Z College Goodenough College (A company limited by guarantee) Annual Report and Financial Statements for the year ended31 August 2024 Company Registration No. 00246919 Registered Charity No. 312894 (England and Wales) and SC039173 (Scotland)
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 President's Welcome l am pleased to introduce Goodenough College's Annual Report and Financial Statements for the year ending 31 August 2024. The period was characterised by a strong admissions field, high occupancy levels in our accommodation and a wide take-up by College residents ("Members") of our renowned intellectual, social and cultural enrichment programme. Encouraging financial performances by the College's hotel, short-stay and sabbatical accommodation and events and venue-hire business helped consolidate our firm financial footing. We were able to expand our scholarships programme and retain an emergency fund for those Members facing unexpected financial difficulty. The year under review saw modest but welcome relaxation in the strategic risks (inflationary pressures on the economy, rising staff, food and energy costs) which had characterised the previous year. Any early uncertainty about filling our accommodation in both 2023 and 2024, in light of the UK Government's changes in visa eligibility from 1 January 2024, was alleviated by a strong stream of applicants in both admissions periods. A significant number of families, of those eligible to bring dependents to the UK during their study, continue to reside among and enhance our community. This is not to deny that the College continued to field significant challenges throughout the year under review. The lack of clarity on implications for student accommodation of the draft Renters, Reform Bill made it difficult to plan strategically or allocate some budgets. Disappointing outcomes in the management of the College estate led to a decision to bring the process in-house, with the attendant challenge of building a strong Estates team in a heated job market. Our Scottish estate continued to face challenges in attracting clients from a Scottish Higher Education sector with significant funding constraints. Afebrile global political environment and heated public protest, including within many of London's academic institutions, threatened the College's signature spirit of global collaboration,. in the event, we were proud of our Members, capacity to maintain a friendly and constructive atmosphere across our campus. including between those whose nationalities might put them on opposing sides of fierce political debate. During the year. there were multiple opportunities for College Members to engage in UK-wide and overseas study trips, several successful retreats on our Scottish estate, The Burn, and a wide variety of cross-disciplinary talks and seminars delivered with public figures and scholars from respected academic institutions across the UK. We were delighted to be able to offer a splendid array of musical events, including opera and orchestral performances by the College membership, drawing on a generous endowment by the Argyris family in memory of their son Christopher, a former College Member. Meanwhile, the College's Director of Philanthropy and Alumni Relations expanded engagement with philanthropic supporters, including establishing new scholarships, reconnecting with Alumni communities and launching the early phase of a capital campaign to enable renovation of five Georgian townhouses on the College's estate, which will offer increased aCsS to lower-cost accommodation for students of more limited financial means. Looking ahead, our main objective for 2024-25 will be to ensure that the College continues to attract high numbers of exceptional students from across the world, who will make the most of their time at the College to build friendships, contacts, knowledge and experiences which will serve them in their subsequent lives and career. Areas for particular focus will include continuing outreach to countries of the global south (especially in the Commonwealth) where
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 our visibility remains low,. marketing of our Scottish estate, The Burn, to a wider customer base,. enhancing its long-term sustainability., and the raising of significant funds - and selection of a contractor for renovations which will increase the provision of lower-cost College acc modation on the north side of Mecklenburgh Square. -i{iL_ Stuart Shilson LVO DL Chair of the Board
Contents Page Goodenough College President's Personal Welcome Trustees, Annual Report and Strategic Report Company information Structure, governance and management Strategic Report Objectives and activities Achievements and performance Financial review 8-10 10-16 Plans for future periods Statement of Trustees, responsibilities 16-17 17-18 Independent Auditor's Report 19-22 Financial Statements Consolidated statement of financial activities 23 Balan sheet 24 Consolidated cash flow statement 25-26 Comparative consolidated Statement of financial activities Notes to the financial statements 27 28-52
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 The Board of Trustees present their Report and audited Financial Statements for the year ended 31 August 2024 under the Charities Act 2011 and the Companies Act 2006. COMPANY INFORMATION PATRON King Charles 111 TRUSTEE BOARD Stuart Shilson LVO DL- Chair, President of the College Dame Maura McGowan DBE - Vice Chair Andrew Brown KC (until 18 October 2024) David Bulman Corey Cook (until 1 March 2024) Charles Cormack (from 5 September 2024) Lindsay Dodsworth James Douglas John Fitzgerald (from 29 February 2024) Guy Parsons Martin Schwab (until 12 January 2024) Danielle Weese Fiona Wilkinson Senior Staff College Director Director of Finance and Resources (Company Secretary," Deputy to the DireGtor) Director of Operations Janine Binks (until 15 September 2023) Director of Estates Sarfraz Arfan (from 29 January 2024) Director of Philanthropy and Alumni Relations Andrew McGowan Dean The Rev Dr Alan Mccormack Registrar Caroline Persaud Bursar, The Burn David Turner OBE (until 29 March 2024) Jan Wallwork Clarke (from 25 March 2024) The Hon Alice Walpole OBE Richard Barker Address and Registered Office London House Mecklenburgh Square London WC1N 2AB Webslte: www. oodenou h.ac.uk
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 COMPANY INFORMATION (continued) Professional AdserS Auditor: Buzzacott LLP 130 Wood Street London EC2V 6DL Legal Advisers: Cripps LLP Number 22 Mount Ephraim Tunbridge Wells. Kent TN4 8AS Bankers: Barclays Bank PLC 1 Churchill Place Canary Wharf London E145HP Investment Managers: CCLA One Angel Lane London EC4R 3AB Rathbone Investment Management Ltd 8 Finsbury Circus London EC2M 7AZ Company number 00246919
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 STRUCTURE, GOVERNANCE AND MANAGEMENr The full name of the Charity is Goodenough College {'the College,). The College was formed as a company limited by guarantee without share capital on 28 March 1930, registered company number 00246919. It is registered with the Charity Commission, Charity number 312894 (England and Wales) and SC039173 (Scotland). The College's purposes are set out within its Articles of Association. The governing document of the charity is the Articles of Association of Goodenough College Limited. as adopted on 24 January 2023. On 2 May 2024 the College passed a written resolution to amend the Articles of Association of the Company. The amended articles set out the following main features of the governance structure of the College: A Board of 8-15 Directors who are legally and financially 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, with an expectation of four meetings being held over the course of a calendar year. The Articles of Association require each Director to be appointed by the Board for temis not exceeding three years. A Director shall not remain in office after the ninth anniversary of the date of their first appointment (with the provision that any Director in office on 2 January 2023 shall remain in office until the end of their current term). The process for the appointment of Board Directors is set out within the College's Articles of Association. Appointments are normally made on the recommendation of the Nominations and Remuneration Committee at Board meetings. The Members of the Company (as defined in the Articles of Association) can appoinuremove any Director notwithstanding the provisions available to the Board. In accordance with the revised Memorandum of Association. every Member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 August 2024, there were 11 members (2023.. 11 members); on 21 January 2025, there were 10 members. The Trustees are satisfied that the revised governance prosseS enable the College to engage more effectively with its mission and objectives. The Trustees consider that they have paid due regard to the Charity Commission's guidance in respect of their duties and obligations as Trustees of Goodenough College and the Charity Governance Code for larger charities. No Trustee has any financial interest in the Charity or any group companies.
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 Board of Trustees The Board of Trustees holds ultimate responsibility for the governance and strategic direction of the College, ensuring that the Charity upholds its ethos 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 Board meets quarterly. New Trustees undertake an induction programme to familiarise themselves with the College, its objectives and its structure. alongside their roles and responsibilities under legislation and College governance. The Board has terms of reference for its own operation, based upon recommendations set out within the Charity Governance Code. Committees Trustees, Fellows and advisors may serve on one or more Board Committees. as set out below: Academic Committee Burn Committee Donations Advisory Committee Equality, Diversity and Inclusion Committee Finance & Audit Committee Nominations & Remuneration Committee Subsidiary Company Board. Details of the composition and the Terms of Referen of each Committee are held by the College's Governance Officer. Management Operational management of the College is delegated by the Trustees to the College Director. who is accountable to the Board of Trustees for the stewardship of the Charity. The College Director and the senior leadership team (the Executive Committee) attend formal Board and Committee meetings. The College sets the pay of its key staff through its Nominations and Remuneration Committee. The Committee makes reference to general inflation, comparative salaries and pay awards within the charity, Higher Education and hospitality sectors and historical increases in pay. The remuneration of the College Director is set by the Board. The Board delegates the operation of the College through an approved scheme of delegation overseen by the Finance and Audit Committee. The scheme provides for the most significant financial and operational decisions to be carried out by the Board. Group structure and relationships The College had two wholly-owned subsidiary companies, both registered in England and Wales: Goodenough Trading Limited (Formerly Goodenough Club Limited) (Company No. 02684378) provides overnight accommodation, events. venue hire and catering and commercially-let accommodation at The Burn. The subsidiary takes responsibility for the trading of The
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 Goodenough Hotel, London and the provision of short-stay accommodation in London House and William Goodenough House, as well as the College's Events and catering businesses. Its annual profits are donated to the College as qualifying distributions under deed of covenant. and Goodenough Ventures Limited (Company No. 09342926) did not trade in the year ended 31 August 2024 as its activities were transferred to Goodenough Trading Limited on 1 September 2023. The company was voluntarily dissolved on 19 November 2024. The Burn estate in Angus. Scotland (a property 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 net assets are a restricted fund of the College. Investment powers and policies The Trustees have the authority conferred by the Articles of Association to invest the monies of the College not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions (if any) and such consents (if any) as may for the time being be imposed or required by law. The College's Investment Policy is set out within its Investment Policy Statement. The College has divided its reserves into a long-temi fund and a short-term fund. The College seeks to produce the maximum financial retum within an agreed level of uncertainty about future values for each of its long-term resenies and its short-term funds. The investment objective for the long-term fund is to grow its value at least in line with inflation to fund future asset replaTrment liabilities and maintain the remainder of the fund in real terms. The target is CPI plus 4 % (after fees) over rolling economic cycles (five or more years). The investment objective for the short-temi reserve is to maximise its returns while taking no capital risk and providing full liquidity. The College delegates to its investment manager its requirement to invest only in companies that are aligned with it values of Tolerance, Respect, Understanding, Service and Togetherness, and Environmental care as set out in its Responsible Investing policy. In addition, the College expects to see its portfolio invested with an integrated and engaged approach to stewardship and voting. including disclosing any company identified in breach of the UN Global Compact. STRATEGIC KEPORT OBJEcfIvES AND AcfIvITIES The history of the institution that is now Goodenough College began in 1930 when a group of individuals led by Frederick Craufurd Goodenough, Chairman of Barclays Bank, established a student residence in London for international postgraduate students. Goodenough's vision was the Greation of a hall of residen for (male) students from Commonwealth countries, offering a collegiate community in the heart of London to promote friendships and enhance international understanding.
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 The College has expanded greatly since that time and now consists of a six hundred-strong community of postgraduates, some with accompanying families, from across the world. The College's charitable objects, as set out in its Articles of Association, are: To organise, encourage and assist the education in England and Scotland of students ('Resident Members of the College,) from any part of the world, 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 upon our strong foundations to achieve our current vision and mission: Vision A fellowship of global citizens with shared values of tolerance, respect, understanding, SeICe and togetherness (reflecting the spirit of the UK and the principles of the Commonwealth). Mission To create a stimulating, inclusive and mutually supportive, residential community in the heart of London where outstanding postgraduate students exchange ideas, openly debate values and form lasting friendships. The College presents its 2023124 expenditure in the pursuit of four strategic goals: To attract outstanding postgraduate students from a wide geographic, academic and social base, giving preferen to those from the Commonwealth., To transform College Members through the experien of living in a values-based community which inspires intellectual engagement and endeavour, encourages cross-cultural understanding and offers an exceptional social environment" To raise the College profile, internationally and within the UK, by developing key opportunities and pursuing strategic partnerships consistent with our values and ambitions., and To sustain the College as an enduring institution, underpinned by secure finances, a well- maintained estate and high-quality staff, with a commitment to minimising its environmental impact. The College measures its performance through regular Key Performan Indicators (KPIS) that compare success in the reporting period with prior years. These KPIS cover areas including occupancy,. diversity of membership., delivery of cultural, social, sporting and educational events., volume of Scholarships and Bursaries., and number of Alumni contacts. Further information is contained within the Financial Review and Achievements and Perfomiance. College Members attend over forty academic and professional institutions in London. The College works to maintain a balance between the broad faculties of medicine and natural sciences, law, business, political and social sciences, and the arts and humanities. The College attracts scholars from a wide range of international schemes including Chevening, Commonwealth, Rotary, Marshall, Windle and others.
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 The College provides a wide public benefit. The Trustees are aware of and have regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant. College Members return to their home nations or elsewhere with a broadened perspective on the world and a much-expanded knowledge of and affection for the culture and politics of the UK. This contribution to international tolerance and understanding serves an ever greater purpose in today's world of political and economic uncertainty. The College frames its distinctive paradigm through the vectors of 'commensality' and 'conviviality'_ common eating and common living. Members jointly engage in many intellectual, cultural, social, experiential and developmental activities. Talks, seminars and colloquia, where renowned individuals lecture and share knowledge and life experience, are a regular feature of the 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 understanding 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 network across a range of external institutions in the Cities of London and Westminster and beyond. The College seeks to secure and provide an increasing level of scholarships to support those who struggle to meet the costs of their accommodation at the College. The Burn, our Scottish estate and academic retreat, both welcomes College Members, in study groups or privately. and actively supports Scottish universities, offering its facilities to national and international students and academic groups. Higher Education institutions took a while to return to previous levels of off-campus activity once pandemic restrictions were lifted, meaning a lower level of take-up of The Burn's retreat venue offer. However, the emergence of a different audience for the unique, tranquil environment means a slight rise in bookings for private groups. Other charitsble groups are discovering The Burn and this financial year (2023-2024) has brought welcome new clients. The Burn provided a valuable opportunity for all its guests to relax amongst their peers, undertake quiet or group study, build friendships and take pleasure in and learn more about the natural environment through engaging with the high-value habitat for wildlife on The Burn estate. The College is opened to the public for concerts, operas, cOnferenS and lectures. A large number of external organisations and individuals also use the College's facilities for their own events and activities. ACHIEVEMENfs AND PERFORMANCE Its resident postgraduate students continue to have an overwhelmingly positive experience at Goodenough College. The impact of the College's activities on Members includes a growth in confidence, broadened perspectives, strong cultural, social and professional networks and a positive image of the UK and the Commonwealth. Enriched by these experiences, many of our Alumni become outstanding leaders in their fields, engaged global citizens and advocates of the College. College Member occupancy in 2023124 remained high throughout the academic year and over the summer period. The College saw strong commercial performance from its Hotel, short-stay and sabbatical rooms and its Events & Venue Hire businesses. The Burn continued to struggle to generate revenues sufficient to cover its cost base.
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 During 2023124 £8.7m (2023: £8.2m) was spent against the goal of 'Transforming College Members,, reflecting the operating costs of the College buildings (that so influence College life) alongside the influential Dean's programme. The Dean's programme for the 2023-24 academic year delivered (including Member-led activities) 205 sporting fixtures or physical activity sessions,. 152 cultural, music and arts-based events,. 144 evening lecture 'Port Talks,, transformative skills-based sessions (the 'GoodSkills' programmes) and academic seminar segments and study trips, all of them delivered in person. The Dean's Office also undertook an extensive and tailored programme of activities to support individual Member wellbeing through the academic year, which involved individual as well as group pastoral activity. During 2023-24, the College maintained its accreditation with the National Code for Assured Accommodation, which demonstrates the College's commitment to the highest standards in delivering accommodation and supporting its community. The College was awarded the Global Student Living Index Best Specialist Accommodation Award in October 2023 and the new Global Student Living Platinum Certification for achieving the thresholds for seven metrics (Structural scores Internet, Condition & Quality, Bedroom, Value for Money,. Operational scores - Care & Support, Recycling & Environmental Facilities, Overall Management). The Burn has continued to fulfil its charitable objectives through the provision of an academic retreat, event venue and unique and enriching student experience to the Scottish Higher Education sector and the wider academic marketplace. The drive for long-term sustainability continues and this period has seen both footfall and income increase, along with rising levels of interest from a range of new customers. The Burn has yet to realise the high activity levels enjoyed pre-pandemic but there are now positive signs of a rising market. The Burn's relationship with the Scottish university sector - The Burn's principal marketplace - remains strong. In addition, The Burn, under the leadership of its new Bursar, is more actively engaged with supporting the Member programme within Goodenough College, where it is seen as a key asset. The College spent £0.6m on scholarships and the Mecklenburgh Fund in 2023-24 (2022-23: £0.6m). Scholarships and Mecklenburgh (hardship) funds are awarded by the College to Members, predominantly in the form of reductions in rent, on the basis of financial need. Half of the scholarships were from donated funds., the rest through the generosity of friends and Alumni. The College continues to review the allocation of scholarships to ensure that College is targeting suitable students and matching allocated scholarship funds to appropriate need. The budget for Scholarships and Bursaries grew in 2023-24 proportionate to a September 2024 increase in the level of rents. During the period the College received 1,847 applications (2023-24.. 2,003) from more than 120 countries for its 2024-25 academic year intake, 4.5 applications per available place at the College (2023-24: 4.9). The proportion of applications from EU countries stayed steady at 1 OQ/o (2023-24.. 11 % ) and applications from Commonwealth countries decreased to 39 % (2023-24: 45% ). The College continued to invest in additional marketing and engagement actions to maintain and develop the number of suitable applicants to the College and the appropriate Commonwealth representation. During the 2023-24 academic year, Members came from 90 (2022-23.. 95) countries (UK 10 %, India Canada 8%, China 5%, Pakistan 4%) of which 47% (2022-23: 52%) were from the Commonwealth. These Members were studying at 39 academic institutions (UCL 280/0., LSE 22 %, Kings 10%),. with 630/0 (2022-23: 64%) undertaking Master's courses,. 31 % (2022-23: 29% undertaking PhD and other research programmes; and 5% (2022_23.' 6%) other forms of
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 postgraduate qualifications. Their academic subject matter continued to be as diverse as their backgrounds. Including the £1.2m 2023-24 interest costs of the College's debt (2023.. £1.2m) and the costs of supporting the development and the strategic financial management of the College, £2.2m was spent on 'Sustaining the College, during the year (2023: £2.Om). The College applied funds of £1.Om (2023.. £1.2m) in replacements and enhancements to the College estate and IT services, of which £0.1 m related to fire protection measures, £0.1 m related to replacement of beds and mattresses in London House, £0.2m to the ongoing development of 43-47 Mecklenburgh Square, with the balance across the College estate. Fundraising costs were £0.1 m for the year (2023: £0.1 m). Goodenough Trading Limited continued to trade successfully during 2023124, with the Hotel business meeting a challenging revenue target and exceeding the prior year, although cost increases led to slightly reduced profit. The Events, Venue Hire and Catering activities were a combination of strong Events performance combined with lower than anticipated catering interactions with Members. The short-stay and sabbatical rooms business had another very strong summer. Overall the company's profit before qualifying distribution remained strong at £2.6m (compared with the exceptional £2.7m in the prior year). All activities of Goodenough Ventures Limited were transferred to Goodenough Trading Limited from 1 September 2023, with Goodenough Ventures Limited ceasing trading from that date. FINANCIAL REVIEW The College generated group revenues of £18.1 m in the year to 31 August 2024 (2023: £16.7m). Income from charitable activities (predominantly income generated from rents from Member accommodation) was £9.4m (2023: £8.6m); with increased occupancy and higher rents. Average Member occupancy in the 2023-24 academic year was 93.7 % , compared with 93.5 % achieved in the prior year and 92.6 % in the pre-pandemic year of 2018-19. Consolidated income from trading activities through Goodenough Trading Ltd for the yearwas £6.6m (2023: £6.3m across both subsidiaries) with the Hotel alone generating £4.Om. Revenue in 2023-24 consisted of Hotel income of £4.Om (£3.9m in 2022-23), short-stay accommodation income of£1.2m (2023: £1.1 m), Events and Venue Hire income of £0.8m (2023.. £0.7m), and £0.6m from providing catering to College Members (2023: £0.5m). Income of £76k (2023: £18k) was derived from the Burn's commercial trading activities. Goodenough Trading Limited generated a profit of £2.6m for the year (2023.. £2.7m). The Trustees and Directors remain confident of the potential for Goodenough Trading Limited to generate surpluses to be donated to the College in future years and continue to monitor perfomiance of the company. Following the transfer of all of its activities to Goodenough Trading Limited on 1 September 2023, Goodenough Ventures Limited was voluntarily dissolved on 19 November 2024. On 22 July 2024, the Directors of Goodenough Trading Ltd approved a budget for the 2024125 financial year showing a £2.4m surplus and a business plan showing increasing surpluses thereafter. Post year-end trading conditions remain strong. io
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 The Consolidated Statement of Financial Activities for the year shows a £1.3m net income before gains and losses on investment assets and financial instruments (2023.. £1.2m). The College bore £1.2m in loan interest charges (2023: £1.2m) and depreciation of £2.7m (2023: £2.6m), demonstrating an EBITDA gain (excluding debt and asset impairment costs) of £5.2m (2023.. £5m). On 30 July 2024, the Trustees approved a consolidated budget for the 2024-25 academic year showing an EBITDA surplus of £3.9m. The Trustees remain confident that the College will achieve a significant operating surplus in 2024-25. INVESTMENf PERFORMANCE On 28 August 2024, the Trustees enacted their decision to transfer the College's long-term investment funds and the Burn investment fund. from Rathbone Investment Management Limited to CCLA Investment Management Limited (CCL4), each to be invested within the CCLA COIF Charities Investment Fund (the fund). The fund is a common investment fund, governed by the Charities Act 2011 (as amended) and authorised by the Charity Commission. The fund is managed as an unregulated collective investment scheme and as a UK alternative investment fund in line with the Alternative Investment Fund Managers Directive (AIFMD), as defined in the scheme particulars. The fund is an actively managed, diversified portfolio of assets designed to help protect charities from the effects of inflation (as measured by the consumer price index). It will have an emphasis on equities (between 50 % and 85 % ) but will also include property. bonds and other asset classes, which may be either liquid or illiquid in nature. Exposure to these assets may be through direct holdings andlor through investment in other funds (including those managed by the manager or their associates). As at 31 August 2024 the long-term fund held £18.Om under investment. As at 31 August 2024 the Burn fund held £0.9m under a separate investment account. The total return on the College main fund over the period was a gain of 9.6 % , and for The Burn portFolio, a gain of 8.7 %, the composite benchmark performance measures for these funds were a gain of15.2 % and 14.5 % respectively. These funds have achieved a total return of 35.3 % and 23.2 % respectively over the last five years, against composite benchmarks of 49.8/0 and 31.8% respectively. The College's short-temi fund is held for the purpose of meeting the cash requirement for an anticipated capital investment project. The short-term fund is held across a portFolio of UK Government Bonds, UK Investment Grade Bonds and Time Deposits (managed by Rathbones Investment Management Ltd), and the CCLA COIF Charities Deposit Fund. The Deposit Fund is a UK Common Deposit Fund managed by CCLA. a short-term fund. designed for the charity sector. Under the Money Market Fund Regulation, the COIF Charities Deposit Fund is Gategorised as a short-term Low Volatility Net Asset Value Money Market Fund. The Deposit Fund principally invests in call accounts, temi deposits, and money-market instruments, but may invest in other assets. The short-term fund achieved a total return of 4.5 % for the year. As at 31 August 2024 this fund held £6.1 m under investment. The College No.2 (medium-term) portfolio was closed during the year with all funds transferred to the long-term fund. li
Goodenough College Trustees, AJ]nual Report and Strategic Report for the year ended 31 August 2024 During the year. with the support of the Finance & Audit Committee. the Trustees were advised by Yoke & Co. Ltd on the College's investment management, its investment strategy, the selection of the College's investment manager and the selection of investment funds. Working through the Finance & Audit Committee and with its investment managers, the Trustees continue to review the investment performance and strategies of its funds under investment as the College's financial performan, reserve position and capital ambition develop. Funds and reserves The College's reserves are divided between unrestricted, restricted and endowment funds. Unrestricted funds are further divided into designated and general unrestricted funds. Unrestricted funds total £140.8m {2023: £138.6m), which includes designated reserves of £131.7m (2023.. £130.3m), general funds of the charity of £8.9m (2023: £8.1 m) and general funds of the subsidiary of £0.2m (2023.. £0.2m). See Note 17 for further details. The Trustees have designated the value of the College's non-investment fixed assets (net of funding from the long-term loan) as the Tangible Fixed Asset reserve. The value of this reserve is adjusted annually to reflect the net value of these assets and stands at £114.Om at year-end (2023: £115.3m). The Trustees have designated the value of the College's investment properties (recognising the College's strategy to retain investment properties as reliable long-term assets) as the Investment Property Reserve at £2.2m (2023.. £3.1 m). This reduction reflects a revaluation of the investment properties on 31 August 2024 and the transfer of a floor of one building to an asset for charitable use. The College has an established long-term forecast, which enables the College to agree a revised framework for the management of its unrestricted funds and to quantify the level of liquid assets required to sustain the College as an enduring institution. The College has established a plan to ensure that sufficient levels of cash arè available to secure a well-maintained estate. This established the requirement for an Asset Replacement Reserve (ARR) to support the costs identified for the replacement and refurbishment of the buildings, fixtures, fittings and equipment of London House, William Goodenough House and the hotel over a 30-year period to 2046. The required value of this fund was agreed to be designated from the available funds accumulated bythe College from annually generated operating surpluses and drawn down against relevant costs. After continued exceptional financial performance by the College and Hotel, the Trustees designated the budgeted contribution from performance to the ARR. After debiting appropriate asset replacement expenditure and accounting for income. gains and losses, the value of the ARR stands at £10.7m on 31 August 2024 (2023: £8.4m). The Trustees review the value of this designated fund annually as it accumulates and is utilised for asset replacement. The ARR is represented by investment funds with investment mandates (as overseen by the Finance & Audit Committee) matching the investment objectives and horizons of this reserve. The Trustees have designated a further £1.2m to the planned future development of 43-47 Mecklenburgh Square. The fund at 31 August 2024 stands at £4.6m (2023: £3.5m). The College continues to develop its plans for the development site under the guidance of its Steering Committee. The fund is held with the College's short-term investment fund. 12
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 The Trustees have reviewed the College's reserves policy. The policy considers the nature of the income and expenditure streams, the need to match variable income with fixed commitments and the need to provide for known essential estate maintenance expenditure. To allow the College to be managed efficiently and to provide a buffer against interrupted services, the policy requires that general reserves in the range from £6m £9m should be maintained. This range is based on managing to sustain core College activity if there were a fall in Member income of 25 % for three years (c£6m) and a loss of 50 % of The Goodenough Hotel, London and the College short-stay and sabbatical rooms business net operating surplus for two years {c£2m). In addition, a minimum of £1 m is considered necessary to deal with major estate issues, such as a failure of heating, plumbing or electrical services in either House. 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 significant doubt on the College's ability to continue as a going COnrn. The College remains financially stable with freely available funds on 31 August 2024 of £8.9m (2023.. £8.1 m, see note 17 for more details)., other unrestricted designated reserve funds of £15.5m (2023: £11.9m) and unrestricted investment properties valued at £2.1 m. Restricted funds are represented by assets and investments that can only be used or spent for a particular purpose as stated by the donors. The total value at 31 August 2024 was £12.4m (2023: £12.3m). See Note 16 for further details. Restricted funds include The Burn Fund of £11.8m (2023: £11.9m) and other restricted funds of £0.6m (2023: £0.4m). The Burn fund includes the operating land, building and assets of the site represented by a tangible fixed assets reserve of £9.9m (2023: £10.Om)' investment properties reserve of £0.9m (2023: £0.9m) and a general restricted fund of £0.9m (2023: £1.Om). The general restricted fund is mainly represented by The Burn investment fund. The other restricted funds have been donated to the College for a number of restricted purposes including restricted Scholarships and Bursaries funds of £0.4m (2023". £0.4m) and donations towards the refurbishment of 43-47 Mecklenburgh Square of £0.2m. The College continues to seek to increase the level of support to its important Scholarships and Bursaries activity provided through donations. Expenditure on Scholarships and Bursaries from restricted or designated donated funds was £0.3m in the year compared to £0.4m in the preceding year. Endowment funds comprise the Christopher G. Argyris Student Activity Fund which is an expendable endowment fund providing support for community participation at the College. and particularly the performance of opera and Dean's Seminars. £24k was received in the year with a further £22k generated from investments (after charges) and £10k spent supporting College activities. The remaining balance of £313k is held within the College's long term investment portfolio, except for the element drawn down for spend in the year. Borrowlngs and bank facilities On 2 June 2017, the College secured a £40m non-amortising 30-year loan with Rothesay Life at a fixed interest rate of 3.102 %. The loan is secured against London House, William Goodenough House and 47 Mecklenburgh Square. 13
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 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 associated with their area of authority. Senior management provides appropriate support, assistance and commitment to ensure that both operational and strategic risk is managed on a daily basis to the best of the College's ability. This risk management process provides reasonable. but not absolute, assuran that the organisation is protected. We define key strategic risks as those that, without effective and appropriate mitigation, would have a severe impact on our work, our reputation or our ability to achieve our ambitions. The College continually improves the process by which it reviews, registers and mitigates risks that may impact on College life and operations. These risks (including likelihood, impact and mitigation measures) are listed in a Strategic Risks Register, which is regularly reviewed by the College Board and senior management. The risk management process encourages the Trustees to challenge any assumptions senior management has made about risks and interrogate the context in which decisions are taken. This helps ensure that the most serious risks are being mitigated effectively and the impact of mitigation is assessed. Revenue shortfall, primarily through a downturn in Member application numbers, has been identified as a fundamental financial risk for Goodenough College. Vigorous promotion of the College through public outreach, strategic partnership building and enhancing the College's digital presence is given high priority in order to mitigate this risk., together with market-sensitive pricing of accommodation and a robust admissions policy making maximum use of search engine optimisation. peer reviews, advertising and approaches to educational institutions and scholarship bodies (within London, the UK and intemationally). Application numbers are reviewed on a regular basis and the admissions strategy adjusted on the basis of findings. The maintenance of a diverse College community (including enabling access for students with limited financial resources) is recognised by the Trustees as a key area of risk. The College will continue to focus on targeting its outreach on less represented geographiG areas and socio-economic groups. It continues to enhance its scholarships schemes (including developing partnership schemes with other scholarship providers) to support less affluent students. The College maintains its focus on fundraising for scholarships (including hardship funds allocated as The Mecklenburgh Fund). The College reviews its rent annually and any increases applied are based on sound market information and consultation with the College Member community. A key strategic objective of the College is to deliver a transformative experience for College Members through community, cross-cultural understanding and an exceptional intellectual and social programme. The College implements a rigorous process of risk assessment for all activities, together with impact reviews and ROI assessments of enrichment activities. The College has previously recognised that failing to secure sufficient funds to implement its Asset Replacement Plan represents a key risk to the College. The College considers that it has substantially mitigated that risk through development of a comprehensive Asset Replacement Plan, long term financial planning and the securing of £40m of 30-year non-amortising debt. The Finance and Investment sub-committee of the College Board reviews the long-term financially sustainable performance of the College and provides further diligence on the application of available funds. The College has demonstrated to itself, through challenging scenarios and stress testing, that it will be able to meet its Asset Replacement Plan for at least until 2046. 14
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 The level of the College's unrestricted freely available reserves, combined with its designated funds (see below), reassure the College as to its going concern. 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. The Board continues to oversee the College's business continuity and contingency arrangements, should the College sufferfrom a major disaster affecting the College estate, be impacted byterrorism or disease outbreak or pandemic. The Board is confident that the College's plans, controls and insurance arrangements, adequately mitigate these risks to a tolerable level. As the College's main base of operations is in central London, the College recognises that terrorist activity, both local to the College and worldwide, has the potential significantly to affect the College. through restricting physical access to the College; reducing future applications to the College. and directly on the welfare of College Members. The College exercises care in maintaining its access control and security arrangements, holds financial reserves, specific appropriate insurance cover, effective business continuity plans and robust welfare systems in order to mitigate that risk. With accommodation at its heart, fire risk management forms a key consideration in the College's operation and development. The College regularly reviews its fire management policies and carries out annual fire risk assessments and complies with all statutory obligations and best practi. The College takes safeguarding very seriously. The College is confident that it provides a safe and trusted environment. and promotes an organisational culture that prioritises safeguarding. The College considers that it maintains adequate safeguarding policies. procedures and measures to protect people. These are reviewed regularly and kept up to date in line with Government guidance and best practice. The College has reviewed its safeguarding governance and management arrangements within the last 12 months. In response to the Corporate Criminal Offence of Failure to Prevent the Facilitation of Tax Evasion introduced by the Criminal Finances Act 2017, the College carried out a risk assessment and made a Top Level Commitment to a zero tolerance to the criminal facilitation of tax evasion at its Board meeting in March 2018. The College continues to apply due diligen. apply and communicate its procedures., and monitor and review its position. Goodenough College continues to meet the requirements of the General Data Protection Regulations (GDPR) and the Privacy and Electronic Communications Regulations (PECR), building on its previous programme of work to achieve compliance. The Trustees remain content that the College is fully complying with the Regulations. Fundraising standards The College's fundraising activities are undertaken by its Philanthropy and Alumni Relations team. The College does not use third party fundraisers or commercial participators. The College is a member of The Council for Advancement and Support of Education (CASE), a professional association serving educational institutions and the professionals who work on their behalf in alumni relations, communications, development, and allied areas. As part of its work, CASE sets standards and an ethical framework for the fundraising profession. which the College follows. 15
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 The College has established a Donations Advisory Committee that meets as neSSary to review the acceptance of any large gifts. Contacts who are judged to have an interest in Goodenough College are encouraged to donate. Those who have opted out of fundraising appeals are, of course, exempted from this programme of activity. There is a clear focus on enabling supporters to reengage and reconnect with the College, as well as making an informed 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 accepting the donation would be ethically wrong or cause harm to the donor. To help inform our approach, we refer to the Fundraising Regulator's Code of Practice and the Chartered Institute of Fundraising's statement on vulnerable donors. We regularly review industry standards to ensure we are meeting requirements. No complaints have been received by CASE, the Charity Commission, the Fundraising Regulator or by the College about its fundraising activities in the year ended 31 August 2024. PLANS FOR FtrruRE PERIODS The approved budget for 2024-25 reflects the College's ambitions and priorities for the year, including its continued focus on scholarships for exceptional students with limited financial means. its commitment to a major renovation project to enhance lower-cost student accommodation on the College estate, the reallocation of funds to deliver an in-house managed maintenance, asset replacement and building development service and the delivery of the College's enhanced IT strategy. The College remains confident of its capacity to attract high calibre students who will make a substantive contribution to the College community. Applications for admission for 2025-26 were strong. The College is at full Member occupancy and expects to remain at this level throughout the academic year, with any Member room vacancies let as short-stay accommodation. Notwithstanding, the College will continue to develop and refine its marketing and admissions processes and procedures for the 2025-26 intake and thereafter as the political and economic climate develops. Meanwhile, the College remains committed to enhancing and diversifying its scholarship programme in future years, continuing to work with alumni, established partner bodies (such as the Chevening scholarships programme and London universities) and other stakeholders. The College will seek to develop new partnerships. further expanding access to the College for those from lower income backgrounds and nations currently under-represented. The Director of Philanthropy & Alumni Relations will work to further develop a substantive philanthropic impulse among College alumni. partners and other stakeholders, thereby growing funding for scholarships and College activities. A public capital fundraising campaign is underway to enable the College to refurbish five Georgian townhouses comprising 43-47 Mecklenburgh Square. The Dean will further develop the College's renowned programme of events and activities. supported. inter alia, by the Argyris endowment, College Fellows and the goodwill of friends and stakeholders. 16
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 The College will continue to exert downward pressure, wherever possible, on overhead and running costs through a programme of careful housekeeping and cost-effective expenditure. The Director continues to develop the College's operations in consultation with the Board of Trustees. During the year, the College will continue to remobilise and seek to gain ever greater value and impact from its catering, housekeeping and cleaning contracts, following their review during 2024-25. The College will build on the review of the College's Asset Replacement Plan, carried out by the Director of Estates in 2024, to ensure that the funds held within the Asset Replacement Reserve are best targeted at the College estate. Having achieved the necessary planning and Listed Building Consent during 2024, and subject to the Trustees confirming sufficient funds are available from donors and cash reserves, the renovations of 43-47 Mecklenburgh Square are expected to commence early in 2025. The College will continue to maintain and develop its commercial activities, as overseen by the Directors of Goodenough Trading Ltd, conscious of the risks of relying excessively upon ongoing strong market conditions for the support of the College's charitable operations. The College will ensure that the College's activities in Scotland, delivered through its estate, The Bum, and under the aegis of the new Burn Bursar, are well-targeted, financially sustainable and in line with its charitable objectives of providing a welcoming aGademic retreat for Goodenough members and Scottish university students. The Board of Trustees expects, in the coming year, to see the College further develop its impact, efficiency and opportunity., and to ensure that delivery of the College's objects to organise, encourage and assist international academic collaboration remain at the forefront of the College's successful endeavour. STATEMENT OF TRUSTEES, REsPONsIBILIEs The Trustees (who are also directors of the College for the purposes of company law) are responsible for preparing the Annual Report, incorporating the Strategic Report, and the Financial Statements in accordance with applicable law and regulations and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of reSoUrs, including income and expenditure of the charitable group for that period. In preparing these financial statements the Trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102)" make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 17
Goodenough College Trustees, Annual Report and Strategic Report for the year ended 31 August 2024 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping proper and adequate accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Gharity's website is the responsibility of the Trustees. The Trustees, responsibility also extends to the ongoing integrity of the financial statements contained therein. DISCLOSURE OF INFORMATION TO AUDrroR In the case of each of the persons who are Directors (Trustees) of the charitable company at the date when this report was approved: So far as each of the Directors is aware, there is no relevant audit information (as defined in the Companies Act 2006) of which the charitable company's auditors are unaware; and Each of the Directors has taken all the steps that helshe ought to have taken as a director to make himselflherself aware of any relevant audit information (as defined) and to establish that the charitable company's auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of S418 of the Companies Act 2006. The Trustees, Report and Strategic Report were approved by the Trustees in their capacity as Dire of the Charitable Company and signed on their behalf by: Stuart Shilson LVO DL President of the College (and Chair of the Board) Date: 21 18
INDEPENDEiYf AUDrroR'S REPORT TO THE MEMBERS AND TRUSTEES OF GOODENOUGH COLLEGE Opinion We have audited the financial statements of Goodenough College (the 'charitable parent company,) and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group statement of financial activities, group and charitable parent company balance sheets and statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give a true and fair view of the state of the group's and of the charitable parent company's affairs as at 31 August 2024 and of the group's incoming reSoUrS and application of resources, including its income and expenditure for the year then ended., • have been properly prepared in accordance with United Kingdom GenerallyAccepted Accounting Practice., and + have been prepared in accordance with the requirements of the Companies Act2006, the Charities and Trustee Investment (Scotland)Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and charitable parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going conrn are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, expt to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. 19
Goodenough College Independent Report of the Auditor (continued) for the year ended 31 August 2024 Other information (continued) In connection with our audit of the financial statements, our responsibility is to read the other information and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial statements or a material misstatementof the other information. If, based on the work we have perfonned, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 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 is also the directors, report for the purposes of company law and includes the strategic report. for the financial year for which the financial statements are prepared is consistent with the financial statements., and + the trustees. report , which is also the directors, report for the purposes of company law and includes the strategic report, has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the Gharitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report including the strategic report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: + proper and adequate accounting records have not been kept by the charitable parent company, or returns adequate for our audit have not been received from branches not visited by us., or + the charitable parent company financial statements are not in agreement with the accounting records and returns., or + certain disclosures of trustees, remuneration specified by law are not made., or • we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group's and the charitable parent company's ability to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the charitable parent company or to cease operations. or have no realistic alternative but to do so. 20
Goodenough College Independent Report of the Auditor (continued) for the year ended 31 August 2024 Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-complian with laws and regulations, was as follows: • the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-complian with applicable laws and regulations. + we obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the charitable parent company and detemiined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011) and those that relate to data protection (General Data Protection Regulation),. and • identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the group's and the charitable parent Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur. by: • making enquiries of management as to their knowledge of actual, suspected and alleged fraud,. and • considering the intemal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. • performed analytical procedures to identify any unusual or unexpected relationships. • tested journal entries to identify unusual transactions. + assessed whether judgements and assumptions made in detennining the accounting estimates were indicative of potential bias., and • tested authorization controls on expenditure items, including staff expense claims, to check that all expenditure was approved in line with the group's and the parent charitable company's financial procedures. 21
Goodenough College Independent Report of the Auditor (continued) for the year ended 31 August 2024 Auditor's responsibilities for the audit of the financial statements (continued) In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: • agreeing financial statement disclosures to underlying supporting documentation- • reading the minutes of meetings of those charged with governance., and • enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit prOdureS required to identify non- compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal corresponden, if any. Material rnisstatements that arise due to fraud can be harder to deteGt than those that arise from error as they may involve deliberate COnalment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk]auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity's trustees as a body. in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Katharine Patel (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL Date.. 28 January 2025 Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 22
Goodenough College Consolidated statement of financial activities (incorporating a consolidated Income and Expenditure account) for the year ended 31 August 2024 Unrestrlcted Funds 2024 £'ooo Restrlcted Funds 2024 £'ooo Endowment Funds 2024 £'ooD Total Funds 2024 £'ooo Total Funds 2023 £'ooo Notes Incomè from: Donations and legacies Charitable activities.. College community accommodation Trading aclivllies.. Commercial accommodation Catering, Events and Venue Hlre Investsnents 25 565 24 614 539 9,117 342 9,459 8,642 5,195 1,373 1.352 5.195 1.373 1,454 5,023 1,238 1,228 96 Total 17,062 1.003 30 18,095 16,670 Expenditure on: Raising funds Investment management Fundraising Trading activitie5 Charitable acbvilies.. Attracting outstanding postgraduate students Transforming College Members Raising the College's profile Sustsining the College Total 106 113 148 3.934 93 103 12 3,934 1,037 308 1,345 1,234 8,025 374 2,173 15,797 682 10 8.717 374 2,176 16,807 8,194 329 1,984 15.481 998 12 Not income before other galnslllossesl 1,265 18 1,288 1.189 Nel gainsl{lossesl on investments 11 50 24 1,039 13181 Net Incomg 2,230 55 42 2,327 871 Transfers between funds 16, IT 126) 26 Net movement In funds 2.204 81 42 2,327 871 Reconciliation of funds.. Total funds brought forward Net movement in funds Total funds carried forward 138.618 12.289 271 151,178 150.307 2,204 140 822 81 42 313 2.327 153 505 871 151,178 All results derive from continuing operations. All gains and losses recognised in the period are included above. The notes on pages 28 to 52 form part of these Financial Statements. 23
Goodenough College Balance Sheets as at 31 August 2024 Company Registration No: 00246919 BALANCE SHEETS AS AT 31 AUGUST 2024 Group Charity 31 August 2023 £'ooo Notès 31 August 2024 £'ooo 31 August 2023 £'ooo 31 August 2024 £'ooo FIXED ASSETS Tangible assets Freehold land and buildings Heritage assets Fixtures. fittings plant & equipment 108 lob IOC 162,786 281 957 164,024 25,210 3,046 163,973 310 1,071 165,354 19,396 3,976 162,786 281 957 164,024 25,210 3,046 250 192,530 163,973 310 1,071 165,354 19,396 3,976 250 188,976 Investments Investment properties Investments in subsidiaries Ilb Ilb 12 192,280 188,726 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 13 962 4,509 5,477 806 5,953 6,762 767 3,821 4,594 838 4,735 5.576 CURRENT LIABILITIES Amounts falling due within one year 14 (4,214) (4,250) {3,752} (3,485) NET CURRENT ASSETS 1,263 2.512 842 2,091 TOTALASSETS LESS CURRENT LIABILITIES 193,543 191,238 193,372 191,067 Creditors.. amounts falling due after more than one year TOTAL NET ASSETS 15 {40,038) (40,060) (40,038) (40,060) 153,505 151,178 153,334 151,007 Restricted funds Endowment Funds Unrestricted funds Designated funds General funds 16 12,370 313 12,289 271 12,370 313 12,289 271 17 17 131,724 9,098 130,332 8,286 131,724 8,927 130,332 8,115 TOTAL FUNDS 153,505 151,178 153,334 151,007 The notes on pages 28 to 52 form part of these Financial Statements. The group statement of financial activities (SOFA) and balance sheet, consolidate the Financial Statements of the Charity and its wholly owned subsidiaries, all of which were made up to 31 August 2024 on a line by line basis. The net surplus of the charity for the year ended 31 August 2024 was £2,327k (2023- £871 k). These Financial Statements were approved and authorised for issue by the Trustees on 21 January 2025 and on their behalf by: stuart Shilson LVO DL President of the College {and Chair of the Board) 24
Goodenough College Consolidated Statement of Cash Flows for the year ended 31 August 2024 CONSOLIDATED STATEMEiYf OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 Notes 2024 £'ooo 2023 £'ooo Net cash provided by operating activities (a) 3,504 4,858 Cash flows from financing activities Interest paid on loan Loan costs Net cash (used in) financing activities (1,244) (1.241) (1,252) (1,249) Cash flows from investing activities: Dividends, interest and rents from investments Purchase of property, plant and equipment PrOedS from sale of investments Purchase of investments 1,454 (952) 22,733 25,825 (2,590) 1,228 (1,211) 1,186 3,459 (2,256) Net cash (used in) investing activities Change in cash and cash equivalents in the reporting period (338) 1,353 Cash and cash equivalents at 1 September 6,400 5,047 Cash and cash equivalents at 31 August (b) 6,062 6,400 Analysis of changes in net debt Cash flows 31 August 2024 September 2023 £'ooo £'ooo £'ooo Cash at bank Cash held by investment managers 5,953 447 6,400 (1,444) 1,106 (338) 4,509 1,553 6,062 Loans falling due after more than one year (40,000) (40,000) Total 33,600 338 33,938 25
Goodenough College Consolidated Statement of Cash Mows (continued) for the year ended 31 August 2024 2024 £'ooo 2023 £'ooo (a) Reconciliation of net income to net cash provided by operating activities Net income for the reporting period Adjustments for: Depreciation charges (Gains) I losses on non-cash investments Dividends, interest and rents from investment Loss on disposal Interest payable on loan Loan costs (Increase)IDecrease in stock (Increase)IDecrease in debtors (Decrease)Ilncrease in creditors 2,327 871 2,667 (1,100) (1,454) 29 1,244 2,631 311 (1,228) 23 1.241 (3) {156) (58) 354 642 Net cash inflow from operating activities 3,504 4,858 (b) Analysis of Cash and Cash Equivalents Cash flows 31 August 2024 September 2023 £'ooo £'ooo £'ooo Cash at bank and in hand Cash held by investment manager Total cash and cash equivalents 5,953 447 6,400 (1.444) 1,106 338 4,509 1,553 6,062 26
Goodenough College Consolidated Statement of Financial ACtitieS for the year ended 31 August 2023 CONSOMDATED STATEMENT OF FINANCIAL AcfivITIES FOR THE YEAR ENDED 31 AUGUST 2023 Unrestricted Funds 2023 £'ooo Restricted Funds 2023 £'ooo Endowment Funds 2023 £'ooo Total Funds 2023 £'ooo Notes Income from: Donations and legacies Charitable activities.. College community accommodation Trading activities- Commercial accommodation Catering, Events and Venue Hire Investments 23 235 281 539 8,294 348 8,642 5,023 1,238 5.023 1,238 1,128 94 1,228 Total 15,706 677 287 16,670 Expenditure on: Raising funds Investment management Fundraising Trading activities Charitable activities: Attracting outstanding postgraduate students Transforming College Members Raising the College's profile Sustaining the College Total 83 103 3,544 93 103 3.544 12 890 344 1,234 7,516 329 1,984 14.449 666 12 8,194 329 1,984 16 15,481 1,016 Net income l (expenditure) before other (losses) 1,257 {339) 271 1,189 Net (losses) on investments 11 (259) (59) (318) Net income l (expenditure) 998 (398) 271 871 Transfers between funds 16, 17 (9) Net movement in funds 989 389 271 871 Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried fOard 137,629 989 138,618 12,678 389 12,289 150,307 271 871 271 151,178 27
Goodenough College Notes to the Financial Statements For the year ended 31 August 2024 AccouNfING POLICIES (a) Basis of preparation The Financial Statements have been prepared under the historical cost convention, as modified by the inclusion of investments and investment properties at fair value at balance sheet date. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 and the Charities Act 2011. They also comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The accounting policies have been applied consistently throughout the accounts. The group statement of financial activities (SOFA) and balance sheet, consolidate the Financial Statements of the Charity and its wholly owned subsidiaries, all of which were made up to 31 August 2024 on a line by line basis. The net surplus of the charity for the year ended 31 August 2024 was £2,327k (2023: £871 k). Goin cOnM The Trustees reviewed the College's surplus operating budget for the year 2024125 and the subsequent long term forecast in July 2024 and were content that these plans were affordable and that the accounts should be prepared on a going concern basis. There has been a high volume of applications for places in the College for the 2024125 academic year. with occupancy levels achieving expectations. The Hotel reopened in September 2022 and subsequently outperformed budget by a significant margin and continues to generate a higher contribution than was historically achieved. The College holds in excess of £26m in unrestricted funds not representing current operating assets, of which £2m is in investment property and £24m in liquid investments managed through our investment managers. In total these reserves are well in excess of the annual turnover and annual cash flow requirements of the College. Given the strength of the balan sheet and the availability and liquidity of unrestricted investments the Trustees believe that, while UnrtaintY exists, this does not pose a material uncertainty that would cast doubt on the charity's ability to continue as a going concern. The Trustees, therefore, consider it appropriate for the accounts to be prepared on a going concem basis. Further detail on the availability of unrestricted funds can be found on p12 of the Trustees. Report. 28
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 I. ACCOUWllNG POLICIES (continued) (b) Company status The Charity is a company limited by guarantee. The Members of the Company are the Trustee Board named on page 0, who are also the Directors of the Company for the purposes of company law. In the event of the Company being wound up, the liability in respect of the guarantee is limited to one pound per Member of the Company. (c) Key assumptions and estimates Key assumptions and estimates are continually evaluated and are based on historical experience and other factors. including expectations of future events that are believed to be reasonable under the circumstances. The assumptions and estimates that are likely to cause any material impaGt to the accounts are set out below: Valuation of Investment Properties as disclosed in note 11, the fair values of the investment properties are reviewed at the balance sheet date to determine any changes in value. This is done by reviewing key property price indicators for the local area or an external valuation by RICS registered valuers. Depreciation - Fixed Assets are depreciated on a straight line basis as set out in note 11) Tangible Fixed Assets. (d) Income All income is recognised in the SOFA when the Charity has met conditions for receipt, receipt is probable and the amount can be quantified with sufficient reliability. Investment income.. Investment income is accounted for when receivable. Legacies.. Legacies are deemed receivable from the date of notification, provided that sufficient information has been re]Ved to enable the Group to calculate entitlement and receipt is probable. Gifts in Kind." Donations in kind are recognised at their value to the Charity when they are received. No amounts are included for services donated by volunteers. Government grants." Income from Government and other grants, whether'capital. grants or 'revenue' grants, is recognised when the charity has entitlement to the funds. any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. In respect of the furlough grant., all conditions, with respect to the eligible costs being claimed, need to be met. 29
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 i. AccouNfING POLICIES (continued) (e) Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Investment Management costs represent the fees incurred on raising Investment Income. Fundraising costs represent expenditure in relation to fund-raising and publicity costs. Direct expenditure incurred on charitable activities is identified against one of the four strategic goals of the charity. Support costs represent expenditure incurred in general management, Trustee related costs and audit costs and are apportioned across the four strategic goals. See note 6 for further information. (D Fund accounting The College maintains various types of funds as follows.. i) Restricted funds The Burn Restricted funds include donations received which were allocated by the donor for the upkeep of The Burn. a Scottish study and holiday centre for students and graduates. In addition other donations which are eamiarked for particular purposes are treated as restricted funds. ii) Endowment Funds Endowment funds comprise the Christopher G. Argyris StudentActivity Fund which is an expendable endowment fund providing support for community participation at the College, and particularly the performance of opera and Dean's Seminars. Total distributions from the Fund in any year are not to exceed 5 % of the fund unless the value of the fund falls below £12,500, in which case the balanTr may be distributed and the fund closed. iii) Unrestricted funds Designated reserves are amounts which have been put aside at the discretion of the Trustees and comprise: Tangible fixed asset reserve representing the value of all reserves used for operating tangible fixed assets (excluding those of The Burn, which are restricted) and only realisable by the disposal of these fixed assets. Investmentpropertyreserve represents the value of all reserves held in investment properties and only realisable by the disposal of these fixed assets. Asset Replacement Reserrfe (ARR) has been established to hold the current level of funds identified for the future replacement and refurbishment of the buildings. fixtures, fittings and equipment of London House, William Goodenough House and the Club in support of the Asset Replacement Plan currently covering a 30 year period to 2046. 43-47 Mecklenburgh Square Reserve was established by the Trustees to support the future development of 43-47 Mecklenburgh Square. 30
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 I. ACCOUNTING POLICIES (continue(O iii) Unrestricted funds (continued) Other designated funds reserve represents other funds designated by the Trustees for particular purposes. General unrestricted funds represent funds which are expendable at the discretion of the Trustees in the furtherance of the objects of the company. Such funds may be held in order to finance working capital or capital investment and include the College's reserve. (g) Financial instruments Financial assets and financial liabilities are recognised when the College becomes a paty to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs). Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provisions are recognised where the College has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. other financial instruments are initially recognised at fair value and any changes to their fair value are subsequently recognised in the SOFA under 'net gains l (losses) on financial instruments,. (h) Taxation Goodenough College is a Charity within the meaning of Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or gains are applied exclusively to charitable purposes. The subsidiaries make qualifying donations of all taxable profit to Goodenough College. InGome from Gift Aid tax reclaimed is recognised in relation to qualifying donations received. The College is registered for Value Added Tax (VAT). Any IeCoVerable VAT is charged to the Statement of Financial Activities. 31
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 i. AccouNfING POLICIES (continued) (i) Tangible fixed assets The College has elected to present the deemed cost of its freehold assets at the value held at 1 April 2014, as permitted under the FRS102 transitional arrangements. Where there is an indication of an asset being impaired the recoverable amount is identified and the impairment loss is recognised as expenditure in the Statement of Financial Activities. Depreciation on fixed assets is charged so as to write down the value of properties and material components over their expected useful lives, on a straight line basis as follows: Life (years) 100 15-50 25-30 10-25 Freehold buildings Roof work Lifts Bathrooms, heating, water, electrical and gas systems, and boiler equipment Ventilation and fire detection systems and fire stopping works Access and telephone system Vehicles Computer and other Offi equipment Computer software Furniture Improvements to Freehold (including room refurbishment) Other plant and equipment and other fixtures and fittings 10-15 10 8-20 6-15 4-15 The mixed use property is accounted for using the cost model as allowed under the Charities SORP (FRS 102) 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 elected to present the deemed cost of its Heritage Assets at the value held at 1 April 2014. as permitted under the FRS102 transitional arrangements. Heritage Assets are not depreciated. The College has reviewed its Heritage Assets and does not consider that any impairment at 31 August 2024 is neSsary. (i) Investments Investments are valued at bid value as at the balan sheet date and the surplus or deficit arising from this revaluation is shown within 'net gains l (losses) on investments, on the face of the SOFA. Realised gains and losses represent the difference between the sale proceeds and the opening market value of an investment or cost if purchased during the year and are also shown within this line. 32
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 I. ACCOUNfING POLICIES (continued) (k) Investment properties Investment properties are held initially at cost and subsequently at fair value at the reporting date. Any Gains or Losses are recognised under 'Net gainsl (losses) on investments. on the Statement of Financial Activities. Investment properties are not depreciated. (l) Stocks Stocks are stated at the lower of cost and net realisable value and comprise consumable goods. (m)Operating leases Rental costs under operating leases are charged to the SOFA in equal amounts over the period of the lease. (n) Born)wing Costs Interest and charges are expensed and charged to the SOFA when incurred (o) Pension accounting policy Goodenough College makes contributions to employees, defined contribution pension plans. Contributions are charged to the SOFA as they become payable. They are analysed across expenditure according to the activity of the scheme members. (p) Cashfiow statement Cash and cash equivalents includes cash in hand, deposits with banks and cash held within the investment portfolio. Cash equivalents are defined as balances with a term of less than three months., any accounts with a term greater than three months are classified as short temi deposits. Interest paid is classified as a cashflow from operating activities as they are included in the statement of financial activities, this Classification is consistent with prior periods. 33
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 2 DONATIONS AND LEGACIES Unrestricted funds 2024 £'ooo Restricted funds 2024 £'ooo Endowment funds 2024 £'ooo Total funds 2024 £'ooo Total funds 2023 £'ooo Donations Consolidated donations income Donations from subsidiaries (note 17) Charity donations income 25 565 24 614 539 25 565 24 614 539 2,634 2,634 2,717 2,659 565 24 3,248 3,256 Of the total funds stated for 2023, £235k was restricted. £23k unrestricted and £281 k was endowment income. Of these donations £102k (2023: £2k) was received from Trustees. 3 INVESTMENT INCOME Unrestricted funds 2024 £'ooo Restricted funds 2024 £'ooo Endowment funds 2024 £'ooo Total funds 2024 £'ooo Total funds 2023 £'ooo Income from UK listed investments Income from overseas listed investments Rent from property Other interest- short-term deposits 231 25 259 179 200 826 13 57 216 883 148 804 95 96 97 1,352 96 1,454 1,228 Of the total funds stated for 2023, £94k was restricted, £1,128k unrestricted and £6k arose on endowments. 4 TRADING INCOME Trading income comprises income arising from the College's trading subsidiary (two trading subsidiaries in the year ended 31 August 2023) as detailed in note 12. 34
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 5 INCOME FROM COLLEGE CHARITABLE ACTIVITIES Unrestricted funds 2024 Restricted funds 2024 Endowment funds 2024 Total funds 2024 Total funds 2023 £'ooo £'ooo £'ooo £'ooo £'ooo College accommodation income 9,117 9.117 8,294 The Bum income 342 342 348 9,117 342 9,459 8,642 Of the total funds stated for 2023, £348k was restricted and £8,294k was unrestricted. There was no endowment income in 2023. 6 EXPENDITURE FOR CHARrfABLE PURPOSES Direct Costs 2024 Support Costs 2024 Total funds 2024 Total funds 2023 £'ooo £'ooo £'ooo £'ooo Attracting outstanding postgraduate students 1,136 7,467 316 209 1.345 8.717 374 1,234 8,194 329 Transfomiing College Members Raising the College's profile Sustaining the College 1,250 58 2,032 10,951 144 2,176 12,612 1,984 11,741 1,661 The College has paid £635k (2023: £590k) to College members as scholarships and bursaries, including hardship funds. This is included within Attracting outstanding postgraduate students above. 35
Goodenough College Notes to the Financial Statements For the year ended 31 August 2024 SUPPORT COSTS 2024 £'ooo 448 670 213 35 512 1,878 2023 £'ooo 382 622 341 35 468 1,848 Finance HR Governance Other general overheads These support costs are split across the following areas.. Raising funds Charitable activities 217 1,661 1,878 207 1,641 1,848 GOVERNANCE COSTS 2024 £'ooo 2023 £'ooo Support costs Council and Board meeting costs Fees payable to the auditors - College 31 35 30 35 Included within direct costs are fees payable to the auditors relating to the subsidiary companies of £12k of which £8k was for audit services (2023.. £15k, of which £8k was for audit ServIs). Fees payable to the Group's auditors: 2024 £'ooo 2023 £'ooo Statuto audit Current auditors Previous auditors Tax adviso services Current auditors Previous auditors 39 36 12 43 52 36
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 NET INCOME 2024 £'ooo 2023 £'ooo Net income for the year is stated after charging: Amounts payable to auditors (Group) (note 7) Depreciation of tangible fixed assets Operating lease charges 43 2,667 19 52 2,631 19 INFOR1TIoN REGARDING STAFF AI¥D TRUSTEES Headcount 2024 No. Full Time Equivalent 2024 2023 No. No. 2023 No. Average number of employees (during the period: College Hotel The Burn 65 11 20 96 66 10 19 95 60 11 10 81 59 10 10 79 2024 £'ooo 2023 £'ooo Wages and salaries Social security costs Pensions Other benefits 3,453 375 157 116 4,101 3,189 346 145 82 3,762 37
Goodenough College Notes to the Financial Statements For the year ended 31 August 2024 INFORMATION REGARDING STAFFAND TRUSTEES (continue(O The number of staff paid over £60,000 during the reporting period (salary plus taxable benefits excluding pension contributions) was: 2024 No. 2023 No. £60,001- £70,000 £70,001- £80.000 £80,001- £90,000 £90,001- £100,000 £110,001- £120,000 £130.001 -£140,000 £160,001- £170,000 £170.001- £180,000 Trustees, remuneration Members of the Board of Trustees (who are all directors within the meaning of the Companies Act 2006) receive no remuneration or taxable benefits for their services. During the year six (2023: six) Trustees were reimbursed or had amounts paid on their behalf for sundry Board expenses incurred totalling £3,662 (2023.. £3,358) relating to travel and subsistence. Trustees may stay in College accommodation in the course of their duties as Trustees. During the year and up to the date of approval of the Annual Report and Financial Statements, there was a qualifying third-party indemnity in pla for directors, as allowed by Section 234 of the Companies Act 2006. Pension schemes The Company operates stakeholder pension schemes administered by Legal and General. The employer's contributions are 10 % of pensionable salary for senior staff and are matched to those of the qualifying employees to a maximum of 5 % of pensionable salary for other staff and amounted to £156,799 (2023: £144,710). At 31 August 2024 outstanding payments due to the scheme were £Nil (2023: £23). mana ement ersonnel Key management personnel of Goodenough College comprise the Trustees and those employees making up the Executive team, consisting of the College Director, the Director of Finance and ReSoUrs, the Director of Operations, the Director of Estates, the Director of Philanthropy and Alumni Relations, the Dean, the Registrar and the Bursar at The Burn. 38
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 INFORMATION REGARDING STAFFAI¥D TRUSTEES (continued) Ke mana ement ersonnel (Gontinued) The aggregate compensation (remuneration plus benefits and employer's National Insurance Contributions) paid or payable to 'key management personnel, during this reporting period was: £852,913 (2023. £852,688). During the year, two members of key management personnel made payments of £14,636 for use of facilities of the College for private events. These payments were on the terms available to all Members, Alumni and staff. Redundanc and termination ments Total payments incurred during this year in relation to redundancy and termination pay were £4,572 (2023.. £67,000) paid to one (2023.. two) individual. The accounting policy is to recognise termination payment liabilities on communication of redundancy or termination and when quantifiable. Such payments are accounted for as staff costs. io TANGIBLE FIXED ASSETS (a) Freehold properties Consolidated and company Assets under construction £'ooo The Burn £'ooo Land and buildings at deemed cost College £'ooo Total £'ooo Brought forward deemed cost at 1 September 2023 Additions Transfers Disposals Transfer from Investment properties At 31 August 2024 159,009 377 78 (830) 449 159,083 11,109 11,467 404 (78) 181,585 781 {830} 449 181,985 11,109 11,793 Depreciation Brought forward at 1 September 2023 Disposals Charge for the year Transfer from investment properties At 31 August 2024 16,544 (830) 2,265 35 18,014 1,068 17,612 (830) 2,382 35 19.199 117 1,185 Net book value at 31 August 2024 141.069 9,924 11,793 162,786 Net book value at 31 August 2023 142,465 10,041 11,467 163,973 39
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 io TANGIBLE FIXED ASSETS (continued) (a) Freehold properties (continued) Freehold properties consisted of student accommodation, the hotel (The Goodenough Hotel. London) and The Burn. They were all the subject of independent valuations, for inclusion in the accounts at 31 March 2013, provided by Drivers Jonas Deloitte, Willis Ltd, Ecclesiastical, Bell Ingram and Alpha Browett Taylor. Assets under construction consist mainly of the properties at 43-46 Mecklenburgh Square, previously held as investment properties. The lease on the properties expired on 26 November 2019 and the intention of the College is to convert them into additional student accommodation. Accordingly, they are no longer held as investments and were transferred to freehold properties at a value of £11 m in the year ended 31 March 2020 and are treated as being at deemed cost. This is based on a valuation provided by Alpha Browett Taylor included in the accounts at 31 March 2018 and confirmed by them in June 2019. Further work on the project as well as other ongoing works at the College premises during the year amount to £404k. No depreciation is applied to these assets as they are not in operational use. Also included in Freehold Properties are the College's Royal Albert Hall seats, held at historic ost of £350. The seats were purchased by the College in 1967 and are held on a 999 year lease from 1867 Excluding 43-46 Mecklenburgh Square, the historical cost net book value of the land and buildings if the revaluation had not taken place would be £29.3m (2023: £30.2m). The historical Gost of 43-46 Mecklenburgh Square cannot be determined. One of the College's properties is used by Goodenough Trading Ltd, trading as The Goodenough Hotel, London, a wholly owned subsidiary of Goodenough College. The purpose is to provide short-stay accommodation close to the college for alumni and others associated with the College as well as supporting college events. The hotel is also open to external guests. Due to the level of shared facilities and services with the College it is not possible to separate out the proportion of the site that relates to external guests so the entire property is treated as a functional fixed asset and held at depreciated cost of £15.6m (£15.9m in 2023). During the year the decision was taken to transfer one of the investment properties into tangible fixed assets due to it being brought into use as an operating charitable asset. At 31 August 2024 the property was revalued from its opening market value down to its depreciated historic cost, and transferred from investment properties (note 11) to College tangible fixed assets above. 40
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 io TANGIBLE FIXED ASSETS (continued) (b) Heritage assets Consolidated and company The Burn £'ooo College £'ooo Total £'ooo Deemed cost at 1 September 2023 Disposals At 31 August 2024 290 29 261 20 310 29 281 20 Heritage assets comprise books, paintings and furniture which are available for use and enjoyment of College members, staff and guests throughout the College and Burn. The College Director leads on the preservation and management of Heritage assets. The College maintains an asset register which details the location, value and description of the assets and ensures that they are located in an appropriately secure and managed environment. A valuation of the heritage assets was carried out in 2013 and is treated as deemed cost. The Trustees do not consider that any impairment at 31 August 2024 is necessary. The deemed cost at 1 April 2017 was £300k, and the only subsequent transaction was an addition of £1 Ok in the year ended 31 March 2019. {c) Fixtures. fittings, plant and equipment Consolidated and company Assets under construction £'ooo The Burn £'ooo College £'ooo Total £'ooo Cost at 1 September 2023 Additions Transfers Disposals At 31 August 2024 3,668 164 87 3,755 171 (1) 1,782 2,051 1,782 2,144 87 Depreciation at 1 September 2023 Charge for the year Disposals At 31 August 2024 2,601 284 1,782 1,103 83 2,684 285 1,782 1,187 84 Net book value at 31 August 2024 948 957 Net book value at 31 August 2023 1.067 1,071 41
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 11 INVESTMEKfs HEIJ) AS FIXED ASSETS The Burn £'ooo (a) Investment properties Land and buildings at valuation: College £'ooo Total £'ooo Carried forward at 1 September 2023 Revaluation Transfer to fixed assets (see note 10) At 31 August 2024 3,098 (509) 414 2,175 878 (7) 3,976 {516) 414 3,046 871 The College investment properties were the subject of an independent market valuation for inclusion at 31 August 2023 by Alpha Browett Taylor, RICS registered valuer with the necessary knowledge and expertise to provide this valuation. In 2023124 an internal exercise was carried out to assess if the value of similar properties in the local area had changed during the financial year. The College investment properties were revalued downwards by £509k as a result (2023: upwards by £30k). £319k of this devaluation was due to the revaluation of one property down to its depreciated historic cost prior to being transferred to fixed assets (see note 10). The Burn investment properties were the subject of an independent market valuation for inclusion at 31 August 2023 by J & E Shepherd, RICS registered valuer with the necessary knowledge and expertise to provide this valuation. In 2023124 an internal exercise was carried out to assess if the value of similar properties in the local area had changed during the financial year. The Burn investment properties were revalued downwards by £7k as a result (2023: upwards by £18k). Consolidated and Company 31 August 31 August 2024 2023 £'ooo £'ooo (b) Listed investments Market Value at 1 September Additions at cost PrOedS from disposals Realised (loss) Unrealised gainl{loss) Market value at 31 August 18,949 25,825 (22,733) (25) 1,641 23,657 17,035 3,457 (1,186) (81) 276 18,949 42
Goodenough College Notes to the Financial Statements (continue(O for the year ended 31 August 2024 li INVESTMEiYfs HELD AS FIXED ASSETS (continued) (b) Listed investments (continued) Listed investments comprise the following: Consolidated and Company 31 August 2024 £'ooo 31 August 2023 £'ooo Investments listed on a recognised stock exchange - Equities Investments listed on a recognised stock exchange - Bonds Alternative Funds COIF Charities Investment Fund account Market value at 31 August 9,459 4,808 2.203 7,287 18,849 23,657 18,949 Investment assets in the United Kingdom Investment assets outside the United Kingdom Market value at 31 August 23,657 12,860 6,089 18.949 23,657 Cost at 31 August 23,588 15,799 At 31 August 2024 the College held the following investments which represented more than 5 % of the portfolio value: £'ooo /0 of portfolio COIF Charities Investment Fund account 18,849 Total investments Listed investments (market value) Cash held in the portfolio Investment properties (market value) Investments at 31 August 11b 23,657 1,553 3,046 28,256 18,949 447 3,976 23.372 11a Net gains l (losses) on investments as shown on the Statement of Financial Activities comprise net gains on listed investments of £1,616k (2023.. losses of £357k), net losses on cash held at investment managers due to foreign exchange movements of £61 k (2023.. £9k) and net losses arising on investment properties of £516k (2023: gains of £48k). 43
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 12 SUBSIDIARY UNDERTAKINGS The College owns 100 % of the issued capital of the following companies. Company Investment at Cost Subsidiary undertaking Goodenough Trading Limited Goodenough Ventures Limited 250,000 250,002 The registered office of both subsidiaries is London House, Mecklenburgh Square, London, WC1N 2AB. Summarised financial results of Goodenough Trading Limited (Company Registration 2684378) are set out below and are included in the consolidated SOFA. All activities relate to continuing operations. The following intercompany transactions are included within the subsidiary results. The £7,346k (2023: £5,027k) total income includes £7k (2023.. £3k) for sales to the parent ompany relating to accommodation. Commercial accommodation income of £5,118k (2023: £5,024k) has been included within the consolidated statement of financial activities in relation to the activities of this subsidiary. Total income further includes £772k (2023:£Nil) of sales to the parent company relating to catering and events. Catering Events and Venue Hire income of £1,373k has been included within the consolidated statement of financial activities in relation to the activities of this subsidiary. The £4,712k (2023.. £2,353k) 'Cost of Sales, includes £451 k (2023: £241 k) in charges to the subsidiary by the parent company for the use of parent company resources, £7k (2023: £3k) in costs of providing services to the parent company and £Nil (2023: £133k) in charges from Goodenough Ventures for the provision of services. Trading activity expenditure of £3.934k (2023.. £2,217k) has been included within the Gonsolidated statement of financial activities in relation to the activities of this subsidiary. 44
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 12 SUBSIDIARY UNDERTAKINGS (Gontinued) Goodenough Trading Limited 31 August 2024 £'ooo 31 August 2023 £'ooo Hotel accommodation Short Stay accommodation Burn Commercial Trading Events and Venue Hire Feeding College Members Turnover Cost of Sales 3,960 1,165 75 1,039 1,107 7.346 4,712 2,634 2,634 3.936 1,091 5,027 2,353 2,674 2,674 Qualifying distribution under deed of covenant ProfiU(loss) Assets Liabilities Shareholders, funds 1,291 870 421 1,226 805 421 Goodenough Ventures Limited Goodenough Ventures Limited (Company Registration 09342926) was an events and venue hire business which commenced trading in October 2015. The company has not traded since 31 August 2023 as all operations were transferred to Goodenough Trading Limited from 1 Septernber 2023. The company was voluntarily dissolved in 19 November 2024.The following intercompany transactions were included within the subsidiary results for the prior year. 31 August 2024 £'ooo Year to 31 August 2023 £'ooo Goodenough Ventures Limited Events and Venue Hire Feeding College Members Hotel Breakfasts Tumover Cost of sales 807 1,047 133 1,987 1,943 44 Other income Qualifying distribution under deed of covenant ProfiV(loss) 44 Assets Liabilities Shareholders, fundsl(defiGit) 392 392 45
Goodenough College Notes to the Financial Statements (continue(O for the year ended 31 August 2024 13 DEBTORS Consolidated 31 August 31 August 2024 2023 £'ooo £'ooo Charity 31 August 31 August 2024 2023 £'ooo £'ooo Trade debtors Amount due from subsidiary undertaking other debtors Taxes recoverable Prepayments and accrued income 379 418 250 294 204 25 95 25 32 95 488 962 331 806 422 767 315 838 The amount due from the subsidiary undertaking to the Charity in 2022123 represents the amount due from Goodenough Ventures Limited. CREDITORS: amounts falling due within one year Consolidated 31 August 31 August 2024 2023 £'ooo £'ooo Charity 31 August 2024 £'ooo 31 August 2023 £'ooo Trade creditors Amounts due to subsidiary undertaking Taxation and social security Other creditors Accruals Deferred income other deferred discount 1,722 1,169 1,280 741 407 109 977 877 79 133 1,024 1,445 43 20 3,485 134 1,317 939 64 38 4,214 225 1.221 1,572 43 20 4.250 38 3,752 The amount due to the subsidiary undertaking from the Charity represents the amount due to Goodenough Trading Ltd. Deferred income consists of commercial rent received from tenants in advance. Prior year deferred income related in full to income recognised in the year ended 2024. A reconciliation is set out below: 46
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 14 CREDITORS: amounts falling due within one year (continued) Movement in deferred income in year Consolidated 31 August 2023 £'ooo Charity 31 August 2023 £'ooo 31 August 2024 £'ooo 31 August 2024 £'ooo Balance brought forward Released.. Added Balance carried forward 43 (43) 56 (56) 43 43 43 (43) 64 64 56 (56) 43 43 CREDITORS: amounts falling due in greater than one year Consolidated and charity 31 August 31 August 2024 2023 £'ooo £'ooo Bank borrowing Falling due in more than 5 years 40,000 40,000 Other Deferred Discount Falling due between 1 and 2 years Falling due between 2 and 5 years 20 18 20 40 Total 40,038 40,060 Bank borrowin On 2 June 2017 the College secured a £40m non amortising 30 year loan with Rothesay Life at a fixed interest rate of 3.1020/y. This loan is repayable in full in June 2047. The Rothesay loan is secured against London House and William Goodenough House. Financial instruments At the balance sheet date the College held no complex financial instruments. Other deferred discount During 2023124 the College entered into a new 4 year catering contract. The terms of the contract included the supplier refurbishing the College's catering outlets. The value of the works has been treated as a discount to the contract which will be applied equally to each remaining year of the contract, which will expire during 2026127. 47
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 16 RESTRIcfED FUNDS 1 Sep'23 Transfer Income Gains l Expenditure 31 Aug'24 losses £'ooo Consolidated and Charity 2023124 £'ooo £'ooo £'ooo £'ooo £'ooo Burn Fund General fund Specific donations Investment property reserve Tangible fixed asset reserve Total Burn Fund Other restricted funds Scholarships and Bursaries 43-47 Mecklenburgh Square Specific donations Total other restricted funds Total restricted funds 970 144 438 57 (670) (2) 939 878 10,065 11,915 (7) 871 9,947 11,762 118 26 443 50 672 363 363 180 17 560 26 1,003 (308) 418 180 10 608 12,370 11 374 12,289 18 326 998 50 1 Sep'22 Transfer Income Gains l Expenditure 31 Aug'23 losses £'ooo Consolidated and Charity 2022123 £'ooo £'ooo £'ooo £'ooo £'ooo Burn Fund General fund Specific donations Investment property reserve Tangible fixed asset reserve Total Burn Fund other restricted funds Scholarships and Bursaries Specific donations Total other restricted funds Total restricted funds 1,158 121 438 (77) (670) 970 860 10,177 12,195 18 878 10,065 11,915 112 440 59 670 472 11 483 12,678 236 (345) 363 11 374 12.289 237 677 346 1,016 59 The Burn Fund represents the assets and liabilities of The Burn, including a tangible fixed assets reserve, an investment property reserve and a general restricted fund. A transfer of £121 k has been made from the tangible fixed assets reserve to the general restricted fund representing the movement in the net book value of fixed assets in the year. A transfer of £26k has been made from the Charity's general funds to The Burn general restricted fund representing the element of profit from Goodenough Trading Limited activity that was generated at The Burn. 48
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 16 RESTRICTED FUNDS (continued) Scholarships and Bursaries are donations specifically made for providing scholarships and bursaries to qualifying members. Only one specific fund (2023: One) held more than £50k at the 31 August 2024. This fund was for providing support to Scholars at Risk. 43-47 Mecklenburgh Square represents restricted donations raised to support the redevelopment of 43-47 Mecklenburgh Square into student accommodation. Specific donations are those to support specific aspects of College activity and projects. 17 UNRESTRIcfED FUNDS Gainsl Expenditure 1 Sep'23 Transfer Income (losses) £'ooo £'ooo £'ooo £'ooo 31 Aug'24 £'ooo 2023124 £'ooo Tangible fixed asset Long term loan Tangible fixed asset reserve Investment property reserve Asset Replacement reserve 43-47 Mecklenburgh Square Reserve Other designated reserves Total designated reserves General funds of the Charitable Company Total funds of the charitable company 155,289 40,000 115,289 3,098 8.448 (1,212) 154,077 40.000 114,077 2,175 10,734 (1,212) (414) 1,449 (509) 723 161 (47) 3,481 16 130,332 1,144 73 25 259 32 (4) 29 (80) 4,726 12 131,724 967 246 8,115 993 12,869 719 11,783 8,927 138,447 (26) 13,128 965 (11,863) 140,651 General funds of the subsidiaries 171 3,934 (3,934) 171 Total consolidated unrestricted funds 138,618 26 17,062 965 15.797 140,822 49
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 17 UNRESTRICTED FUNDS (continued) Gainsl Expenditure Income (losses) £'ooo £'ooo 31 Aug'23 £'ooo 1 Sep'22 Transfer £'ooo £'ooo 2022123 £'ooo Tangible fixed asset Long term loan Tangible fixed asset reserve Investment property reserve Asset Replacement reserve College Development Reserve 43-47 Mecklenburgh Square Reserve Other designated reserves Total designated reserves General funds of the Charitable Company Total funds of the charitable company 156,620 (1,331) 40.000 116,620 (1,331} 3,068 7,863 668 155,289 40,000 115,289 3,098 8,448 30 (2) (1) 454 {686) 170 22 (37) (3) 1040 2,414 34 23 249 (2) (5) 3,481 16 (52) 130,332 129,259 851 25 8,199 860 11,913 284 10,853 8,115 137,458 (9) 12,162 (259) (10,905) 138,447 General funds of the subsidiaries 171 3,544 (3,544). 171 Total consolidated unrestricted funds 137,629 15,706 259 14,449 138,618 The designated reserves are further discussed in the financial review on page 12. The transfer of £1,212k from the tangible fixed assets reserve represents the movement in the net book value of tangible fixed assets during the year. The transfer of £1,449k to the Asset Replacement Reserve represents the budgeted cash surplus for the year excluding investment income. The transfer of £1,144k to the 43-47 Mecklenburgh Square Reserve arises from the overperformance to the budgeted cash surplus from the Hotel, Catering and Events and main College businesses. 50
Goodenough College Notes to the Financial Statements (continued) for the year ended 31 August 2024 18 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS OF THE GROUP 2023124 Restricted Funds- The Burn £'ooo Restricted Funds - Endowment Designated General other Funds reserves Funds £'ooo £'ooo £'ooo Group Total £'ooo £'ooo Tangible fixed assets Investments Investment properties Amounts due between funds Other current assets Cash at bank and in hand Current and long term liabilities 9,947 900 154,077 12.868 164,024 25,210 298 11,144 871 2,175 3,046 (54) 46 54 922 968 94 608 15 2,604 1,188 4,509 42 11,762 40.000 131.724 4,210 44.252 9,098 153,505 608 313 2022123 Restricted Funds - The Burn £'ooo Restricted Funds - Endowment Designated General other Funds reserves Funds £'ooo £',000 £'ooo Group Total £'ooo £'ooo Tangible fixed assets Investments Investment properties Amounts due between funds Other current assets Cash at bank and in hand Current and long temi liabilities 10,065 937 155,289 9,190 165,354 19,396 141 270 8,858 878 3.098 3,976 (61) 73 61 515 588 81 233 2,755 2,883 5,953 58 11,915 40,000 130,332 4,031 44,089 8,286 151,178 374 271 51
Goodenough College Notes to the Financial Statements (continue(O for the year ended 31 August 2024 19 IASING COMMITMENrs At 31 August 2024 the charitable company had the following amounts payable for equipment under non-cancellable operating leases. 2024 £'ooo 2023 £'ooo Operating leases which expire within one year Operating leases which expire between one and five years 19 19 16 35 35 54 These leases provide printers and photocopiers to support the College's operations. 20 CAPITAL COIITrIITMENrs As at 31 August 2024 the College had no material capital commitments. 21 RELATED PARTYTRANSACTIONS Included in redundancy and temiination payments during 2022-23 were non-contractual payments totalling £40k to one of the key management personnel. There have been no other related paty transactions during the year other than those disclosed in notes 9, 12, 13 and 14. 52