Brathay Trust
(A charitable company limited by guarantee)
Trustees’ Report and Financial Statements for the Year ended 31 March 2017
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Contents Page
Legal and Administrative Information 3
Trustees’ Report 4
Structure, Governance and Management 4 Objectives and Activities 6 Achievements and Performances 20 Financial Review 22
Trustees’ Responsibilities 27
Independent Auditor’s Report to the Members of Brathay Trust 28
Consolidated Statement of Financial Activities 30
Balance Sheet 31
Consolidated Cash Flow Statement 32
Notes to the Financial Statements 33
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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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 Name Date resigned Howard P Cooper CBE Charles Cowling Christopher C S Heaton James Brady 20 October 2016 Diane Millward Malcolm Tyndall 30 July 2016 Marc A Pate Margaret A Ledwith 20 October 2016 Michelle Skeer Malcolm Tillyer
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) BA Hons, FCA Kendal Cumbria LA9 4QA
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 2017
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Trustees’ Report for the year ended 31 March 2017
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 performance of Brathay against the strategic objectives 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 Executive in key areas.
Finance and Investment Committee
Chair Christopher C S Heaton BA Hons, ACA (Treasurer) Members Neil Braithwaite BA, FRSA, ACA; Michelle Skeer; Diane Millward ACMA.
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.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Structure , Governance and Management
Daily Operations
The Board 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 monitoring progress accepting ultimate responsibility for the sound professional, legal 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, and the Chief Executive and Finance Director attend meetings of the Board of Trustees. The Chief Executive is responsible to the Board of Trustees for the financial performance and charitable impact of Brathay.
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 either the head office in Ambleside 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 further 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.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Subsidiary Activities
Brathay has one wholly‐owned subsidiary company, Brathay Services Ltd. Brathay Services Ltd delivers much of Brathay’s work with organisations. It also delivers some of Brathay’s work with young people. Additionally it runs a licensed bar and small shop at Brathay Hall for the benefit of programme participants; provides accommodation to individuals and conference delegates and runs some activity days for groups.
A charging structure has been agreed between Brathay and the subsidiary so that Brathay is paid a reasonable sum for the resources used. The company’s profits are covenanted to Brathay in accordance with Gift Aid rules. As a result of its activities Brathay Services Ltd covenanted £1,200,000 to Brathay during the year (2015– 2016: £ 981,000).
Further details can be found in note 15.
Brathay Exploration Trust Limited
Brathay Exploration Trust Limited (BET) was a charity, independent of Brathay Trust, involved in providing educational and training opportunities nationally and internationally. Following a critical evaluation of their business plan, BET merged with Brathay on 1 November 2015. The key assets and liabilities transferred to Brathay by way of a donation, shown as an exceptional income item within the Statement of Financial Activities for the year ended 31 March 2016. Brathay Trust is committed to ensuring the mission of BET continues following the merger.
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, colleges, other charities, youth organisations, local community groups and young people.
Partnerships are also central to working with corporate bodies who 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 close partnership with the Centre for Youth Impact (CYI) as the North West regional impact network lead. CYI is a Cabinet Office funded project that is a centre for evidence, capacity building and practice development. Brathay is seen as a leader in evidencing impact in the sector, influencing policy and practice.
Our partnership with Wigan Council continues to thrive, supporting some 2,500 young people a year, most of whom are from Wigan.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Partnerships ‐ continued
Brathay continues to deliver the Brathay Apprentice Challenge (The Challenge) in partnership with the Education and Skills Funding Agency (ESFA). The Challenge is the official search for the apprentice team of the year and focuses on helping to create an enhanced apprenticeship for entrants, enabling them to develop skills like team building, leadership and communication – all of which are required in senior positions within business.
Brathay’s relationship with the University of Cumbria continues to be important. Brathay delivers at foundation, undergraduate and postgraduate levels for the University; it hosts placement students as interns and supervises doctoral level research. Brathay also continues to work with placement students from Oxford University and links with the University of Bedfordshire have been re‐established.
During the year Brathay has established a new partnership with Leeds Rhinos Foundation, the official charity of Leeds Rhinos Rugby League Club. The Foundation delivers projects in the heart of their local community by harnessing the power of sport to make a lasting, positive impact on individuals' lives. As Leeds Rhinos' charity they have a unique opportunity to truly change lives through sport. The partnership with Brathay recognises the synergy of our respective programmes, with Brathay able to provide expertise and capability to work with more vulnerable groups, while the Foundation provides a strong community network and the capacity to support a growing number of young people in Leeds.
Brathay continues to work closely with the charity Future for Heroes, whose objectives are concerned with managing the changes experienced by members of the armed forces when resuming civilian life. Brathay’s Chief Executive is a Trustee of Future for Heroes. Further information is at www.f4h.org.uk.
Brathay also works closely with a wide range of educational establishments including a number of academies and related consortiums. This allows Brathay to ensure their skills in leadership training and personal development are well represented in these institutions. Through the Aspiring Leaders Project we have developed an innovative partnership and funding model with the corporate sector and local trust funds in Cumbria. Rathbone Investment Management and Langdale Leisure Ltd are sponsoring the programme and working closely alongside the Francis C Scott Charitable Trust and the Sir John Fisher Foundation to invest in the local community’s long‐term development.
The partnerships referred to here do not meet the formal definitions of related parties but are important for an understanding of Brathay’s activities.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Risk
Trustees have overall responsibility for ensuring that Brathay has an appropriate system of control and for taking suitable steps to safeguard Brathay’s assets. Trustees regularly consider the major risks to which Brathay is exposed. They work closely with the Executive to ensure Brathay has appropriate policies, systems and procedures to manage these risks. A summary of the major risks to which Brathay is exposed and the relevant mitigating factors is held in a risk matrix reviewed twice yearly by the Trustees.
Trustees recognise the wide range of areas this covers including health and safety, human resources, environmental issues, commercial activities, financial controls, information systems and the overall control environment.
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
The primary aims of Brathay continue to be: 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.
Brathay has a Strategic Plan covering the years 2015‐19. This was reviewed during the year and continues to provide the framework for work undertaken in 2016‐ 17. 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.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Aims ‐ continued
To support delivery of the Mission Brathay has identified four key aims which are embedded in all activities. Those aims and the rationale for them are: Aim Rationale Practice To ensure every participant we work with has an Only by driving the quality of our practice can we inspiring and meaningful development experience. continue to increase our reach, both in our delivery and through sharing our knowledge with partners, policy makers and funders. Through this we can build reputation and financial sustainability. Reputation To enhance our reputation for leadership in our chosen For Brathay to be effective at inspiring young fields so that our expertise is sought after. people and adults to realise their potential, we need to be the 'partner of choice' to as many organisations as possible. This is equally important in all sectors in which we work. People and culture To create an environment that is vibrant, innovative We need our staff, associates and volunteers to be and results focused where people feel valued and inspired to deliver a first class service to all our supported. clients.
Performance To develop our business model to achieve In order to survive, thrive and enable us to deliver sustainability. our charitable objects, to invest in our programmes, assets and people, we must ensure we have a strong foundation.
Brathay’s key objective is simply to deliver our Mission, using the aims, rationale and strategies set out in the 2015‐19 Business Plan.
This forms the basis of operational plans in each of Brathay’s different areas of activity Children and Young Peoples’ Services (CYPS) o Community provision o Residential provision People and Organisation Development (POD) Research Hub Support Services (including the range of skills needed to deliver our work to both CYPS and POD such as health & safety, site based requirements and head office functions).
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Activities and Progress Made
Progress made in delivering these aims is as follows:
Practice
Key to driving the quality of our practice is to place Brathay’s Model of Youth Development at the heart of our work with children and young people. This year, our strategy has been to further refine our offer to youth organisations and schools with the aim of being recognised as providing unrivalled excellence in youth development and outdoor education. We have also placed it at the heart of our community offer which has also been further developed and there is now a core community offer with replicable programmes running across a number of localities.
We aim to deliver the highest quality programmes for the benefit of our participants, funders and clients, balancing outcomes and operational efficiency. During the year, we have reviewed all programmes which has enabled us to develop a core offer of three levels of intervention; Engagement; Development; Leadership. This has enabled us to develop and refine our practice to increase the effectiveness of our interventions, whether it be in the community, residential or a blended programme. We are working with key partners to ensure that we support their programmes to have the best possible impact.
In working with adults, POD has worked to develop the product offer to organisations whilst retaining Brathay's core values. The team has developed new ways of working for consultants and the product offering has been developed with new in‐depth tools to support interventions.
Reputation
Based on our work in practice development we have been able to promote our work with more clarity and impact, enabling partners and stakeholders to understand the value we provide to their issues and strategies. We have also developed clarity as regards our contribution to the holistic area of ‘wellbeing’, a term now commonly used to explain the state of being comfortable, healthy, or happy; to explain and quantify how Brathay supports children, young people and families in this area.
We seek to measure appropriate evidence of impact in all our work and aim to communicate the breadth and depth of Brathay’s offer. We work to engage and lead national and local practice and policy development.
We have achieved a good reputation in the field and are well thought of nationally, primarily through our work as an early adopter with the Centre for Youth Impact (CYI). We have had recommendations come from the CYI, peers, and funders that have then led to opportunities and income.
People & Culture
Our strategy has been to use the Investors in People (IIP) standard to deliver externally benchmarked good people management practice with a thriving staff team and volunteer resource. The Investors in People standards continue to be further embedded in our daily practices. 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 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Activities and Progress Made ‐ continued
Performance
We have continued to deliver a wider range of income streams with a lower, more flexible and reactive cost base and to use a social enterprise model to underpin the delivery of Brathay’s charitable objects. In doing this we continue to aim to increase the number of young people we work with every year; to develop financially sustainable community bases and to grow and further develop our fundraising. We also aim to grow our POD business and to deliver a surplus each year.
Significant Activities
Brathay continues to be focused on integrated programmes which combine community‐based targeted youth and community work with residential programmes. Brathay’s approach supports the strategic objectives of the communities it works within. To allow this distinctive contribution, Brathay works closely with a range of key partners and has supported over 7,000 young people this year
We continue to operate our own residential centre in Cumbria as well as running two centres in the County on behalf of Wigan Council. We currently have community based centres in Bradford, Wigan, Sheffield, Barnsley and Barrow in Furness. All head office functions are centralised in Ambleside.
The regional centres have been, and continue to be, the primary focus of partner development and operations for our work with children, young people and families. Brathay’s people and organisational development work makes a significant financial contribution to the organisation and is also an important focus of Brathay’s activities.
Through research and evaluation, the Research Hub enhances Brathay as a learning organisation. Internal and external research is used to inform our work and to develop evidence based programmes. Our capacity to know what works, and why, shapes our
practice and product development strategy marketing and fundraising.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Significant Activities – Children and Young People Brathay’s Mission is to improve the life chances of children and young people by inspiring them to engage positively in their communities. Our charitable work benefits young people up to 25 years of age including the severely disadvantaged, those at risk of exploitation or offending, care leavers, young offenders and those not in education, employment or training, as well as high achievers and young leaders. Our work with young people ranges from community‐based youth work to the delivery of outdoor learning experiences. By focusing on the skills, attitudes and behaviours that young people need to develop their potential, Brathay inspires them to make positive choices in their lives.
We have been able to simplify the words we use to communicate our focus and approach, introducing the term ‘Wellbeing’ to encapsulate the aim of all Brathay’s young people’s programmes. We now have a robust and compelling commentary on how our many and varied programmes have, at their core, a theme of improving young people’s wellbeing.
To support this headline, we have simplified the description of the process we undertake in our programmes; to raise Awareness, increase Choice, and inspire Action. Programmes are now categorised as Engagement, Development or Leadership, the aim being to simplify our communications.
Residential based programmes
Brathay Hall residentials Residential courses that have been either grant or sponsor funded continue to be a significant part of Brathay’s work with young people. Significant programmes include work in conjunction with the Princes Trust and the Police and Youth Engagement Scheme. As well as stand‐alone residential experiences, Brathay’s sites are also the base for residential opportunities that support Brathay’s community programmes. Brathay continues to be a key partner to The Challenge Network and Football League Trust to deliver the elements of their National Citizen Service programmes.
Schools work Brathay has many partnerships with schools across the localities in which it operates. These address the increasing need to provide innovative ways of engaging with young people required to stay at school longer; for revision and catch‐up programmes; and for life‐skills development. This work will continue to grow in volume and intensity going forward, with an emphasis on resilience, mental health and leadership. Key school programmes have continued to develop.
Wigan residential centres Brathay has a long history of delivering residential programmes in partnership with statutory agencies, charities, schools and the private sector. Brathay is responsible for the delivery of residential outdoor education and development programmes for Wigan Council from two centres in the Lake District ‐ Low Bank Ground and Hinning House.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Significant Activities – Children and Young People‐ continued
Brathay Explore Brathay Exploration Trust Limited (BET) merged with Brathay Trust at the start of November 2015. Brathay is working to build on an established expedition programme in the UK and abroad linking these programmes into its core activities.
Community based programmes
Brathay works in partnership with statutory and other partners within local communities to improve outcomes for young people. In 2016‐17 Brathay continued to develop its work throughout the North West and Yorkshire. Brathay’s work is not restricted to these communities. In 2016‐17 Brathay ran 57 community programmes across four different regions and within ten different local authorities.
Our refocus on wellbeing has allowed us to articulate our offer to partners and show how our unique approach complements and fills gaps in provision. We show how we support young people and family’s wellbeing that then supports them into education, employment, training, as well as healthy relationships and transition points (for example leaving care). The programmes fall into three strands within this refocus:
Engagement – e.g. awareness raising of Child Sexual Exploitation Development – e.g. employability programmes for young people in/leaving care Leadership – e.g. Aspiring Leaders Programme
This refocus has allowed us to continue to replicate programmes across more than one region. This includes:
Get Real, a 10 to 16 week employability programme for young people in care Child Sexual Exploitation programmes National Citizen Service programmes and graduate schemes Prince’s Trust programmes Family Resilience project Anti‐bullying workshops.
Other key areas of work continue to include
Aspiring Leaders Programme (ALP)
Giving participants a foundation degree, the Francis C Scott Charitable Trust has committed to fund a further 3 cohorts of ALP following completion of the current ALP2 cohort in summer 2017. This is a really positive step and it is unusual for us to have any programme even partly funded over such a long time scale at this stage.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Significant Activities – Children and Young People ‐ continued
Families First
Using a key‐working approach with vulnerable families, this programme is family led and facilitates positive relationships. By the end of the programme, families are ready to engage in mainstream programmes not accessible to them previously. We have continued to have excellent feedback from this project. We worked with 54 families overall (75 adults and 118 children) in 2016‐17.
Princes Trust Team programme
We delivered eight cohorts across Bradford and Barnsley, this is a 12 week full‐time employability programme for young people who are Not in Education, Employment, or Training (NEET), many of whom are very vulnerable. We have consistently exceeded retention and achievement targets across all cohorts.
Child Sexual Exploitation
We have run four different programmes across three of our regions around the subject of Child Sexual Exploitation. These range from prevention sessions in schools to long term development programmes with very vulnerable young people. These programmes are largely funded by Police and Crime Commissioners.
Income from Brathay’s work with children and young people is included within voluntary income from charitable activities within note 3 to the accounts.
Significant Activities – People & Organisation Development
Brathay provides a range of people and organisation development programmes which are delivered to private and public sector organisations. This work supports our core work with children and young people in a variety of ways. Brathay works with organisations and their people, helping transform businesses and create positive change.
Brathay’s work is based on long term client relationships with programmes designed to improve organisations’ profitability, employee retention and productivity.
Brathay’s people and organisation development work focuses on two main areas:
Engaging in Change
Supporting leadership teams, organisations and individuals to navigate change, develop resilience and create an engaged workforce.
Brathay’s long established leadership development programmes develop the self‐awareness and behaviours necessary to develop leadership potential at every level. Brathay delivers bespoke programmes for a wide range of private and public sector client organisations from first‐line managers to senior leaders. Additionally, Brathay delivers a selection of facilitation, coaching and mentoring programmes
Brathay’s programmes combine theoretical and practical components and workshops. A range of programmes are accredited by the Institute of Leadership & Management thus enabling employees to work towards managerial and leadership qualifications.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Significant Activities – People & Organisation Development ‐ continued
Programmes help create the climate within organisations that supports them in facing the challenges of managing organisational change and discord, motivating and retaining staff, improving workforce effectiveness and delivering attitudinal change. These programmes develop broad organisational capability and enhance the performance of specific groups of leaders, managers and teams.
Emerging Talent
Engaging with clients to develop their leaders of the future, working with talent at all levels within their organisation, including apprentices, graduates and other high performers.
Graduate and post graduate development
Within the Emerging Talent work‐stream, Brathay delivers specific programmes to support graduate transition from the world of education to the world of work. It offers participants the chance to take stock of their personal strengths and characteristics in the context of their career and nurtures leadership skills in the managers of the future. Post‐graduate programmes help MBA cohorts to understand how to improve the performance of project groups collaboratively working to reach desired outcomes.
Apprentice development
Additionally, within the Emerging Talent work‐stream, apprentice development programmes focus on the behaviours and skills needed to make a successful transition into the workplace for those undertaking an apprenticeship. This is an area in which Brathay has excelled for over 70 years and is at the heart of the people and organisation development offering.
Brathay is now also an approved main provider on the ESFA Register of Apprenticeship Training Providers (RoATP) and is offering full apprenticeships under the new Leadership and Management apprenticeship standards. This is in addition to continuing to work with partner organisations to deliver residential and behavioural components of technical apprenticeships.
Brathay is also responsible for delivering the Brathay Apprentice Challenge, the national search for the apprentice team of the year, on behalf of the Skills Funding Agency. This is a high profile project in the apprenticeship arena which engages with employers of all sizes. In 2017 more than seventy teams of nine apprentices have signed up to enter the Challenge.
Income from Brathay’s people and organisation development work is included within income from charitable activities within note 3 to the accounts.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Significant Activities – Research
Research continues to be at the heart of Brathay’s activities. The Research Hub supports Brathay’s strategic direction, business development and practice development. It ensures this is a cyclical process and that Brathay remains a learning organisation with a developing evidence base to support our growth. The focus of the Research Hub is on better understanding and evidencing the need, outcomes and contribution of Brathay’s practice. Brathay continues to share our experience externally, with increasing leadership and influence in the sector
During the year Brathay: Has worked in close partnership with the Children and Young Peoples’ teams to implement a refocus on wellbeing. This is a more joined up and better justified articulation of our approach and the contribution we make to key critical agendas. Has worked in partnership with the University of Cumbria to produce a second book, underpinning the above approach. Has becoming increasingly established as a sector leader in evidencing the impact of work with young people. Has turned this reputation into performance through increased income and opportunity. Income from Brathay’s external training, evaluation and research work is included within income from charitable activities within note 3 to the accounts.
Brathay’s Activities in Scotland
Work Brathay undertakes in Scotland was regulated by the Office of the Scottish Charity Regulator (OSCR) until Brathay requested removal from the Register, effective from 16 February 2016.
Use of 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 the support of volunteers to deliver key fundraising events such as the Brathay Windermere Marathon (now the Asics Windermere Marathon). We also benefit from the services of a wide range of volunteers with specific skills and experience who make tangible contributions to the activities we deliver.
Brathay works in partnership with volunteers (organisations and individuals) to ensure they feel valued and have a high quality volunteering experience. Brathay recognises the personal development outcomes and local community engagement from volunteers supporting our activities. Brathay aims to offer a high quality experience to volunteers, where possible providing personal development opportunities. We also recognise the importance local communities in supporting our work.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Public Benefit
Brathay’s services for children and young people are usually free for the beneficiaries. Funding comes via local authority, employer or grant making trusts and our own fundraising activities. No group of people is excluded from benefitting from Brathay’s services.
Brathay’s services for adults in both the public and private sector are generally funded by employers or third party funders. Brathay focuses on the development of young people and adults to enable them to lead more fulfilling and useful lives within society and its activities are undertaken to further its charitable purposes for the public benefit.
When planning the activities for the year, the Trustees take into account the Charity Commission’s guidance on public benefit.
Charitable Activities against Objectives Set
Progress made in achieving our aims is documented under “Activities and progress made” page 10. Our strategic refocus has placed wellbeing at the heart of Brathay’s work with children and young people whether residential, community or integrated programmes. Research and practice development work hand in hand to influence Brathay’s work and ensure the effectiveness of programmes. Brathay has continued to use a locality model to focus delivery of its provision.
In West Yorkshire we are working across Bradford, Calderdale and Leeds, with strong strategic partnerships in place The Wigan base has continued to offer both community work and Duke of Edinburgh residential experiences; Work in South Yorkshire has grown and we now have bases in Barnsley and Sheffield; In Cumbria, the Aspiring Leaders Programme has been part funded for a further 9 years and a community presence has been established in Barrow in Furness, and we have begun to grow our work on the West Coast.
The residential centres in Cumbria have continued to be busy providing both integrated community and standalone residential experiences for children and young people.
Brathay has continued to focus on those areas in which it can have most impact with children and young people, adults and organisations. The development of a flexible portfolio of activities for children and young people and the streamlining of people and organisation development work to two distinct strands has helped in the development of portfolios which are both replicable and respond to specific needs.
The Research Hub has established a national presence and is well positioned to influence both policy and practice and Brathay has continued to work closely with a wide range of partners.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Fundraising
The contribution from fundraising activity is essential to the successful delivery of Brathay’s mission. Grants and donations are generated from: 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 from all/any of the above is used to support community and residential projects with young people, capital developments and bursaries.
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 likelihood 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.
In 2016‐17, its 70th anniversary year, Brathay placed an increased emphasis on fundraising from events and individuals with donations going towards the ‘New Beginnings’ appeal to support young people in care or leaving care. New events and approaches were trialled with learning being carried forwards to improve and develop future activities.
Grants for revenue and capital projects are usually the result of an application process. However, where possible, this transactional activity is complemented by meetings and other communication with funders who are open to this approach. The timescales between the submission of a funding application and notification of the outcome can be anything from two to six months. It is therefore inevitable that a significant number of applications completed at 31 March each year will be outstanding, that is, the outcome yet to be received. Resources to develop and submit these applications are largely delivered by Brathay’s fundraising team working with the Children and Young Peoples’ teams and, at times, associate fundraisers.
During the year Brathay submitted 77 applications to Trusts & Foundations, 23 totalling £644,000 were outstanding at the year end.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Objectives and Activities
Fundraising ‐ continued
Brathay benefits from the generous assistance of a range of donors, supporters and funders and is very grateful to all those who support its work. Key funders in the year were:
Funder £’000 Francis C Scott Charitable Trust 164 The Igen Trust 14 Hadley Trust 46 Sir John Fisher Foundation 15 National Foundation for Youth Music 20
Of the £164,000 received from Francis C Scott Charitable Trust £120,000 was utilised for programme delivery during the year. All other funds were fully utilised in the year.
The Brathay Windermere Marathon and Brathay 10in10 challenge events take place in May each year. 2016 saw their tenth anniversary. Fundraising income from the event totalled £167,000 (2015‐16: £210,000). Additionally the year saw the inaugural BrathayCycling event. To develop these and other challenge events we invested in a new website www.brathaychallenges.com and in 2017 will deliver BrathayRunning, BrathayCycling and BrathayRowing events.
Fundraising Regulator and 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 2016‐17 Brathay has received no complaints in relation to fundraising activity. Brathay takes appropriate steps to ensure the data security of personal information of individual supporters. 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.
Brathay is in the process of aligning its fundraising reports to the structure of the Fundraising Regulator Annual Return to ensure transparency and ease of future reporting.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Achievements and Performance
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.
As at 31 March 2017 the value of the investment portfolios was £1,434,000 (2015‐16: £ 1,334,000) see note 9.
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.
Over the past 12 months the portfolio has managed a total return of 4.4% compared to 5.5% for the Progressive benchmark and 8.1% for the MSCI UK index. The lower return for the portfolio reflects our cautious stance during the past nine months where we carried a defensive, overweight position in cash. The result of the European Referendum in the UK and the election of President Trump in the US boosted shares prices by devaluing sterling and for hopes of a growth agenda (lower taxes, cutting red tape and infrastructure spending) in North America. Concerns have now switched to European politics with 2017 elections in France, the UK and Germany, and increasing tension between North Korea and the USA. Our strategy remains to manage risk by diversifying the portfolio with regard to both asset classes and geographical regions.
The portfolio produces estimated income of £35,000 per annum and the Trustees have the option of calling on this revenue without impacting the capital value of the fund’s investments, although there is no requirement for this at present.
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. 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. Changes continue to be seen in the commissioning and funding environment. These bring additional uncertainties over income levels and highlight the importance of focusing on Brathay’s own charitable objects.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Achievements and Performance
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 customer satisfaction health & safety safeguarding.
All of the above are reported on regularly and actively managed.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Financial Review
Financial Position
The maintenance of sustainable income levels continues to be a key operational challenge. Income for the year has been sustained compared to 2015/16, with total income of £5,128,000 compared to £5,038,000 (before exceptional income) the previous year. There will always be uncertainty over income but Brathay will continue to have a range of clearly defined activities and flexible cost base to help manage the risk this brings.
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 People and Organisation Development and some Children and Young Peoples’ 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 £1,200,000 (2015–16: £981,000) all of which has been donated to Brathay Trust.
Financial Review
The consolidated financial statements report on Brathay’s performance for the year ended 31 March 2017 The Statement of Financial Activities (Page 30) shows a net surplus for the year, before other recognised gains and losses of £33,000 (2015‐16: £251,000).
Income
Nb excluding exceptional income
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.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Financial Review
Review of the Year
As can be seen, 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, long term projects including the Aspiring Leaders programme, the second cohort of which will graduate and the third commence, 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. We have seen a small amount of growth in our localities but a reduction in our residential provision following a commercial decision to withdraw from some NCS work. This is reflected within fees from charitable activities with children and young people and grants for charitable programmes (note 3).
The people and organisation development team has seen income stabilise at £1,557,000 (2015‐16: £1,537,000 )
The Research Hub has delivered a significant number of external commissions during the year and generated income of £87,000 (2015‐16: £62,000 ) of external income during the year.
Efforts to maximize the contribution Brathay’s assets make to achieving Brathay’s charitable objectives have continued successfully and income from a range of site based activities such as rents, lettings, events and support services to other charities continues to be important. The total for the year was £576,000 compared to £483,000 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 £2,815,000 (2015‐16: £2,597,000).
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.
Social investment
During 2016‐17 Brathay has also secured loans totalling £99,000 from the social investor First Ark for development of a new high ropes course and improvements to accommodation at Brathay Hall. First Ark are funded by Access, Big Society Capital and the Big Lotto.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Financial Review
Financial Review ‐ continued
Investments and liquidity
The management of investments and liquidity is of key importance and in recent years, Brathay has had to draw on its investments to fund losses. In the current year £75,000 was drawn from investments (2015‐16: net deposit £50,000). The value of Brathay’s portfolio at 21 March 2017 was £1,434,000 (2015‐16: £1,334,000).
The Balance Sheet shows net current liabilities of £607,000 compared with £725,000 last year. Current liabilities include deferred income of £656,000 (2015‐16 £862,000) 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 level 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.
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 liabilities. 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.
Going Concern
The accounts have been prepared on a going concern basis. The Trustees have carefully considered the steps that Brathay has taken and the actions necessary to ensure a stable future and the results overall continue to be better than budget. Brathay has sufficient reserves to manage the liquidity of the organisation on an on‐ going basis. Trustees recognise there may continue to be a need to utilise investments as a result of historical losses already sustained, however a rigorous and detailed planning process has been completed and delivery of plans is still being closely monitored.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Financial Review
Investment Policy
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.
Trustees regularly review the investment strategy to ensure it continues to meet the needs of the charity.
Post Balance Sheet Events
There are no post balance sheet events affecting these accounts.
Plans for Future Periods
Brathay will continue to deliver the strategy set out in the Strategic Plan 2015‐19. The plan was reviewed during the year and continues to provide the focus for Brathay’s work. We will be developing and updating the supporting operational plans in order to deliver the Mission on a year by year basis. The four key aims focused on practice, people & culture, reputation & performance will continue to be at the centre of Brathay’s activities during this time.
The plan for our next year is to become known by the communities we serve as a leading charity in wellbeing. We will continue to run high quality community programmes in order to maximise the number of young people we support to improve outcomes. We aim to embed our provision within our four geographical locations and improve financial viability by focusing on delivering scale and replicable projects to deliver high quality, effective residential programmes across priority regions that offer exceptional value for money and contribute towards developing young people’s life chances. For the Research Hub to be a leading voice in influencing the Trust and wider sectors to better understand, develop and evidence practice. This will focus on Brathay being a leading wellbeing charity with well justified and evidenced programme design, approach and impact.
We will continue to develop our fundraising using monies raised to increase the number and range of young people we are able to work with. Our People and Organisation Development work will continue to bring Brathay’s skills and expertise to a wide range of corporate organisations, focusing primarily on emerging talent and managing change. This together with a range of smaller scale activities will continue to help support the costs of our work with children and young people.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Trustees’ Report for the year ended 31 March 2017
Disclosure of Information to Auditors
In so far as Trustees are aware:
there is no relevant audit information of which Brathay’s auditors are unaware; and Trustees have taken all steps that they ought to have taken as Trustees to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Auditors
A resolution to re‐appoint Lamont Pridmore as auditors of Brathay for the ensuing year will be proposed at the Annual General Meeting.
Company Registration Number: 2814206; Charity registration number 1021586; Trustees’ Report and Financial Statements for the Year Ended 31 March 2017
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Independent Auditor’s report to the Trustees and Members of Brathay Trust
We have audited the financial statements of Brathay Trust (a charitable company limited by guarantee) for the year ended 31 March 2017, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and related Notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to Brathay’s Trustees and 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 Brathay’s Trustees and members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Brathay’s trustees and members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Trustees and auditors
As explained more fully in the Trustees’ Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view.
We have been appointed auditors under the Companies Act 2006 and report to you in accordance with that Act.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statement is free from material misstatement whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non‐financial information in the Trustees’ Report and Financial Statements to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2015 28
Consolidated Statement of Financial Activities (incorporating the income and expenditure account) for the year ended 31 March 2017
Unrestricted Restricted Trustee Total Total Note Funds Funds Reserves 2017 2016 £'000 £'000 £'000 £'000 £'000 Income from: 3 Grants & Donations 291 610 0 901 836 Charitable Activities 3,617 0 0 3,617 3,682 Other Activities 576 0 0 576 483 Investment Income 2 0 32 34 37 Exceptional Item ‐ Merger with Brathay 0000228 Exploration Trust Ltd
Total 4,486 610 32 5,128 5,266
Expenditure on: 4 Raising Funds 340 0 6 346 328 Charitable Activities 3,982 760 0 4,742 4,675 Other 700712
Total 4,329 760 6 5,095 5,015
Net Income for the Year Before Other 157 (150) 26 33 251 Recognised Gains and Losses
Net gains/(losses) on investments 26 0 126 152 (15)
Net Movement in Funds 183 (150) 152 185 236
Reconciliation of Funds Fund balances brought Forward at 880 150 1,031 2,061 1,825 1 April 2016
Fund balances carried forward at 1,063 0 1,183 2,246 2,061 31 March 2017
All activities are continuing and there are no recognised gains or losses other than those recorded in the Statement of Financial Activities. 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 £3,628,000 and net expenditure of £3,595,000 has been dealt with in the accounts of the charity.
The notes on pages 33 to 45 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 2017 30
Consolidated Cash Flow Statement for the year ended 31 March 2017
Notes 2017 2016 £'000 £'000
Net Cash Inflow From Operating Activities 14 (104) 153
Returns on investment and servicing of finance 26 33
Capital expenditure and financial investment (177) (180)
Financing 158 (8)
(Decrease) in Cash in the Year (97) (2)
The notes on pages 33 to 45 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 2017 32
Notes to the Financial Statements for the year ended 31 March 2017
1 Company Status
Brathay Trust (Brathay) is a charitable company limited by guarantee. The liability in respect of the guarantee, as set out in the Memorandum of Association, is limited 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 of investments 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 2017. The trading results of the subsidiary undertaking as shown in note 15 are consolidated on a line‐by‐line basis within the consolidated Statement of Financial Activities (SOFA). A separate SOFA 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 2017 33
Notes to the Financial Statements for the year ended 31 March 2017
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 support 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 leases Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the term of the lease.
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‐line basis over its expected economic life. The lives used are as follows: Improvements to leasehold property the lesser of 25 years, the life of the lease or the 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 2017 34
Notes to the Financial Statements for the year ended 31 March 2017
2 Accounting Policies ‐ continued
Financial Instruments
Brathay only has financial assets and financial liabilities 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 2017 35
Notes to the Financial Statements
3 Income Year ended Year Ended 31 March 31 March 2017 2016 £'000 £'000 Grants and Donations Grants for Charitable Programmes 491 425 Grants for Capital Projects 105 103 Donations 182 172 Donated Goods and Services 123 136
901 836
Charitable Activities Fees for Training, Education and Development ‐ Children and Young People 2,060 2,145 Fees for Training, Education and Development ‐ Adults 1,557 1,537
3,617 3,682
Other Activities Trading Income 343 242 Rents Receivable 109 109 Fees from Events 82 69 Other 42 63
576 483
Investment Income Dividends Receivable 32 35 Interest Receivable short term bank deposits 2 2
34 37
Exceptional Item Transfer of assets on the merger of Brathay Exploration Trust Limited * 0 228
0 228
* Assets transferred comprised: £'000 Property 184 Cash 50 Creditors (6) 228
These assets are included in the relevant balance sheet headings within these accounts.
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2017 36 Notes to the Financial Statements
4 Analysis of Expenditure
Year ended Year Ended Direct Support 31 March 31 March Costs Costs 2017 2016 £'000 £'000 £'000 £'000 Raising Funds Voluntary income 146 24 170 155 Activities 139 5 144 142 Investment management 8088 Governance costs 16 8 24 23
309 37 346 328
Charitable Activities Training, education and development Children and young people 2,545 156 2,701 2,724 Adults 1,923 118 2,041 1,951
4,468 274 4,742 4,675
Other 0 7 7 12
Total Expenditure 4,777 318 5,095 5,015
5 Operating Surplus
The operating surplus is stated after charging: Year ended Year Ended 31 March 31 March 2017 2016 £'000 £'000
Auditor's remuneration ‐ audit 9 8 Depreciation ‐ owned assets 149 153 Depreciation ‐ leased assets 30 0
Operating lease commitments Payment due on leases expiring within one within 2 to year 5 years Total £'000 £'000 £'000 Land & buildings 15 10 25 Other 21 28 49
36 38 74
6 Trustee and Staff Information
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2017 37 Notes to the Financial Statements
Trustees Remuneration and Expenses No remuneration was paid to Trustees or any persons connected with a Trustee (2015‐16: nil). Expenses reimbursed to Trustees amounted to £169 (2015‐16: £575). These expenses related to travel and subsistence for two (2015‐16 : three). 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 £2m, including Trustees liability cover, for which the premium was £4,904 (2015‐16: £4,706).
Staff Costs Year ended Year Ended 31 March 31 March 2017 2016 £'000 £'000
Wages and salaries 2,492 2,293 National Insurance costs 208 191 Pension costs 115 113
2,815 2,597
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% (2015‐16: 5%), of employees basic salary to employees to these schemes, after the first three months of employment. At 31 March 2017 outstanding pension contributions totalled £14,843 (2015‐16: £15,514).
Staff Numbers The average monthly number of employees, analysed by function, was: Year ended Year Ended 31 March 31 March 2017 2016 No No Fundraising, business development & marketing 16 13 Charitable activities 81 78 Management and support 12 12
109 103
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 2017 38 Notes to the Financial Statements
6 Trustee and Staff Information ‐ continued
Employees Earning over £60,000 Year ended Year Ended 31 March 31 March 2017 2016 No No
£70,000 ‐ £ 79,999 1 1
Brathay contributed a total of £3,787 (2015‐16: £3,750) to defined contribution pension schemes for the employee shown
7 Related Party Transactions
There were no material transactions with related parties (2015‐2016: £nil).
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 £'000 £'000 £'000 Cost at 1 April 2016 2,637 1,094 3,731 Additions 56 179 235 Disposals 0 (268) (268)
At 31 March 2017 2,693 1,005 3,698
Depreciation at 1 April 2016 1,325 954 2,279 Charge for year 98 81 179 Disposals 0 (268) (268)
At 31 March 2017 1,423 767 2,190
Net Book Value at 31 March 2017 1,270 238 1,508
at 31 March 2016 1,312 140 1,452
Net Book Value of Assets held under Finance Leases at 31 March 2017 44 142 186
at 31 March 2016 000
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2017 39 Notes to the Financial Statements
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 UK unit trusts, listed Cash Total stocks and shares £'000 £'000 £'000 Market Value at 1 April 2016 1,150 184 1,334 Additions 369 60 429 Revaluation 152 0 152 Disposals (481) 0 (481)
At 31 March 2017 1,190 244 1,434
Historical cost at 31 March 2017 997 244 1,241
Analysis of Movement by Category Total Total 31 March 31 March 2017 2016 £'000 £'000 Listed investments Fixed interest 331 226 Equities 629 683 Property 61 62 Alternatives 138 179 Commodities 31 0 1,190 1,150 Cash on deposit 244 184
1,434 1,334
Analysis of Movement by Location Total Total 31 March 31 March 2017 2016 £'000 £'000
Investments in the UK 825 842 Investments outside the UK 609 492
1,434 1,334
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2017 40 Notes to the Financial Statements
9 Fixed Asset Investments ‐ continued
Material Investments
The value of the following investments exceeded 5% of the total market value.
31 March 2017 31 March 2016 Proportion Value Proportion Value % £'000 % £'000
Cash 17 244 14% 184
10 Stock Group Charity 2017 2016 2017 2016 £'000 £'000 £'000 £'000
Consumable stock 11 12 9 9
11 Debtors Group Charity 2017 2016 2017 2016 £'000 £'000 £'000 £'000
Trade debtors 256 277 101 170 Other debtors 0 1 0 1 Prepayments 96 118 96 117 Accrued income 85 6 85 6
437 402 282 294
12 Creditors Amounts Falling Due Within One Year Group Charity 2017 2016 2017 2016 £'000 £'000 £'000 £'000
Loans and finance leases 77 0 77 0 Trade creditors 216 185 201 183 Taxes and social security 121 128 34 48 Amounts owed to subsidiary undertaking 0 0 48 84 Other creditors 32 39 32 39 Accruals 120 189 118 186 Deferred income 656 862 529 533
1,222 1,403 1,039 1,073
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2017 41 Notes to the Financial Statements
12 Creditors ‐ continued
Amounts Falling Due in more than One Year Group Charity 2017 2016 2017 2016 £'000 £'000 £'000 £'000
Loans and finance leases 89 0 89 0
89 0 89 0
Analysis of Loans & Finance leases Finance Loans Totals Leases £'000 £'000 £'000 Due within 1 year 19 58 77 Due in 2 ‐ 5 years 80 9 89
99 67 166
Interest payable over the term of the agreements 15 2 17
Total commitment 114 69 183
Interest rate 7% 5%
Analysis of Deferred Income Voluntary Charitable Total Group income activities £'000 £'000 £'000
Deferred income at 1 April 2016 73 789 862 Income released during the year (186) (3,887) (4,073) Income deferred during the year 225 3,642 3,867
Deferred Income at 31 March 2017 112 544 656
Voluntary Charitable Total Charity income activities £'000 £'000 £'000
Deferred income at 1 April 2016 73 460 533 Income released during the year (150) (1,576) (1,726) Income deferred during the year 225 1,497 1,722
Deferred Income at 31 March 2017 148 381 529
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2017 42 Notes to the Financial Statements
13 Total Charitable Funds Group and Charity Trustee Restricted General Reserve Reserves Reserve Total £'000 £'000 £'000 £'000
At 1 April 2016 1,031 150 880 2,061 Income 32 610 4,486 5,128 Expenditure, gains and losses 120 (760) (4,127) (4,767) Depreciation 00(176) (176) At 31 March 2017 1,183 0 1,063 2,246
Included within the General Reserve is a designated reserve of £20,000 to support projects related to Brathay Explore.
Restricted Reserves During the year capital reserves of £50,000 were fully utilised as part of the refurbishment of accommodation at the Brathay Hall site, Additionally, bursaries taken over from Brathay Exploration Trust have now been accounted for as deferred income and are no longer included in restricted reserves.
Analysis of Net Assets Between Reserves
Fund Balances at 31 March Trustee Restricted General Total 2017 are Represented by Reserve Reserve Reserve Reserves £'000 £'000 £'000 £'000
Tangible fixed assets 0 0 1,508 1,508 Fixed asset investments 1,183 0 251 1,434 Net Current assets/(liabilities) 00(607) (607) Creditors due after more than one year 00(89) (89)
Total reserves 1,183 0 1,063 2,246
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2017 43 Notes to the Financial Statements
14 Notes to the Consolidated Cash Flow Statement
Reconciliation of Net Incoming Resources to Net Cash Flow from Operating Activities Year ended Year Ended 31 March 31 March 2017 2016 £'000 £'000
Net Outgoing Resources 33 251
Investment income (34) (37) Investment fund charges 8 8 Interest payable 9 2 Depreciation 179 153 Decrease in stocks 1 1 (Increase)/decrease in debtors (35) 26 (Decrease) in creditors (258) (44) Transfer of assets from Brathay Exploration Trust Ltd 0 (207) Capital donation (7) 0
(104) 153 Analysis of Cash Flows Year ended Year Ended 31 March 31 March 2017 2016 £'000 £'000 Returns on Investment and Servicing of Finance Dividends received 32 35 Interest received 2 2 Interest paid (8) (4)
26 33 Capital Expenditure and Financial Investment Purchase of tangible fixed assets (228) (103) Net monies (invested in)/drawn from fixed asset investments 51 (77)
(177) (180) Financing Management fee on payment of endowment fund (8) (8) Cash inflow from loans 99 0 Cash inflow from finance agreements 67 0
158 (8) Analysis of Movement in Net Cash and Liquid Resources Opening Cash Closing balance Flows Balance £'000 £'000 £'000
Cash at bank and in hand and net cash and liquid resources 264 (97) 167
Company Registration Number: 2814206; Charity registration number 1021586 Trustees’ Report and Financial Statements for the Year Ended 31 March 2017 44 Notes to the Financial Statements
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 £1 ordinary shares. The investment is shown at cost of £4.
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 £2,702,000 (2015‐ 2016: £2,111,000) from which Brathay Services Limited made a profit of £1,200,000 (2015‐2016: £981,000) which was donated to Brathay. The company’s aggregate capital and reserves at 31 March 2017 in full was £4 (2015‐2016: £4).
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 2017 45