Goodenough College - YE 31.03.2106 final version … College Chairman’s Welcome for the year ended 31 March 2016 - 1 - I am delighted to introduce Goodenough College’s Annual Report

Goodenough College (A company limited by guarantee)

Annual Report and Financial Statements

for the year ended 31 March 2016

Company Registration No. 246919

Registered Charity No. 312894 (England and Wales) and SC039173 (Scotland)

Contents Page

Chairman’s Welcome 1

Trustees’ Annual Report

• Company information 2-3

• Structure, governance and management 4-6

• Objectives and activities 7

• Achievements and performance 8-9

• Financial review 10-12

• Plans for future periods 12-13

• Statement of Trustees’ Responsibilities 14

Independent Report of the Auditor 15

Financial Statements

• Consolidated statement of financial activities 16

• Balance sheet 17

• Consolidated cashflow statement 18-19

• Charity statement of financial activities 20

• Notes to the Financial Statements 21-39

Goodenough College

Chairman’s Welcome


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I am delighted to introduce Goodenough College’s Annual Report and Financial Statements for 2015/16.

The College is a unique institution bringing together a truly international postgraduate community from across

the world. After many years in which the prime focus was inevitably on the design and execution of the major

project of refurbishment works to the College, 2015/16 was the first year when we could revert to a more

steady state. This has enabled the executive staff to concentrate on the College’s main mission. A great deal

of work has been done to secure the College’s continued financial sustainability through long term planning,

and on ensuring accessibility to international students of all backgrounds through an enhanced programme of

Scholarships and Bursaries.

The Facilities Management contracts under which the bulk of the College’s services are provided were due for

renewal. After an exhaustive tender process, new contracts for catering, cleaning and maintenance were

awarded. These will provide valued and economic services to Members and complement the high quality

accommodation we can now offer.

The year also saw the appointment of a new Dean, who is charged with developing the College’s excellent

extracurricular programme, which is designed to expand our Members’ horizons academically, socially and

culturally. The College has remained true to its mission of providing a welcoming residential community for

outstanding international postgraduate students and their families, gaining further awards including ‘Best

Specialist Accommodation’ and retaining the coveted International Accommodation Quality Mark in the 2015

National Student Housing Survey along with a Gold CASE Circle of Excellence Award.

The College looks forward to building on these achievements and improving the benefits to Members and

Alumni of Goodenough College.

Jonathan Hirst QC

Chairman

Goodenough College



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The Board of Trustees present their report and audited Financial Statements for the year ended 31 March

2016 under the Charities Act 2011.

COMPANY INFORMATION

PATRON

Her Majesty The Queen

TRUSTEE BOARD

Jonathan Hirst QC (Chairman)

Alex Acland

David Brooks Wilson (from 15th

September 2015)

Andrew Brown QC

Hugh Crossley

Fabian French

Fiona Kirk

Charles McGregor

Christopher Palmer-Tomkinson

John Polk

Hon Philip Remnant CBE

Martin Schwab

Eric Tracey (Vice Chairman)

Graham Ward CBE

THE ADVISORY COUNCIL

President

Prof René Weis 1,7

Elected Governors

Alex Acland 2,8 Charles McGregor 5

Lord Bilimoria CBE Dr Bill Palmer

David Brooks Wilson (from 15th

September

2015)

5 Christopher Palmer- Tomkinson

Andrew Brown QC 3 John Polk

Corey Cook 4 Hon Philip Remnant CBE 6

Hugh Crossley 5 Martin Schwab

Dr Grahame Davies 1 Maureen Simpson

James Douglas 2 Eric Tracey 5,7,8

Fabian French 4,7 Graham Ward CBE 2,7

Sir William Goodenough 2,4 Prof Stuart Ward 5

Jonathan Hirst QC 5,6,7,8 Dr Hazel Woodward 1

Constance Jackson 4,6 Chris Cobb (from 26th

April 2016) 2

Fiona Kirk 4 Student Governors

John Lotherington 1 Matthew Godwin (until 24th

April 2016)

Dame Judith Mayhew Jonas DBE 7,8 Tatjana Nikitina 5

Dame Maura McGowan 1 Wilhelm Von Rosenburg (until 5th

July

2016)

1. Member of Academic Committee

2. Member of Audit Committee

3. Member of Burn Management Committee

4. Member of Development Advisory Board

5. Member of Estates Committee

6. Member of Investment Committee

7. Member of Nominations Committee

8. Member of Remuneration Committee

Goodenough College



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COMPANY INFORMATION (continued)

Ex-Officio Governors

The Vice-Chancellor of the University of Oxford Professor Louise Richardson

The Vice-Chancellor of the University of Cambridge Sir Leszek Borysiewicz

The Vice-Chancellor of the University of London Professor Sir Adrian Smith

The Principal of the University of Glasgow Professor Anton Muscatelli

The President of the Royal College of Physicians Professor Jane Dacre

The Chairman of the General Council of the Bar of

England & Wales Chantal-Aimée Doerries QC

The President of the Institute of Chartered

Accountants in England and Wales Hilary Lindsay

The Chief Executive of the British Council Sir Ciaran Devane

The Chairman of the Royal Over-Seas League -

Senior Staff

College Director Andrew Ritchie CBE

Director of Finance and Resources Richard Barker

(Company Secretary, deputy to the Director)

Director of Operations Janine Binks

Director of Development and External Relations Mark Lewis

Dean Alan McCormack

Registrar Caroline Persaud

Bursar, The Burn David Turner OBE

Address and Registered Office Website: www.goodenough.ac.uk

London House

Mecklenburgh Square

London

WC1N 2AB

Professional Advisers

Auditor: Legal Advisers:

BDO LLP Cripps Harries Hall

2 City Place Seymour House

Beehive Ring Road 11-13 Mount Ephraim Road

Gatwick Tunbridge Wells

RH6 0PA TN1 1EG

Investment Managers: Bankers:

Rathbones Barclays Bank Plc

1 Curzon Street 1 Churchill Place

London Canary Wharf

W1J 5FB London

E14 5HP

Goodenough College



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STRUCTURE, GOVERNANCE AND MANAGEMENT

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 246919. It is registered with the Charity Commission, Charity number 312894

(England and Wales) SC039173 (Scotland). The College’s purposes are set out in its Memorandum and Articles

of Association.

In accordance with the Memorandum of Association, every member is liable to contribute a sum of £1 in the

event of the company being wound up. At 31 March 2016 there were 14 members (2015:13 members).

The names at the date of this report of all the Elected and Ex-Officio Governors forming the Advisory Council,

the Trustees and of those who held office during the year, together with details of the Senior Staff and

Advisers of the College, are given on pages 2 and 3.

The main features of the structure are:

• A Board of 10 - 15 Governors, drawn from the Advisory Council, who are legally and financially responsible

for the management of College affairs. These are the College Trustees and the directors of the company;

• A broader College Advisory Council, comprising 20 - 50 elected and ex-officio Governors; and

• The establishment of set tours of duty of 5 terms each of 3 years for both bodies.

At the meeting of the Advisory Council in October 2008, it was decided to allocate two places on the Council to

College members. It was also agreed that one of the two College members concerned should be co-opted to

attend Board meetings. It was subsequently agreed that, additionally, the elected Chair of the Members’

Council would be allocated a place on the Advisory Council.

In 2011 it was agreed by Special Resolution that, in exceptional circumstances, the term of a Governor might

be extended beyond 15 years to enable the individual to maintain a significant ongoing contribution to College

life. The Trustees are satisfied that these governance processes enable the College to deal effectively with the

financial and administrative challenges it faces.

Election of Governors

Unless and until otherwise determined by the College in General Meeting, the aggregate number at any one

time of the Nominated Governors shall not be less than 20 nor more than 50 and shall at all times be at least

one third more in number than the number of Ex-Officio Governors for the time being. Notice to propose any

person for election as an Elected Governor shall be given in writing to the Company Secretary not less than five

nor more than 28 days before the meeting at which it is intended to propose him/her. Governors are initially

identified by the Nominations Committee prior to election.

Board members are selected by the Nominations Committee and formally elected by the Advisory Council at

the Annual General Meeting.

The Advisory Council, consisting of all Governors, meets twice a year. No Governor has any financial interest in

the Charity or any group companies.

Goodenough College



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Trustee Board

The Trustee Board has 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 Trustee Board meets quarterly.

All new Trustees have induction programmes familiarising them with the College, its objectives and its

structure, alongside their roles and responsibilities under legislation and College governance.

Committees

Trustees may serve on one or more Board Committees as detailed below:

The Academic Committee

The Audit Committee

The Burn Management Committee

The Development and Advisory Board

The Estates Committee

The Investment Committee

The Nominations Committee

The Remuneration Committee

Details of the composition of each Committee are to be found on page 2.

Management

Operational management of the College is delegated by the Trustees to the College Director, who is

accountable to the Trustee Board for the stewardship of the Charity. The College Director and the senior

leadership team attend Board and Committee meetings. The College sets the pay of its key management

personnel through the work of its remuneration committee supported by the Director. 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 Director is set by the Board.

Group Structure and relationships

The College has two wholly owned subsidiary companies:

• Goodenough Club Limited (Company No. 02684378) provides overnight accommodation. From 1 April

2015 the subsidiary took on responsibility for the provision of ‘Short Stay’ accommodation in London

House and William Goodenough House in addition to the main ‘Club’ building. Its annual profits are

donated to the College under the Gift Aid Scheme; and

• Goodenough Ventures Limited (Company No. 09342926), provides events, venue hire and catering. Its

annual profits are donated to the College under the Gift Aid Scheme.

Both companies are registered in England and Wales.

Goodenough College



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The Burn, in Angus, Scotland (a property donated to the College in 1947) is used by members of the College for

educational and recreational activities. In addition The Burn is used by many of the Scottish universities as a

centre for reading parties, study groups and for educational events and seminars. The Burn’s assets are a

restricted fund of the College.

Investment powers and polices

The Trustees are permitted 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 Trustees wish to pursue a policy which provides revenue for its current purposes and enhances income

and capital growth over the longer term, thereby enabling them to meet their current and future objectives in

accordance with the purposes of Goodenough College.

Investment management is delegated to and managed by Rathbones. The Trustees require the managers to

pay attention to the standard investment criteria, namely the suitability of the class of investment and the

need for diversification insofar as is appropriate to the circumstances of Goodenough College. Any restrictions

on the type of investments or markets in which the manager would invest on the client’s behalf are set out in

writing.

The Trustees have determined that the main College portfolio be managed to produce a total return of RPI

plus 4% over a three year rolling period.

Stocks which are not quoted on a recognised stock exchange or otherwise actively traded may not be held by

the investment manager, without prior approval of the Trustees.

Goodenough College



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OBJECTIVES AND ACTIVITIES

The College opened in 1931 as a residential college for students from the then Dominions. Its aim was to

improve international tolerance and understanding amongst people on the brink of their careers by providing

a forum in which they could interact. It has expanded greatly since that time and now consists of a community

of postgraduates from any country worldwide.

The College’s charitable objects, as set out in its Memorandum and Articles of Association, are:

The objects for which the College is established are to organise, encourage and assist the education in

England 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).

The College’s main activities undertaken in relation to those purposes are defined through its mission and

ambition.

Mission

• To develop future leaders by providing a welcoming residential community for outstanding international

postgraduate students and their families, irrespective of background, where mutual understanding and

respect are fostered and intellectual, cultural and social interactions are nurtured.

Ambition

• From its earliest days Goodenough College has sought to transform the lives of those talented students

who have lived and worked here. Its success can be measured by the global success of many of our

Alumni and by the ties of loyalty and affection which they display towards the College. These strengths

can never be taken for granted, and we must continue to ensure that we attract to the College the same

quality of postgraduate student, to continue to provide them with an exceptional experience while they

are here, and to maintain the closest links with our global Alumni community.

The College has adopted the following strategic goals:

• To attract outstanding postgraduate students from a wide geographic, academic and social base giving

preference to those from the Commonwealth;

• To transform College members through the experience of living in a values-based community which

inspires intellectual engagement and endeavour, encourages cross-cultural understanding and offers an

exceptional social environment;

• To raise the College profile, internationally and within the UK, by developing key opportunities and

pursuing strategic partnerships consistent with our values and ambitions; and

• To sustain the College, including the Goodenough Club and The Burn, as an enduring institution which is

underpinned by secure finances, a well-maintained estate and high quality staff.

The College regularly measures its performance against Key Performance Indicators (KPIs) that assess the

success in the reporting period. These KPIs cover areas including: occupancy; diversity of membership;

numbers of cultural, social, sporting and educational events; numbers and levels of scholarships and bursaries;

and number of Alumni contacts.

Goodenough College



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The College serves many of the academic and professional institutions in London. It maintains a balance

between the broad faculties of medicine and natural sciences, law, business, political and social sciences and

the arts and humanities. It is the first option for scholars from a wide range of international schemes including

Chevening, Fulbright, Commonwealth and Marshall.

As required by the Charities (Accounts and Reports) Regulations 2008 and the Charities Act 2011, the Trustees

consider that they have paid due regard to the Charities Commission guidance in respect of their duties and

obligations as trustees of Goodenough College.

The College provides a wide public benefit. College members return to their home nations or elsewhere with a

broadened perspective of the world and a much expanded knowledge of the cultures and politics of the UK

and other parts of the globe. They experience social, experiential and developmental activities including ‘port

talks’ from esteemed internationally renowned individuals and subject experts. They work, play and dine

amongst a broad spread of social, national and economic backgrounds developing understanding and empathy

across a wide spectrum of experience. The College seeks to secure and provide an increasing level of

scholarships and bursaries to support those who struggle to meet the costs of their accommodation at the

College. This contribution to international tolerance and understanding serves an even greater purpose in

today’s world of political and economic uncertainty.

The College is open to the public as part of the London Open House Weekend scheme and the gardens are

open as part of London’s Garden Squares scheme. A large number of organisations and individuals use the

College’s facilities for their own conferences and lectures. The College supports initiatives such as the Queen’s

Young Leaders and works closely with other charitable organisations that share the College’s aims.

Furthermore the College actively participates in local initiatives through churches, community/outreach

organisations and Camden Council and is always seeking new opportunities for the members of the College to

get involved with and support the community at large. The College-led “Cultural Bloomsbury”, a network

comprising local commercial and cultural organisations, further reinforces the College’s role in the community.

ACHIEVEMENTS AND PERFORMANCE

The College has continued to meet its charitable objects throughout the year.

The primary focus for 2015/16 was the consolidation of the College’s operations following the major

disruption of the refurbishment of London House and William Goodenough House. The College retendered its

facilities management contracts covering catering, maintenance and cleaning and housekeeping and let three

new 5 year contracts commencing on 1 October 2015. The College took the opportunity to reconsider its

contract management structure with the reorganisation of its Facilities Management team. This retendering

has proven successful with real savings identified and a marked improvement in service to the College and its

beneficiaries from the new contractors.

The College incurred £4.8m in ‘other operating costs’ in financing and depreciating its assets and providing

administrative support to its day to day activities.

The College has developed a 50 year ‘Asset Replacement Plan’ (ARP) to provide insight into the long term cost

of replacing its asset base and to enable asset and financial planning for the College. This ARP will greatly

assist the College in the delivery of its aim to sustain the College as an enduring institution which is

underpinned by secure finances and a well-maintained estate.

Goodenough College



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The College undertook a review of its Scholarships and Bursaries programme and spent £179k (2015 : £163k)

on providing financial assistance to over 100 members. The College has set out plans for further development

of this programme.

The 574 Members for 2015/16 came from 77 countries, of which 51% were from the Commonwealth. They

were studying at 69 academic institutions, with 61% undertaking Masters courses, 30% PhD and other

research programmes and 9% other forms of postgraduate qualifications. Their academic subject matter was

as diverse as their backgrounds.

At the heart of the College is its rich and diverse extra-curricular life, which encourages the personal

development of College Members. The College supported over 40 sporting fixtures and over 130 cultural, arts

and educational events in 2015-16. This included Faculty Dinners, Dining-in Nights, Port Talks, an annual

TEDxGoodenough College and musical performances. More than 80 clubs and societies were run by and for

Members. The College incurred £4.4m against ‘providing a residential community’ reflecting the running costs

of the College’s accommodation and its extra-curricular activities.

Members also elect a Members Council annually, which includes three posts which sit on the College’s

Governing body (the Chair and two Governance Reps).

The College has reinvigorated relationships with the City of London in particular, raising the profile of the

College with this important historical partner. The College continues to focus on developing key opportunities

and pursuing strategic partnerships. The College was particularly delighted to join Barclays Bank in their 325th

anniversary celebrations focusing on Frederick Craufield Goodenough, Founder of Goodenough College whilst

serving as Chairman of Barclays. A total of four Chairmen of the Bank, including Sir William Goodenough, were

also Chairman of the College’s Governors.

The Burn continues to develop in line with the Board approved 5 year plan, providing a valuable facility for

Scottish university study weeks and as a useful resource for College members and guests.

The College secured £237k in donations and legacies (2015: £245k).

The subsidiary companies have performed well generating gift aid donations totalling £1,116k (2015: £1,090k)

Goodenough College



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FINANCIAL REVIEW

The College generated group revenues of £10.9m (2015: £9.2m) in the year to 31st

March 2016. Income from

charitable activities (predominantly income generated from rents from Member accommodation) was £6.7m

(2015: £5.4m) reflecting all the member accommodation being open for the full year after the completion of

the London House refurbishment in October 2014. Income from trading activities (predominantly the Club,

short stays, catering and event and venue hire) was £3.2m (2015: £2.8m) reflecting the commencement of

trading in catering and event and venue hire following the change in arrangements under the new catering

contract from 1 October 2015 generating £0.6m (2015: £nil). Revenues from the Club were £2.6m (2015:

£2.8m) reflecting the closure of the Club over the summer to carry out the refurbishment of its 65 bathrooms.

The Consolidated Statement of Financial Activities shows a £0.3m deficit before gains and losses on investment

assets and financial instruments. (2015: £0.6m, excluding £3.5m expended against the major refurbishment of

college property). The College bore £0.7m in loan interest charges (2015: £0.6m) and depreciation of £1.9m

(2015: £1.5m) during 2015/16, demonstrating an EBITDA of £2.2m (2015: £1.6m).

The College’s subsidiary companies made combined surpluses to be gift aided to the College of £1.1m (2015:

£1.1m). The Goodenough Club Ltd created a surplus of £1.0m (2015: £1.1m). Goodenough Ventures Ltd

generated a surplus of £0.1m (2015: nil). The trustees and directors remain confident on the potential for the

subsidiary companies to generate surpluses to be gift aided to the College in future years.

The College holds two investment portfolios, one for the College and one for The Burn. The performance of

both investment portfolios is reviewed regularly by the College’s Investment Committee. The total return on

the main College portfolio over the year was -3.6% and The Burn portfolio was -0.6%. The College has set a

benchmark performance of RPI + 4% for both portfolios. The portfolios have exceeded this benchmark since

inception of the funds in December 2012. The portfolios were managed throughout the year by Rathbones and

the Trustees continue to be satisfied with their management. All investments acquired during the year were in

accordance with Trustees’ powers. The values of the portfolios at 31 March 2016 are shown in note 11.

Funds and reserves

• The College’s reserves are divided between restricted and unrestricted funds. Unrestricted funds are

further divided into designated and other unrestricted funds.

• 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 March 2016 was £14,086k (2015:

£14,337k). See Note 16 for further details.

• Unrestricted funds total £141,335k (2015: £142,465k), which includes designated reserves of

£129,568k (2015: £132,262k) and general reserves of £11,767k (2015: £10,203). See Note 17 for

further details.

• The tangible fixed asset reserve of £126,969k (2015: £129,663k) represents the value of the college’s

tangible fixed assets within the unrestricted fund after taking account of the long term loan. The

capital replacement reserve of £2,599k (2015: £2,599k) represents a sum designated by the trustees

for the future renewal of tangible fixed assets.

The Trustees have reviewed the College’s reserves policy. This review encompassed 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, which will be required during the current planning

framework. The review concluded that to allow the College to be managed efficiently and to provide a buffer

against interrupted services, general reserves in the range from £5 million - £7 million should be established

Goodenough College



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and maintained in the longer term. 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£3 million) and a loss of 50% of Goodenough Club net

revenue for 2 years (c£1 million). In addition, a minimum of £1 million is considered necessary to deal with

major estate issues, such as a failure of heating, plumbing or electrical services in either House.

The College’s general funds of £11.8m (2015: £10.2m) at 31 March 2016 represent the value of unrestricted

funds not represented by tangible fixed operating assets after taking account of the value of those assets

funded by the outstanding long term loan. Combined with the Capital Replacement Reserve and the general

funds of the subsidiary, this represents ‘freely available funds’ of £14.4m (2015: £12.8m). This is supported by

£10.6m of unrestricted investment properties and £6.7m within the College investment portfolio.

Given the College’s strategies to retain its investment properties for the benefit of future beneficiaries and to

provide a capital replacement reserve sufficient to fund the future replacement of its capital assets, the extent

to which the freely available reserve is backed by available cash reflects the “economic reality” of the major

asset refurbishment project carried out over the past few years. The College expects future operating profits

and surpluses to increase the level of reserves over the longer term and to provide sufficient cash and freely

disposable assets to fund the required replacement of capital assets in the future. The generation of funds to

support this asset replacement plan forms part of the College’s ongoing financial and operating plan.

With the restatement of the value of tangible fixed assets at deemed cost as at 1 April 2014, the College no

longer holds a revaluation reserve.

The Trustees consider a key measure of sustainability for the College to be current and future liquidity cover,

rather than just the surplus or deficit accounting position. Through the establishment of a financial planning

subcommittee, work is being carried out on behalf of the Board to monitor the level of cash required by the

College in order to maintain appropriate cash backed designated funds to support the College’s future asset

replacement and investment needs.

Bank facilities and borrowings

On 17 March 2015 the College extended its loan facility with Barclays Bank plc (“Barclays”) by £1m to £26

million, the College completed the drawdown of the facility during 2015/16. In 2020/21 the loan is subject to

re-financing discussions with Barclays. The loan is secured against the College Estate. See note 15 for more

details.

The borrowings and repayments of capital are the subject of specific agreed banking covenants, namely

Cashflow Cover and Loan to Value. Financial procedures are in place to monitor compliance with these

covenants.

Principal Risks and Uncertainties

To manage risk, all College Governors and staff must understand the nature of risk and accept responsibility

for risks associated with their area of authority. The necessary support, assistance and commitment of senior

management are provided to ensure that both operational and strategic risk is managed to the best of our

ability. The risk management process, therefore, provides reasonable, but not absolute, assurance that the

organisation is protected.

We define key strategic and operational 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. These risks

are reported to the Trustees through the risk management process, allowing them to challenge any

Goodenough College



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assumptions management have made about risks and understand the context in which decisions are taken.

This helps them to ensure that the most serious risks are being managed effectively.

• Revenue shortfall and downturn in member application numbers and diversity have been identified as

fundamental financial risks in respect of Goodenough College. The promotion of the College to

educational institutions and scholarship bodies both within London and internationally is given the highest

priority in order to mitigate this risk along with the development of the College’s own scholarships and

bursaries schemes. Application numbers are reviewed on a regular basis.

• The College recognises that securing sufficient funds to implement the identified asset replacement plan

represents a key risk to the College. The College is mitigating that risk first through the development of

the comprehensive asset replacement plan and long term financial planning.

• Having identified interest rate risk there is a comprehensive interest rate hedging arrangement in place in

respect of loan facilities which are subject to certain covenants. Further details can be found in Note 14.

• In order to secure income generated by Goodenough Club, the College remains committed to maintain

the accommodation to a high standard (reflected in the refurbishment of its 65 bedrooms during 2015/16)

whilst continuing a proactive sales and marketing policy.

The College continually improves the process by which it reviews, registers and mitigates those risks which

may impact on College life and operations. Risks are reviewed by senior staff throughout the College year and,

in addition, the Board reviews a financial risk analysis on a quarterly basis and there is risk management

oversight provided by the Audit Committee. The capacity and capability of staff and contractors is regularly

reviewed by the Executive and reported to the Board and its committees.

With the majority of the College’s income streams generated in year from Member Rents, Club charges and

other trading income streams the impact of these trading environments will affect the financial performance

of the College. The College is confident that its planning, risk management and operational management

activities mitigate these risks adequately.

PLANS FOR FUTURE PERIODS

The College plans to develop further its programme of College and Member led activities, including the

development of Dean’s Seminars and additional extra-curricular activities for Members, taking every available

opportunity for their personal and professional growth and development.

The 2016/17 budget includes a substantial increase in the level of funding provided by the College in support

of scholarships and bursaries. In response to the increasing financial pressures on study in London, the College

sees the provision of this programme of financial assistance as being of vital importance in fulfilling the

College’s charitable objectives. As such, extending the programme even further is a fundraising priority. With

the support of donors and stakeholders, the College will be able to assist many more beneficiaries and ensure

that membership continues to be drawn from a wide geographic, academic and social base.

The College will further maintain its estate leveraging the improved facilities management contracts to ensure

that the best possible services and facilities are provided to members and that value for money is achieved

across the scheme of activities. Widening opportunities to generate commercial funds will be taken through

the further development of the Club, Short Stay and Event and Venue Hire trading activities. The College will

continue to invest in its estate for the benefit of Members.

Goodenough College



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The College will look to secure its own financial future through a review of its long term financial planning by a

Trustee-led Financial Planning Subcommittee, which reports to the Board. This will ensure that the College is

well placed to maintain its estate at its current high standard over the very long term. The College will

continue to challenge its cost base and operations; in particular it looks to review its environmental

sustainability with the support of and leadership from its Members.

Impact of the EU referendum

As an organisation that is primarily funded by rents collected from international postgraduate students,

changes following the EU Referendum are likely to have an impact on the College and its members. EU

students (excluding the UK) currently account for some 15% of College numbers. The future status of EU

students studying in the UK will not be clear for some time. As 92% of current College members are not UK

nationals any weakening of sterling is likely to make College rents more affordable. The College relies upon its

investment portfolio to support its reserves position. Recent volatility in the stock market could lead to a

reduction in such funds but this is moderated by appropriate asset allocation. The Governors remain confident

that the level of reserves is adequate and that the changing economic climate does not impact adversely on

the College’s status as a ‘going concern’.

Goodenough College

Consolidated statement of financial activities

(incorporating a consolidated Income and Expenditure account)


_________________________________________________________________________________

-16-

Notes

Unrestricted

Funds

Restricted

Funds

Total Funds

2016

Total Funds

Restated

2015

£’000 £’000 £’000 £’000

Income from:

Donations and legacies 2 - 237 237 245

Charitable Activities:

College Community Accommodation 4 6,348 363 6,711 5,398

Trading Activities:

Commercial Accommodation 2,602 - 2,602 2,814

Catering, Events and Venue Hire 574 52 626 13

Investments 3 668 78 746 723

Total 10,192 730 10,922 9,193

Expenditure on:

Raising Funds 7 86 3 89 82

Trading activities 12 1,801 48 1,849 1,161


Providing a residential community 5 3,816 540 4,356 4,003

Bursaries 5 92 87 179 163

Other Operating Costs 5 4,651 143 4,794 4,338

Project Expenditure - - - 3,467

Total 10,446 821 11,267 13,214

Net expenditure before other gains / (losses) (254) (91) (345) (4,021)

Net gains / (losses) on financial instruments 15 (524) - (524) (1,345)

Net gains / (losses) on investments (436) (76) (512) 528

Net expenditure (1,214) (167) (1,381) (4,838)

Transfers between funds 84

(84) - -

Net Movement in Funds (1,130) (251) (1,381) (4,838)

Reconciliation of funds:

Total funds brought forward 142,465 14,337 156,802 161,640


Total funds carried forward 141,335 14,086 155,421 156,802

All results derive from continuing operations. All gains and losses recognised in the year are included above.

The loss for the year for Companies Act purposes, comprising the net expenditure for the year, was £1,381,000 (2015:

£4,838,000).

The notes on pages 21 to 39 form part of these Financial Statements.

Goodenough College

Consolidated Statement of Cash Flows


-18-

Notes

(Page 19)

2016

2015

Restated

£’000 £’000

Cash flows from operating activities:

Net cash provided by (used in) operating activities (a) 533 (5,482)

Cash flows from investing activities:

Dividends, interest and rents from investments 746 723

Proceeds from sale of investments 773 640

Purchase of property plant and equipment (1,515) (3,821)

Purchase of investments (1,054) (963)

Net cash used in investing activities (1,050) (3,421)

Cash Flows from financing activities:

Interest paid on loan (720) (647)

Interest paid on interest rate swap (697) (347)

Cash Inflows from new borrowings 2,428 9,502

Net cash provided by financing activities 1,012 8,488

Change in cash and cash equivalents in the reporting

period 495 (415)

Cash and cash equivalents at the beginning of the

reporting period 1,347 1,762

Cash and cash equivalents at the end of the reporting

period (b) 1,842 1,347

Goodenough College

Consolidated Statement of Cash Flows (continued)


-19-

NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT 2016

2015

Restated

£’000 £’000

(a) Reconciliation of net outgoing resources to net

cash outflow from operating activities

Net outgoing resources (1,381) (4,838)

Losses / (Gains) on fair value of financial instrument 524 1,345

Unrealised losses / (Gains) on Investment 430 (528)

Investment income (705) (678)

Interest receivable (41) (45)

Loss on disposal of investments 82 5

Depreciation charges 1,865 1,467

Interest paid on loan 720 647

(Increase) / decrease in stock (2) (3)

(Increase) / decrease in debtors (27) 381

(Decrease) / increase in creditors (932) (3,235)

Net cash inflow from operating activities 533 (5,482)

(b) Analysis of Cash and Cash Equivalents 2015 Cash flows 2016

£’000 £’000 £’000

Cash in hand 1,261 420 1,681

Notice deposits 86 75 161

Total Cash and cash equivalents 1,347 495 1,842

Goodenough College

Charity only statement of financial activities


-20-

Unrestricted

Funds

Restricted

Funds

Total Funds

2016

Total Funds

Restated

2015

£’000 £’000 £’000 £’000

Income from:

Donations and legacies 1,116 237 1,353 1,334


College Community Accommodation 6,348 363 6,711 5,398

Investments 668 78 746 723

Trading activities - 52 52 517

Other Income 644 - 644 73

Total 8,776 730 9,506 8,045

Expenditure on:

Raising Funds 86 3 89 82


Providing a residential community 4,201 540 4,741 4,003

Bursaries 92 87 179 163

Other Operating Costs 4,651 143 4,794 4,338

Project Expenditure - - - 3,467

Trading Activities - 48 48 12

Total 9,030 821 9,851 12,065

Net expenditure before other gains /(losses) (254) (91) (345) (4,020)

Net gains / (losses) on financial instruments (524) - (524) (1,345)

Net gains / (losses) on investments (436) (76) (512) 528

Net expenditure (1,214) (167) (1,381) (4,837)

Transfers between funds 84

(84) - -


Reconciliation of funds:

Total funds brought forward 141,758 14,337 156,095 160,932


Total funds carried forward 140,628 14,086 154,714 156,095

Goodenough College

Notes to the Financial Statements (continued)

year ended 31 March 2016

- 21 -

1. ACCOUNTING POLICIES

(a) Basis of preparation

The Financial Statements have been prepared under the historic cost convention, as modified by the inclusion

of investments at market value.

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 2015) -

(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 and applicable accounting standards. The accounting policies have been applied

consistently throughout the accounts.

The Financial Statements have been prepared on a going concern basis as discussed in the Trustees’ report

and the Trustees’ statement of responsibilities on page 14.

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 March 2016 on a line by line

basis. In accordance with Section 480(4) of the Companies Act 2006 and paragraph 397 of the SORP no

separate statement of financial activities is presented for the Charity.

(b) Company status

The Charity is a company limited by guarantee. The members of the company are the Trustees named on page

2. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per

member of the Charity.

(c) Income

All income is recognised in the SOFA when the Charity has met conditions for receipt and the amount can be

quantified with sufficient reliability. Investment income is accounted for when receivable and includes the

related tax recoverable.

Legacies: Legacies are deemed receivable from the date of notification, provided that sufficient

information has been received 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.

(d) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all

costs related to that category. Appeals and publicity costs represent expenditure in relation to fund-raising and

publicity costs. Bursaries and grants payable are accounted for when the Trustees have created an obligation to

make the grant to individuals. Other expenditure for charitable purposes comprises the costs of providing the

accommodation and activities undertaken by the College and is accounted for when incurred. Governance

costs represent expenditure incurred in general management, Trustee related costs and audit costs.

Goodenough College



-22 -

1. ACCOUNTING POLICIES (CONTINUED)

Accommodation costs are capitalised in line with appropriate accounting standards and recognised when the

works come into use. Expensed accommodation costs such as repairs and maintenance are recognised when

incurred.

(e) Reconciliation with previous Generally Accepted Accounting Practice (GAAP)

In preparing the accounts, the trustees have considered whether applying the accounting policies required by

FRS102 and the Charities SORP (FRS102) a restatement of comparative items was needed.

At the date of transition, in applying the requirement to recognise holiday pay accrual and investments at Bid

value, restatements were made. In accordance with the requirements of FRS102, a reconciliation of opening

balances and net movement in funds is provided in note 22.

(f) 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 holiday and study centre for students and graduates.

In addition other donations which are earmarked for particular purposes are treated as restricted funds.

ii) 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 tangible fixed assets,

excluding those of The Burn, which are restricted.

Capital replacement reserve has been established to fund planned replacement of major assets

of the College and Club and the improvement of the facilities therein.

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 both working

capital and capital investment.

(g) Financial instruments

The College may use derivative financial instruments to hedge its risks associated with interest rate fluctuation.

The use of derivative financial instruments is governed by the Trustees’ policies, which provide written

principles on the use of financial derivatives. Derivative financial instruments, if used by the College are for

hedging purposes to alter the future risk profile of interest rate fluctuation associated with agreed banking

facilities.

Financial assets and financial liabilities are recognised when the College becomes a party 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.

Goodenough College



-23 -


Other financial instruments (including the College’s interest rate swap agreement) are initially recognised at

fair value and any changes to their fair value are subsequently recognised in the SOFA under ‘net gains /

(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. Income from Gift Aid

Tax reclaim is recognised in relation to qualifying donations received.

The College is registered for Value Added Tax (“VAT”). Any irrecoverable VAT has been charged to the

statement of Financial Activities.

(i) Tangible fixed assets

The College has elected to present the deemed cost of its freehold assets and its Heritage Assets at the value

held at 1st

April 2014, as permitted under the FRS102 transitional arrangements.

Properties held for Investment and Heritage Assets are not depreciated. Depreciation on other 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)

Freehold buildings 100

Lifts 30

Bathrooms, heating, water, electrical and gas systems, and boiler equipment 18-25

CCTV 20

Ventilation and fire detection systems 15

Access and telephone system 10

Vehicles 5

Computer and other office equipment 4

Other plant and equipment and other fixtures and fittings 4-8

(j) Investments

Investments are valued at BID value as at the balance sheet date and the surplus or deficit arising from this

revaluation is shown within ‘net gains / (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.

(k) Stocks

Stocks are stated at the lower of cost and net realisable value and comprise consumable goods.

Goodenough College



-24 -


(l) Operating Leases

Rental costs under operating leases are charged to the SOFA in equal amounts over the period of the lease.

(m) Borrowing Costs

Interest and charges are expensed and charged to the SOFA when incurred.

Goodenough College



-25 -

2 DONATIONS

Unrestricted

funds 2016

Restricted

funds 2016

Total

funds

2016

Total

funds

2015

£'000 £'000 £'000 £'000

Donations 6 231 237 240

Legacies - - - 5

6 231 237 245

Of the total funds stated for 2015, £236k was restricted and £9k unrestricted .

3 INVESTMENT INCOME

Unrestricted

funds 2016

Restricted

funds 2016

Total

funds

2016

Total

funds

2015

£'000 £'000 £'000 £'000

Income from UK listed investments 175 46 221 232

Income from overseas listed investments 33 8 41 12

Rent from property 424 19 443 434

Other interest - short-term deposits 36 5 41 45

668 78 746 723

Of the total funds stated for 2015, £72k was restricted and £651k unrestricted.

4 INCOMING RESOURCES FROM COLLEGE ACTIVITIES

Unrestricted

funds 2016

Restricted

funds 2016

Total

funds

2016

Total

funds

2015

£'000 £'000 £'000 £'000

College gross accommodation income 6,348 - 6,348 4,982

The Burn income - 363 363 416

6,348 363 6,711 5,398

Of the total funds stated for 2015, £416k was restricted and £4,982k was unrestricted.

Goodenough College



-26 -

5 EXPENDITURE FOR CHARITABLE PURPOSES

2016 2015

£’000 £’000

Unrestricted

Providing a residential community – The College 3,816 3,493

Other operating costs

Administration 1,297 1,335

Depreciation College fixed assets 1,752 1,355

Other operating costs 1,602 1,522

4,651 4,212

Bursaries 92 103

Fixed asset refurbishment costs - not capitalised - 3,463

Total Expenditure for Charitable Purposes - Unrestricted 8,559 11,271

Restricted

Bursaries 87 60

Providing a residential community – The College 59 -

Providing a residential community – The Burn 481 510

Other operating costs

Depreciation 112 112

Administration 31 14

143 126

Fixed asset refurbishment costs - not capitalised - 4

Total Expenditure for Charitable Purposes - Restricted 770 700

Total Expenditure for Charitable Purposes 9,329 11,971

Goodenough College



-27 -

6 SUPPORT COSTS

General

Support Governance Total

£’000 £’000 £’000

College expenditure includes support costs of:

Administrative staff (allocated on a time basis) 716 4 720

Other costs including IT (allocated on a usage basis) 412 2 414

Fees payable to the auditors (College audit fee only) - 38 38

Council and Board meeting costs - 1 1

1,128 45 1,173

Support costs are charged to ‘other operating costs’ on the SOFA.

GOVERNANCE COSTS

2016 2015

£’000 £’000

Council and Board meeting costs 1 2

Fees payable to the auditors 50 27

51 29

Fees payable to the Company’s auditors

Statutory audit 34 27

Tax advisory services 16 -

50 27

7 RAISING FUNDS

Unrestricted

funds 2016

Restricted

funds 2016

Total

funds

2016

Total

funds

2015

£'000 £'000 £'000 £'000

Appeals and Publicity 59 - 59 41

Investment Management Fees 27 3 30 41

86 3 89 82

The College spent £89k on raising funds, which generated £237k in restricted donations throughout the year.

Of the total funds stated for 2015, £10k was restricted, £72K unrestricted.

Goodenough College



-28 -

8 NET OUTGOING RESOURCES

2016 2015

£’000 £’000

Net outgoing resources for the year are stated after charging :

Amounts payable to auditors (Group) 50 27

Depreciation of tangible fixed assets 1,864 1,467

9 INFORMATION REGARDING STAFF AND TRUSTEES 2016 2015

No. No.

Average number of employees (full time equivalent) during the year:

House 44 30

Administration 16 22

Other 21 25

81 77

2016

2015

Restated

£’000 £’000

Wages and Salaries 2,697 2,506

Social security costs 263 252

Pensions 68 61

3,028 2,819

The number of senior staff paid over £60,000 during the year (salary plus taxable benefits excluding pension

contributions) was:

2016 2015

No. No.

£60,001 - £70,000 2 2

£110,001 - £120,000 1 -

£120,001 - £130,000 - 1

£150,001-£160,000 1 -

Pension contributions for these senior staff were £24,260 (2015: £8,762).

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 three Trustees were reimbursed a total of £556 for travel expenses incurred (2015: £373).

During the year Trustees gave a total of £1,716 to the College (2015:£800)

Goodenough College



-29 -

9 INFORMATION REGARDING STAFF AND TRUSTEES (continued)

Pension Schemes

The Company operates stakeholder pension schemes administered by Legal and General. The employer’s

contributions are matched to those of the qualifying employees to a maximum of 10% of pensionable salary for

senior staff and 5% of pensionable salary for other staff and amounted to £67,870 (2015: £61,198). At 31

March 2016 outstanding payments due to the scheme were £9,687 (2015: £14,042).

Key Management Personnel

Key Management Personnel of Goodenough College comprise the Trustees and those employees making up

the Executive team, consisting of the Director, the Director of Finance and Resources, the Director of

Operations, the Director of Development and External Relations, the Dean, the Registrar and the Bursar to the

Burn.

The aggregate compensation (remuneration plus benefits) paid or payable to ‘key management personnel’

during this year was: £593,349 (2015: £609,082)

Redundancy payments:

Total payments made during this year in relation to redundancy pay were £75,757 (2015: £Nil). The accounting

policy is to recognise termination payment liabilities on communication of intention to pay and when

quantifiable. Such payments are accounted for as staff costs.

Goodenough College



-30 -

10 TANGIBLE FIXED ASSETS

a Freehold properties:

Consolidated and company

Land and buildings at valuation College The Burn Total

£’000 £’000 £’000

Valuation or cost at 1 April 2015 (restated) 153,370 10,053 163,423

Additions 1,355 - 1,355

At 31 March 2016 154,725 10,053 164,778

Depreciation

At 1 April 2015 (restated) 1,187 103 1,290

Charge for the year 1,601 103 1,704

At 31 March 2016 2,788 206 2,994

Net book value at 31 March 2016 151,937 9,847 161,784

Net book value at 31 March 2015 (restated) 152,182 9,950 162,132

Freehold properties consisted of student accommodation, the Club 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.

In transition to FRS102, the freehold properties have been taken at deemed cost and will no longer be subject

to revaluation on a five yearly basis. Depreciation has been restated to show the accumulated depreciation

since the transition date.

The historical cost and net book value of the land and buildings if the revaluation had not taken place would be

£33,158,000 (2015: £33,506,000).

One of the College’s properties is used by Goodenough Club, a wholly owned subsidiary of Goodenough

College. It is a mixed use property, in that it provides overnight accommodation for businesses and private

individuals but also for those involved in College activities, including College Alumni, providing College Alumni

the opportunity to be a part of the College community even after they are no longer full time residents.

At 31st

March 2016 the net book value of the mixed use property is £14,836k, with accumulated depreciation

of £106k and in year depreciation charge of £145k.

b Heritage Assets

Consolidated and company

College The Burn Total

£’000 £’000 £’000

Valuation at 1 April 2015 280 20 300

Additions/ disposals - - -

At 31 March 2016 280 20 300

Goodenough College



-31 -

10 TANGIBLE FIXED ASSETS (continued)

The Director of Finance and Resources leads on the preservation and management of Heritage assets. The

College maintains an asset register which details the location, value and description of the asset and ensures

that the Heritage Assets are located in an appropriately secure and managed environment

Heritage assets comprise of paintings and furniture which are available for use and enjoyment of College

members, staff and guests throughout the College and Burn.

The College has elected to present the deemed cost of its Heritage assets at the value held at 1st

April 2014, as

permitted under the FRS102 transitional arrangements. The Heritage assets were reviewed for impairment at

the balance sheet date: 31st

March 2016.

c Fixtures, fittings, plant and equipment

College The Burn Total

£’000 £’000 £’000

Cost at 1 April 2015 2,456 67 2,523

Additions 153 7 160

At 31 March 2016 2,609 74 2,683

Depreciation at 1 April 2015 1,705 27 1,732

Charge for year 152 9 161

At 31 March 2016 1,857 36 1,893

Net Book Value at 31 March 2016 752 38 790

Net book value at 31 March 2015 751 40 791

11 INVESTMENTS HELD AS FIXED ASSETS

a Investment Properties College The Burn Total

Land and buildings at valuation: £’000 £’000 £’000

At 1 April 2015 10,149 2,455 12,604

Additions 450 - 450

Disposals (42) - (42)

At 31 March 2016 10,557 2,455 13,012

The investment properties were the subject of an independent valuation for inclusion at March 2013 by Alpha

Browett Taylor and Ecclesiastical. The additions include refurbishment of the Doughty Mews house, which

forms part of College investment properties.

The College undertook an internal review during the year and the investment properties were not found to be

impaired.

Goodenough College



-32 -

11 INVESTMENTS HELD AS FIXED ASSETS (continued)

Consolidated and Company

2016

2015

Restated

b Listed Investments Notes £’000 £’000

Market Value at 1 April 8,605 7,924

Additions at cost 604 795

Proceeds from disposals (724) (640)

Realised gain (88) (5)

Unrealised (loss)/gain (433) 531

Market Value at 31 March 7,964 8,605

Listed Investments comprise the following:

Investments listed on a recognised stock exchange - Equities 6,104 6,659

Investments listed on a recognised stock exchange - Bonds 1,620 1,703

Alternative Funds 240 243


Investment assets in the United Kingdom 6,081 6,427

Investment assets outside the United Kingdom 1,883 2,178


Cost at 31 March 6,887 6,837

Total investments

Listed Investments (Market Value) 11b 7,964 8,605

Short term deposits 161 86

Investment Properties (Market Value) 11a 13,012 12,604

Investments at 31 March 21,137 21,295

No shareholding investment exceeds 5% of the charity’s investment portfolio.

Goodenough College



-33 -

12 SUBSIDIARY UNDERTAKINGS

The College owns 100% of the issued capital of the following companies.

Subsidiary Undertaking

Company

Investment at

Cost

£

Goodenough Club Limited 250,000

Goodenough Ventures Limited 2

250,002

Summarised financial results of Goodenough Club Limited (Company Registration 2684378) are set out below

and are included in the consolidated SOFA. All activities relate to continuing operations. Within the ‘Cost of

Sales’ of Goodenough Club, there is £640k relating to intercompany transactions with the parent company and

other group entities. These have been eliminated on consolidation in the SOFA.

2016

2015

restated

£’000 £’000

Turnover 2,602 2,310

Cost of sales 1,630 1,220

972 1,090

Gift aid payment 972 1,090

Profit - -

Assets 2,281 2,540

Liabilities (1,323) (1,582)

Shareholders' funds 958 958

Goodenough College



-34 -

12 SUBSIDIARY UNDERTAKINGS (continued)

Goodenough Ventures Limited (Company Registration 09342926) is an events and venue hire business which

commenced trading in October 2015.

Summarised financial results of Goodenough Ventures Limited, are set out below and are included in the

consolidated SOFA. All activities relate to continuing operations. Within the ‘Turnover’ of Goodenough

Ventures, there is £473k relating to intercompany transactions with the parent company and other group

entities, and a total of £89k in expenditure relating to the parent company. These have been eliminated on

consolidation in the SOFA.

2016

£’000

2015

£’000

Turnover 1,046 -

Cost of sales 902 -

144 -

Gift aid payment 144 -

Profit - -

Assets 423 -

Liabilities (423) -

Shareholders' funds - -

13 DEBTORS Consolidated Company

2016

2015

(restated)

2016

2015

(restated)

£’000 £’000 £’000 £’000

Trade debtors 320 129 70 64

Amounts due from subsidiary

undertaking - - 1,118 1,441

Other debtors 20 32 20 34

Taxes recoverable 7 152 34 152

Prepayments and accrued Income 147 154 145 146

494 467 1,387 1,837

The amounts presented above are net of provision for doubtful recoverability and foreseeable losses.

Goodenough College



-35 -

14 CREDITORS:

Amounts falling due within one year Consolidated Company

2016

2015

(restated)

2016

2015

(restated)

£’000 £’000 £’000 £’000

Trade creditors 1,294 1,708 824 1,656

Amounts due to subsidiary undertaking - - 2,270 2,431

Taxation and social security 76 110 75 77

Other creditors 396 460 375 431

Accruals 244 835 228 809

Deferred income 109 106 109 106

Other deferred discount 38 - 38 -

Bank Borrowings due within one year 574 - 574 -

2,731 3,219 4,493 5,510

Deferred income consists entirely of commercial rent paid in advance. Prior year deferred income related in full

to income recognised in 2016.

15 CREDITORS: amounts falling due in greater

than one year 2016 2015

£’000 £’000

Bank Borrowing

Falling due between 1 and 2 years 697 462

Falling due between 2 and 5 years 2,783 2,100

Falling due in more than 5 years 21,946 21,010

25,426 23,572

Financial Instrument

Falling due in more than 5 years 2,523 2,696

Other Deferred Discount

Falling due between 1 and 2 years 38 -

Falling due between 2 and 5 years 92 -

Total 28,079 26,268

Bank Borrowing

The draw down from the facility in the year was £2,427,831 (2015: £9,502,445). The full loan of £26 million has

now been drawn down, with the College starting repayments from 2016/17.

The indebtedness arises from draw down of funds under the College’s 25 year term loan facility agreement

with Barclays Bank of 7 July 2011.

In 2020/21 the entire term loan facility is subject to refinancing discussions with Barclays.

Financial Instrument

The bank loan exposes the College to potential cash flow interest rate risk. The College has a financial

instrument in the form of an interest rate swap entered into to fix the interest the College would be exposed to

on the majority of the loan, from 2014/15 through to 2020/21. The financial instrument is held at fair value,

which is shown above. As at 31st March 2016 the interest rate swap covers £20million of the £26 million loan. The fixed rate (excluding margin) on this hedge is 4.41% on £16million loan and 1.63% for £4million loan.

Goodenough College



-36 -

Other Deferred Discount

During the year, the College entered into a new 5 year catering contract. The terms of the contract included

the supplier refurbishing the College’s catering outlets at a cost of £184,980. The value of the works has been

treated as a discount to the contract which will be applied equally to each year of the 5 year term.

16 RESTRICTED FUNDS

31 Mar’15 Transfer Income

Gains /

losses Expenditure 31 Mar‘16

£’000 £’000 £’000 £’000 £’000 £’000

Burn fund 3,660 84 490 (65) (675) 3,494

Bursaries 200 - 11 (11) (9) 191

Specific donations 488 (84) 229 - (137) 496

Tangible fixed asset reserve 9,989 (84) - - - 9,905

Total Restricted Funds 14,337 (84) 730 (76) (821) 14,086

- Burn fund represents donations given to meet expenditure incurred towards the running and maintenance of The

Burn. Income from investments held in these funds, together with other income relating to The Burn, is disclosed on

the face of the SOFA as restricted income.

- Bursaries are donations specifically made for providing bursaries to qualifying members.

- Specific donations are those to support specific aspects of College activity and projects.

The transfer into the Burn Fund represents:

- The cost of fixed assets bought in the year less deprecation on cost adjusted for the excess of depreciation on the

revalued tangible fixed assets over original cost

- Adjustment to the fund to bring the tangible fixed asset in line with the tangible fixed assets held by the Burn

Goodenough College



-37 -

17 UNRESTRICTED FUNDS

31

Mar’15

restated Transfer Income Gains/losses Expenditure

31

Mar’16

£’000 £’000 £’000 £’000 £’000 £’000

Tangible fixed asset 153,235 (266) - - - 152,969

153,235 (266) - - - 152,969

Long term loan (23,572) (2,428) - - - (26,000)

Tangible fixed asset reserve 129,663 (2,694) - - - 126,969

Capital replacement reserve 2,599 - - - - 2,599

Total designated reserves 132,262 (2,694) - - - 129,568

General funds of the Charitable Company 9,496 2,778 10,192 (960) (10,446) 11,060

Total funds of the charitable company 141,758 84 10,192 (960) (10,446) 140,628

General funds of the subsidiary 707 - - - - 707

Total consolidated unrestricted funds 142,465 84 10,192 (960) (10,446) 141,335

The transfer into general funds includes:

- The cost of fixed assets bought in the year less deprecation on cost

- Adjustment to the fund to bring the tangible fixed asset in line with the tangible fixed assets held by the College

- An amount relating to capital expenditure incurred using restricted funds.

The 2015 balances have been restated as a result of transition to FRS102. This has resulted in the removal of the

revaluation reserve with no net impact on the tangible fixed asset reserve. The change in investment valuation and the

inclusion of the financial instrument, held at fair value, have impacted the General funds. Further details on the

adjustments for moving to FRS102 can be found in note 22.

18 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Restricted

Funds

Designated

reserves

General

Funds

Consolidated

Total

£’000 £’000 £’000 £’000

Fixed Assets

Tangible fixed assets 9,905 152,969 - 162,874

Investments 4,517 2,599 14,021 21,137

Other current assets 20 - 519 539

Cash at bank and in hand 177 - 1,504 1,681

Current and long term liabilities (533) (26,000) (4,277) (30,810)

14,086 129,568 11,767 155,421

Further details of the analysis between each material fund are provided in Notes 15 and 16.

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19 LEASING COMMITMENTS

At 31 March 2016 the charitable company had the following total commitments for equipment under non-

cancellable operating leases.

2016 2015

£ £

Operating leases which expire within one year - £24,000

20 CAPITAL COMMITMENTS

As at March 31 2016 the College had no capital commitments.

21 RELATED PARTY TRANSACTIONS

There have been no related party transactions during the year other than those disclosed in notes 9, 12, 13 and

14.

22 TRANSITION TO FRS102

2014 2015

£’000 £’000

Net Movement in Funds as previously stated (3,546) (3,840)

Adjustment for:

Change in gain / (loss) on Investment (Prior Year reversal) - 4

Change in gain / (loss) on Investment (4) (6)

Prior Year Holiday Pay Accrual - (18)

Net in year movement in fair value of financial instrument (1,718) (978)

Restated balance: (5,268) (4,838)

Net Assets as previously stated: 163,362 159,522

Adjustment for:

Change in Investment Valuation from MID to BID (2014) (4) (4)

Change in Investment Valuation from MID to BID (2015) - (2)

Holiday Pay Accrual - (18)

Fair value of financial instrument (1,718) (2,696)

Restated balance: 161,640 156,802

At the date of transition the investment assets have been revalued at BID market price, as required under FRS102,

compared to previous valuation at MID market price. This has resulted in a change of £5,623 in unrealised gain / (loss)

on investment and value of investments.

Goodenough College



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At the date of transition in applying the requirement to recognise liabilities arising from employee benefits a liability

was recognised for the short term compensated absence arising from employee entitlement to paid annual leave. The

initial liability recognised at the date of transition was for the holiday entitlement carried forward and for the

entitlement arising in the year which was due but not taken.

At the date of transition the College held a financial instrument as defined under section 12 of FRS102 in the form of

an interest rate swap. This instrument has been measured at fair value, with the year on year movement in value

accounted for through the SOFA.

Documents

Goodenough College - YE 31.03.2106 final version … College Chairman’s Welcome for the year ended 31 March 2016 - 1 - I am delighted to introduce Goodenough College’s Annual Report