August2022 I. ACCOUING POtJCILS (continued) (i) Tangible fixed assets (eontinued) The mixed use property is 8c¢ounled for using the cost mcdel as alkwed under the Charities SORP IFRS 1021 as the fair value of the investment component cannot be measured reliably, and it is rented out to a group entity. (i) Heritage Assets The College has ethted to present the deemed cost of its Heritsge Assets 81 the value held at 1 April 2014. as pemiitted under the FRS102 transitional arrangements. Herrtage Assets are not depreaated. The College has reMed its Heritage Assets and does not consider that any impairment at 31 Atjgust 2022 is necessary. (k) Investments Invesknenls are valued at bid value as al the balance sheet dale and the surplus or deficit arising from this revaluion is shown wrthin 'nel gains I Ibssesl on investments, on the face of the SOFA. Realised gains and losses represent the tffence between the sale proceeds and the opening mathet value of an investment or cost rf purchas&l during the year and a also shown ¥thin this line. O) Investment properties Investment properties are heloj initially al Cost and subsequentty at fair value at the reporbng dale. Any Gains or Losses are recognised under'Net gainsl IhJsses} on investments, on the Statement of Finanaal Activities. Investsnent properties are not depreualed. (m)Stotk5 Stocks are stated at the lower of cL)st arKI nel realisable value and comprise consumable goods. (n) Operating leases Rental costs under operating leases are charged to the SOFA in equal amounts over the period of the leas8. (o) Borrowing costs Interest and charges are expensed and chargwj to the SOFAwhen IrUrred. (p) Pension aeeouttting policy Goodenough College makes contributions to employees, defined contribution pension plans. Contributions are charged to the SOFAas they become payable_ They 8re 8nalysed across expenditure according lo the activity of the scheme mnbe[s. (q) Casbfiow statement Cash and cash equivalents indudes lash in hand, deposits IMth banks and cash held within the investment portfolio. Interest paid is dassified as a cashflow from operating activities as they are included in the statement of financial activitses. this dassification is consistent wtih wor periods. 33
Goodenough College Notes to the Financial Statements (continued) for the year ended31 August 2022 2 DONATIONS AND IEGACtEs Total funds 17 monlhs to 2021 £'ooo untriCted funds year to 2022 £'¢)00 Restricted funds year to 2022 £'ooo Totsl funds year to 2022 £'ooo Donations Consolidated donations income Donations from subsidiaries Charity donations income 331 365 663 331 365 663 82 331 413 663 Of the total funds stated for 2021, £550k was restred and £113k unrestiicled. Of these donations £64k12021 .. £70kl was received from Twslees. Restricted funds year Total funds yaar to Total funds 17 rnonths to 2021 Unrestrictwj funds year to 2022 222 2022 £'coo Income from UK listed investsnents Income from overseas listed investmwtts Rent from property Other interest- short-term deposits 42 190 275 110 857 214 57 107 1.005 Of the total fvnds stsled for 2021. £138k was restricted and £1.318k unrestricted. 4 TRADING INCOME Trading income comprises income arising from the College's trading SUbslaneS as detailed in note 12. Included wthin trading income is a lolal of £12k117 months to 31 August 2021.. £41kl arising from Coronawrus related business grants received by Goodenough Club Limited and Goodenough Ventures Limited.
Goodenough College Notes to the Financial Statements (continued) for the year ended AugUSt2022 5 INCOME FROM COILEGE CHARITABLE AcrIvrTILs Totsl funds 17 nnthS 2021 Total funds arto 2022 Unrestrict fvnds year to 2¢Y22 R8stricted fvnds yèar to 2022 £'ooo £'ooo College accommodation inQe 7.851 7,851 7,296 The Bum incL¥ne 318 318 138 7.851 318 7.434 Included wrthin incoming resources fr( cdlege charitable a£b'vities for the period is £1.5k relating to the Coronavirus Job Retention Scheme and £2.1k relating to other coronavTr¥Js grant funding. Of the total funds slated for 2021. £138k was reslrictwj and £7.296k was unrestricted. 6 EXPENDITURE FOR CHARITABLE PURPOSES "rect Costs year to SuprKtrrt Costs y88r to 2022 Total year to 2022 Total 17 months 2022 to 2021 £'ooo £'ooo Attracting outstanding postgraduate students Transfomiing Cdlege Members Raising the College's profile Sustaining the College 1.062 1,527 10,506 7,582 341 51 487 2,138 2,294 3,221 9,973 11.465 The College has paid £597k12021.. £760kl to Cdlege memb5 as Scholarships and bursaries, including hardship funds. 35
Goodenough College Notes to the Financial Statements For the year ended31 August2022 SUPPORT COSTS Year to 2022 £'ooo 17 months lo 2021 £'ooo 553 820 331 Finance 559 212 HR Govemance Other general overheads 37 523 35 e19 2.358 These support ¢osls 8re spltt across the followiThJ areas: Raising funds Ch8ritsble activTrties 182 105 2,253 1,492 1,674 GOVERNANCE COSTS 17 monihs to 2021 Year to 2022 £'ooo £'ooo Support cost5 Council and Board meeting costs Fees payable to the auditors- College Other Fees 35 37 35 Included within direct costs are fees pardble to the audrtors l811ng to the subsidiary companies of £25k117 months to 31 August 2021= £29k}. 17 months Fees Payab to the Cclnpans audrtors: Yearto 2022 2021 StalLrtory audit Tax admsory serwces Other admsory services 19
Goodenough College Notes to the Financial Statements (continued) for the yeor ended August 2022 NET oirrGOlNG RFSOURCLS 17 months lo 2021 £'ooo Year to 2022 £'ooo Net outgoing reS(S for the year are stated after charging.. Amounts pay8ble to auditors IGroupXnote 7) Depreciation of tangible fixed assets Operatsng lease charges 67 2.425 3,372 tNFORMATION REGARDtNG Headccmjnt 2022 No. Full Time Equivalent 2022 2021 No. 2021 No. Average number ol empbyees Idtjring period= College Hotel The Bum 72 71 62 62 20 95 23 11)0 11 79 72 17 Months lo 2021 £'ooo Yearto 2022 £'ooo we$ and salaries ScKial securily costs Pensions Other benefits 2.769 305 136 71 3.281 4,199 431 202 95 4.927 37
Goodenough College Notes to the Financial Statements For the year ended31 August2022 INFORMATION REGARDING AFFAND TRUSTEES Icontinuerlj The number of stsff paKI over £60,000 during the rewrtsng period (salary plus taxab benefits excluding pension coniribulionsl was.. 17 months to 2021 Yearto 2022 No. Year to 2021 No. £60,001- £70.000 £70,001- £80.000 £80,001 - £90,000 £90-001 - £1[1,000 £100.001- £110.000 £110,OQ1- £120,000 £120.OD1- £130,000 £130,001 -£140.000 £140.001- £150.000 £160.001- £170,000 £170,001- £180,000 The 17 month prior K*riod means that staff are induded in baTrJing5 for that Feriod in excess of where they would be in a comparable 12 month finanual period. The figures for the prior pericmj that lated to the 12 months lo 31 August 2021 have thef0 been provided for comparative purrx)ses. as they Vre in the financial stslements to 31 August 2021. Trustees, remunèration Members of the Board of Trustee5 (who are all directors bmthin the meaniThJ of the Companies Act 20061 re1ve no remuneration or taxable benefrts for their serS. During Ihe year 0<2021.. threel Tnjstees %%ere reimbursed or had amounts paid on their behalf for sundry Board expenses incurred totalling £342 12021.. £3211 relating to travel and sundry Board expenses). Pension schemes The Company operates stakeholder pension schemes administered by Legal and General. The employer's contributs'ons are 100/0 of pensionable sa18ry for senior staff and are matched to those of the qualifyng employees to a maximum of 5% of pensionable salary for other staff and amounted lo £135.569117 Months to 2021.. £201.837). At 31 August 2022 outstanding payments due lo the scheme were £22,14812021: £21.1701. Ke man ement orsonnel Key management personnel of Goodenough College comprise the Trustees and those employees making up the Executive team, LX)nsisting of the Director. the Director of Finance and Resources. the Director of Operations, the Directorof Development and Extemal Rela110115. the Dean, the Registrar and Ihe Bursar to the Bum. The aggwate compensation Iremuneratton plus beneffts and employerfs N8tional Insurance Contributions} or payable to 'key management personnel. during this reporting period was.. £870,816 {17 Months to 2021= £1,160,175). Redundanc and torniination onts Totsl payments made during this year in lation to dUndanGY 8ThJ termination pay were £25,750 12021". £37,878). The accounting policy is to rec(yJnise terminab.on payment liabilits.es on Communication of redundancy or termination and when quanlifiable. Such pay7nents are accounted for as staff costs.
Goodenough College Notes to the Financial Statements (continueio fvr the year Ended August2022 io TANGIBLE FIXED ASSETS (a) Freehold properties Consolldat•d and company Collog• The Bum A580ts under ¢onstru¢tlon Total Land and buildings al deemed cost 000 ro¢J) Brought forward deemed cost at 1 September 2021 Addthons Transters Impaimenl At 31 August 2022 1.142 1.g)O 11.104 11,655 178,901 2,249 14991 296 11.209 158.541 11.104 180,854 Deprect81ion Brought forward at 1 September 2021 Charge for the year At 31 August 2022 12.569 1.976 14.545 837 115 952 13,406 2,091 15.497 Net book value at 31 August 2022 143.996 10.152 11.209 165,357 Nel book value at 31 August 2021 143.573 10.267 165,495 Freehold properties o)nsi5ted of sludentaccommodation. the holel (The Goodenough on MeCenburgh Squarel and The Bum. They were all the subje¢l of independent valuations, for inclusion in the accounts at 31 Mah 2013. provided by Drivers Jonas Deloitte, Willis Ltd. Ecclesiaslical, Bell Ingram and Wpha Browett Taylor. Assets under construction consist mainly of the properties al 4>46 Meck1enlrgh Square, previously held as investment properties. The lease on Ihe prortieS expired on 26 November 2019 and the intention of the College is to convert them into additional student a¢commodab"on. Accordingly they are no longer held as investments and were transferred to freehold properties at a value of £11m in the year ended 31 March 2020 and are treated as being at deemed wsl. This is based on 8 valuation provided by Apha BrOtt Taylor included in the accounts at 31 March 2018 and confirmed by them in June 2019. Further work on the project as VEII a5 other ongoing works at the college premises during the year amount to £349k.. No depreciab.on is applied to these assets as they are not in operational use. Also induded in Freehold PropertEs are the College's Royal Albert Hall seats, held al histor cost of £350. The seats were purchased by the College in 1967 and are held on a 999 year lease from 1867 39
Goodenough College Notes to the Financial Statements (continued) for the year ended August 2022 io TANGIBI FIXED ASSETS Icontinued) Excluding 4>46 Mecklenburgh Square. the histOriC81 cost nel book value of the land and buildings if the revaluation had not taken place would be £31.4m 12021.. £30.2m). The historical cost of 4346 Mecklenburgh Squ8re cannot be detemiined. One of the Coltege's properbes is used by Gocdenough Club Ltd, trading a5 The Goodenough on Mecklenburgh Square, a wholly 0ed subsidiary of Goodenough College. It is a mixed use property, in that it provides overnight acwmmodation for bu5inesse5 and private individuals but also for those involved in College actiwties, ineluding Colle9e Aumni. promding College Aumni the opportunity to be a part of the College community even after they are longer full time residents. At 31 August 2022 the net book value of the mixed use property is £16.1m. wth accumulated depreciation of £1.7m and an in-year depreciatson charge of £331L {b} Heritage ass•ts Consolidated and company College £'ooo Bum £'ooo Total £'ooo Deemed cost al 1 September 2021 310 Additions At 31 August 2022 20 310 Heritage assets ¢omprise paintings and fumilure %thich are available for use and enjoent of College members, stsff and guests throughout the College and Bum. The Director of Finan arKI Resources leads on the preservation and management of Heritage assets. The College maintains an asset register which detsils the location. value and descriptson of the assets and ensuw that they are l¢xated in an appropnately secure and managed environment. A valuation of the heritage assets vrds carried out in 2013 an¢J is treated as deemed cost. The Trustees do not consider that any impaimienl at 31 August 2022 is neSs8ry. The deemed cost at 1 April 2017 was £300k, and the only subsequent Iransaclw)n was an additvjn of £1 Ok in the year ended 31 March 2019.
Goodenough College Notes to the Financial Ststements (ntinued) fvr the year ended31 August2022 io TANGIBIE FIXED A&SE15 (eontinu*d) {cl Fixtures. frttings. plant and equipment Consolidated and company Assets under construction £'ooo College £'ooo Bum Total £'ooo Cost at 1 September 2021 Additions Transfers Disposals At 31 August 2022 3.251 87 39 163 {1531 3,377 163 153 34 3,506 3,370 87 49 Depreciation at 1 September 2021 Charge for year Disposals At 31 August 2022 1,975 2.055 334 13 2.376 13 2,294 Not book value at 31 August 2022 1.076 49 Nel book value at 31 August 2021 1.276 39 1.322 li The Bum Cdlgje Tolal {al Invèstment properti8S Land 8nd buildings 81 valuation.. £'ooo Carried forward al 1 Awil 2020 Revaluation At 31 August 2021 3.520 452 3,068 810 4,330 402 3,928 860 The College investrnenl properties were the Subject of an independent market valuation for indusion al 31 August 2022 by Ajpha Browett TaOr. RICS registered valuer wth the necessary knoedge and expertise to prOlde this valuats'on. In 2021122 the College investment properbes were revalued downwafds by £452k as a result12021'. upwards by £357kl. The Bum investment properties Ere the subject of an independent mar1(el valuation for inclusion al 31 August by J & E Shepherd, RICS registered valuer with the necessary knoedge and expertise to prowde this valuation. The properties were revalued upwards by £50k12021: £110kl. 41
Goodenough College Notes to the Financial Statements (Continued) for the yeor ended 31 August 2022 Consolldated and Company 31 August 2022 31 August 2021 Ibl Listed investments Notes £'ooo Market Value at 1 September Addits'ons at cost Proceeds from disposals Realised gain Unrealised Ilossl I gain Market value at 31 August 18.725 1.TT9 12.4981 141 1.112 17.035 19,970 6,192 112.802} 136 5,229 18,725 Listod invostmants comprise the following= Investments listed on a recognised stock exchange- Equibe5 Investments listed on a recognised stock exthange- Bonds lemakn've Funds Market value at 31 August 9.410 625 7.000 10,293 1,429 7,003 18,725 Inve5trnenl assets in the United lthngdom Inve51rTtenl assets outside the Unrted Kingdom Market value at 31 August 12.337 13,564 5,161 18,725 17.035 Cost at 31 August 13.751 14,199 Total invostments Listed investsnenls (market value) Short terni deposits in the portfolio Inveslrnenl properties (market value) Investments at 31 August 11b 17.035 2.306 3,928 18,725 3,057 4.330 26,112 11a 42
Goodenough College Notes to the Finanaal Statements (continued) for the year ended31 August2022 12 SUBSIDIARYUNDERTAKINGS The College oyms 1CQ% of the issued capital of the fOlknng companies. Company Investment Cost Subsidiary undertaking Goodenough Club Limr(ed Goodenough Ventures Lifflit 250,000 The registered office 0fth subsidiarie5 is London House. Med(lenburgh Square, LoThJon, WC1N 2AB. Summarised financial results of Grx)denough Club Limited (Company Registration 2684378) are sel out below and are induded in the consoltdaled SOFA AJI a¢tiwties relate to continuing operations. The followng inlercompany transactions S included wthin the subsidiary results. The £733k 12021= £281kl lot81 income includes £Nil 12021-. £891 for sales to the parent company. Commercial aecc1mmodatl income of £733k (2021.. £281kl has been included within the cons(Aidated slalement of finala1 activtties in relation to the acttvttses of this subsidiary. The £691 k12021.. £817kl 'Cosl of Sales. include5 £258k12021.. £174kl in charges lo the subsidiary by the parent company for the use of parent company resources, £Nil12021'. £891 in Costs of providing seNices to the parent company and £1 k12021'. £10kl in charges from Goodenough Ventures for the provision of seTrices. Trading activrty expendf(ure of £691k12021= £807kl has been induded wthin the consdidaled stalemenl of financial activtbes in relation to the aclrwties of this subsidiary. 17 Ny)nths to 31 August 2021 YrI0 31 August 2022 £,0 Tumover Cost of sales n7 691 240 817 15771 41 Other income Qualify'ng distribution under deed of covenant Profftllloss} 536 Assets Liabilities Shareholders, funds 516 95 421 135 421 43
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2022 12 SUBSIDIARY UNDERTAKINGS (continued) Goodenough Ventures Limited (Company Registration 09342926) is an events and venue hire business which commenced trading in October 2015. Summari5ed financial results of Goodenough Ventures Limited are sel out below and are induded in the consolidated SOFA. Al activities rdate lo ¢onbnuing operation5, although il is the intention that followng the 31 August 2023 these activitses will be transfer to Goodencmjgh Club Limrted. The followng intercompany tranSaCtiS are included wthin the subsidiary results. The £1,644k 12021." £1,179kl total income includes £584k 12021.. £833kl for sales lo the parent company, and £1 k 12021.. £10kl for sales to other group entibes. Catering Events and Venue Hire income of £1,058k 12021.. £536kl has been induded within the consolidated statement of financial actiwty'es in relation lo the actrwties of this subsidiary. The £1,S16k12021". £1,302k) 'Cost of Sales, includes £163k12021: £104kl in charges to the subsidiary by the parent company for the use of PanI company resources and £585k (2021." £633kl in costs of providing catering supplies for the parent comp¥lly. The subsidiary wa5 a150 charged £12312021.. £Nil} by the parent company in 108n inleresl.Trading 8CtMty expendf(ure of £930k12021.' £669k} has been Included wilhln Ihe consolidated ststement of financial actiwties in retation to the aclimties of this sub5idi8ry. The net liabilities of the subsidiary at 31 August 2021 were u)vered by an interest bearing loan {0.1¥0} from the parent charity, which was repaid in August 2022. 17 months to31 August 2021 £'ooo Y¢ar to 31 August 2022 Tumover Cost of sales 1,638 1.516 122 1,179 1.302 11231 Other income Qualifwng distribution under deed of covenant Profitl{lossl 123 123 Assets abilities Shareholders, fundslldeficit) 301 301 405 528 123
Goodenough College Notes to the Financial Statements (contiMi) for the year ended31 August 2022 13 DEBTORS Consolldated 31 August 2022 Company 31 August 2022 31 August 2021 31 August 2021 ro(A) rooo Trade debtors Arnounl from subsidiary undertaking Other debtors Taxes recoverable Prepayrnents and accrued Income 519 518 436 359 15 181 126 172 172 15 224 555 282 263 1.313 1,079 1,531 Th8 arnounl due from the subsidiary undertaking lo the Charity represents the amount due from Goodenough Ventures knmited. Included within Ihe prior year balance is an amount due after more than one year of £123k. 14 CREDrroRS: amounts falling due within one year Consolidated 31 August 2022 £'ooo Company 31 August 2022 £'ooo 31 AugLL%t 2021 31 August 2021 Trdde creditor5 Amounts due to subsidiary undertakir Taxation and soaal security Other credf(ors Ac¢ruals Deferred income 1.095 1.097 975 451 929 1,304 857 893 1,230 56 3,424 852 42 3,070 42 3,668 The amount due to the subsidiary undertaking from the Charity represents the amount due to Goodenough Club Ltd. £728k of deposts previousty included in trade ugjitors forthe 17 month period lo 31 August 2021 have been reclassified to other creditors. 45
Goodcnough College Notes to the Financial Statemenls (continued) for the year ended31 August2022 14 CREDrroiLS: amounts falling due within one year (continued) Deferred income conststs entirely of commercial rent r1Ved from tenants in advance. Prior year deferred income related in full lo irorne recognised in the year ended 2022. A reconciliation is set oul below: Movement in deferred in¢offlo in year Consolidated 31 August 2021 Company 31 August 2021 31 August 2022 31 August 2022 £'ooo £'ooo £'ooo Balance brought fowdrd Released.. Added Balance carried forward 42 {421 1421 {71 42 42 171 42 42 15 CREDITORS: aniounts falling due in greaterthan one year 31 August 2022 31 August 2021 £'ooo £'ooo Bank borrowing 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 wtih Rolhesay Lrfe al a fixed interest rate of 3.1020/0. This loan is repayable in fvll in June 2047. The Rothesay loan is secured against London House and William Grx)denough House. Flnancial instruments Al the balance sheet date the College held CoMpX financial instruments. 46
Goodenough College Notes to the Financial Statements (continued) for the year ended31 August 2022 1 Sep'21 Transler Income Gains l Expenditur8 31 Aug'22 2021122 £'¢XQ £'Lkn) £'oc() £'ooo Burn Fund General fijnd Specific donations Investment propety Seye Tangible fixed asset SerVe Total Burn Fund Other restrl¢ted funds Scholarships and Bursaries Specific donatn$ Total other rostricted fvnds Total restricted funds 121 421 {231 {403} {5) 1,158 810 10.294 12.146 117 10,177 12,195 426 27 314 {21) {403} 19 422 472 11 14 596 16 330 21 12.742 756 31 AugusV21 1 Aprf20 Transler IncL8 Gains I Expenditur8 2020121 £'(KN) £'oc rooo Burn fund General fund Specific donations Investment wopety reserve Tangible fixed asset reserve Total Burn Fund Other restricted funds Scholarships 8nd Bursaries Specific donations Total other r8stricted funds 811 142 272 325 {5081 1042 700 10,421 11.932 110 810 10,294 12,146 127 15 272 435 508 306 67 373 362 192 554 1S) {2361 278 514 582 14 183 Total restricted funds 12.305 15 826 618 1.022 12.742 The Burn Fund represents the assets and liabiliti"e5 of The Bum. including a tangible fixed assets reseNe, an Investment property reserve and a general restricted fvnd. A transfer of £117k has been made frorn the tangible fixed assets reserve to the gener81 restricted fund representing the movement in the net book value of fixed assets in the year. A transfer of £4k has been made frun the Charity's general ftjnds to The Bum general reslricled fund represerbb.ng the element of profft from Goodenough Ventures Limited actimty that was generated al The Bum. SGholarships and Bursaries are donations speafi¢al made for providing stholarships and bursaries to quality'ng members. Specific donations are those to support specffic aspects of COle ac11ty and projects. 47
Goodenough Collegc Notes to the Financial Statements (continued) fvr the year endedsi August2022 Ga"nsl ExpèrKlitu Incx)me (k)ssesl 31 Aug'22 1 Sep?1 Trwsfer 2021122 £,1 £'LKX) t'ooo Tangible fixed asset Long tem) loan Tangible fixed asset reserve Investment property reserve Asset Repl8ment reserve Cdlege Development Reserve 43-47 Mecklenburgh Square ReseNe Other designated reserves Totsl designated reserves General funds of the Charitable Company Total funds of tho charitabla company 156,833 40.000 116,833 3.520 7,517 4.311 250 {2131 156,620 40,000 116,620 3,068 7,863 668 1040 {2131 1452) 1717} {381 (24) 969 (3.6401 811 129 135} 1171 132.431 (2.0731 219 {1,231) 1871 129,259 8.611 122 10.830 8,199 140,902 {4} 8.830 {1,353) (10,9171 137,458 General funds of the subsidiaries 1.744 11,622) 171 Total consolidatad unrestricted funds 140.951 10.574 1.353 12.539 137.629 Gainsl Incx)me {h)ss&%} Eynditure £,0 £'O(M) 31 Aug'21 £'ooo 1 Aprf20 Transfer 2020121 Tangible fixed asset Long temi loan Tangible fixed asset reserve Investment property reserve Asset Replacement reSee College Developrnent reserve 43-47 Me¢enbUrgh Square Reserve 158,495 40,000 118,495 3,212 4.011 7.649 11.6621 156.833 40,000 116.833 3.520 7.$17 4.311 250 11.6621 1491 1,430 13.7431 250 357 1.969 774 144 (371 14091 Other designated reserves Totsl deslgnated roserrfas General funds of the Charitsble Company Total funds of tha charitabla company 93 117 2& 17021 132.431 133.460 (3.7741 301 3.146 8.463 3,759 8683 2.077 14,511 8,471 141,923 115} 8.984 5223 {15,213} 140.902 General funds of the subsidiaries 817 114761 Total consolldated unrestrkted funds 142.631 15 9.801 5,223 16,689 140,951 48
Goodenough College Notes to the Financial Statements (continued) for the yeor ended31 August2022 17 UNRESTiucfED FUNDS (continued) The designated reserves are fvrther discussed in the finala1 review on page 12. The transfer of £213k from the tangible fixed assets reserve represents the movement in the net book value of tsngible fixed assets during the year. The transfer of £969k to the Asset RetA8cemenl Reserve represents the cash suWus for the year excluding investment income. The transfer of £3.6m from the College Development Reserve was approved by the B08rd in support of the refurbishment of the Hotel bedrooms. shortfalls in COle surpluses to maintain the value of the College's General Funds (its freely available reseNe) and to maintain the previously planned contribution to the Asset Replacement Reserve. The Board furthef designated an additional £0.8m to fv 4>47 Mecklenburgh Squafe Reserve from General Funds . 18 ANALYSIS OF ASSEfs AND IIABILTTIES BEfwEEN FUNDS OF THE CHARrrY 2021r22 Restricted Funds- Resln"cted The Bum Funds- other £'ooo £'ooo Designated reserves £'ooo General Funds £'ooo Charity Total £'ooo Tangible fixed assets Invesbnents Investment properties Investments in subsidiaries Amounts due to subsidiaries Other current assets Cash at bank and in hand Current and bng lerni liabilities 10.177 1,111 156.620 9.571 3,068 166.797 19.341 3.928 250 8,459 250 68 883 1.806 3,267 8,199 71 954 2,157 43,359 283 40,000 12.195 Restri¢twJ Funds- Restricted The Bum Funds- other £'ooo £'o Designated reseNes General Funds Charity Total 2020121 £'ooo £'ooo £'ooo Tangible fixed assets Investsnents Investment properties Investments in subsidiarie5 Amounts due to subsidiaries Other current assets Cash al bank and in hand Current and long tem) liaknlities 10.294 1,520 810 156.833 11.828 3,520 167.127 21.7B2 4,330 250 192) 1.1B2 1.945 42,880 153.644 49 246 8,188 250 1921 28 78 250 1,517 2,296 8,471 40,000 132,431 12,146
Goodenough College Notes to the Financial Statements (continued) for the year ended August 2022 19 IEASING COMmITms At 31 August 2022 the charitable (x)mpany had the followThJ amounts payable for equipment under non- C8ncellable operating lease5. 2022 2021 £'ooo Operating leases which expire wthin one year Operating leases which expire bets one and five years 19 19 74 93 73 These kase$ prowde printers and phOt(op1erS to support th8 College's operatn$. As at 31 August 2022 the College had no material capFtal commiknents. 21 RELATED PARTY TRANSAcfioNS Aice Walpole was appointed Director of Goodenough College in April 2021. and as part of this role served as a d1ctor of Goodenough Club Limited and Goodenough Ventures Limited between April 2021 and August 2022. In September 2021 private event was hosted at the College and Charged to the Director al a total cost of £16,839. This cost was redd by the agreed discount of 10% of the room hire element lonlyl that apleS lo staff, cOle members and alumni, bringing the total wsl including VAT to £16,299. Chrislophercobb vrds appointed Interim Director of G¢xthnough College betsveen Dember 2020 and April 2021. As part of this role he also served as a director of Goodenough Club Limited and Goodenough Ventures Limited. During this periLxJ. transactions lotslling £26,500 relating to his semce as Interim Director of the College look Pla befvleen Goodenough College and Cobbco Ltd, a cornpany of which Christopher Cobb has been a director since August 2020. Included in redundancy and temiination paJ7nents are non-conlractual payments totalling £23k to one of the key management personnel who left the Cdlege during the year, specifically the Director of Development and Extemal relations. Hannah Du Gray. There have been no other related party transactions during the year other than those disclosed with group entities in notes 12, 13 arKI 14.