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 1 e a? @@@p BRATHAY 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 2 w as @@@l BRATHAY 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 3 s as Trustees' Report BRATHAY for the year ended 31 March 2018 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