Registered number: 06070942 Charity number: 1118488 DREAMCHASING (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023
DREAMCHASING IA company limited by guarantee) CONTENTS Page Reference and admlnlstratlve detalls of the charlty, Its Trustees and advlsers Trustees. report Independent auditor's report on the financial statements 7-10 ststomont of financial activitlOS Balance sheet 12 statement of cash flows 13 Notes to the flnanclal statements 14-27
DREAMCHASING IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MAY 2023 Trustees Sir Ronald Dennis C.B.E Mr Clive C R Bannister Sir Nigel M Carringlon Dr Chadotte H811 Miss Francesca Dennis Mr Christian Dennis Charity registered number 1118488 Registered office 16 Great Queen Street London WC2B SAH Independent auditor Blick Rolhenberg Audit LLP Chartered Accounlanls 16 Great Queen Street Covent Garden London WC2B SAH Bankers HSBC (Private Bank) Limited 78 Sl James's Street London SW1A1JB Solicitors Withers LLP 16 Old Bailey London EC4M 7EG Page 1
DREAMCHASING IA company limited by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MAY 2023 The trustees present their annual report together with the audited financial statements of the charity for the year 1 June 2022 to 31 May 2023. The annual report serves the purposes of both a Iruslees, report and a directors, report under Company law. The Iruslees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practi ISORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffeclive 1 January 20191. Since the charity qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors, Reporti Regulations 2013 has been omitted. Objectives and activities a. Policies and objectives The charity's objects are to maintain, support or contribute towards such one or more exclusively charitable purposes of charitable companies, institutions, associations, trusts or societies in the United Kingdom or elsewhere in the wodd. The trustees confirm that they have referred lo the guidance contained in the Charity Commission's general guidan on public benefit when reviewing the charity's aims and objectives., in planning for the future,. and in setting the grant making policy for the year. The charity's objects are focused on providing opportunities lo young people to develop to the best of their ability- The trustees receive applications for donations from a wide variety of charitable institutions and Individuals. The Iruslees consider all requests which they receive and make such donations as they feel appropriate. The trustees request follow-up reports from the institutions and individuals who are awarded grants to ensure the terms of the award are met. In setting objectives and planning for activities, the Iruslees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit.. running a charity IP821'. Achievements and performance a. Main achievements of the charity Dreamchasing is a charity which was formed and funded by Sir Ron Dennis CBE in 2007 to help young people to achieve their aspirations and, through their successes, lo become inspirational role models for others. The Iruslees provide guidance and funding for educational and entrepreneurial proposals for young people who could not otherwise achieve their dreams. Charitsble donations made lo date have taken the form of grants for education, research or vocational training Inomially In the fields of art, music, science or lechnologyl or for broader humanitsrian purposes. Where possible, Dreamchasing seeks lo leverage grants by encouraging matched funding for Ils contributions. Page 2
DREAMCHASING IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MAY 2023 Achievements and performance lcontinuedl Dreamchasin 's beneficiaries During the year ended 31 May 2023, Dreamchasing supported the following initiatives.. Podium Anatytics - a further payment of £3 million was made to Podium Analylics, a charity whose objects are collecting, researching and applying data lo support the prevention and treatment of sports injuries In children and young adults. Thi5 brings the total funding by Dreamchasing to £8 million. Salmon's Brook School a commitment of £190,000 was made in the prior financial year to support the development of the school's facilities including equipment for the proposed new design and technology space. As yet, funds have not been drawn down but we anticipate such funds will be drawn by the end of the next financial year. Frank Longford Charitable Trust - Dreamchasing has continued to support the Trust In line with Il's 3 year commitment entered into In 2021. The trust offers financial and mentoring support lo young serving and ex- offenders, to enhan rehabilitation and facilitate further education and study at university. FIDA Intemational - In 2008, Dreamchasing partnered with FIDA International, a Finnish charity which runs multiple child and humanitsrian programmes across Ethiopia and Uganda. FIDA raises 50'/o of its funding from the Finnish government If it can raise a minimum of 15'/o from charities such as Dreamchasing. Action for Happiness- Founded by Lord Layard, Geoff Mulgan and Dr Anthony Seldon, Action for Happiness is a charity which aims lo encourage and support the move lo a happier society, engaging and Inspiring people lo make positive changes in their personal lives, homes, schools, workplaTrs and communities and ultimately trigger cultural change. Dreamchasing initially provided a grant of £100,000 in 2010 to launch the Happiness Movement and has since entered Into longer term commitments, providing funding of £25.000 per annum since 2014. A new agreement was entered to In January 2024 covering a further 3 years al £50,000 per annum. Brown Rock Woodland Project- Sin 2019, Dreamchasing has supported Brown Rock in supporting its study programme for 16 to 19 year olds. The project is a sustainable woodland management project providing an opportunity for all to benefit from time spent outdoors. Grants are used to create a unique educational experience, based in nature, covering wellness and conservation. Orchestra of the Age of Enlightenment l Ackland Buryhley School - Dreamchasing first connected with the OAE in 2021 and since then has commilled over £40,000 In support. In 2023, it was announced that students from Acland Burghley School, in North London, will become the 'Dreamchasing Young Producers, as part of the Orchestra of the Age of Enlightenment's mentoring programme. The programme, run by the Orchestra of the Age of Enlighlenmenl IOAEI who moved into the school as an official 'orchestra in residence, during September 2020, has been embedded into the life and rhythms of this comprehensive school in North London. The OAE has become a pioneering musical group., converting a space in the middle of the school building into their offices, the school hall into professional rehearsal space, and their entire operations undertaken in partnership with the school. Students have participated in a new skills-based development programme, lo train students in artistic planning, event production, camera craft and sel design. They have the opportunity chance to have real-world 'field' tasks where they work on lighting, filming, design and production as part of OAE events, in addition lo receiving secondmenls lo other professional arts organisation for further hands-on experience. The scheme encourages mentoring amongst the students as new cohorts join each year and the young producers are empowered to become the teacher once they have qualified through their own experience. Page 3
DREAMCHASING IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MAY 2023 Achievements and performance lcontinuedl Tommy's the Baby Charity - since inception, the charity has benefited from a rent reduction subsidised by Dreamchasing. An agreement Is in place such that whilst Dreamchasing retains the freehold, rent will continue lo be subsidised. Should the propety be disposed, Dreamchasing will reimburse Tommy's direcuy or Indirectly via the new freeholder. In addition to the above commitments made in year, Dreamchasing has a very strong history of supporting a diverse spectrum of charities, both In the UK and overseas, including.. Lyra in Africa Emergency Relief Aid Royal Academy of Arts Royal National Childrens Foundation Pay Il Forward Starlight Childrens Foundation Disability Rights International Financial review . Going concem After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue In operational existence for the foreseeable future. For this reason, they continue lo adopt the going conrn basis in preparing the financial stalemenls. Further details regarding the adoption of the going COnM basis can be found in the accounting policies. b. Reserves policy It is the policy of the charity to maintain free reserves, at a level to provide 5uffi¢ienl funds lo Cover management, administration costs and donations. Any balances in excess of this are considered to be available for Investment. The trustees consider an amount of £100,000 should be set as free reserves. Free reserves, being those funds not tied up in fixed assets, amount to £5,221,48312022.. £4,898,281). The Trustees will continue to lake steps lo Identify projects so that the reserves can be reduced lo a lower level over the short to medium term. The restricted reserves of £1,727,636 12022. £1,574,235> have been earmarked for donations for educational purposes and for the work of Podium Analytics. c. Financial review Income amounted lo £822,291 12022.. £312,765), being rental Income of £262,300 12022.. £173,4051, donated services of £45,13212022.. £88,760), donations of £228,000 12022. £50,600), bank interest of £155,493 12022.. £nill and other operating income of £131,366 12022.. £nill relating to the write off of a liability. After governance costs, support costs and other resources expended, the charity made donations of £99,59912022.. £4,004,4051. Following a review, the propety was revalued to £6,000,000. The charity recognised a net decrease in funds of £909,648 12022.. decrease £3,945,729). At 31 May 2023, the charity had net funds of £12,949,119 12022.. £13,858,768), the unrestricted fund having net funds of £11,221,48312022.. £12,284,532) and the restricted fund having nel funds of £1,727,63612022.. £1,574,2351- d. Investment policy The charity's assets are Invested in accordance with the powers available lo the trustees as sel out In the Memorandum and Articles of Association. There are no restrictions on the charity's power lo invest. The charity's principal investment is ils freehold property. Page 4
DREAMCHASING IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MAY 2023 e. Future developments The trustees intend to continue making grants to charitable institutions from the annual income of the charity and lo identify longer term projects which will ulilise the reserves. Structure, governance and management a. Constitution The charity is consliluled as a company limited by guarantee and was incorporated on 26 January 2007. The company was established under a Memorandum of Association which estsblished the objects and powers of the charitable company and Is governed under Ils Articles of Association. In the event of the company being wound up, members are required lo contribute an amount not exceeding £1 each. b. Methods of appointment or election of trustees The current trustees have power lo appoint new trustees, subject lo a maximum number of seven. Vvhere there is a requirement for additional or new trustees, these would be identified by the remaining trustees. The current Iruslees are responsible for the Induction of any new trustee5 which involves awareness of a Iruslee's responsibilities, the governing document, administrative procedures, and the history of the charity. A new trustee receives a Welcome Pack which includes copies of the previous years, annual report and financial statements, a brief history of the charity and a copy of the governing document. The pack also includes a copy of the Charity Commission "Charity Trustee Welcome Pack" published on 30 April 2018. Oryanisational structure and decision-making policies The charity's general policy and direction is set by its trustees with routine administration outsourced to a third party, as it employs no staff. The Iruslees examine the major risks that the charity faTrs each financial year and have developed systems to monitor and control those risks lo mitigate any impact they may have on the charity in the future. The Iruslees have systems in place to Identify any conflicts of interest that may occur. When a conflict of interest arises, the relevant Iruslee or trustees agree lo withdraw from any discussion and decision. d. Financial risk management The Iruslees have assessed the major risks lo which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are In place lo mitigate exposure to the major risks. e. Members. liability The Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the company in the event of winding up. Page 5
DREAMCHASING (A company limltsd by guarants81 TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 ststement ol trusteBs' rfj¥yonsibilltl•s The trustees {who are also the directors of the charity for Ihe purposes of company law) are responsible for preparing the trustees, report and the financial statements in accordance with applicable Lw and United Trfjngdom Accounting StandÉrds (Unitsd Kingdom Gonaralty Acceptéd Acrnunting Piactice}. Company law requiMs the trustees to prepare financial statements for each financial ye8r, Under company law, the trustees must not approve the finanrial statements unbess they ar¢ sati8fitd that they ge a truo and fair view of the state of affairs of the charty and of its incoming resources and application of resources, including Incotne and expEiidilure, for that period. In preparing thcse financial gtatomènts, the ttust@es arè required lo.. select suitsble accounting policies and then apply them consistently., observe the methods and pnnciples of the Charities SORP IFRS 1021., make judgmenls and acuntr.nO estimes Ihat are Teasonable and pwdent., stats whethèr applicable UK AcUntIng Standards IFRS 102) have been followed, SU4"eCt lo any material departures disclosed and explained in the financial statements; Prepare th8 financial ststements on the goin9 concom basi$ unle8S it is inapproprfate to presume that the charity will continue In business. The trustees are responsible for keeping adequate acrnunting r¢rdts that are sufficient to show and explain the charity's IransactiDns and disclose wth reasonable accuracy al any time the financial position of the charity and enable them to ensure that tlie finanGial ststements comply with the Comp¥nios Act 2006. They gré also responsible for safaguarding the assets of the chanty and hence for taking reasoiiable steps for the prevention and detection of fraud and other irrogularities. 0i5¢108ure of Infom)alion to audltor Each of the persons who aro tfustees al the lime wh•n this trustees, report is 8pprov8d has confimed that so far as Ihat trustee is aware, there w no relevant audit infomiation of which the ¢hariVs auditor is naware, and that Iruslee has tsken all the steps that ought io liave boen tsken as a truatee in order lo be awaro of any relevant audit infomiation and to establish that the charity's auditor is aware of Ihat infomatlon. Approved by o members of the board of trustees and 51gned on thelr behaW by". nald Donni$ C.B.E Da 29 May 2024 Pag• 6
DREAMCHASING IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DREAMCHASING Opinion We have audited the financial slalements of Dreamchasing (the 'charity'l for the year ended 31 May 2023 which comprise the statement of financial activities, the balan sheet, the statement of cash flows 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practi1. In our opinion the financial statements.. give a true and fair view of the stale of the charitsble company's affairs as at 31 May 2023 and of ils incoming resources and application of reSoUrs, including its income and expenditure for the year then ended., have been propedy prepared in accordan with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordan with Intemalional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorfs 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 lo our audit of the financial statements in the United Kingdom, Including the Financial Reporting Council's Ethical Stsndard, 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 lo provide a basis for our opinion. Conclusions rglating to going concorn In auditing the financial stalemenls, we have concluded that the trustees. use of the going COnM 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 lo continue as a going concern for a period of al least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect lo going concern are described in the relevant sections of this report. Page 7
DREAMCHASING IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DREAMCHASING {CONTINUED) 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslatemenls, we are required to determine whether this gives rise to a material misslatemenl in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, report has been prepared in accordan with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitsble company and its environment obtsined in the course of the audit, we have not identified material misstalemenls in the Trustees, report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us,. or the financial slalements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, report and from the requirement to prepare a Stmtegic report. Responsibilities of trustees As explained more fully in the Iruslees, responsibilities statement, the Iruslees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give 8 true and fair view, and for such internal control as the Iruslees determine is neSSary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the Iruslees are responsible for assessing the charitable company's ability lo continue as a going concem. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the charitable Company or lo cease operations, or have no realistic alternative but lo do so. Page 8
DREAMCHASING IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DREAMCHASING {CONTINUED) Auditorfs 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 misslalement, whether due to fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misslatemenl 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 lo influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instan$ of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misstalemenls in respect of irregularities, including fraud. The extent lo which our prOdureS are capable of delecling irregularities, including fraud is detailed below.. the engagement partner ensured that the engagement team collectively had the appropriate competence, apabililies and skills to identify or recognise non-compliance with applicable laws and regulations. we focused on specific 18ws and regulations which we considered may have 8 diocl material effect on the financial ststements or the operations of the charity. we assessed the exlenl of compliance with the laws and regulations identified above through making enquiries of management and a review of the appropriate records. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. To address the risk of fraud through management bias and override of controls, we". performed analytical prOdureS lo identify any unusual or unexpected relationships., tested joumal entries to identify potential management bias., carried out a review of cul off procedures for income and expenses., reviewed the allocation of income and expenses between reslricled and unreslricled funds. reviewed the rationale for significant or unusu81 transactions and assessed whether grant and donation income has been cOrcl1Y recognised. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited lo". agreeing financial statement disclosures to underfying supporting documentation. enquiring of management as lo actual and potential litigation and claims. There are inherent limitstions in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations lo enquiry of the Iruslees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due lo fraud can be harder lo delecl than those that arise from error as they may involve deliberate COnalment or collusion. Page 9
DREAMCHASING IA Gompany liwnitvd by guarante*) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DREAMCHASING ICONTINUED} A further description of our responsibilities Yor Ihe audlt of the financial 3ts1ements i¥ located on th¢ Flnancial Repartin9 Coun¢il's w•b5ite at.. www.frc.or ijklaudito ities. This d8riptiOn forms part of our au%Yltofs repDrt. U80 of our r8port This report is made solety to the charilable o)mpanls members, as a body, in ac¢ord8nc8 With Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertgken so that we tniglil skte lo the Gharitsble company's members those motters we ¥ra requid to stale to them in an audiloffs report and for no olher purpose. To the fullest extent pgmiitted by law, we do not accept or assuma responsibility to anyone other than th8 charitable company and its mèmbers. as a body. for our audit work, for this reporL or for the opinions we have form8d. Qi,k LFknI KL'I LLP Mark Hart FCA CTA Istnlor statutory audltor) for and on behalf of BIiGk Rothenb¢ry Audit LLP Chartered Accountants Statutory Auditor 16 Great QLn Str901 Covent Gardon London WC2B SAH Date.. 29 May 2024 Page1D
DREAMCHASING IA company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MAY 2023 Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Total funds 2022 Note Income from: Donations and legacies Investments 228.000 45.132 417,793 131,366 273,132 417,793 131,366 139,360 173,405 Other income Totsl income 228.000 594.291 822.291 312,765 Expenditure on: Raising funds Charitsble activities 6,815 156,606 6,815 231,205 95,189 4,163,305 74,599 Total expenditure 74,599 163,421 238,020 4,258,494 Net movement in funds before other recognised gainslllossesl 153,401 430,870 584,271 13,945,729) Other recognlsed galnsl{lossesl'. Losses on revaluation of fixed assets 1,528,919) 11,528,919) Net movement in funds 153,401 11.098.049) {944,6481 13,945,729) Reconciliation of funds: Totsl funds brought forward Nel movement in funds 1,574,235 153,401 12.284,532 1,098,049) 13.858,767 17,804,496 {944,6481 13,945,729) Total funds carrigd forward 1.727,636 11.186,483 12.914,119 13,858,767 The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 14 to 27 form part of these financial statements. Page11
PA-AJq 070qFZ D14EAMCHASING (A company Ilmlted by guar&ntee) BALANCE SHEET -3iw* V202.? 2023 2022 Noto Flxed assets Investm8n18 Investment property 12 6,000,000 7,386,250 8,000,000 7,386,251 Current a$8ets Dèblors Cash al bank and In hand 14 102.087 7,201,097 183,216 9,683,443 7,303.ie4 9,866.659 Creditors.. aauniS falling due wlthln one year 15 1389,0651 13,394,143) Net ourr•nt ass¢t8 6,914,119 6,472,616 Total 8886ts198$ current Ilabllltlg8 12,914,119 13,858,767 Total net a889ts 12,914,119 13,858.767 charlty fund8 RÈslricled fund8 Unrestricted funds 16 1,727,636 11,186,483 1,574,235 12,284,632 Total funds 12,914,119 13,858,767 Thg Iruslegs 8cknowlèdg8 Ehèir reswn8ibilille8 for complwrtg with the requlrem8nl8 of the Act with re3p8¢110 arLounting racords and preparallon of flnanclal slalem8nl$. The financlal st&lemenis have been pr8par8d In accordance with the provlskJn$ appllcable lo entlll&s Sublect lo tha small companles f8glme. The flnanclal sla proved and aulhorl88d for18gué by the tru81eas and slgned ork Ihelr behalf by.. Slr Rona onrtl8 C.B.E Dalè.. 29 May 2024 Th$ notes on pagas 1410 27 fom part ol Ih&se finanalal slalomenl8. Page 12
DREAMCHASING IA company limited by guarantee) STATEMENT OF CASH FLOWS Forthe period ended 31 May 2023 2023 2022 Note Cash flovts from operating activities Nel cash used in operating activities 19 12.757.470} 12,132,783) Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets 417.793 1142,669} 173,405 Net cash provided by investing activities 275,124 173,405 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 12.482.346} 11,959.3781 9,683,443 11,642,821 Cash and cash equivalents at the end of the year 20 7,201,097 9,683,443 Page 13
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 General information The charity is a company limited by guarantee registered in England and Wales. Ils principal office is Kings Bourne, Pinewood Road, Virginia Water, Surrey GU25 4PA. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited lo £1 per member of the charity. The financial statements are presented in Sterling (£1. Accounting policies 2.1 Basis of preparation of financial ststements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Dreamchasing meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise ststed in the relevant accounting policy. 2.2 Going concern Al the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, being a period of al least twelve months from the dale the financial statements were approved. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial stalemenls. 2.3 Income All income is recognised once the charity has entitlement to the income, it Is probable that the income will be received and the amount of income receivable can be measured reliably. Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed lo the proiecls. Gifts donated for resale are included as income when they are sold. Income lax recoverable in relation to Investment income is recognised at the time the investment income Is re1Vable. 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, Including support costs inVoed in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not atlributsble lo a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Page 14
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 Accounting policies Icontinuedl 2.4 Expenditure {continued) Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for ils charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activities is incurred on direcuy undertaking the activities which further the charity's objectives, as well as any associated support costs. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been mel at the year end are noted as a commitment, bul not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. 2.5 Investments Fixed asset investments are a form of financial instrument and are initially recognised al their transaction cost and subsequently measured al fair value al the balance sheet date, unless the value cannot be measured reliably in which case it is measured al cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl{Lossesl on investments, in the statement of financial aclivilies. Investments in subsidiaries are valued al cost less provision for impairment. 2.6 Investment property Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss. 2.7 Cash at bank and in hand Cash al bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. 2.8 Liabilities and provisions Liabilities are recognised when there is an obligation al the balance sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the selllement can be eslimaled reliably. Liabilities are recognised al the amount that the charity anticipates it will pay lo settle the debt or the amount il has reiVed as advanced payments for the goods or services it musl provide. Provisions are measured at the best estimate of the amounts required lo sellle the obligation. Where the effect of the lime value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finan cost. Page 15
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 Accounting policies Icontinuedl 2.9 Financial instruments The company has elected lo apply Sections 11 and 12 of FRS 102 in respect of financial instruments. Financial assets and financial liabilities are recognised when the company becomes party lo the contractual provisions of the inslrumenl. Financial liabilities and equity instruments are classified according lo the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of ils liabilities. The company's policies for ils major classes of financial assets and financial liabilities are set out below. Financial assets Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised al transaction price, unless the arrangement conslitules a financing Iransaclion, where the transaction is measured al the present value of the future receipts discounted al a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is finand al a rate of interest that is not a market rate. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. Financial liabilities Basic financial liabilities, including trade and other creditors, are initially recognised at transaction pri, unless the arrangement conslilules a financing Iransaclion, where the debt instrument is measured al the present value of the future payments discounted at a market rale of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is fInand al a rate of interest that is not a market rate. Debt instruments are subsequently carried at amortised cost, using the effective interest rale method. Impairment of financial assets Financial assets measured al cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective eviden of impaimient is found, an impairment loss is recognised in the profit and loss account. For financial assets measured al cost less impaimient, the impairment loss is measured as the difference beeen the asset's carrying amount and the best estimate of the amount the company would re1ve for the asset if il were to be sold al the reporting date. For financial assets measured at amortised cost, the impairment loss is measured as the difference beeen the asset's carrying amount and the present value of estimated cash flows discounted al the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rale for measuring any impairment loss is the current effective interest rate determined under the contract. Page 16
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 Accounting policies Icontinuedl If there is a decrease in the impairment loss arising from an event occurring after the impaimient was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profil or loss. Derecognition of financial assets and financial liabilities Financial assets are derecognised when lal the conlraclual rights to the cash ffows from the asset expire or are sellled, or Ibl subslanlially all the risks and rewards of the ownership of the asset are transferred lo another party or Icl despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability lo unilaterally sell the asset to an unrelated third paty without imposing additional restrictions. Financial liabilities are derecognised when the liability is extinguished, that is when the conlraclual obligation is discharged, cancelled or expires. Offsetting of financial assets and financial liabilities Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right lo set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 2.10 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific reslriclions imposed by donors. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is sel out in the notes lo the financial slalements. Investment income, gains and losses are allocated to the appropriate fund. Income from donations and legacies Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Total funds 2022 Donations 228,000 45,132 273.132 139,360 Total 2022 50,600 88,760 139,360 Page 17
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 Investment income Unrestricted funds 2023 Total funds 2023 Total funds 2022 Rental income re1vable Interest receivable 262,300 155,493 262,300 155,493 168,508 4,897 Total 2023 417,793 417.793 173,405 Total 2022 173,405 173,405 other incoming resources Unrestricted funds 2023 Total funds 2023 Total funds 2022 Write back of creditor 131,366 131,366 Totsl 2022 Expenditure on raising funds Fundraising trading expenses Unrestricted funds 2023 Total funds 2023 Totsl fvjnds 2022 Direct property costs 6,815 6.815 95,189 Page 18
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 Analysis of grants Grants to Institutions 2023 Total funds 2023 Total funds 2022 Grants funding to institutions 134,599 134,599 4,004,405 Totsl 2022 4,004,405 4,004,405 The charity has made the following material grants to institutions during the year.. 2023 2022 Name of institution Podium Analytics Bell Afghan Orchestra of the Age of Enlightenment GOSH 4,000,000 4,405 25.000 38.653 70,946 FIDA International 134,599 4,004,405 134.599 4,004,405 Podium Analylics has a Iruslee in common as Sir Ronald Dennis C.B.E is chairman of that charity. Page 19
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 Analysis of expenditure on charitable activities Summary by fund type Restricted Unrestricted funds funds 2023 2023 Total 2023 Total 2022 Grant funding to institutions Bank charges Foreign exchange 74,599 156,084 200 230,683 200 4,163,068 174 322 322 63 74,599 156,606 231,205 4,163,305 Total 2022 4,000,000 163,305 4,163,305 Anatysls of expendlture by actlvltles Activities undertaken directly 2023 Grant funding of activities 2023 Support costs 2023 Total funds 2023 Total funds 2022 Grant funding to institutions Bank charges Foreign exchange 45,132 134,599 50,952 200 322 230,683 200 322 4,163,068 174 63 45,132 134,599 51,474 231,205 4,163,305 Totsl 2022 88,760 4,004,405 70,140 4,163,305 Analysis of direct costs Grant funding to institutions 2023 Total funds 2023 Total funds 2022 Donations in kind 45,132 45.132 88,760 Page 20
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 Analysis of expenditure by activities Icontinuedl Analysis of direct costs {continued} During the year the charity received rent of £100,29312022'. £70,000) from Tommy's The Baby Charity. So long as Dreamchasing is the freeholder of the property the annual rent from 24 June 2017 that Tommy's will pay is £100,293. If Dreamchasing sells the freehold interest il will either reimburse Tommy's directly or the new landlord, the difference beeen the commercial value of the rent under the tenancy agreement with Tommy's and £100,293. The difference was £45,132 12022.. £88,760) and is shown as donated serVIS within both incoming and outgoing resources. Analysis of support costs Grant funding to Bank institutions revaluations 2023 2023 Bank charges 2023 Total funds 2023 Total funds 2022 Professional fees Advertising Other Governance costs 42,756 200 322 43,278 52,002 4,100 196 8,000 196 8.000 14,038 50,952 200 322 51,474 70,140 Totsl 2022 69,903 174 63 70,140 10. Auditorfs remuneration 2023 2022 Fees payable lo the charitys auditor for the audit of the charitys annual accounts 10,000 6,338 Fees payable to the charity's auditor in respect of.. All non-audil services not included above 17.600 31,463 Page 21
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 11. Trustees. remuneration and expenses During the year, no Iruslees reiVed any remuneration or other benefils12022 - £NILI. During the year ended 31 May 2023, no trustee expenses have been incurred12022 - £NILI. 12. Investment property Freehold investment property Valuatlon At 1 June 2022 7,386,250 142,669 11,528.9191 Additions Loss on revaluation At 31 May 2023 6,000,000 The historical cost of the investment propety is £5,216,30712022. £5,216,307). The investment property was valued on an open market basis al 31 May 2023 by the Trustees. 13. Fixed asset investments Investments subsidiary companies At 1 June 2022 Disposals At 31 May 2023 Net book value At 31 May 2023 At 31 May 2022 Page 22
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 14. Debtors 2023 2022 Due within ong yoar Trade debtors Amounts owed by group undertakings Other debtors 505 963 94,896 5.723 963 176,530 5,723 Prepayments and accrued income 102.087 183,216 15. Creditors- Amounts falling due within one year 2023 2022 Trade creditors Other taxation and social security Other Creditors Accruals and deferred income 92,764 62,226 36,339 5,363 131,366 9,075 3,212,000 9.075 225,000 Grants accrued - institutional 389,065 3,394,143 2023 2022 Grants accrued at 1 June 2022 Grants approved in the year Grants paid in the year 3,212,000 1,308,080 4,000,000 13.022.000} 12,096,080) Grants accrued at 31 May 2023 190.000 3,212,000 Page 23
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 16. Statement of funds statement of funds - current year Balance at 1 June 2022 Gainsl Balance at (Losses) 31 May 2023 Income Expenditure Unrestricted funds General Funds - all funds 12.284,532 594.291 {163.4211 11.528.919} 11.186,483 Restrlcted funds Educational projects Salute the NHS GOSH NHS Foundation trust 1.292,671 281,564 135.9461 1,256,725 281,564 189,347 228,000 138,6531 1.574.235 228.000 174.5991 1.727.636 Total of funds 13.858,767 822.291 {238,0201 11.528.919} 12.914,119 Statement of funds - prior year Balance at 1 June2021 Balance at Income Expenditure 31 May 2022 Unrestricted funds General Funds - all funds 12,280,862 262,165 1258,4951 12,284,532 Restricted funds Educational projects Salute the NHS 5,292,671 230,964 14,000,000) 1,292,671 281,564 50,600 5,523,635 50,600 14,000,000) 1,574,235 Total of funds 17,804,497 312,765 14,258,495) 13,858,767 Page 24
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 17. Summary offunds Summary offunds - current year Balance at 1 June 2022 Gainsl Balance at (Losses) 31 May 2023 Income Expenditure General funds Reslricled funds 12,284,532 1.574.235 594,291 228.000 {163,4211 11,528,919) 11,186,483 174.5991 1.727.636 13,858,767 822,291 {238,0201 11,528,919} 12,914,119 Summary offunds - prior year BalanTr at 1 June2021 Balance at Income Expenditure 31 May 2022 General funds Reslricled funds 12,280,862 5,523,635 262,165 50,600 1258,4951 12,284,532 14,000,000) 1,574,235 17,804,497 312,765 14,258,495) 13,858,767 18. Analysls of net assets between funds Analysls of net assets between funds - current year Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Investment property Current assets Creditors due within one year 6,000,000 5,575,548 1389,0651 6,000,000 7,303,184 {389.0651 1,727,636 Totsl 1,727,636 11,186,483 12,914,119 Page 25
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 18. Analysis of net assets between funds {continuedl Analysis of net assets between funds - prior year Restricted Unreslricled nds funds 2022 2022 Total funds 2022 Fixed asset investments Investment property Current assets Creditors due within one year 7,386,250 7,386,250 8,292,425 9,866,659 13,394,143) 13,394, 1431 1,574,234 Total 1,574,235 12,284,532 13,858,767 19. Reconciliation of net movement in fvnds to net cash flow from operating activities 2023 2022 Nel incomelexpendilure for the year las per Statement of Financial Aclivitiesl 584.271 13,945,729) Adjustments for- Dividends, interests and rents from investments Decrease in debtors IDecreasellincrease in creditors 1417,793) 81.129 13.005,077) 1173,4051 53,221 1,933,130 Net cash used in operating activities 12,757,470) 12,132,783) 20. Analysis of cash and cash gquivalents 2023 2022 Cash in hand 7,201,097 9,683,443 Total cash and cash equivalents 7,201,097 9,683,443 Page 26
DREAMCHASING IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 21. Analysis of changes in net debt At 1 June 2022 Cash flows At 31 May 2023 Cash al bank and in hand 9.683.443 12.482.346} 7.201.097 9,683,443 12,482,346} 7,201,097 22. Capitsl commitments 2023 2022 Contracted for but not provided in these financial statements Purchase, construction or development of investment property 7,051 23. Members. liability Each member of the charitable company undertakes lo contribute to the assets of the company in the event of it being wound up while helshe is a member, or within one year after helshe ceases lo be a member, such amount as may be required, not exceeding £NIL for the debts and liabilities contracted before helshe ceases to be a member. 24. Related party transactions The company has taken advantsge of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group. There are no related party transaction5 to disclose other than grants to related parties as disclosed in Note 7. Page 27