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2024-03-31-accounts

BRATHAY Trustees Report and Annual Accounts 202312024

Contents

Contents
Chair Introduction 3 Financial Statements 22
Structure, Governance
and Management		 4 Consolidated Statement of
Financial Activities		 22
Trustees’ Responsibilities 7 Balance Sheet 23
Cash Flow 24
Brathay in Summary 12 Notes on Financial 25
Financial Review 14 Statements
Independent Auditor’s Report 17 Brathay Trust Income and 38
to the Trustees and Members Expenditure Account
of Brathay Trust

ee a8! Trustees’ Report and accounts 2023-24 N/ Company Registration Number: 2814206; Charity registration number 1021586;

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Chair Introduction

After a recruitment process, I was thrilled to take on the Chair role in May 24, following on from Andy Watson’s 3-year tenure. My thanks go to him, for steering the Brathay ship through a substantial period of change not least impacted by COVID but also a change in CEO in 2023.

As we reflect on the past year, it is with immense pride and gratitude that I present this overview of our journey and achievements during 2023 to 2024.

With the recruitment of our new CEO Teresa Jennings in July 2023, and with support from a refreshed Board of Trustees and a new Senior Leadership Team, Teresa is driving a significant change programme to ensure our long term mission and objectives are met.

The last 12 months have been marked by both challenges and triumphs, underscoring the resilience and dedication of our team, volunteers, and the communities we serve.

Despite the ongoing global uncertainties, we have remained steadfast in our vision to improve the lives of young people, inspiring them to build their brighter futures. Our commitment to providing support, guidance, and opportunities has never been stronger, and this year, we have seen remarkable progress in the impact and outcomes our work has delivered to over 7000 young people. I have seen this first hand in many of our projects, it is truly amazing.

our financial position, ensuring that we can continue to offer our services to those who need them most.

Moreover, we have begun to forge new partnerships regionally and nationally with corporates, other Charities, and philanthropic organisations, further solidifying our foundation for future growth. We are told by our beneficiaries that Brathay is a special place, and we will continue to invest in our infrastructure and estate to create stories and memories that endure.

As we look ahead, we remain very optimistic and determined to build on the successes of this year; and ultimately building up towards our 5-year ambition of supporting over 40,000 young people by 2029.

As ever, I extend my heartfelt thanks to everyone involved with Brathay Trust – your dedication, passion, and support make all the difference. Together, we are creating lasting change and paving the way for a brighter future for the young people we serve.

There is much to do, and your contributions to our delivery are vital and very much appreciated.

Paul Johnson

Chair of Trustees

Financial sustainability and strategic income growth have also been at the forefront of our agenda. Through careful planning and resource management, we have refocussed

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

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 Ambleside, Cumbria set in the heart of the Lake District National Park. We also have long-established centres in Bradford city centre and in the Barrow and Furness area, out of which we deliver a variety of community-based programmes.

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 Email: hello@brathay.org.uk Telephone: 015394 33041

Governance

The governing body is the Board of Trustees. At 31 March 2024 there were 8 trustees. Trustees of Brathay are also directors under the Companies Act.

Trustees

The following Trustees served during the year to 31 March 2024

Paul Johnson (Chair from 2 May 2024)

Andrew S Watson (Chair until 1 May 2024)

Christopher W Dickinson Sarah Hodgson-Jones Beth S Lockhart

Marc A Pate

Lucie Smith

David Roberts (appointed February 24)

Mark Turner (resigned December 23) Joanna Coleman (resigned January 24)

The following Trustees were appointed after the year end :

Julie M Randles (appointed April 2024) Nigel I Aitchison (appointed April 2024) Jennifer M Macduff (appointed April 2024)

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

Company Secretary

Susan Ross

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

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 one committee, the Finance and Risk Committee, which meets usually four times a year, with other matters being reported directly to the Board.

Finance and Risk Committee

Members:

Beth S Lockhart (Chair) Lucie Smith Paul Johnson Nigel I Aitchison Christopher W Dickinson

The Finance and Risk Committee ensures:

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 2024 the team comprised of:

The following leaders were appointed after the year end:

The following leaders resigned during the year to 31 March 2024:

Professional advisors

Bankers

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

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

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

Stephen E Fox Fox Lifestyle Financial Planning Ltd 25 Winckley Square Preston Lancashire PR1 3JJ

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’ Report and accounts 2023-24

Company Registration Number: 2814206; Charity registration number 1021586;

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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 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.

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Trustee appointments

When recruiting new trustees against the Board skill matrix, 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.

Risk management

Trustees have overall responsibility for ensuring that Brathay has an appropriate system of control and for taking suitable steps to safeguard Brathay’s assets.

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

Risks are reviewed twice a year 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.

Key risks

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

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.

Objectives, aims and public benefit

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

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

including the physical training and moral, intellectual and physical development, of young persons from within the United Kingdom;

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.

Our vision and the reason why Brathay Trusts exists is to inspire young people to build their brighter futures. Brathay has been inspiring young people for over 75 years through activities and adventures on our beautiful estate overlooking Windermere, and through programmes delivered directly in communities throughout Cumbria and Bradford.

Brathay continues to be focused on delivering its strategic ambition of inspiring over 40,000 young people to build their brighter futures by 2029. To do this it is focussing on the following pillars which will underpin our plans and strategies:

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:

Our income streams are varied. 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 by fundraising events, the trading activities of Brathay’s subsidiary, appeals and individual giving.

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

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

the source of the income.

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.

Utilising volunteers to help us in our

efforts

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

Partnership working and even greater collaboration is integral to the future success of Brathay. By developing our partnership network in a strategic way it will help drive sustainable growth, innovation and greater social impact for the Trust and its partners. It also helps enhance our ability to deliver impactful programmes and

services. This collaborative approach ensures that the Trust can offer comprehensive and diverse support to the communities we serve, addressing a wider range of needs and challenges.

We are grateful to all our current partners, which include donors, local authorities, businesses, charities, schools, youth groups, universities, and colleges.

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 impact and outcomes for 2023-2024 can be seen in our annual impact report.

Download Impact Report

or visit www.brathay.org.uk/about/ what-we-do

----- Start of picture text -----
10
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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Our Strategic Partners include:

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Trustees’ Report and accounts 2023-24Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;Company Registration Number: 2814206; Charity registration number 1021586;

Brathay in Summary

Our Vision

Inspiring young people to build their brighter futures

Our Mission

Through transformative experiences, learning and community support, Brathay Trust exists to ignite the potential within every young person, so they can thrive in a rapidly changing world.

Our Strategic Objective

To inspire 40,000 young people to build their brighter future by 2029

The diagram below is an illustration of the range of organisations we work with and projects we deliver over that age span of 5+ to 21+ both on the Brathay Estate (above the line) and in the Community (below the line).

Inspiring over 7,000 young people to build their brighter futures each year

----- Start of picture text -----
Ambleside Our
Learning Centre
- examples of
visiting groups
SG NS, el
Programmes we
deliver in the
community
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Trustees’ Report and accounts 2023-24
Company Registration Number: 2814206; Charity registration number 1021586;
1
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Programme Programme
King’s Academy School Residential Ingleton Primary School Residential TTE/Electricity North West Early Apprenticeship School Masters Balfour Beatty Apprenticeship
Manchester Business Graduate Residential
Elevate
Programme SkillsHouse
Counselling in Youth Matters Kendal Project
Schools eg. MAGIC
Employability Project
----- End of picture text -----

Last year

We have inspired 7,180 young people

(5190 5+ years old to 16 years old | 1990 16+ years old)

Our Social Return on Investment is at least £6m

78% of young people reported an improvement of their wellbeing because of our work with them

We delivered 148 residential

programmes at the Brathay estate

On average our programmes received a satisfaction score of 8.9 out of 10

83% of the young people we support would recommend our programmes to friends and family

We have worked with 419 families

We have delivered in 17 community programmes in Cumbria

We have delivered 18 community programmes in Bradford

Trustees’ Report and accounts 2023-24

Company Registration Number: 2814206; Charity registration number 1021586;

13

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 slight fall in income as the various income streams normalised in the first full year which had been unaffected by the pandemic since 2019-20. With a management focus on aligning costs with income, there was also an overall reduction in costs, which was a remarkable achievement during a year of high inflation. The year ended with a loss rather than the break even position which had been forecast on account of a fall in income

offset by a reduction in costs.

Income review

Income for the year was £5,215k compared to £5,533k in 2023. The reduction was attributable to changes to some key contracts in our community programmes, and a change to the client base in our work with 16+ and early careers young people. We continue to develop work in communities where support to young people and their families has been crucial, and 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 below:

----- Start of picture text -----
2500
2000
1500
23/24
22/23
1000
500
0
Grants & Other 5-16 years 16+ Early Careers
Donations Activities Community (80%) & Adult
& Residential Leadership
Programmes Programmes (20%)
Income (£000’s)
----- End of picture text -----

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Brathay’s principal funding sources continue to be:

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

We continue to leverage our site for short-stay holiday bookings during times when Brathay Hall is not in use. Although this is a useful way of boosting income in a low cost way, we will prioritise the site for charitable use at all times.

With a fall in some income streams, there was a focus during the year on aligning costs to the income. Total staff costs for the year were therefore lower than the prior year at £3,213k (2023: £3,273k), despite an inflationary pay award to all staff part way through the year. Other costs reduced by £92k to £2,382k (2023: £2,474k). As some of the savings were made part way through the year, the year to 31 March 2025 will see a further reduction in staffing and other costs.

The year ended with net expenditure of £380k ( 2023: £214k), however the investment made a substantial gain, and so the net movement in funds was a negative £297k overall, which was broadly similar to the prior year.

Going forward, the 5-year business

plan and forecast demonstrates a measured return to positive net income, with achievable increases in income, and continued efficiency in running costs, and a return to positive net operating cashflows.

Investments and Cash

Until January 2024, Brathay’s portfolio of investments was managed by Sanlam Wealth. As the trustees desired more flexibility, advice was taken from an Independent Financial Advisor at Fox Lifestyle Financial Planning Limited and the investment was moved onto the Nucleus Financial Platform where it is divided into short, medium and long term funds. This will mean that there will be more structure to the investment going forward. As before the Trust can take one-off or regular withdrawals if it needs to, but importantly, the Trust will benefit from lower ongoing charges under this new arrangement.

The aim of the portfolio is to achieve capital growth by way of investment performance and the reinvestment of dividends to ensure Brathay has sufficient liquidity, in line with the Liquidity & Reserves Policy.

At 31 March 2024 the value of the investment portfolios was £1,046k. Some monies were withdrawn from the investment during the year to meet working capital requirements, but significant gains were made in the latter part of the year.

Cash is held in savings accounts with the Cumberland Building Society. At the year end cash balances stood at £332k, though they vary significantly month to month. The level of cash held assists in a positive

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

cashflow 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.

Liquidity & Reserves

During the year, the Trustees reviewed the reserves policy and took the decision to move to a ‘Liquidity and Reserves Policy’.

Historically, Brathay adopted a ‘Free Reserves’ policy which is defined by the Charities’ Statement of Recommended Practice (SORP) as ‘total unrestricted reserves, less fixed assets and investments, net of longterm finance’. Trustees have reviewed this approach alongside Brathay’s risk matrix, the business model, the 5-year business plan, the cashflow profile and with consideration to external stakeholder requirements. In consideration of all of these elements, Trustees and the Senior Leadership Team have agreed that a policy based on liquidity is a more appropriate measure of financial stability for Brathay.

Going forward, the Trust will hold a cash (or cash equivalent) balance of between 3 and 6 months’ operating costs. The Trust has met this policy for the last 10 years.

Going concern

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

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

; Paul Johnson

Director and Chair of the Board of Trustees

Approved by the Board of Trustees on 8th November 2024

Liquidity at 31 March 2024 (cash plus investment) totalled £1,378k. 3 months’ operating costs as of 31 March 2024 were £1,086k.

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TrusteTrust e es’ Report and as’ Report and ac c counts 2023-24ounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;Company Registration Number: 2814206; Charity registration number 1021586;

Independent Auditor’s Report to the Trustees and Members of Brathay Trust Year ended 31 March 2024

Opinion

We have audited the financial statements of Brathay Trust (the ‘charitable company’) for the year ended 31 March 2024 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

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

with respect to going concern are described in the relevant sections of this report.

Other information

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

the financial year for which the financial statements are prepared is consistent with the financial statements; and

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:

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

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

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.

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:

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

of Ireland (United Kingdom Generally Accepted Accounting Practice) and 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 non-compliance 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 nondetection 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 non-compliance 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:

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

estimates and related disclosures made by the trustees.

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.

Use of our report

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

8th November 2024

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Consolidated Statement of Financial Activities

incorporating the Income and Expenditure account for the year ended 31 March 2024

Notes
Income from:
3
Grants & donations
Charitable activities
Other activities
Investment income
Total
Expenditure on:
4
Raising funds
Charitable activities
Other
Total
Net income/(expenditure) before
other recognised gains and losses
Transfer between funds
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds
Fund balances brought forward
Fund balances carried forward at		 Unrestricted
Funds
Other
Reserves
Total 2024
Total 2023
£’000
£’000
£’000
£’000
1,082
0
1,082
999
3,333
0
3,333
3,665
774
0
774
850
26
0
26
19
5,215
0
5,215
5,533
577
0
577
552
5,006
0
5,006
5,183
12
0
12
12
5,595
0
5,595
5,747
(380)
0
(380)
(214)
0
0
0
0
83
0
83
(58)
(297)
0
(297)
(272)
763
947
1,710
1,982
466
947
1,413
1,710

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 £2,916,000 and net expenditure of £3,297,000 has been dealt with in the accounts of the charity.

The notes on pages 25 to 37 form part of these financial statements.

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Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Consolidated Balance Sheet

as at 31 March 2024

Group Group Charity Charity Charity
Notes 2024 2023 2024 2023
£’000 £’000 £’000 £’000
Fixed assets
Tangible assets 8 1,305 1,495 1,305 1,495
Investments 9 1,046 1,214 1,046 1,214
2,351 2,709 2,351 2,709
Current assets
Debtors 10 396 550 232 204
Cash at bank and in hand 332 297 129 172
728 847 361 376
Current liabilities
Creditors: amounts falling due within one 11 (1,523) (1,629) (1,156) (1,158)
year
Net Current liabilities (795) (782) (795) (782)
Total assets less current liabilities 1,556 1,927 1,556 1,927
Creditors: amounts falling due after more 11 (143) (217) (143) (217)
than one year
Net assets 1,413 1,710 1,413 1,710
Charitable funds
Trustee reserve 947 947 947 947
Other reserves 466 763 466 763
Total charitable funds 12 1,413 1,710 1,413 1,710

These financial statements were approved by the Board of Trustees on 8th November 2024, and were signed on its behalf by:

Paul Johnson

Director and Chair of the Board of Trustees

The notes on pages 25 to 37 form part of these financial statements.

23

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Consolidated Cash Flow Statement as at 31 March 2024

Notes
Net cash infow from operating activities
13
Interest paid
Interest and dividends received
Investment management fees
Repayment of loans
Capital expenditure and fnancial investment
Net monies (invested in)/drawn from fxed/current asset
investments
Proceeds from the sale of assets
Increase/(decrease) in cash in the year		 2024
2023
£’000
£’000
(67)
293
(22)
(12)
26
19
(18)
(15)
(50)
0
(86)
(314)
250
0
2
0
35
(29)

The notes on pages 25 to 37 form part of these financial statements.

24

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Notes to the Financial Statements For the year ended 31 March 2024

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.

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 2024. The trading results of the subsidiary undertaking as shown in note 14 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 11.

25

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

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.

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 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:

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.

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.

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.

26

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

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.

27

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

3 Income

Grants and donations
Grants for charitable programmes
Grants for capital projects
Donations
Donated capital goods and services
Donated goods and services
Exceptional grants and donations
Charitable activities
Fees for training, education and development:
Children and young people
People and organisation development
Other activities
Trading income
Rents receivable
Fees from events
Other
Investment income
Dividends receivable
Interest receivable
short term bank deposits		 Year ended 31
March 2024
Year Ended 31
March 2023
£’000
£’000
688
493
22
37
218
324
0
154
145
1,082
999
0
0
1,082
999
1,240
1,535
2,093
2,130
3,333
3,665
514
612
96
88
122
97
42
53
774
850
20
14
6
5
26
19

During the financial year 2023-2024 Brathay received no exceptional grants and donations (2022-23 Nil)

Trustees’ Report and accounts 2023-24

28

Company Registration Number: 2814206; Charity registration number 1021586;

4 Analysis of expenditure

Analysis of expenditure
Raising funds
Voluntary income
Activities
Investment management
Governance costs
Charitable activities
Training, education and development
Children and young people
Adults
Other
Total expenditure		 Direct
Costs
Support
Costs
Year ended
31 March
2024
Year Ended
31 March
2023
£’000
£’000
£’000
£’000
279
38
317
286
181
21
202
209
18
0
18
11
26
14
40
46
504
73
577
552
1,692
170
1,862
2,174
2,856
288
3,144
3,009
4,548
458
5,006
5,183
0
12
12
12
5,052
543
5,595
5,747

5 Net income for the year

The net income for the year is stated after charging:

Year ended 31 Year Ended 31
March 2024 March 2023
£’000 £’000
Auditor’s remuneration - audit 18 15
Auditor’s remuneration - other services 5 6
Depreciation - owned assets 240 230
Depreciation - leased assets 22 9

Operating lease commitments

Land & buildings
Other		 Payment due on leases expiring
within
one
year
within 2 to 5
years
Total
£’000
£’000
£’000
16
80
96
9
0
9
25
80
105

29

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

6 Trustee and staff information

Trustees remuneration and expenses

No remuneration was paid to trustees or any persons connected with a Trustee (2022-23: nil). Expenses reimbursed to trustees amounted to £370 (2022-23: £834). 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 to January 2024, reducing to £10m for remainder of year (2022-23 £20m), including trustees’ liability cover, for which the premium was £7,128 (2022-23: £7,221).

Staff costs

Wages and salaries
National Insurance costs
Pension costs		 Year ended 31
March 2024
Year Ended 31
March 2023
£’000
£’000
2,751
2,806
249
260
213
207
3,213
3,273

Brathay has two defined contribution pension schemes both of which comply with the requirements of auto enrolment. Brathay contributes 5% (2022-23: 5%), of employees basic salary to these schemes, after the first three months of employment. At 31 March 2024 outstanding pension contributions totalled £17,430 (2022-23: £18,853).

Staff numbers

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

Fundraising, business development & marketing
Charitable activities
Management and support		 Year ended 31
March 2024
Year Ended 31
March 2023
No
No
8
8
81
84
13
17
102
109

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 decreased from 98 in March 2023 to 89 in March 2024

30

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

6 Trustee and staff information continued

Employees earning over £60,000

Year ended 31 Year Ended 31
March 2024 March 2023
No No
£80,000 - £ 89,999 0 1
£70,000 - £ 79,999 0 0
£60,000 - £ 69,999 2 0

Brathay contributed a total of £5,259 (2022-23: £3,982) 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 £252,414 (2022-23: £252,277)

7 Related party transactions

There were no material transactions with related parties (2022-2023: £nil).

31

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

8 Tangible fixed assets

Analysis of movement in tangible fxed
assets
Cost
at 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
at 1 April 2023
Charge for year
Disposals
At 31 March 2024
Net Book Value
at 31 March 2024
at 31 March 2023
Net book value of assets held under
fnance leases
at 31 March 2024
at 31 March 2023		 Group and charity
Improvements
to short
leasehold
property
Equipment,
fxtures and
motor vehicles
Total
£’000
£’000
£’000
2,781
1,317
4,098
50
36
86
(136)
(64)
(200)
2,695
1,289
3,984
1,617
986
2,603
137
125
262
(136)
(50)
(186)
1,618
1,061
2,679
1,077
228
1,305
1,164
331
1,495
0
41
41
0
62
62

32

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

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
UK unit trusts, listed
stocks and shares
£’000
Market value
at 1 April 2023
1,191
Additions
1,442
Revaluation
83
Disposals
(1,689)
At 31 March 2024
1,027
Historical cost at 31 March 2024
999
Analysis of movement by category
Cash or cash equivalents
Listed investments		 Group and
UK unit trusts, listed
stocks and shares
£’000
Market value
at 1 April 2023
1,191
Additions
1,442
Revaluation
83
Disposals
(1,689)
At 31 March 2024
1,027
Historical cost at 31 March 2024
999
Analysis of movement by category
Cash or cash equivalents
Listed investments		 charity
Cash
Total
£’000
£’000
23
1,214
20
1,462
0
83
(24)
(1,713)
1,027 19
1,046
999 19
1,018
2024
2023
£’000
£’000
20
107
1,026
966
1,046
1,073

10 Debtors

Trade debtors
Other taxes and social security
Other debtors
Prepayments
Accrued income		 Group
Charity
2024
2023
2024
2023
£’000
£’000
£’000
£’000
286
474
107
70
0
0
15
59
1
0
1
0
33
32
33
31
76
44
76
44
396
550
232
204

33

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

11 Creditors

Amounts falling due within one year

Loans and fnance leases
Trade creditors
Taxes and social security
Amounts owed to subsidiary undertaking
Other creditors
Accruals
Deferred income
Amounts falling due in more than one year
Loans and fnance leases
Analysis of loans & fnance leases
Due within 1 year
Due in 2 - 5 years
Over 5 years
Interest payable over the term of the
agreements
Total commitment
Interest rate		 Group
Charity
2024
2023
2024
2023
£’000
£’000
£’000
£’000
63
61
63
61
109
163
103
158
172
168
59
62
0
0
404
245
26
29
26
29
83
158
81
155
1,070
1,050
420
448		 Group
Charity
2024
2023
2024
2023
£’000
£’000
£’000
£’000
63
61
63
61
109
163
103
158
172
168
59
62
0
0
404
245
26
29
26
29
83
158
81
155
1,070
1,050
420
448
1,523 1,629
1,156
1,158
2024
£’000
143		 Group
Charity
2023
2024
2023
£’000
£’000
£’000
217
143
217
143 217
143
217
Loans
Finance
leases
Totals
£’000
£’000
£’000
50
13
63
100
43
143
0
0
0
150
56
206
19
10
29
169
66
235
2% above
base rate
12%

34

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

11 Creditors continued

Analysis of deferred income

Group
Deferred income at 1 April 2023
Income released during the year
Income deferred during the year
Deferred income at 31 March 2024
Charity
Deferred income at 1 April 2023
Income released during the year
Income deferred during the year
Deferred income at 31 March 2024
Total charitable funds
Unrestricted reserves
At 1 April 2023
Income
Expenditure, gains and losses
Depreciation
At 31 March 2024
Other reserves
General reserve		 Voluntary income
£’000
57
(51)
62		 Charitable activities
Total
£’000
£’000
993
1,050
(946)
(997)
955
1,017
68 1,002
1,070
Voluntary income
£’000
57
(51)
62		 Charitable activities
Total
£’000
£’000
391
448
(344)
(395)
305
367
68 352
420
Trustee reserve
£’000
947
0
0
0		 Group and Charity
Other reserves
Total
£’000
£’000
763
1,710
5,215
5,215
(5,250)
(5,250)
(262)
(262)
947 466
1,413
2024
2023
£’000
£’000
466
763
466
763

12 Total charitable funds

35

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

12 Total charitable funds continued

Analysis of net assets between reserves

Fund balances at 31 March 2024 are represented by
Tangible fxed assets
Fixed asset investments
Net current (liabilities)
Creditors due after more than one year
Total reserves
13
Notes to the consolidated cash fow statement
Reconciliation of net incoming resources to net
cash fow from operating activities
Net outgoing resources
Investment income
Investment fund charges
Interest payable
Depreciation
Loss on disposal of fxed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors		 Trustee
reserve
£’000
0
947
0
0		 Other
reserves
Total
reserves
£’000
£’000
1,305
1,305
99
1,046
(795)
(795)
(143)
(143)
947 466
1,413
Year ended
31 March
2024
Year Ended
31 March
2023
£’000
£’000
(380)
(214)
(26)
(19)
18
15
22
12
262
239
13
0
154
(57)
(130)
317
(67)
293

36

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Analysis of cash flows

Analysis of movement in net cash and liquid resources

Analysis of cash fows
Analysis of movement in net cash and liquid
resources
Opening
balance		 Cash
fows		 Closing
balance
£’000 £’000 £’000
Cash at bank and in hand and net cash and liquid 297 35 332
resources

14 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 £2,978,721 (2022-2023: £3,059,549) from which Brathay Services Limited made a profit of £680,174 (2022-2023: £640,799) which was donated to Brathay. The company’s aggregate capital and reserves at 31 March 2024 in full was £4 (2022-2023: £4).

15 Post balance sheet events

None

37

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Income and Expenditure Account for the year ended 31 March 2024

Income from:
Grants & donations
Charitable activities
Other activities
Investment income
Brathay Services Ltd donations
Total
Expenditure on:
Raising funds
Charitable activities
Other
Total
Net income/ (expenditure) for the year before other recognised
gains and losses
Nets gains/(losses) on investments
Net income/(expenditure) for the year after other recognised
gains and losses		 2024
2023
£’000
£’000
1,082
999
906
1,261
222
194
26
19
680
641
2,916
3,114
577
552
2,719
2,778
0
(2)
3,296
3,328
(380)
(214)
83
(58)
(297)
(272)

38

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

39

Trustees’ Report and accounts 2023-24 Company Registration Number: 2814206; Charity registration number 1021586;

Trustees Report and Annual Accounts 2023/2024

© Copyright 2024, Brathay Trust. All rights reserved. Brathay is the trading name of Brathay Trust, a charitable company limited by guarantee and registered in England and Wales. Company Registration Number: 2814206. Charity Registration Number: 1021586. Registered Office: Brathay Hall, Ambleside, Cumbria, LA22 0HP.