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← Brathay Trust

2023-03-31-accounts

Brathay Trust

Trustees’ Report

and Accounts

for the year ended 31 March 2023

Contents

Welcome to Brathay 3
Structure, Governance and Management 4
Achievements and Performance 11
Financial Review 19
Independent Auditor’s Report 22
Financial Statements
-
Consolidated Statement of Financial Activities		 27
-
Balance Sheet		 28
-
Cash Flow		 29
Notes on Financial Statements 30
Brathay Trust Income and Expenditure Account 43

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Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586 Page 2

Welcome to Brathay

Andy Watson, Chair of Trustees

Whilst the most obvious consequences of the pandemic may no longer be with us (for example, high numbers of infections and associated lockdowns), the lasting impacts such as reduced individual resilience, increased stress in family and other relationships and poor mental health are very much evident in the communities in which Brathay operates and in the lives of the people we support. To compound matters, it is these very same communities and sections of society that are most negatively impacted by the current cost of living crisis. As a result, the need for Brathay’s services is greater than ever.

Leadership Team. All colleagues who left have done so with our gratitude and best wishes, but perhaps special mention should go to Godfrey Owen. Godfrey’s Brathay career spanned very nearly 30 years, with the last 17 as CEO. During that time, Brathay has grown and developed its range of activities and programmes. There is much for Godfrey to be proud of and we wish him well in his future endeavours.

The Trustees were very pleased with both the quality and the quantity of the candidates that applied to be Brathay’s next CEO – a testament to our positive reputation and recognition of the important work that we do. We were delighted that Teresa Jennings successfully navigated the rigours of our selection process; Teresa has already started and I know that she is excited by the opportunity and potential at Brathay.

As always, I will conclude this introduction with a sincere thank you on behalf of the Trustees – to the skilled and committed staff at Brathay, to our volunteers, funders, partners and other supporters. There is much to do, and your contributions to our delivery are vital and very much appreciated.

This Trustees’ Report and Accounts document can only provide a flavour of the different facets of Brathay, but it does summarise the many activities that culminate in purposeful delivery that positively impacts many lives.

Increased activity, especially across Children and Young People, and People Development, resulted in an increase in Brathay’s income, which reached record levels. However, Brathay is not immune to the wider economic headwinds – as such, severe inflationary pressures and challenges in recruitment in parts of the organisation increased costs significantly. The resulting deficit for the financial year is disappointing and a point of focus for Trustees.

The last 12 months have seen some changes to both the Trustee Board and the Senior

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586 Page 3

Structure,

Governance and Management

Legal structure

Brathay Trust (Brathay) was first constituted as a charity in 1946 and was incorporated as a company limited by guarantee in 1993. We are registered as a charity in England and Wales and governed by a Memorandum and Articles of Association and a Trust Deed.

Company Registration Number: 2814206. Charity registration number 1021586.

Operations

Brathay’s head office is at Brathay Hall, our residential centre in Cumbria set in the heart of the Lake District National Park. We also have a long-established centre in Bradford city centre out of which we deliver a variety of community-based programmes. Our strong community footing extends to Barrow and our outreach work spreads further still, often linked to schools and colleges and allowing us to operate at ground level in some very challenging urban areas.

Brathay has one wholly owned subsidiary, Brathay Services Ltd, which is operated and governed entirely within this structure.

Registered Office

Brathay Hall Clappersgate Ambleside Cumbria LA22 0HP

Contact details

Website: brathay.org.uk Website: brathaychallenges.com Email: hello@brathay.org.uk Telephone: 015394 33041

Company Secretary

Susan Ross

Governance

The governing body is the Board of Trustees. At 31 March 2023 there were ten trustees, which has now reduced to nine. There is no upper limit to this number. Trustees of Brathay are also directors under the Companies Act.

Trustees

Andrew S Watson (Chair) Paul Johnson (Vice Chair) Joanna H Coleman Christopher W Dickinson Sarah Hodgson-Jones Beth S Lockhart (Appointed 6 September 2022) Marc A Pate Lucie Smith (Appointed 20 January 2023) Mark R J Turner Ann M Crane (Resigned 13 May 2022) Julie A Frizzell (Resigned 26 April 2023) Paul Mayson (Resigned 21 March 2023) Christopher McDonald (Resigned 14 December 2022)

All committee members served from the date of their appointment, or to the date of their resignation, as a Trustee, unless otherwise indicated.

Board Meetings and Committees

The Board of Trustees has responsibility for setting and monitoring Brathay’s performance against the strategic objectives set, and ususally meets four times a year. The trustees have two committees, the Finance and Investment Committee and a Risk and Compliance Committee, with other matters being reported directly to the Board. Committees usually meet four times a year.

Finance and Investment Committee

Members:

Beth Lockhart (Chair) Joanna H Coleman Lucie Smith Mark R J Turner Andrew S Watson

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586

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The Finance and Investment Committee:

Risk and Compliance Committee

Members:

Paul Johnson (Chair) Christopher W Dickinson Sarah Hodgson-Jones Andrew S Watson

The Risk and Compliance Committee:

Leadership Team

The day-to-day management of Brathay falls to its paid executive leadership team, led by the Chief Executive, who report quarterly to trustees. At 31 March 2023 the team comprised of:

Godfrey Owen resigned as CEO on 31 May 2023 after 29 years of service with the Trust. Teresa Jennings took up post as the new CEO on 17 July 2023.

Professional advisors

Bankers

Cumberland Building Society Cumberland House Cooper Way Parkhouse Carlisle CA3 0JF

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Independent auditor

Lamont Pridmore Chartered Accountants and Statutory Auditor 136 Highgate Kendal Cumbria LA9 4HW

Insurance broker

Arthur J Gallagher 12 Museum Street Ipswich Suffolk IP1 1HT

Investment advisors

Atomos 5 Hatfields (Alto) 2[nd] Floor London SE1 9PG

Legal advisors

Temple Heelis 1 Kent View Kendal Cumbria LA9 4DZ

Thomson Hayton Winkley 114-116 Stricklandgate Kendal Cumbria LA9 4QA

Pension administrator

Old Mutual Wealth Fifteen Rosehill Industrial Estate Montgomery Way Carlisle Cumbria CA1 2RW

Trustees’ Responsibilities

Trustees (who are also directors of Brathay Trust for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and regulations.

Company law requires 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 law), including FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.

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:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable

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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:

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 legislation in other jurisdictions.

Trustee Appointments

When recruiting new trustees, the Board looks for members whose skills and backgrounds complement and enhance the existing team. Vacancies are advertised and trustees, staff and other interested parties may nominate a person for consideration.

Brathay promotes and values diversity within the trustee body, recognising the importance of having a wide range of views, knowledge and experiences leading the organisation. 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.

Trustee effectiveness

Following their appointment, each trustee receives a briefing pack and comprehensive induction. This covers their role, duties and accountabilities as a trustee and includes information about Brathay, our policies, structure and work. Particular importance is placed on matters relating to safeguarding and child protection. As part of this process, trustees are encouraged to observe Brathay’s work.

Each trustee completes a register of interests and related party transactions; this register is updated annually and whenever any changes occur. New trustees are also invited to attend a Finance and Investment Committee and a Risk and Compliance meeting. An effectiveness review is carried out annually, allowing each trustee to comment confidentially on Board effectiveness and the results are considered in the light of best practice in the charity sector.

Risk management

Trustees have overall responsibility for ensuring that Brathay has an appropriate system of control and for taking suitable steps to safeguard Brathay’s assets. Following the appointment of a new Chair of Trustees a Risk and Compliance Committee was set up in October 2021 to ensure focus on the management of key organisational risks.

A summary of the major risks to which Brathay is exposed, and the relevant mitigating factors, is maintained in a risk register.

Risks are reviewed quarterly by trustees. They work closely with the leadership team to ensure that Brathay has appropriate policies, systems and procedures to manage the risks facing Brathay.

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Key risks

Trustees recognise that Brathay faces significant risk in a wide range of areas including:

It should be noted that while the language of the objectives is now very dated, the spirt behind the words remains the same and Brathay seeks to deliver its work in an inclusive manner which recognises and values diversity.

In all cases control measures are in place and regularly reviewed. These controls are designed to reduce the risk to an acceptable level. In considering the biggest risks Brathay faces, as a charity working with a wide range of people, including some of the most vulnerable, the correct management of safeguarding is key. Following on from this, both data and information management need to be robust. Additionally to ensure an on-going and sustainable impact, financial risks must be effectively managed, a major issue as the economy moves through the impact of the pandemic.

Objectives, aims and public benefit

Brathay’s objectives, as set out in the memorandum and articles of association, are:

Our purpose and the reason why Brathay Trusts exists is to change the lives of thousands of young people for the better, each year. Brathay has been inspiring children, young people, and their families for over 75 years through activities and adventures on our beautiful estate overlooking Windemere, and through programmes delivered directly in communities throughout Cumbria and Bradford.

Brathay continues to be focused on delivering the 2020-2025 strategic plan rooted in the Vision 2030 ratified by the Trustees in early 2023. Our current strategic priorities are about preparing the organisation to be fit for purpose and ready to deliver the 2030 ambitious growth agenda. Consequently, the focus from 2023 to 2025 is to become financially and environmentally sustainable, invest in our sites to increase client delight and develop and reward our people by living Brathay's core values and promoting a culture of fairness and inclusion thereby enabling the organisation to provide distinctive and quality development programmes which improve the life chances of the children, young people and adults we work with.

Funding our work

Brathay supports the standards as set out in The Code of Fundraising Practice and has subscribed to the Fundraising Regulator. The code has a number of reporting requirements and we report as follows:

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586 Page 8

Brathay’s work this year includes projects supported by grants from:

Whilst our work with people and

organisations is contracted and paid for by corporate organisations, the funding for our work with children and young people is from a much wider range of sources. Some work is directly commissioned, such as by local authorities, whilst other work is paid for by funding from trusts and foundations, corporate sponsorship, surpluses generated from challenge or other events, the trading activities of Brathay’s subsidiary, appeals and individual giving.

As well as funding community and residential projects with young people these types of funding also support capital projects.

When funding is received it is not taken as income in the accounts until the programme or project it relates to is delivered. Any amounts received in this way are included as deferred income. This is the case irrespective of the source of the income – for example, any challenge event income linked to delivery of a programme would be deferred.

Income that comes from funders, tenders and events involves considerable upfront time and resource, often with a significant delay between this investment being made and the income showing in the accounts.

Funding through public events

The fundraising team also organises a range of annual challenge events open to the public and aimed at raising funds from entry fees and sponsorship from participants. These events also give profile to a wider audience of potential supporters than would otherwise be the case. Income relating to these events is deferred until the event takes place as are

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third party costs relating to them. The costs of the staff team for designing, developing, delivering and marketing these events are accounted for as they are incurred.

The contribution of fundraising activities is regularly reviewed. There is the obvious direct financial impact as well as the indirect benefit of raising Brathay’s profile each year.

circumstances. Our partnerships share a joint commitment to achieving social change.

Our key partnerships include:

Utilising volunteers to help us in our efforts

Our strategy continues to be to deliver good people management practice, with a thriving staff team and volunteer resource.

Volunteers are extremely important to our ability to deliver certain events and projects. We rely on, and are very grateful for, the support of volunteers to deliver key fundraising events such as our challenge events. We also benefit from the services of a wide range of volunteers in other parts of our work including within the community.

Brathay works in partnership with volunteers to ensure they feel valued and have a high quality experience, where possible providing them with personal or organisational development opportunities. The support of volunteers and local communities is key to our success and is very much appreciated.

Developing partnerships

Brathay recognises the fundamental importance of effective partnerships in ensuring we deliver our objectives. They do not meet the formal definitions of related parties but are important for an understanding of Brathay’s activities.

Partners from all sectors are central to Brathay’s work and include funders, customers, local authorities, businesses, schools, colleges, other charities, youth organisations, and community groups.

Partnerships are also central to working with corporate bodies keen to be recognised as caring employers committed to helping staff achieve their full potential, whatever their

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586 Page 10

Achievements and Performance

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing objectives and activities described in this section.

Our annual delivery in headline numbers

Children and Young People

Brathay focuses on key areas of need and makes assessment as to where we can have the biggest impact, with the resources we have, in the communities we serve. Our focus in 2022-23 was to provide services which reduced poverty and its multiple risk factors alongside improving mental health outcomes. In practice this meant focusing on providing a range of support to the whole family whilst having a particular focus on establishing counselling provision in Cumbria and extending the counselling provision in Yorkshire.

This increased Brathay’s capacity to provide mental health and wellbeing support for young people as poverty rose and the cost of living crisis worsened. 465 young people received support through one to one counselling and wellbeing group work on programmes such as MAGIC, Pathfinders, and COMF (a post pandemic support fund). This represents 18% of community work delivered and 118 young people received support delivered through residential group work with a focus on improving mental health (5% of the total young people worked with).

younger age range of children and young people aged 5-13yrs demonstrating the continuing and concerning impact of the pandemic on the wellbeing needs of all children. The Bradford based Pathfinders project engaged young people in a range of outdoor and creative activities to improve mental health outcomes with resounding success – leading the way for an increased social prescribing offer that brought together Brathay’s specialisms to provide a high quality intervention.

Another key strategic aim was to establish new provision for young people in Kendal through the Youth Matters partnership. This continues to develop, integrating all impact strands, improving mental health and wellbeing, education, attainment and readiness for employment and positive engagement in the community including social action and reaching a growing number of young people every week.

The following impact strands have been used to differentiate our work.

Key Children, Young People and Families Impact Strands which encompass the diversity of personal, social and emotional development programmes we offer:

  1. Family resilience & parenting development.

  2. Social action, leadership & citizenship. 3. Mental wellbeing & resilience.

  3. Positive networks & healthy relationships.

  4. Education, employment and training: engagement & attainment.

  5. Diversion from risk-taking behaviour & potential criminal activity.

The need for these services continued to increase with schools reaching out to refer pupils and an escalating need for support from social work and education as Children and Adolescent Mental Health Services struggle to meet the needs of increased referrals. Notably we have been commissioned to provide support to a

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586

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Key points

The pie chart shows the weighting of types of impact delivered on Brathay’s community programmes measured in number of participants reached through programmes in the community.

Evaluations on Children, Young People and Families programmes at Brathay

Each programme measures two points of interaction.

Key points

Children and Young People Residentials

The pie chart shows the weighting of types of impact delivered on Brathay’s residential programmes measured in a number of programmes delivered residentially at Ambleside.

The quality of all programmes in Children, Young People and Families continues to be excellent with an overall satisfaction score of 4.8/5, with positive themes revolving around the quality of relationships developed by group facilitators, youth and family workers, and counsellors. Participant engagement is also high with feedback praising the unique and inventive activities that are designed to stimulate personal, social and emotional development, and behaviour change.

Children, Young People and Families report an increase in:

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586 Page 12

Core outcomes

The core outcomes below are proving to be stable over time, with additional emerging themes around perseverance in moments of difficulty, social confidence, independence skills and understanding how to be accepting of, and celebrate, difference:

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Our work within Professional Development

The need

Engagement, retention and productivity continue to be a challenge for organisations and employers.

Employee engagement matters for the bottom line: 76% of employees say they’d stay at their company longer if they could benefit more from learning and development.

placements and internships over the last two years.

Our assumptions:

Apprentices and Graduates

Blended programmes

In 2022-23 five programmes continued to use a blended approach in their delivery. These programmes deliver 2-3 year programmes for cohorts ranging in size from 11 to 300. All with multiple touch points using virtual, onsite and residential delivery types.

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586 Page 14

The results

Individuals worked with in 2022-23:

Onsite Offsite Digital Total
Leadership 1,006 284 79 1,369 (35%)
Emerging Talent 971 379 475 1,825 (47%)
Adult Charitable (F4H) 141 0 0 141 (4%)
Funded (ALP CCP) 14 69 0 83 (2%)
Apprenticeships 268 156 0 424 (12%)
Total 2,400 888 554 3,842

Engagement outcomes

Professional Development clients rated programmes with an overall satisfaction score of 4.5/5. When asked why they rated the programme this way:

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Learning outcomes

When participants were asked what they had learned on the programme that would apply to life and work, they responded with themes linking to:

Wellbeing outcomes

98% of Professional Development participants reported increased well-being on completing a programme:

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Other key achievements

Nature Connection – Supporting Human and Nature’s Wellbeing

Understanding and applying practice that supports participants and staff to engage in nature to increase wellbeing has been a research focus in 2022. The inquiry set out to understand if increased connection with nature improved wellbeing, and if those who didn’t have previous experience of connecting with nature could develop this capacity on residential programmes.

RESULTS (700+ young people)

30% increase in Nature Connection

Participants experiencing being with nature for the first time showed an increase in connection of 51%.

Feeling Good

Our participants say they feel:

Particpants reported a 21% increase in their likelihood of acting for nature.

Functioning Well

Significantly the results showed that those with the lowest starting scores had the largest increase in connection with nature and improved wellbeing. The data also supported research that connection with nature correlates with a likelihood of acting for nature, therefore increasing proenvironmental behaviour.

This intense experience in nature gave people the time and space to connect with themselves, others and nature, relating to both increased positive effect and optimal functioning. Respondents reported:

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We use nature and the outdoors to improve our wellbeing outcomes through a greater sense of nature connectedness. By increasing contact with nature and providing opportunities for this to be recognised and explored, our programmes promote personal, social and ecological benefits. Ultimately, we want young people to respond to, and feel some responsibility towards, the natural world.

We introduce nature connection in two ways – with a focus on Health, using socially prescribed interactions with nature as a mental health benefit, and with a focus on Education, using outdoor spaces to increase people’s relationship with nature.

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Financial review

The accounts, which form part of this report, comply with the requirements of FRS102 – The Financial Reporting Standard applicable in the UK and Republic of Ireland. The trustees consider that in preparing these accounts, they have consistently applied appropriate accounting policies supported by reasonable and prudent judgements and estimates where required.

Summary

The results for the year showed a significant recovery of income streams following the Covid-19 pandemic, but also the effects of rising inflation, particularly wage inflation. There has been a shortage of workers in the hospitality sector. Consequently, the year ended with a deficit rather than the break even position which had been forecast.

Income and expenditure review

Income for the year was £5,533k compared to £5,065k in 2022, demonstrating a return to pre-pandemic levels of income overall.

We continue and develop work in communities where support to children, young people and adults has been crucial. We continue to work closely with funders and donors and are very grateful to all those who partner with, and support, us.

An analysis of Brathay’s income is shown here:

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Brathay’s principal funding sources continue to be:

We also receive fees towards our charitable activities for all aspects of work for children and young people and with adults, both at our residential site and within the communities we work in.

We continue to exploit our site for short-stay holiday bookings during times when Brathay Hall is not in use. Whilst this generates a valuable contribution towards running costs, we prioritise the use of the site for our charitable activities. Our Challenge Events also boosted our income during the year, whilst also raising awareness of our charitable purpose.

Although income has risen, there have also been considerable increases in the cost base as a result of re-staffing into posts which remained vacant during the pandemic and

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which were filled part way through the prior financial year. Additionally, there have been difficulties in recruiting staff into certain roles due to labour shortages in some sectors, and this has resulted in wage inflation, and some reliance on expensive agency workers. Total staff costs for the year were therefore £3,273k (2022: £2,801k).

The year ended with net expenditure (before losses on the investment) of £214k vs net income in 2022 of £95k. Unfortunately 2023 also saw the value of the investment fall by £58k due to turbulence in the stock market, and consequently there was a negative net movement in funds of £272k overall.

Investments and liquidity

Sanlam Wealth managed Brathay’s portfolio of investments until July 2022 when Sanlam were acquired by Oaktree Capital Management and renamed Atomos. As before, Atomos report to the trustees on a quarterly basis and investments are reviewed to ensure that the objectives of the portfolio are being met.

The aim of the portfolio is to achieve medium term capital growth by way of investment performance and the reinvestment of dividends to ensure Brathay has sufficient reserves, in line with the reserves policy, and to meet future costs. The policy is relatively risk averse, with a significant proportion of funds held in fixed interest stocks.

At 31 March 2023 the value of the investment portfolios was £1,214k the majority of which is held within a portfolio currently managed by Atomos. The value of the investment portfolio declined during the year in common with world markets on account of the rising interest rates.

management strategy and helps to manage the risk inherent in drawing on investments in an otherwise unplanned manner. The cash position is regularly reviewed by Trustees.

Trustees take a five year view on investment performance and are satisfied that investments have performed in line with wider markets during a very turbulent year.

Reserves

The majority of income Brathay generates is used immediately to deliver services and meet running costs. The markets in which we operate are volatile and this volatility is one of the key operational risks we face. As a result, 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 challenge and change.

Considering all factors, the aim of trustees is to work to move Brathay over time to a position where free reserves are equal to three times monthly recurring costs (currently estimated at £940k). The objective is that this would give Brathay time to continue its work and adjust its strategy if faced with challenging market conditions. Further details of Brathay’s reserves are in note 13 to the accounts.

Reserves at the end of the year totalled £1,710k, all of which are unrestricted. There are no designated reserves with £947k in the trustee reserve. Free reserves, defined as total reserves less tangible fixed assets totalled £215k.

Going Concern

Cash is held in savings accounts with the Cumberland Building Society because the return is significantly better for cash than within the portfolio. At the year end cash balances stood at £297k, though they vary significantly month to month. The level of cash held assists in a positive cashflow

The accounts have been prepared on a going concern basis. Trustees have carefully considered the steps that Brathay has taken and the actions necessary to ensure a stable future. Brathay has sufficient reserves to manage the liquidity of the organisation on an on-going basis.

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A rigorous and detailed planning process has been completed. The delivery of plans is regularly reviewed and closely monitored in order to ensure effective business management. Trustees recognise there may continue to be an occasional need to utilise investments as a result of historical losses already sustained and investment in the future.

Post balance sheet events

There are no significant post balance sheet events to report.

By order of the Board of Trustees A.S. Watson

Director and Chair of the Board of Trustees Approved by the Board of Trustees on 7[th] October 2023

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Independent Auditor's Report to the Trustees and

Members of Brathay Trust

Year ended 31 March 2023

Opinion

We have audited the financial statements of Brathay Trust (the 'charitable company') for the year ended 31 March 2023 which comprise the consolidated Statement of Financial Activities (including income and expenditure account), consolidated Balance Sheet, consolidated Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Trustees’ Report and accounts 2022-23

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Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Trustees’ Report and accounts 2022-23

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Responsibilities of directors

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit in respect of fraud are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and

implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Trustees’ Report and accounts 2022-23

Company Registration Number: 2814206; Charity registration number 1021586 Page 24

the Companies Act 2006.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586 Page 25

Use of our report

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

This report is made solely to the charitable company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Lamont BSc FCA (Senior Statutory Auditor)

For and on behalf of Lamont Pridmore

Chartered Accountants & Statutory Auditor 136 Highgate Kendal

Cumbria

LA9 4HW

7[th] October 2023

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586 Page 26

Consolidated Statement of Financial Activities

(incorporating the Income and Expenditure account) for the year ended 31 March 2023

for the year ended 31 March 2023 BRATHAY
NX
Note Unrestricted
Funds		 Other
Reserves		 Total 2023 Total
2022
£'000 £'000 £'000 £'000
Income from: 3
Grants & donations 999 0 999 1,075
Charitable activities 3,665 0 3,665 2,947
Other activities 850 0 850 1,027
Investment income 19 0 19 16
Total 5,533 0 5,533 5,065
Expenditure on: 4
Raising funds 552 0 552 409
Charitable activities 5,183 0 5,183 4,550
Other 12 0 12 11
Total 5,747 0 5,747 4,970
Net income/(expenditure) before
other recognised gains and losses		 (214) 0 (214) 95
Transfer between funds 0 0 0 0
Net gains/(losses) on investments (58) 0 (58) 22
Net movement in funds (272) 0 (272) 117
Reconciliation of funds
Fund balances brought forward 1,035 947 1,982 1,865
Fund balances carried forward at 763 947 1,710 1,982

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 £3,114,000 and net expenditure of £3,328,000 has been dealt with in the accounts of the charity.

The notes on pages 30 to 42 form part of these financial statements.

Trustees’ Report and accounts 2022-23

Company Registration Number: 2814206; Charity registration number 1021586;

27

Consolidated Balance Sheet

as at 31 March 2023

Group Charity
Notes 2023 2022 2023 2022
£'000 £'000 £'000 £'000
Fixed assets
Tangible assets 8 1,495 1,419 1,495 1,419
Investments 9 1,214 1,073 1,214 1,073
Current assets 2,709 2,492 2,709 2,492
Debtors 10 550 493 204 265
Investments 11 0 200 0 200
Cash at bank and in hand 297 326 172 182
Current liabilities 847 1,019 376 647
Creditors: amounts falling due within one
year		 12 (1,629) (1,316) (1,158) (944)
Net Current liabilities (782) (297) (782) (297)
Total assets less current liabilities 1,927 2,195 1,927 2,195
Creditors: amounts falling due after more
than one year		 12 (217) (213) (217) (213)
Net assets 1,710 1,982 1,710 1,982
Charitable funds
Trustee reserve 947 947 947 947
Other reserves 763 1,035 763 1,035
Total charitable funds 13 1,710 1,982 1,710 1,982

These financial statements were approved by the Board of Trustees on 7th October 2023, and were signed on its behalf by:

Andrew Watson Director & Chair of the Board of Trustees Beth Lockhart Director & Treasurer of the Board of Trustees

The notes on pages 30 to 42 form part of these financial statements.

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

28

Consolidated Cash Flow Statement

for the year ended 31 March 2023

Notes 2023 2022
£'000 £'000
Net cash inflow from operating activities 14 293 257
Returns on investment and servicing of finance 7 9
Capital expenditure and financial investment (314) (215)
Financing (15) (4)
Increase/(decrease) in cash in the year (29) 47

The notes on pages 30 to 42 form part of these financial statements.

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586; 29

Notes to the Financial Statements

For the year ended 31 March 2023

1 Company Status

Brathay Trust (Brathay) is a charitable company limited by guarantee (incorporated in the UK). 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.

Company Registration Number: 2814206. Charity registration number 1021586

The registered office is: Brathay Hall Clappersgate Ambleside Cumbria LA22 0HP

2 Accounting Policies

Basis of Preparation

The financial statements are prepared in accordance with the following and on a going concern basis

Brathay Trust meets the definition of a public benefit entity under FRS102.

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 2023. 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. A separate Statement of Financial Activities for the charity is not presented as permitted by the SORP and the Companies Act 2006.

Income

Donations, other than for specific projects and fundraising appeals, are accounted for at the time of receipt. Donations for specific projects or appeals are deferred until the projects to which they relate are delivered. All deferred income is accounted for in note 12.

Donations in kind are included within voluntary income and are included at their estimated market value.

Income from capital grants is accounted for when entitlement to the grant becomes unconditional. Until that point it is deferred. Capital grants are accounted for within the restricted reserve.

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.

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.

Trustees’ Report and accounts 2022-23

Company Registration Number: 2814206; Charity registration number 1021586;

30

Notes to the Financial Statements

For the year ended 31 March 2023

Expenditure

Financial Instruments

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 or groups of 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:

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.

Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors.

Financial liabilities held at amortised cost comprise trade and other creditors.

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.

Reserves: Unrestricted funds

General funds are available for use at the discretion of the Trustees in furtherance of the objectives of the Charity and which have not been designated for other purposes.

The trustee reserve is 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.

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 motor vehicles: 2-10 years

No impairment review is required and finance costs are not capitalised within the cost of the asset.

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

31

Notes to the Financial Statements

3 Income
Year ended 31 Year Ended 31
March 2023 March 2022
£'000 £'000
Grants and donations
Grants for charitable programmes 493 712
Grants for capital projects 37 52
Donations 324 168
Donated goods and services 145 143
999 1,075
Charitable activities
Fees for training, education and development:
Children and young people 1,535 1,327
People and organisation development 2,130 1,620
3,665 2,947
Other activities
Trading income 612 772
Rents receivable 88 97
Fees from events 97 77
Other 53 81
850 1,027
Investment income
Dividends receivable 14 14
Interest receivable
short term bank deposits 5 2
19 16

During the financial year 2022-2023 Brathay received no exceptional grants and donations (2021-22 Nil)

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

32

Notes to the Financial Statements

4 Analysis of expenditure

----- Start of picture text -----
|||||| |---|---|---|---|---| |Year ended 31|Year Ended 31| |Direct Costs|Support Costs| |March 2023|March 2022| |£'000|£'000|£'000|£'000| |Raising funds| |Voluntary income|249|37|286|201| |Activities|186|23|209|167| |Investment management|11|0|11|8| |Governance costs|32|14|46|33| |478|74|552|409| |Charitable activities| |Training, education and development| |Children and young people|1,977|197|2,174|2,049| |Adults|2,736|273|3,009|2,501| |4,713|470|5,183|4,550| |Other|0|12|12|11| |Total expenditure|5,191|556|5,747|4,970|

----- End of picture text -----

5 Net income for the year

The net income for the year is stated after charging:

----- Start of picture text -----
|||| |---|---|---| |Year ended 31|Year Ended 31| |March 2023|March 2022| |£'000|£'000| |Auditor's remuneration - audit|15|11| |Auditor's remuneration - other services|6|5| |Depreciation - owned assets|230|203| |Depreciation - leased assets|9|26|

----- End of picture text -----

Operating lease commitments

----- Start of picture text -----
||||| |---|---|---|---| |Payment due on leases expiring| |within one year|within 2 to 5 years|Total| |£'000|£'000|£'000| |Land & buildings|12|0|12| |Other|20|5|25| |32|5|37|

----- End of picture text -----

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

33

Notes to the Financial Statements

Trustees remuneration and expenses

No remuneration was paid to trustees or any persons connected with a Trustee (2021-22: nil). Expenses reimbursed to trustees amounted to £834 (2021-22: £371). 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 £20m (2021-22 £2m), including trustees' liability cover, for which the premium was £,7221 (202122: £3,876).

Staff costs

Staff costs
Year ended 31 Year Ended 31
March 2023 March 2022
£'000 £'000
Wages and salaries 2,806 2,484
National Insurance costs 260 204
Pension costs 207 113
3,273 2,801

Brathay has two defined contribution pension schemes both of which comply with the requirements of auto enrolment. Brathay contributes 5% (2021-22: 5%), of employees basic salary to these schemes, after the first three months of employment. At 31 March 2023 outstanding pension contributions totalled £18,853 (2021-22: £16,507).

Staff numbers

The average monthly number of employees, analysed by function, was:

Fundraising, business development & marketing Year ended 31
March 2023
Year Ended 31
March 2022
No
No
8
15
Charitable activities 84
84
Management and support 17
11
109
110

This is based on the number of staff employed by Brathay and excludes any associates who are paid via the payroll.

The staff numbers above are head count. The movement in full time equivalent has increased from 94 In March 2022 to 98 In March 2023

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586; 34

Notes to the Financial Statements

6 Trustee and staff information continued

Employees earning over £60,000

Year ended 31 Year Ended 31
March 2023 March 2022
No No
£80,000 - £ 89,999 £80,000 - £ 89,999 £80,000 - £ 89,999 1 1
£70,000 - £ 79,999 £70,000 - £ 79,999 £70,000 - £ 79,999 0 0

Brathay contributed a total of £3,982 (2021-22: £3,906) to defined contribution pension schemes for the employees shown above.

Key management personnel

The key management personnel are the trustees and the leadership team (listed on page 5). The total employee benefits of the Leadership team, including employer pension contributions was £252,277 (2021-22: £200,489)

7 Related party transactions

There were no material transactions with related parties (2021-2022: £nil).

8 Tangible fixed assets

Analysis of movement in tangible fixed assets Group and charity
Cost Improvements to
short leasehold
property
Equipment,
fixtures and
motor vehicles
Total
£'000
£'000
£'000
at 1 April 2022 2,899
1,268
4,167
Additions 137
178
315
Disposals (255)
(129)
(384)
At 31 March 2023 2,781
1,317
4,098
Depreciation
at 1 April 2022 1,740
1,008
2,748
Charge for year 132
107
239
Disposals (255)
(129)
(384)
At 31 March 2023 1,617
986
2,603
Net Book Value
at 31 March 2023 1,164
331
1,495
at 31 March 2022 1,159
260
1,419
Net book value of assets held under finance leases
at 31 March 2023 0
62
62
at 31 March 2022 0
33
33

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586; 35

Notes to the Financial Statements

9 Fixed asset investments

Investments are held to ensure Brathay has sufficient reserves and to meet future costs through capital growth and return on the investments.

Analysis of movement in investments
Group and charity
UK unit trusts,
listed stocks and Cash Total
shares
£'000 £'000 £'000
Market value
at 1 April 2022 966 107 1,073
Additions 1,938 (84) 1,854
Revaluation (58) 0 (58)
Reclassification from current assets 200 0 200
Disposals (1,855) 0 (1,855)
At 31 March 2023 1,191 23 1,214
Historical cost at 31 March 2023 1,166 23 1,189
Analysis of movement by category
Listed investments Total
£'000
31 March 2023		 Total
£'000
31 March 2022
Fixed interest 693 337
Equities 405 436
Property 94 54
Alternatives 0 139
Cash on deposit 1,192
23		 966
107
1,215 1,073
Analysis of movement by location
Investments in the UK Total
£'000
63
31 March 2023		 Total
£'000
463
31 March 2022
Investments outside the UK 1,152 610
1,215 1,073

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

36

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 2023 31 March 2022
Proportion Value Proportion Value
% £'000 % £'000
Fixed interest 57 693 31 337
Equities 33 405 41 436
Property 8 94 5 54
Alternatives 0 0 13 139
Cash 2 23 10 107

10 Debtors

Debtors
Group Charity
2023 2022 2023 2022
£'000 £'000 £'000 £'000
Trade debtors 474 399 70 114
Other taxes and social security 0 0 59 57
Other debtors 0 0 0 0
Amounts owed by subsidiary undertaking 0 0 0 0
Prepayments 32 45 31 45
Accrued income 44 49 44 49
550 493 204 265

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

37

Notes to the Financial Statements

11 Current asset investments

Investments are held to ensure Brathay has sufficient reserves and to meet future costs through capital growth and return on the investments.

Analysis of movement in investments Group and charity
UK unit trusts,
listed stocks and Cash Total
shares
£'000 £'000 £'000
Market value
at 1 April 2022 200 0 200
Additions 0 0 0
Reclassification to fixed assets (200) 0 (200)
Disposals 0 0 0
At 31 March 2023 0 0 0
Historical cost at 31 March 2023 0 0 0
Analysis of movement by category Total Total
Listed investments £'000
31 March 2023		 £'000
31 March 2022
Fixed interest 0 70
Equities 0 90
Property 0 11
Alternatives 0 29
0 200
Analysis of movement by location Total Total
Investments in the UK £'000
-
31 March 2023		 £'000
86
31 March 2022
Investments outside the UK - 114
0 200

Material investments

The value of the following investments exceeded 5% of the total market value.

31 March 2023 31 March 2022
Proportion Value Proportion Value
% £'000 % £'000
Fixed interest 0% 0 35 70
Equities 0% 0 45 90
Property 0% 0 6 11
Alternatives 0% 0 15 29

Trustees’ Report and accounts 2022-23

Company Registration Number: 2814206; Charity registration number 1021586; 38

Notes to the Financial Statements

12 Creditors

Amounts falling due within one year

Amounts falling due within one year
Group Charity
2023 2022 2023 2022
£'000 £'000 £'000 £'000
Loans and finance leases 61 9 61 9
Trade creditors 163 172 158 168
Taxes and social security 168 104 62 57
Amounts owed to subsidiary undertaking 0 0 245 195
Other creditors 29 6 29 6
Accruals 158 106 155 106
Deferred income 1,050 919 448 403
1,629 1,316 1,158 944
Amounts falling due in more than one year
Loans and finance leases		 2023
2022
£'000
£'000
217
213
Group		 2023
£'000
217
Charity		 2022
£'000
213
217 213 217 213
Analysis of loans & finance leases
Due within 1 year
Due in 2 - 5 years
Over 5 years		 Loans
£'000
50
150
0		 Finance leases
£'000
11
67
0		 Totals
£'000
61
217
0
Interest payable over the term of the agreements 200
24		 78
19		 278
43
Total commitment 224 97 321
Interest rate 2% above base rate 12%

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

39

Notes to the Financial Statements

12 Creditors continued

Analysis of deferred income

Analysis of deferred income
Charitable
Group Voluntary income activities Total
£'000 £'000 £'000
Deferred income at 1 April 2022 89 830 919
Income released during the year (237) (3,842) (4,079)
Income deferred during the year 205 4,005 4,210
Deferred income at 31 March 2023 57 993 1,050
Charity Voluntary income Charitable
activities		 Total
Deferred income at 1 April 2022 £'000
92		 £'000
310		 £'000
402
Income released during the year (237) (1,280) (1,517)
Income deferred during the year 202 1,361 1,563
Deferred Income at 31 March 2023 57 391 448
Total charitable funds
Unrestricted reserves Group and charity
At 1 April 2022 Trustee reserve
£'000
947		 Other
reserves
£'000
1,035		 Total
£'000
1,982
Income 0 5,533 5,533
Expenditure, gains and losses 0 (5,566) (5,566)
Depreciation 0 (239) (239)
At 31 March 2023 947 763 1,710
Other reserves 2023 2022
General reserve £'000
763		 £'000
1,035
763 1,035

13 Total charitable funds

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

40

Notes to the Financial Statements

13 Total charitable funds continued

Analysis of net assets between reserves
Fund balances at 31 March Other
2023 are represented by Trustee reserve reserves Total reserves
£'000 £'000 £'000
Tangible fixed assets 0 1,495 1,495
Fixed asset investments 947 267 1,214
Net current (liabilities) 0 (782) (782)
Creditors due after more than one year 0 (217) (217)
Total reserves 947 763 1,710

14 Notes to the consolidated cash flow statement

Reconciliation of net incoming resources to net cash flow from operating activities
Net outgoing resources
Investment income
Investment fund charges
Interest payable
Depreciation
Loss on disposal of fixed assets
(Increase)/ decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors		 Year ended 31
March 2023
Year Ended 31
March 2022
£'000
£'000
(214)
95
(19)
(16)
15
8
12
7
239
229
0
31
0
0
(57)
9
317
(106)
293
257
Analysis of cash flows
Returns on investment and servicing of finance
Dividends received
Interest received
Interest paid		 Year ended 31
March 2023
Year Ended 31
March 2022
£'000
£'000
14
14
5
2
(12)
(7)
7
9
Capital expenditure and financial investment
Purchase of tangible fixed assets
Net monies (invested in)/drawn from fixed/current asset investments		 (315)
(205)
1
(10)
(314)
(215)

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

41

Notes to the Financial Statements

14 Notes to the consolidated cash flow statement continued

----- Start of picture text -----
||||| |---|---|---|---| |Year ended 31|Year Ended 31| |March 2023|March 2022| |£'000|£'000| |Financing| |Management fee on payment of endowment fund|(15)|(4)| |Cash inflow from loans|0|0| |(15)|(4)| |Analysis of movement in net cash and liquid resources| |Cash| |Opening balance|flows|Closing balance| |£'000|£'000|£'000| |Cash at bank and in hand and net cash and liquid resources|326|(29)|297|

----- End of picture text -----

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 Services Limited delivers Brathay’s professional development work. In addition to this it provides accommodation for participants and a wide range of other guests. Turnover in the year was £3,059,549 (2021-2022: £2,570,325) from which Brathay Services Limited made a profit of £640,799 (2021-2022: £1,219,928) which was donated to Brathay. The company’s aggregate capital and reserves at 31 March 2023 in full was £4 (2021-2022: £4).

16 Post balance sheet events

None

Trustees’ Report and accounts 2022-23 Company Registration Number: 2814206; Charity registration number 1021586;

42

Brathay Trust Income and Expenditure Account

for the year ended 31 March 2023

2023 2022
£'000 £'000
Income from:
Grants & donations 999 1,075
Exceptional grants and donations 0 0
Charitable activities 1,261 1,180
Other activities 194 224
Investment income 19 16
Brathay Services Ltd donations 641 1,220
Total 3,114 3,715
Expenditure on:
Raising funds
Charitable activities
Other		 552
2,778
(2)		 409
3,212
(1)
Total 3,328 3,620
Net income/ (expenditure) for the year before
other recognised gains and losses
Nets gains/(losses) on investments		 (214)
(58)		 95
22
Net income/(expenditure) for the year after
other recognised gains and losses		 (272) 117

Trustees’ Report and accounts 2022-23

Company Registration Number: 2814206; Charity registration number 1021586;

43