t'-. '@@@4 BRATHAY
Brathay Trust (A charitable company Iimited by guarantee)
Trustees' Report and Financial Statements for the year ended 31 March 2018
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
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Contents Page
Legal and Administrative Information 3
Trustees" Report 4
Structure, Governance and Management 4 Trustees' Responsibilities s Achievements and Performances 10 Financial Review 20
Independent Auditor"s Report to the Members of Brathay Trust 25
Consolidated Statement of Financial Activities 29
Consolidated Balance Sheet 30
Consolidated Cash Flow Statement 31
Notes to the Financial Statements 32
Brathay Trust Income and Expenditure Account 45
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
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Legal and Administrative Information
Registered office Contact details
Brathay Hall Website www.brathay.org.uk Ambleside Email [email protected] Cumbria Telephone 015394 33041 LA22 0HP Fax 015394 39701
Trustees and directors at the date of approval of this Other trustees and directors who served during report the year
Neil Braithwaite Date resigned Joanna H Coleman (appointed 20 December 2017) Christopher C S Heaton 19 May 2018 Howard P Cooper CBE Malcolm Tillyer 19 June 2017 Charles Cowling Paul Johnson (appointed 11 December 2017) Auditors Katharine S Mclntyre (appointed 21 February 2018) Bethia J McNeil (appointed 21 February 2018) Lamont Pridmore Diane Millward 136 Highgate Marc A Pate Kendal Michelle Skeer Cumbria LAg 4HW
Executive team at the date of approval of this report Principal solicitors
Godfrey C Owen (Chief Executive) Thomson Hayton Winkley Heather T Dixon (Finance Director & 114-116 Stricklandgate Company Secretary) FCA Kendal Jenni MacDuff (Head of Children and Cumbria Young People"s Services) LAg 4QA Gary Tully (Head of Business Development) Dr Lucy Maynard (Head of Research)
Bankers Investment advisors
Cumberland Building Society Sanlam Cumberland House Bank House Cooper Way 55 Main Street Parkhouse Kirkby Lonsdale Carlisle Cumbria CA3 0JF LA6 2AH
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
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Structure, Governance and Management
Governing Document Brathay Trust (Brathay) was first constituted as a charity in 1946. It was incorporated on 30 April 1993 as a company limited by guarantee and is registered as a charity in England and Wales.
Brathay is governed by a Memorandum and Articles of Association and a Trust Deed.
Organisational Structure
Trustees of Brathay are also directors under the Companies Act. The board of trustees has responsibility for setting and monitoring Brathay's performance against the strategic objectives set and meets a minimum of four times a year. The trustees have one committee, the Finance and Investment Committee, with other matters being reported directly to the Board. Additionally a number of trustees have responsibility for liaising with the senior management team in key areas.
Brathay has one wholly owned subsidiary, Brathay Services Ltd, which is governed and operated entirely within this structure.
Finance and Investment Committee
Chair Christopher C S Heaton BA Hons, ACA (Chair and Treasurer to 21 May 2018); Katharine S Mclntyre BA Hons ACA (Chair and Treasurer from 21 May 2018)
Members Neil Braithwaite BA, FRSA, ACA; Michelle Skeer; Diane Millward ACMA. Charles Cowling (from 20 July 2018)
The Finance and Investment Committee considers specific issues in greater detail and makes recommendations on those issues to the board as a whole. It routinely meets five times a year, receives reports on operational matters, and ensures the implementation of strategic decisions.
It undertakes the annual audit review and monitors the performance of the investment managers. It reviews, recommends and reports to the Board on issues of financial reporting, major projects, reserves management, investment management, internal financial controls, financial risk management and the monitoring of compliance with relevant law, regulations and good practice.
The Finance and Investment Committee is responsible for Brathay"s remuneration policy and strategy, ensuring that the remuneration process is professional and impartial, setting the remuneration of senior management and ensuring employees are kept informed. As far as possible, salary scales and benefits are benchmarked to national charities and other relevant/local information.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
4 Trustees' Report %@:a4 for the year ended 31 March 2018 BRATHAY
Structure, Governance and Management
Trustees' Responsibilities The trustees (who are also directors of Brathay Trust for the purposes of company Iaw) are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and regulations.
Company Iaw requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable Iaw), including FRS 102, The Financial Reporting Standard applicable in the UK and Republic oflreland.
Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 resources, including the 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 Charities SORP (FRS 102); make judgments and accounting 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 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company"s transactions and disclose with reasonable accuracy at any time the financial position of the 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees confirm that:
* so far as each trustee is aware, there is no relevant audit information of which the charitable company"s auditor is unaware; and * the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company"s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from Iegislation in other jurisdictions.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
s a'-'- @@@;l Trustees' Report BRATHAY for the year ended 31 March 2018
Structure, Governance and Management
Trustee Recruitment When recruiting new trustees, the board looks for individuals with skills and experience which are of value to Brathay. Trustees, staff and other interested parties may nominate a person for consideration as a trustee. Potential new trustees meet with the chair, chief executive and trustees before being elected to the board. They are provided with information about Brathay and visit the head office in Ambleside and/or one of our regional offices.
Newly appointed trustees hold office until the AGM following their appointment, whereupon they are eligible for re-election for a term of two years, followed by up to two fiirther terms of four years. Thereafter they are not eligible for re-election. There are no other constitutional provisions relating to appointments.
Trustee Induction and Training On appointment, trustees complete an induction programme that includes familiarisation with the purposes and operation of Brathay, appreciation of current issues and guidance on relevant policies such as conflict of interest, safeguarding and child protection. Whilst there is currently no formal training and development programme for trustees, board performance reviews are carried out regularly.
Public Benefit
Under the Charities Act 2011, we have a duty to report on Brathay's public benefit. We are confident that we meet those requirements having taken Charity Commission guidance into consideration. Our mission is to improve the life chances of children and young people by inspiring them to engage positively in their communities. We do this by placing wellbeing at the heart of everything we do. Each of our business units supports our strategic commitment to wellbeing in complementary ways:
0 directly through our own programmes
* through working with adults, in their professional or family roles, to impact children and young people more effectively/positively
* by generating financial contribution and other resources for us to operate sustainably and achieve our long term mission both now and in the future. In planning strategically and operationally, trustees take into account the Charity Commission's guidance on public benefit.
Risk management Trustees have overall responsibility for ensuring that Brathay has an appropriate system of control and for taking suitable steps to safeguard Brathay"s assets. A summary of the major risks to which Brathay is exposed, and the relevant mitigating factors, is maintained in a risk register. These are reviewed regularly by the trustees who work closely with the senior management team to ensure that Brathay has appropriate policies, systems and procedures to manage these risks. Trustees recognise this covers a wide range of areas including: - health and safety, human resources, the environment, commercial activities, financial controls, information systems and the overall control environment. The following table shows those risks that Brathay identifies as being intolerable or unacceptable prior to management controls. In all cases the control measures in place reduce the risk to an acceptable level.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
6 0 -. w 's Trustees' Report for the year ended 31 March 2018 BRATHAY
Structure, Governance and Management
Key Risks and uncertainties
Risk or uncertainty Plans and strategies for management Brathay does not generate target income or Leadership and management of income streams has contribution from our key business streams. been reorganised and is clearly focused on delivering strategic objectives. Management information is clear, effective and income pipelines are actively managed. Income budgets for 2018-19 are cautious and costs being tightly managed. Brathay does not have adequate cash flow to maintain Cash is managed extremely tightly. Forecasts have operations, without regular withdrawals from proved to be reliable and any need to access investments. investments proactively managed. The financial plan is kept under considerable scrutiny at both management and trustee level. Brathay's financial model is not effective at supporting We are rebalancing activity to build existing higher the charity's financial sustainability. margin income streams and streamlining structure and costs wt'ierever possible. The charity has a reserves policy, which is reviewed annually and sets out a clear and timely plan for actions when iSsues arise. There is good management information, a well-informed management team and board and decisions are taken on a timely basis. Brathay fails to clearly communicate the importance We have reviewed our external communication and and impact of our work and as a result we do not are using the term "wellbeing" to clearly and maintain our national and Iocal profile. This will coherently articulate our message. adversely affect our ability to deliver our charitable objects and financial sustainability. Brathay is not able to sustain performance following We aim to be a place people want to work. We have Ioss of a key senior member of staff. clear, embedded and effective structures for the management and support of staff. We use this to ensure we develop talented staff through giving responsibility and opportunity. We aim to share knowledge amongst the team, plan for changes and manage departures effectively. Brathay does not respond effectively to a crisis Policies and procedures are in place for all working resulting in a Ioss of operating ability. environments. There is on-going management and training of staff and documented recovery plans where appropriate.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
7 a'-'% Trustees' Report @@@4' BRATHAY for the year ended 31 March 2018
Structure, Governance and Management
Key Risks and uncertainties
Risk or uncertainty Plans and strategies for management Brathay has a major safeguarding incident involving The safeguarding policy is up to date and reviewed children and young people or vulnerable adults. regularly. Staff are all appropriately trained and the DBS service is used. Staff awaiting DBS clearance are not allowed to work alone with young people. Each programme and activity is risk assessed to minimize risk. Four monthly safeguarding review meetings are led by the chief executive. TRere !s a fatality of or ma3or injury as a result of a There are extensive and comprehensive health & Brathay programme, Ieading to permanent disability, safety systems throughout organisation and a culture or we are found guilty of a failure to comply with which allows choice by participants on programmes. health and safety obligations in respect of our outdoor There is regular monitoring, reporting and activities. benchmarking to ensure high standards are adhered to. A serious fire breaks out in accommodation There is a range of policies and procedures in place to ensure appropriate standards are adhered to. External auditors have been appointed to revievv arrangements. A serious incident occurs as a result of overworked or We aim to ensure that contracts we take on are Iack of appropriate staff support. adequately structured and funded, to avoid unrealistic workloads that can increase illness, accidents, staff turnover and decrease productivity. We work to operate effective procedures to ensure time spent at work is sufficient to deliver all roles. We ensure all staff are required to take their annual leave regularly to ensure they are rested. Personal or confidential data is shared inappropriately. We have appointed a compliance officer to ensure we have the requisite knowledge and focus to ensure high standards in the management of data and compliance with the law and regulations in this area. We have new policies, procedures and reporting systems. Brathay is subject to a cyber security incident by which We have audited our internal security and developed we mean, the unauthorised access or attempted and are delivering an ICT security plan; we have access to our ICT systems, a breach of our security reviewed our external support contract and are using policies or procedures which affect the integrity it to actively obtain advice on key issues; we have or availability of our ICT systems or data. included key infrastructure developments in the 2018/19 budget process. A terrorist incident occurs on one of Brathay's sites or Prevent training is part of staff induction. Day to day there is a major terrorist incident in the local area. site vigilance is encouraged. ln event of incident occurring Iocally, the critical incident policy would be instigated.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
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Structure, Governance and Management Key performance indicators
The trustees use a range of financial indicators to measure Brathay"s performance, with strong budgetary, cash flow and reporting processes.
There are a range of equally important non-financial indicators relating to: @ the quality of programmes which are measured using research and evaluation tools pioneered by the research team and providing primarily qualitative information * health & safety * safeguarding * information governance customer satisfaction
All of the above are reported on regularly and actively managed.
Daily Operations
Brathay has a written schedule of matters reserved for decision by the whole board, which include: the formulation and implementation of strategy overseeing the implementation of the strategy through annual operating plans and budgets * the monitoring of progress, accepting ultimate responsibility for the sound professional, Iegal and financial management of the charity.
Matters not reserved for decision by the board are delegated either to the Finance and Investment Committee or to the chief executive.
Monthly finance and quarterly board reports are provided to trustees. The chief executive and finance director attend meetings of the board of trustees whilst other members of the senior management team also attend on a cyclical basis. The chief executive is responsible to the board of trustees for the financial performance and charitable impact of Brathay.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
9 g.,%'aa @@@i Trustees' Report BRATHAY for the year ended 31 March 2018
Achievements and Performance
Objectives
Brathay has the following objectives:
* to establish and maintain a centre or centres in any part of Great Britain for the education, including the physical training and moral, intellectual and physical development, of young persons of both sexes from within the United Kingdom; to initiate and prosecute, whether at the said centres or elsewhere, investigation and research into questions affecting the education of such persons;
* to instruct the staff of such centres and other persons to qualify them to promote the aforesaid purposes; and
* to promote any other charitable purposes of an educational nature which can conveniently be promoted in combination with all or any of the purposes aforesaid.
Aims Brathay"s key objective is simply to deliver our mission, using the aims, rationale and strategies set out in the 2015-19 strategic plan. This means we aim to provide programmes that develop young people, which are underpinned by:
* research and practice development, that increase the effectiveness of our programmes; provide development for other individuals; work alongside other complementary educational programmes. The plan was reviewed during the year and continues to provide the framework for work in this and the following year. The plan defines Brathay"s mission as: To improve the life chances of children and young people by inspiring them to engage positively in their communities.
To support delivery of our mission, Brathay has identified four key elements which are embedded in all activities: Practice - To ensure every participant we work with has an inspiring and meaningful development experience;
* Reputation - To enhance our reputation for leadership in our chosen fields so that our expertise is sought after; People and culture - To create an environment that is vibrant, innovative and results focused where people feel valued and supported;
* Performance - To develop our business model to achieve sustainability.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
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Achievements and Performance
Aims continued
This underpins operational plans for each of Brathay's different areas of activity * Children and Young Peoples' Services (CYPS), where we work o In communities
o Providing residential experiences People and Organisation Development (POD), where we have a range of programmes o Enabling change o Developing talent o Apprenticeships
* Research Hub, where our work informs
o Practice development o Sector and policy development o Impact data and development of evidence bases - championing a "practice based evidence' approach o Knowledge management of good practice Fundraising, where we aim to raise funds to support our charitable work and the development of our infrastructure Challenge Events, running inspiring events to raise funds for our charitable activities * Using Brathay Hall and other locations to offer an inspiring place to stay in off-peak times, helping fund our work.
Our Practice
Our vision for young people adds up to wellbeing At Brathay we know everyone has the capacity to do extraordinary things that can inspire and benefit others. This drives our mission to improve the Iife chances of children, young people and families by inspiring them to engage positively in their communities.
Our charitable achievements are supported by the knowledge in our research hub and revenue from our people and organisation development consultancy, along with our enterprising fundraising.
We work throughout the UK to inspire people and organisations to increase individual wellbeing and deliver results from our network of locations across the North of England, including our inspiring Lake District base. Our expert teams engage and encourage people of all ages and backgrounds to discover the Brathay effect, enthused by our beliefin the transformational power of people working together.
We know that wellbeing is the key to young people"s Iives and it continues to be our principal focus in 2018-19. By inspiring and supporting positive wellbeing in communities, we are determined that more young people can share their success and achieve their full potential.
Focusing directly on wellbeing in this way links the work we deliver directly to Brathay's charitable aims, objectives and legal purpose and ensures a focus on public benefit.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
11 t'-. e % @@$4 Trustees' Report BRATHAY for the year ended 31 March 2018
Achievements and Performance
Our Practice continued
You can't do wellbeing to people We support young people to become more aware of themselves and their context: how they feel and how they function in the world; their wellbeing. Once aware, they can realise their abilities, take control and make their own effective choices. Then they can take action to improve their own wellbeing and perhaps share that with the people they live with,-shaping and even Ieading their community wellbeing.
We know stronger wellbeing makes better lives We inspire children and young people to make positive changes that Iast a Iifetime. Our programmes focus on increasing the wellbeing of young people, supporting them to feel good and to function well. We work with over 7,000 young people every year, close to their homes and/or on immersive residentials in the Lake District. By focusing on the skills, attitudes and behaviours that young people need to develop their potential, their employability, and their resilience, we support them to become empowered to make active choices that will benefit them, and the people around them.
Engagement Our engagement programmes help young people to engage within their families, education, work, communities and/or environment. We work with young people"s strengths to support them to engage towards a positive future. Our Be SAVY proBramme helps tackle Child Sexual Exploitation by supporting young people towards positive and safe relationships, and has a 63% retention rate. "At first / didn't want to go, but now I'm really glad. You learn things in yourself. Become more confident. Make new friends."
Development Our development programmes assume young people are engaged but need support to take control to achieve what they want to achieve. We support young people in how they can get what they want towards a positive future. Our Get Real programme supports young people Ieaving care to move towards employment, or to re- engage with education or training, with 88% of participants saying their motivation has improved. ?/ feel confident as / am communicating with people / didn't know and am able to make eye contact now?.
Leadership Our leadership programmes assume young people are engaged and empowered but need support to take the lead in their own lives as well as for social action. They may become future leaders in schools, communities, or organisations. The Aspiring Leaders Programme supports the next generation of charity leaders, with 23 participants awarded degrees in 2017, and is jointly delivered with the University of Cumbria. ?There are a lot of boarded up houses... it doesn't change that directly. What it does do is give potential leaders the chance to see these issues, and the confidence and the ability to address them?.
Company Reg:stration Number: 2!314206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
12 J?-'. s as Trustees' Report Tor the year ended 31 March 2018 BRATHAY
Achievements and Performance
Our Practice continued
Our work with people and organisations In the same way as we can improve the life chances of children, young people, and families, then we recognise that investment in people and organisations can enhance business performance. Equally the concept of well- being is also becoming a priority area in the business world as organisations recognise the need to change their relationship with employees and partners.
We therefore offer personal and organisational development programmes that address business challenges. These range from programmes focused on developing and engaging emerging talent to build a sustainable workforce, employee engagement programmes to align organisations around a common vision/culture, and specific executive interventions to address issues such as directorate or supply chain alignment.
We deliver these programmes throughout the UK and in other parts of the world to enable effective business performance. Many of these clients also provide support through their corporate social responsibility programmes, and want to enable our work in the community. We therefore develop complex and far-reaching relationships with these clients.
As the world of work changes and we see the impact of centennials then we will continue to develop our approach and methods to address the needs and challenges of the environment. We regularly work with senior business Ieaders who came to Brathay as a child or young person, and recognise the impact the experience had on their outlook and capabilities. We will continue to work closely with our CYPS colleagues to offer a lifecyle of support that aligns with our well-being focus.
Reputation Based on our work in practice development we have been able to promote our work with clarity and impact, enabling partners and stakeholders to understand the value we provide to their issues and strategies.
Brathay"s strategic focus is to support the wellbeing of all children, young people and families we work with as we believe it underpins everything they do, at every stage of their Iife. We define wellbeing as feeling good and functioning well: that is; how good or well they feel about themselves and their situation and therefore how they can interact or be in life. This forms a foundation to all of our programmes.
Our evidence informed approach means that every participant"s experience of Brathay is a journey of building their awareness, evaluating their choices and taking positive action. This simple but powerful process has developed over many years into a highly effective approach to learning. It is readily understood by partners and enhances our reputation and impact.
People & Culture
Our strategy continues to be to use the principles of Investors in People to deliver good people management practice with a thriving staff team and volunteer resource. Organisational values have been clearly defined and influence day to day behaviours. The core staff team is thriving and there is a new and developing base of volunteer supporters.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
13 a'@'#> Trustees' Report BRATHAY for the year ended 31 March 2018
Achievements and Performance
Performance We closed the year with a substantial financial Ioss, largely due to difficulties in securing the volume of delivery we anticipated over the year. This is a disappointing outcome in a year where we made many very positive development interventions, our programme evaluations were consistently positive and impactful and we developed a number of areas of the organisation to make us more sustainable in the longer term.
Partnerships Brathay recognises the fundamental importance of effective partnerships in ensuring it delivers its objectives and has a wide range of partnerships within the public, private and charitable sectors. Partners are central to Brathay"s work with children and young people. They include funders, customers, local authorities, businesses, schools, colleBes, other charities, youth organisations, local community groups and young people. Partnerships are also central to working with corporate bodies that are keen to recognise their role as a company that cares, and are committed to helping people achieve their full potential, whatever their circumstances. These partnerships are based on a joint commitment to achieving social change We have a number of key partnerships including the Centre for Youth Impact, Wigan Council, the University of Cumbria, the University of Bedfordshire, Leeds Rhinos Foundation, F4H, the Francis C Scott Charitable Trust, the Igen Trust and the Sir John Fisher Foundation. These partnerships do not meet the formal definitions of related parties but are important for an understanding of Brathay's activities.
Working with Volunteers Brathay recognises the value that volunteers can bring to our events and activities. Volunteers are a significant, even an essential, addition to specific events and projects. We rely on, and are very grateful for, the support of volunteers to deliver key fundraising events such as the ASICS Windermere Marathon. We also benefit from the services of a wide range of volunteers in other parts of our work. Brathay works in partnership with volunteers to ensure they feel valued and have a high quality experience, where possible providing personal or organisational development opportunities. The support of volunteers and Iocal communities is key to our on-going success.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
14 #?. ffi '% Trustees' Report @@@l for the year ended 31 March 2018 BRATHAY
Achievements and Performance
Significant Activities
As explained on page 11, Brathay undertakes an extensive range of activities. The charity is managed in a number of business units. The Consolidated Statement of Financial Activities (Page 29) and the detail in note 3 link clearly to these activities:
* Grants and donations are derived from the work of our fundraising, research and CYPS teams with grants relating to programme delivery, research and capital projects accounted for as they are used to deliver charitable programmes. Any amounts received but not yet utilised form part of deferred income (note 12). Charitable activities are delivered by both CYPS and POD, where we have a range of programmes, directly commissioned by third parties. * Other activities include trading income from ancillary sources, primarily from use of the Brathay Hall. These include third party events, overnight stays and retreats, rents for staff and other accommodation, and income from challenge events.
In the year 2017-18, Brathay ran 296 programmes with children and young people, compared with 309 in the previous year. There has been a slight decrease in residential programmes and an increase in community programmes since 2016-17.
We worked with 7,920 young people under the age of 25 across those programmes.
Number of programmes 200 IiJ52,
W 2015-16 m u N 2016-17 s s u 2017-18
BrathayHall W%(an Cumbria NorthWest S-Yorkshire W?Yorkshire Centres
Additionally our POD team worked with over 1,100 young people under the age of 25. These young people engage with Brathay through all our POD programmes but particularly apprenticeships and emerging talent programmes.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
15 e a-, Trustees' Report BRATHAY for the year ended 31 March 2018
Achievements and Performance
Charitable Activities against Objectives Set
Each of our business units supports our strategic commitment to wellbeing in complementary ways:
* directly through our own programmes
* through working with adults, in their professional or family roles, to impact children and young people more effectively/positively
* by generating financial contribution and other resources for us to operate sustainably and achieve our long term mission both now and in the future. This approach ensures our achievements align to our objectives ensuring high quality practice and enhancing our reputation. This can be seen across Brathay as follows:
Children & Young People's Services Our programmes focus on increasing the wellbeing of young people, supporting them to feel good and function well. Wellbeing underpins young people"s resilience, potential and future employability. By focusing on awareness of the attitudes, behaviours and skills they need, we support them to become empowered to make active choices that will benefit them and the people around them.
Research Hub We ensure all programmes are designed on quality evidence, through our own experience and user engagement evaluation, as well as wider research and policy. They have a Iogical theory of change outlining how we support people in their current context to achieve outcomes contributing to positive futures, and are continually developing, and have, robust evidence of impact.
People & Organisation Development We work with all employees, from apprentices and graduates; starting out in work, and with people at key times throughout their careers. Our work with managers and senior executives focuses employee engagement, coaching and mentoring which are key people skills that support wellbeing in the workplace.
Challenge Events All our events contribute to our mission by providing opportunities for supporters to support our work financially through sponsorship; they introduce Brathay to a wider range of people, inspiring them to support us in many and varied ways. Events are a great opportunity to enhance wellbeing through participation and involvement.
Guest Services In addition to supporting our learning programmes, we seek to maximise the return on our asset, Brathay Hall, at off-peak times. We focus on providing opportunities for people to experience Brathay Hall as an inspirational place to stay, engaging in activities complimentary to our wellbeing agenda.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
16 Trustees' Report t@t::4 for the year ended 31 March 2018 BRATHAY
Achievements and Performance
Fundraising
The contribution from fundraising is essential to the successful delivery of Brathay's mission. Grants and donations are generated (;rom: Applications to funders (statutory bodies; Big Lottery; trusts & foundations) * Corporate partnerships/sponsorship Challenge events Other fundraising events * Third parties fundraising "in aid of" Brathay * Online appeals Individual giving (regular giving and one-off donations).
Income is used to support community and residential projects with young people, and capital developments.
Not all fundraising income is accounted for immediately it is received. Where income relates to delivery of a programme, a capital project or an event, it is accounted for as the project or event is delivered and there is no Iikelihood of the funds being returned. Only unrestricted donations are accounted for immediately on receipt. Income for services not yet delivered is accounted for as deferred income.
Grants for revenue and capital projects are usually the result of an application process.. The timescales between the submission of a funding application and notification of the outcome can be anything from two to six months. It is inevitable that a significant number of applications submitted by 31 March each year will be outstanding.
During the year Brathay submitted 97 applications to trusts & foundations, totalling f:l,814,000. These bids were made up of 60 for CYPS programmes and 37 for capital items, compared to 54 and 20 respectively for the previous year. Of the bids still outstanding ([471,000) [381,000 relate to CYPS programmes and [90,000 relate to capital projects.
Compliance with the Code of Fundraising Practice
The Code of Fundraising Practice outlines the standards expected of all fundraising organisations in the UK. Brathay has subscribed to the Fundraising Regulator and signs up to the Code of Fundraising Practice. The Code has a number of reporting requirements and we report as follows: Professional fundraisers and/or commercial participators - Brathay has not used a third party organisation to carry out fundraising activities on its behalf. * Since signing up to the Code of Fundraising Practice Brathay has taken steps to review compliance with the standards cited. * During 2017-18 Brathay has received no complaints in relation to fundraising activity. * Brathay takes appropriate steps to ensure the data security of personal information of individuals. Brathay has appropriate controls to ensure the protection of vulnerable people and others from unreasonable intrusion on a person"s privacy, unreasonably persistent approaches or undue pressure to give, in the course of or in connection with fundraising for the charity.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
17 t'-. e a- %*4 Trustees' Report BRATHAY for the year ended 31 March 2018
Achievements and Performance Fundraising activity
Funder Amount Project Yearof application
Children in Need [29,000 Feel Good Function Wel'l (3 years from 2018-19) 2017-18 Life Chances Fund [30,000 Development grant 2017-18 2017-18 Igen Trust E149,000 Leeds family resilience (funding to be received over 3 years from 2017-18) [32,000 Aspired Futures residentials (over 2 financial years 2016-17 ending 2017-18) 2016-17 Francis C Scott cis,ooo Child Sexual Exploitation work in Furness Trust tizg,ooo Aspiring Leaders Project cohort 3 ( commenced 2016-17 September 2017) cz<,ooo Aspiring Leader Project cohort 2 graduated July 2017 2016-17 E40,000 PAYES 2016-17 [18,000 Cumbria Youth Engagement Scheme 2016-17 SirJohn Fisher [86,000 Barrow youth worker funding over 3 years from 2017-18 2016-17 Foundation
Challenge Events The fundraising team run a range of challenge events aimed at raising funds from entry fees and sponsorship from event participants. These events also give profile to a wider audience of potential supporters than would otherwise be the case. Income relating to these events is deferred until the event takes place as are third party costs relating to them. The costs of the staff team designing, developing, delivering and marketing these events are accounted for as they are incurred. The ASICS Windermere Marathon and Brathay l0inlO challenge events take place in May each year. Income from the events totalled [205,000 (2016-17: [167,000) with other events generating a further [29,000. Our Challenge Events team also won a CN Group Business Boost award, giving [10,000 worth of free marketing.
Investment Performance and Objectives
Sanlam Private Investments continue to provide investment management services to Brathay. They manage all Brathay"s investments. They report to the trustees on a quarterly basis when investments are reviewed to ensure that the objectives of the portfolio are being met. Investment performance is measured against an appropriate benchmark. Brathay"s investments are held to generate income in furtherance of the objectives of Brathay. The capital is available to support Brathay when investment opportunities arise or there is a clear operational need. Brathay"s investment policy is relatively risk averse, with a significant proportion of funds held in fixed interest stocks.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
18 e as Trustees' Report @@@l for the year ended 31 March 2018 BRATHAY
Achievements and Performance Investment Performance and Objectives - continued
Trustees regularly review the investment strategy to ensure it continues to meet the needs of the charity.
There are risks associated with investing in equities but the fact that the capital gains can offset the funds utilised by the Trust shows one of the major benefits. Withdrawals from funds have been carefully managed to ensure cash withdrawals have been made in a controlled way.
During the twelve months to 30 April 2018 [685,000 was withdrawn from the Sanlam managed portfolio, E250,000 of this is held in savings accounts with the Cumberland Building Society where the current rate of interest is significantly above that in the portfolio. Taking into account the withdrawals the portfolio produced a f0?al re?urn of 4.4%. For compara?!ve purposes, ?he IA Mixed Investmems 40-85% Shares benchmark returned 5.0%, the MSCI TR Net UK Index made 8.0% and the ARC Charity Balanced Index rose 3.0%. To raise funds to make the withdrawals we made a number of sales within the different asset classes in order to keep overall asset allocation in line with the Charity"s Positive risk profile and Progressive investment strategy.
The first few months of 2018 have proved very challenging and volatile with markets movements being driven often by economic data and geo-political statements. The global economy continues to enjoy reasonable growth and our macro-economic outlook is one of cautious optimism based upon company revenues, earnings and dividends. As previously stated, our strategy of managing risk by way of asset class and geographical diversification should enable the portfolio to weather any upcoming storms.
As a result of the withdrawals the portfolio is currently producing an income of E18,700, equivalent to a yield of 2.01%. However, with the recent addition of E125,000 we will be able to increase the income back closer towards the [22-23,000 area.
Brathay has not requested any investment restrictions (social, environmental or ethical considerations) in the management of this portfolio.
Factors Outside of Brathay"s Control
The key challenge Brathay, or any charity, faces is to ensure that it generates sufficient income to allow it to deliver its charitable objects whilst controlling costs. The ability to do this is impacted on by many internal and external factors. The key external factor in recent years has been, and continues to be, the political and economic climate in which charities operate. Brathay continues to face challenges such as the withdrawal of statutory funders from the commissioning market; uncertainty in the corporate market possibly driven by Brexit; the impact of the Apprentice Levy; pressure on costs from the National Living Wage (whilst supporting the principle); additional regulatory requirements, and associated time and cost commitments, from the incoming GDPR regulations.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
19 0"'. w a, Trustees' Report @@@%s BRATHAY for the year ended 31 March 2018
Financial Review
Financial Overview
Brathay closed the year with a deficit of E329,000 compared to a surplus of [33,000 the previous year (page 29). We experienced significant difficulties in securing the volume of delivery and this related both to our work with children and young people and also within POD. Income was E4,791,000 compared to [5,128,000 in 2016- 2017. Expenditure was well within budget but above the previous year"s level, primarily as a result of pressure on salary costs. A mid-year review led to tighter than ever cost management but the Iead times around income generation are significant and we were not able to achieve a significant turnaround during the year.
We have learned from the experience, and have acted to improve our performance in a number of areas, and also further reduced our costs to give us more resilience when our plans do not play out in the way we anticipate.
Operational Structure
Brathay has clearly defined strategic and operational plans, budgets and management information. Both Brathay Trust and its subsidiary, Brathay Services Ltd, work within the same framework and operating plan. Brathay Services Ltd is used to deliver the group"s commercial activities. It also delivers the majority of POD and some CYPS work. All profits are donated to Brathay Trust. All staff are employed by Brathay Trust with appropriate recharges for services supplied to Brathay Services Ltd. Brathay Services Ltd made a profit of F?1,040,000 (2016-17: [1,200,000) all of which has been donated to Brathay Trust.
Detailed Review
We continue to generate income from a wide range of sources and in recent years that has helped us develop a more resilient financial model. This year our three key income streams, CYPS residentials, CYPS community and POD have not seen the growth needed to support our cost base. Additionally we did not bring in any funding from capital grants. Whilst other Brathay business units generated increased income levels these were not sufficient to compensate for these shortfalls. Expenditure on staff represents 62% of our income, up from the previous year when it was 55%. With a stronger pipeline of business going into the new financial year, we believe the decision to maintain staffing Ievels was appropriate.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
20 #o-. e ?z Trustees' Report @@@l for the year ended 31 March 2018 BRATHAY
Financial Review
Detailed Review - continued
Income
2017-18 2016-17
WGranti&Donatmr, @ Grants & Donat?s; tax,ooo E901,000 11 0ther Achvities 564,0[)[) ff s Other Activitms; 576,(XX) N Investment Inoome; N Investment Ina+me; [% 127,a)0 P,4 134,m0 NCh!klrenand'tcain@ 11 Chiklren and YounB %o@k: flj33,000k p@q4; llcgip?
. P*opk, Ckghn?m and rleopJ Orpn?m and Deviilopmerit fL541,000 Develomient:fl.557.000
These charts illustrate the split of income from key sources and the importance of delivering a range of activities to underpin our key work with children and young people. The balance between the different strands of activity has been maintained. Looking forward, Brathay aims for a steady increase in income from all sources.
Brathay"s principal funding sources continue to be: awards received from grant-making trusts and statutory bodies @ amounts invoiced to clients for training, education and development activities. This is supported by a much wider range of smaller scale income generating activities and this is reflected within other activities.
The year has seen Brathay continuing to deliver income from our work with both children and young people. Significant elements of this are the delivery of key, Iong term projects including the Aspiring Leaders Programme, the second cohort of which graduated and the third commenced, in summer 2017; a range of work delivered for providers of the National Citizen Service (NCS); and work for Wigan Council managing their two outdoor education centres.
The story of our community work with children and young people was mixed, with a substantial increase in work in West Yorkshire in particular. This was more than offset however as we took the decision to withdraw from work based in South Yorkshire, following significant issues with commissioning. This is reflected within fees from charitable activities with children and young people and grants for charitable programmes (note 3).
There was a very substantial reduction in income from our Brathay Hall residentials and a much smaller reduction in income from the centres managed on behalf of Wigan Council (which was primarily as a result of Iate cancellations).
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
21 ';;*4 Trustees' Report BRATHAY for the year ended 31 March 2018
Financial Review
Detailed Review - continued
The POD team saw income just slightly below the previous year of El,536,000 (2016-17: El,557,000). The market for Apprentice Levy work has not developed in the way we thought it would. And this has not generated meaningful growth. The Research Hub has delivered fewer external commissions during the year as they have been asked to focus on enhancing Brathay's own offering. Efforts to maximize the contribution Brathay's assets make to achieving Brathay's charitable objectives have continued successfully. The total for the year was [564,000 compared to [576,000 the previous year
Staff costs Brathay is not a grant giving charity but delivers services directly to beneficiaries. As such, the key expenditure for the year is staff costs, with the majority of staff being involved in the provision of charitable activities. Payroll costs totalled E2,961,000 (2016-17: [2,815,000). Brathay also works with a large number of associate trainers and consultants who are not employees. Working with the right balance of associates and staff is key to maintaining a stable operating base.
Investments and liquidity As at 31 March 2018 the value of the investment portfolios was [1,026,000 (2016-17: E 1,434,000) see note 9, (of which [250,000 is held in savings accounts with the Cumberland Building Society where the return on cash is significantly better that within the portfolio). This level of cash has been held, to ensure funds are accessible if needed, to manage the risk inherent in drawing in investments in an otherwise unplanned manner. The management of investments and liquidity is of key importance. In the current year E685,000 was drawn from investments (2016-17: [75,000). At the date of this report E150,000 has been returned to the investment portfolio since the year end. The Consolidated Balance Sheet shows net current Iiabilities of E443,000 compared with E607,OOO last year. Current Iiabilities include deferred income of f?539,000 (2017-16 [656,000) and cash flow continues to be carefully managed.
Reserves
Trustees review Brathay"s reserve requirements each year. Brathay recognises the need to have an appropriate Ievel of reserves to allow it to operate effectively and to be able to carry on its work in periods of significant challenge, with adequate time to adjust its strategy to new circumstances. The need for reserves arises for the following reasons: 1. Unpredictable income streams 2. Inflexible cost base which takes time to change 3. Pressures on cash flow 4. The need to continue to provide services to vulnerable young people during times of operational realignment.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
22 e l Trustees' Report @ s for the year ended 31 March 2018 BRATHAY
Financial Review
Reserves - Continued
In formulating its policy, Brathay has considered the impact of these factors in detail. It has then considered the planned approach to a financial crisis and what this means for reserves. Considering all factors, the aim of Trustees is to work to move Brathay over time to a position where unrestricted reserves are equal to three times monthly costs plus an amount to fund net current Iiabilities. The objective is that this would give Brathay time to continue its work and adjust its strategy if faced with challenging market conditions. Further details of Brathay"s reserves are in note 13 to the accounts.
Reserves at the end of the year totalled [1,927,000 of which EO were restricted funds. E901,000 are unrestricted and [1,026,000 sit within the trustee reserve. Monies have been withdrawn from this reserve, by way ofinvestments withdrawals durinB the year. There may be further, small withdrawals as Brathay returns to a sustainable position. Brathay has no designated reserves. Free reserves therefore total [901,000 and will be enhanced by the generation of future surpluses.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Fleport and Financial Statements for the Year Ended 31 March 2018
23 Trustees' Report @@J BRATHAY for the year ended 31 March 2018
Financial Review
Going Concern The accounts have been prepared on a going concern basis. Trustees have carefully considered the steps that Brathay has taken and the actions necessary to ensure a stable future. Brathay has sufficient reserves to manage the liquidity of the organisation on an on-going basis. A rigorous and detailed planning process has been completed. The delivery of plans is regularly reviewed and closely monitored in order to ensure effective business management. Trustees recognise there may continue to be an occasional need to utilise investments as a result of historical losses already sustained.
Post Balance Sheet Events There are no post balance sheet events affecting these accounts, however it was with huge sadness that we received the news, in April 2018, of Matt Campbell"s death at this year's London Marathon. Matt was a huge supporter of our work here at Brathay Trust and, following his death, over E400,000 was raised for Brathay in his memory. This will be placed in a designated fund which will be used to support and develop our work with young people, focused on resilience and strong mental health.
Plans for Future Periods Our unique offer is to combine the many distinctive elements of Brathay within "One Brathay". During the year, we will focus on four key strands to support the mission and bring together the combined capacity of Brathay to:
* Further develop our wellbeing within our delivery, implementing key initiatives working with appropriate partners and developing our infrastructure to support this.
* Key partnerships, particularly developing our presence in Leeds to increase CYPS impact and supporting business lines.
@ Develop our funding model to create opportunities to subsidise our work.
* Develop an even stronger evidence base for the impact of both our CYPS and POD work. In particular evidencingimpact in relation to meaningful and sustained change and return on investment.
Auditors A resolution to re-appoint Lamont Pridmore as auditors of Brathay for the ensuing year will be proposed at the Annual General Meeting.
%? t
By order of the Board of Trustees N Braithwaite Director and Chair of the Board of Trustees Approved by the Board of Trustees on 21 July 2018.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees' Report and Financial Statements for the Year Ended 31 March 2018
24 m a. e ', Independent Auditor's report to the @@@l Trustees and Members of Brathay Trust BRATHAY
Opinion
We have audited the financial statements of Brathay Trust (the 'charitable company') for the year ended 31 March 2018 which comprise the consolidated Statement of Financial Activities, consolidated Balance Sheet, consolidated Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic oflreland (United Kingdom Generally Accepted Accounting Practice).
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. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no ottier purpose. To the fullest extent permitted by Iaw, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
* give a true and fair view of the state of the charitable company's affairs as at 31 March 2018 and of its incoming resources and application of resources for the year then ended;
* have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
* have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable Iaw. 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 charitable company 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.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 25 e az Independent Auditor's report to the Trustees and Members of Brathay Trust BRATHAY
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
* the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor"s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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 misstatement of the other information. If, based on the work we have performed, 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 includes the Directors' Report prepared for the purposes of company Iaw for the financial year for which the financial statements are prepared is consistent with the financial statements; and
* the Directors' Report included within the Trustees' Report has been prepared in accordance with applicable legal requirements.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 26 e a-, Independent Auditor's report to the Trustees and Members of Brathay Trust BRATHAY
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustees" Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
@ the 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; or
* the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.
Responsibilities of directors
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 Iaw) 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 charitable 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 company or to cease operations, or have no realistic alternative but to do so.
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.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 27 e az Independent Auditor's report to the @@@s BRATHAY Trustees and Members of Brathay Trust
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
* Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forg,ery, intentional omissions, misrepresentations, or the override ofinternal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
* Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor"s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor"s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
* Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identjfy during our audit.
Gi Lamont FCA, FCCA, ACIS, MCMI, AIMC, FRSA Senior%tatutory Auditor ;%4.17 al4
For and on behalf of:
Lamont Pridmore Statutory Auditor Chartered Accountants and Registered Auditors 136 Highgate Kendal LAMONT Cumbria T'l LAg 4HW PRIDMORE l r
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 28 t-. Consolidated Statement of Financial Activities (incorporating the income and expenditure account) for the year ended 31 March 2018 BRATHAY
Unrestricted Restricted Trustee Total Total Note Funds Funds Reserves 2018 2017 E'000 €'000 E'000 i000 E'000 Income from: 3
Grants & Donations 226 600 o 826 901 Charitable Activities 3,374 o o 3,374 3,617 Other Activities 564 o o 564 576 Investment Income 1 o 26 27 34
Total 4,165 600 26 4,791 5,128
Expenditure on: 4
Raising Funds 382 o 8 :igo 346 Charitable Activities 4,117 600 o 4,717 4,742 Other 13 o o 13 7
Total 4,512 600 8 5,120 5,095
Net Income for the Year Before Other (347) o 18 Recognised Gains and Losses (329) 33 Transfer Between Funds 185 (185) o o
Net gains/(losses) on investments o o 10 10 152
Net Movement in Funds (162) o (157) (319) 185
Reconciliation of Funds Fund balances brought Forward at 1,063 o 1 April 2017 1,183 2,246 2,061
Fund balances carried {orvvard at got 31 March 2018 o 1,026 1,927 2,246
All activities are continuing and there are no recognised gains or Iosses other than those recorded in the Statement of Financial Actiyities. In accordance with the provisions of the Companies Act 2006, a Statement of Financial Activities dealing with the results of the charity only has not been presented. Gross income of the charity of [3,324,000 and net expenditure of E3,654,000 has been dealt with in the accounts of the charity.
The notes on pages 32 to 44 form part of these financial statements.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 29 t-. @ az Consolidated Balance Sheet @@@p as at 31 March 2018 BRATHAY
Group Charity Notes 2018 2017 2018 2017 E'O00 E'000 €'000 E'000
Fixed Assets Tangible assets 8 1,411 1,508 1,411 i,sog 1,434 Investments 9 1,026 1,434 1,026
2,437 2,942 2,437 2,942
Current Assets 8 9 Stock 10 10 11 268 282 Debtors 11 390 437 141 Cash at bank and in hand 185 167 145
585 615 421 432
Current Liabilities Creditors: amounts falling due within one year 12 (1,028) (1,222) (864) (1,039)
Net Current Liabilities (443) (607) (443) (607)
Creditors: amounts falling due after more than 12 (67) (89) (67) (89) one year
2,246 Net Assets 1,927 2,246 1,927
Charitable Funds 1,183 Trustee reserve 1,026 1,183 1,026 o o Restricted reserves o o 901 1,063 General reserve go'i 1,063
Total Charitable Funds 13 1,927 2,246 1,927 2,246
These financial statements were approved by the Board of Trustees on 21 July 2018, and were signed on its behalf by:
% i 1 ?O?
Neil Braithwaite Katharine S Mclntyre Director & Chair of the Board of Trustees Director & Treasurer of the Board of Trustees
The notes on pages 32 to 44 form part of these financial statements.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 30 t-. @ as Consolidated Cash Flow Statement @@@l for the year ended 31 March 2018 BRATHAY
Notes 2018 2017
E'000 E'000
Net Cash outflow From Operating Activities 14 (336) (104)
Returns on investment and servicing of finance 19 26
Capital expenditure and financial investment 329 (177)
Financing 6 158
(Decrease) in Cash in the Year 18 (97)
The notes on pages 32 to 44 form part of these financial statements.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Fleport and Financial Statements for the Year Ended 31 March 2018 31 "%>i a. Notes to the Financial Statpmpnts BRATHAY for the year ended 31 March 2018
1 Company Status
Brathay Trust (Brathay) is a charitable company Iimited by guarantee. The Iiability in respect of the guarantee, as set out in the Memorandum of Association, is Iimited to [1 per member of the company. The members of the company, who are also directors, are the Trustees.
2 Accounting Policies
Basis of Preparation
The Financial Statements are prepared in accordance with the following and on a going concern basis applicable UK accounting standards
* the historical cost convention, as modified by the inclusion ofinvestments at market value,
* the Statement of Recommended Practice Accounting and Reporting by Charities FRS 102, ('the SORP'),
* the Companies Act 2006 and the Charities Act 2011
Going Concern The Trustees and officers have considered their obligation to prepare financial statements on an appropriate basis, having specific regard to Brathay's net liability position. This results from income being received in advance of projects being delivered, as has been the position for many years, and is part of normal operations.
The Trustees have also assessed the impact of budgets, working capital needs, cash and investments. As a result they are of the opinion that Brathay has sufficient reserves to be able to meet its obligations as they fall due and accordingly the accounts have been prepared on a going concern basis.
Basis of Consolidation The consolidated accounts of the group incorporate the accounts of the charity and its subsidiary undertaking both of which are prepared to 31 March 2018. The trading results of the subsidiary undertaking as shown in note 15 are consolidated on a line-by-Iine basis within the consolidated Statement of Financial Activities. A separate Statement of Financial Activities for the charity is not presented as permitted by the SORP and the Companies Act 2006.
Income
Donations, other than for specific projects and fundraising appeals, are accounted for at the time of receipt. Donations for specific projects or appeals are deferred until the projects to which they relate are delivered. All deferred income is accounted for in note 12.
Donations in kind are included within voluntary income and are included at their estimated market value.
Income from capital grants is accounted for when entitlement to the grant becomes unconditional. Until that point it is deferred. Capital grants are accounted for within the restricted reserve.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 32 s az @@@%s Notes to the Financial Statements BRATHAY for the year ended 31 March 2018
2 Accounting Policies - continued
Income - continued
Income from fees and grants for delivering charitable activities is accounted for on the basis of the amount receivable for services delivered in the year. Income received in advance of the delivery of the activity to which it relates is deferred. Income of this sort is accounted for within the restricted reserve.
Income from other activities, including entry fees for events, rents, accommodation and bar sales is accounted for as the service, supply or event to which they relate is delivered.
Investment income is accounted for as receivable.
Expenditure
All expenditure is accounted for on the accruals basis as it is incurred and irrecoverable VAT is allocated to the category to which it relates. Some central su pport costs are allocated to expenditure categories on a basis that is consistent with the use of those resources.
The costs of generating funds and cost of charitable activities include an element of indirect support costs. Support costs represent the staff costs incurred in providing direct support to Brathay's programmes. These include costs relating to central finance, human resources, IT, health and safety and corporate communications. They have been apportioned between the costs of generating funds and cost of charitable activities on a basis consistent with the use of those resources.
Defined contribution pension schemes Pension contributions are charged to the Statement of Financial Activities as incurred.
Operating Ieases Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the term of the Iease.
Tangible Fixed Assets
Tangible fixed assets are stated at cost less depreciation charged to date. Brathay capitalises assets with an initial cost in excess of [1,000 and depreciation is calculated to write off the cost of each asset on a straight-Iine basis over its expected economic Iife. The lives used are as follows: Improvementstoleaseholdproperty thelesserof25years,thelifeoftheleaseorthe useful economic life of the asset
Equipment, fixtures and fittings and 3-10 years motor vehicles
No impairment review is required and finance costs are not capitalised within the cost of the asset.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 33 a?-'%
Notes to the Financial Statements BRATHAY for the year ended 31 March 2018
2 Accounting Policies - continued
Financial Instruments
Brathay only has financial assets and financial Iiabilities of a kind that qualify as basic financial instruments. They are initially recognised at transaction value and subsequently measured at amortised cost.
Investments Investments are stated at market value. Movements in unrealised gains and losses on revaluation of fixed asset investments are included under 'gains on investments" in the Statement of Financial Activities.
Stock
Stock is stated at the lower of cost and net realisable value.
Reserve Accounting
Trustee reserve An expendable endowment which Trustees have the power to convert into 'income'. Distinguishable from 'income' by the absence of a positive duty on the part of the Trustees to apply it for the purposes of the charity, unless and until this power to convert into 'income' is actually exercised. Trustees apply the income from the Trustee Reserve at their discretion.
Restricted reserve Subject to specific restrictions imposed by the donor or by the nature of an appeal. Restricted funds are subdivided between those for income and those for capital projects
General reserve Unrestricted income available for use at the discretion of Trustees in furtherance of Brathay"s general objectives
Designated reserve There are no material designated reserves
All income and expenditure is taken directly to the reserve to which it relates. There are no transfers between reserves.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 34 t-. Notes to the Financial Statpmpnts BRATHAY
3 Income
Year ended Year Ended 31 March 31 March 2018 2017
E'000 E'000
Grants and Donations
Grants for Charitable Programmes 478 491 Grants for Capital Projects o 105 Donations 219 182 Donated Goods and Services 129 123
826 901
Charitable Activities Fees for Training, Education and Development: Children and Young People 1,833 2,060 People Organisation and Development 1,541 1,557
3,374 3,617
Other Activities
Trading Income 353 343 Rents Receivable 113 iog Fees from Events 72 82 Other 26 42
564 576
Investment Income
Dividends Receivable 26 32 Interest Receivable
short term bank deposits 1 2
27 34
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 35 t-. Notes to the Financial Statements @@@4 BRATHAY
4 Analysis of Expenditure
Year ended Year Ended Direct Support 31 March 31 March Costs Costs 2018 2017
E'000 E'000 E'000 c'ooo Raising Funds Voluntary income 167 47 214 170 Activities 128 9 137 144 Investment management 8 o 8 8 Governance costs 17 14 31 24
320 70 390 346
Charitable Activities Training, education and development Children and young people 2,290 272 2,563 2,701 229 Adults 1,926 2,154?l' 2,041
4,216 sort 4,717 4,742
Other o 13 13 7
Total Expenditure 4,536 584 5,120 s,ogs
s 0perating Surplus
The operating surplus is stated after charging: Year ended Year Ended 31 March 31 March 2018 2017 €'000 E'000
Auditor's remuneration - audit 9 9 Depreciation - owned assets 148 149 Depreciation - leased assets 38 30
Operating Iease commitments Payment due on leases expiring within one within 2 to year s years Total f'000 E'000 €'000 Land & buildings 11 11 22 Other 21 12 33
32 23 55
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 36 t'-. @ az Notes to the Financial Statements @@@l BRATHAY
6 Trustee and Staff Information
Trustees Remuneration and Expenses No remuneration was paid to trustees or any persons connected with a Trustee (2016-17: nil). Expenses reimbursed to trustees amounted to E140 (2016-17: [169). These expenses related to travel and subsistence for one trustee (2016-17 : two). In addition on occasion Brathay provides accommodation at the head office to trustees attending board meetings.
Professional Indemnity Insurance Brathay has a professional indemnity policy for E2m, including Trustees Iiability cover, for which the premium was E4,223 (2016-17: E4,904).
Staff Costs
Year ended Year Ended 31 March 31 March 2018 2017 E'000 E'000
Wages and salaries 2,622 2,492 National Insurance costs 216 208
Pension costs 123 115
2,961 2,815
Brathay has two defined contribution pension schemes both of which comply with the requirements of auto enrolment. Additionally Brathay pays into personal pension plans for a small number of employees. Brathay contributes 5% (2016-17: 5%), of employees basic salary to these schemes, after the first three months of employment. At 31 March 2018 outstanding pension contributions totalled f:l7,584 (2016-17: E14,843).
Staff Numbers The average monthly number of employees, analysed by function, was: Year ended Year Ended 31 March 31 March 2018 2017 No No Fundraising, business development & marketing 13 16 Charitable activities go 81 Management and support to 12
113 109
This is based on the number of staff employed by Brathay and excludes any associates who are paid via the payroll.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 37 t-. * as Notes to the Financial Statements BRATHAY
6 Trustee and Staff Information - continued
Employees Earning over E60,000 Yearended YearEnded 31 March 31 March 2018 2017 No No
[70,000 - E 79,999 1 1
Brathay contributed a total of E3,816 (2016-17: [3,787) to defined contribution pension schemes for the employee shown above.
7 Related Party Transactions
There were no material transactions with related parties (2016-2017: Enil).
8 Tangible Fixed Assets
Analysis of movement in tangible fixed assets Group and Charity Improvements Equipment, to short fixtures and leasehold motor property vehicles Total f.'000 E'000 E'000
Cost at 1 April 2017 2,693 1,005 3,698 Additions 70 ig 89 Disposals o (7) (7)
At 31 March 2018 2,763 1,017 3,780
Depreciation at 1 April 2017 1,423 767 2,190 Charge for year 106 80 186 Disposals o (7) (7)
At 31 March 2018 1,529 840 2,369
Net Book Value at 31 March 2018 1,234 177 1,411
at 31 March 2017 1,270 238 1,508
Net Book Value of Assets held under Finance Leases at 31 March 2018 so 120 200
at 31 March 2017 44 142 186
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 38 t'-. * as Notes to the Financial Statements @@@l BRATHAY
9 Fixed Asset Investments
All investments are held in order to provide an investment return for Brathay.
Analysis of Movement in Investments Group and Charity* UKunit trusts, listed Cash Total stocks and shares
f'000 E'000 E'000 Market Value
at 1 April 2017 1,190 244 1,434 Additions 258 31 289
Revaluation 10 o 10 Disposals (707) o (707)
At 31 March 2018 751 275 1,026
Historical cost at 31 March 2018 675 25 700
Analysis of Movement by Category Total Total 31 March 31 March 2018 2017 E'000 c'ooo Listed investments
Fixed interest 227 331 Equities 372 629 Property 38 61 Alternatives 114 138 Commodities o 31 751 1,190 Cash on deposit 1,275 244
2,026 1,434
Analysis of Movement by Location Total Total 31 March 31 March 2018 2017 E'000 E'000
Investments in the UK 627 825 Investments outside the UK 399 609
1,026 1,434
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 39 t'-. Notes to the Financial Statements %]k BRATHAY
9 Fixed Asset Investments - continued
Material Investments
The value of the following investments exceeded 5% of the total market value.
31 March 2018 31 March 2017 Pr@porti0n Value Proportion Value
0/ % E'000 /0 E'000
Cash 63 1,275 17 244
10 Stock Group Charity 2018 2017 2018 2017 ['000 E'000 ['000 E'000
Consumable stock 10 11 8 g
11 Debtors Group Charity 2018 2017 2018 2017 ['000 E'000 ['000 E'000
Trade debtors 214 256 73 101 Other taxes and social security o o 20 o Prepayments 133 96 132 96 Accrued income 43 85 43 85
390 437 268 282
12 Creditors Amounts Falling Due Within One Year Group Charity 2018 2017 2018 2017 E'000 E'000 E'OO0 E'OOO
Loans and finance leases 33 77 33 77 Trade creditors igg 216 199 201 Taxes and social security 129 121 55 34 Amounts owed to subsidiary undertaking o o 73 48 Other creditors 28 32 28 32 Accruals 100 120 99 118 Deferred income 539 656 377 529
1,028 1,222 864 1,039
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 40 t-. Notes to the Financial Statements BRATHAY
12 Creditors - continued
Amounts Falling Due in more than One Year Group Charity 2018 2017 2018 2017
E'000 c'ooo E'000 E'O00
Loans and finance Ieases 67 89 67 89
67 89 67 89
Analysis of Loans & Finance Ieases Finance Loans Totals Leases E'000 €'000 E'000 Due within 1 year 22 11 33 Due in 2 - s years 65 2 67
87 13 100
Interest payable over the term of the agreements 12 o 12
Total commitment 99 13 112
Interest rate 7% 5%
Analysis of Deferred Income Voluntary Charitable Total Group income activities
€'000 E'000 t'ooo
Deferred income at 1 April 2017 112 544 656 Income released during the year (236) (3,727) (3,963) 200 Income deferrer3 during the year 3,646 3,846ipi
Deferred Income at 31 March 2018 76 463 539
Voluntary Charitable Total Charity income activities E'000 ['000 E'000
Deferred income at 1 April 2017 148 381 529 Income released during the year (236) (1,486) (1,722) Income deferred during the year 200 1,372 1,572
Deterred Income at 31 March 2018 112 267 379
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 41 t-. Notes to the Financial Statements BRATHAY
13 Total Charitable Funds Group and Charity Trustee Restricted General Reserve Fleserves Reserve Total E'000 €'000 E'000 E'000
At 1 April 2017 1,183 o 1,063 2,246 Income 26 600 4,165 4,791 Expenditure, gains and losses 2 (600) (4,326) (4,924) transfer between funds (185) o 185 o Depreciation o o (186) (186) At 31 March 2018 1,026 o 901 1,927
Included within the General Fleserve is a designated reserve of E12,500 (E20,000 2016-17) to support projects related to Brathay Explore.
Restricted Reserves None
Analysis of Net Assets Between Reserves
Fund Balances at 31 March Trustee Restricted General Total 2018 are Represented by Reserve Reserve Reserve Reserves ['000 E'000 E'000 E'000
Tangible fixed assets o o 1,411 1,411 Fixed asset investments 776 o 250 1,026 Net Current assets/(Iiabilities) o o (193) (193) Creditors due after more than one year o o (67) (67)
Total reserves 776 o 1,401 2,177
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 42 e as Notes to the Financial Statements @@@l BRATHAY
14 Notes to the Consolidated Cash Flow Statement
Reconciliation of Net Incoming Resources to Net Cash Flow from Operating Activities Yearended YearEnded 31 March 31 March 2018 2017 E'OOO E'000
Net Outgoing Resources (329) 33
Investment income (27) (34) Investment fund charges 8 8 Interest payable 11 9 Depreciation 186 179 Decrease in stocks 1 1 Decrease/(increase) in debtors 47 (35) (Decrease) in creditors (233) (258) Capita! donation o (7)
(336) (104) Analysis of Cash Flows Year ended Year Ended 31 March 31 March 2018 2017 ['000 E'000 Returns on Investment and Servicing of Finance Dividends received 26 32 Interest received 1 2 Interest paid (8) (8)
19 26 Capital Expenditure and Financial Investment Purchase of tangible fixed assets (89) 1228) Net monies (invested in)/drawn from fixed asset investments 418 51
329 (177) Financing Management fee on payment of endowment fund (8) (8) Cash inflow from loans 4 gg
Cash inflow from finance agreements 10 67
6 158 Analysis of Movement in Net Cash and Liquid Resources Opening Cash (losing balance Flows Balance €'000 ['000 f'000
Cash at bank and in hand and net cash and Iiquid resources 167 18 185
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 43 t-. @ az Notes to the Financial Statements BRATHAY
15 Trading Subsidiary
Brathay has one trading subsidiary, Brathay Services Limited, a company incorporated in England and Wales. Brathay holds 100% of the issued share capital of Brathay Services Limited, being four E1 ordinary shares. The investment is shown at cost of E4. Brathay Service Limited has been used to deliver much of Brathay's professional development work. Additionally the company runs a licensed bar and small shop at Brathay Hall for the benefit of course participants, provides accommodation to individuals and conference delegates and runs some activity days for groups. Turnover in the year was [2,506,000 (2016-2017: E2,702,000) from which Brathay Services Limited made a profit of El,040,000 (2016-2017: [1,200,000) which was donated to Brathay. The company's aggregate capital and reserves at 31 March 2018 in full was [4 (2016-2017: E4).
16 Post Balance Sheet Events
There are no post balance sheet events affecting these accounts.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 44 t'-.. Brathay Trust l @@@l Income and Expenditure Account BRATHAY for the year ended 31 March 2018
Total Total
2018 2017
E'000 E'000 Income from:
Grants & Donations 826 901
Charitable Activities 1,242 1,279
Other Activities 190 214
Investment Income 1,066 1,234
Total 3,324 3,628
Expenditure on:
Raising Funds 390 346
Charitable Activities 3,257 3,242
Other 7 7
Total 3,654 3,595
Net Income for the Year E3efore Other Recognised (330) 33 Gains and Losses
Nets gains/(Iosses) on investments 10 152
Net Income for Period (320) 185
Company Registration Number: 2814206; Charity registration number 1021586 Trustees' Report and Financial Statements for the Year Ended 31 March 2018 45