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2022-08-31-accounts

Charity number: 1179452

THE BRIGHT FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

THE BRIGHT FOUNDATION

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 9
Trustees' Responsibilities Statement 10
Independent Auditors' Report on the Financial Statements 11 - 14
Statement of Financial Activities 15
Balance Sheet 16
Statement of Cash Flows 17
Notes to the Financial Statements 18 - 30

THE BRIGHT FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

Trustees J Bright, Chair
LK Fletcher
J Ireland
JR Hayward
S Williams
U Nicholson
GM Nebel
Charity registered
number
1179452
Principal office
2 London Road
St Leonards-on-sea
East Sussex
TN37 6AE
Key management
personnel
C Garlick
P Risbridger (CEO)
Chief executive officer
P Risbridger
Independent auditors
Bishop Fleming LLP
Chartered Accountants
Salt Quay House
4 North East Quay
Sutton Harbour
Plymouth
PL4 0BN

Page 1

THE BRIGHT FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 September 2021 to 31 August 2022.

Objectives and activities

a. Policies and objectives

The Bright Foundation is an arts education charity founded by Academy Award winning Costume Designer and philanthriopist, John Bright. Our mission is to use the lifetime’s work of our founder and benefactor to be a catalyst for creative learning and inspire a new generation of imaginative children and young people to reach their full potential.

We believe in the power of arts and creativity to shape happier and healthier children and young people. Our vision is for all children and young people to have their imaginations sparked and their wellbeing nurtured through a quality cultural curriculum, regardless of their background.

John Bright is an internationally renowned Costume Designer for film, tv and theatre, as well as founder and owner of the costume house, Cosprop which is based in London.

The objects of the Charity are:

  1. To advance in life and relieve the needs of disabled and/or socially and economically disadvantaged children and young people through:

  2. a. advancing education in particular (but not exclusively) in the arts, the history of theatre and the making of period toys, by the establishment and maintenance of a theatre, a museum and by providing or supporting the provision of artistic workshops and other facilities and activities which will encourage greater understanding and appreciation of the arts;

  3. b. preserving and protecting their mental and physical health, in particular by providing or assisting in the provision of tactile sensory activities, and other activities and facilities promoting mindfulness meditation and relaxation;

  4. c. providing recreational and leisure time activities in the interest of social welfare, designed to improve their conditions of life;

  5. d. providing facilities and activities which develop their skills, capacities and capabilities to enable them to participate in society as mature and responsible individuals; and

  6. Such other charitable purposes (according to the law of England and Wales) as the trustees think fit from time to time

b. Strategies for achieving objectives

From two different venues in and around Hastings, we offer a programme of creative learning to children and young people. The Barn Theatre and Museum based at Rodgers Farm in the surrounding countryside of Hastings, features a 50-seat barn-converted children’s theatre and workshop studio, alongside a museum and exhibition space showcasing John’s collection of antique toys, puppets and model theatre sets. In this beautiful setting, we invite schools, families and local groups to experience the joy of play and creation, learn about the history of childhood, and be inspired by performance. The Benbow Arts Space, located in the heart of St. Leonards-on-sea, is an exhibition and community arts space. Capturing a bygone era, the striking yet flexible spaces will offer workshops, events and public exhibitions for our local communities.

We launched the foundation and opened the Barn Theatre and Museum in June 2022. The Benbow Arts Space will open in late 2023 / early 2024, alongside an expanded programme of outdoor learning within the 24 acres of land surrounding the Barn Theatre and Museum.

Page 2

THE BRIGHT FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Objectives and activities (CONTINUED)

We are building partnerships with local schools, voluntary sector groups, creatives, and other venues, to reach and engage children and young people experiencing disadvantage in their lives and to expand our reach as an organisation.

c. Activities undertaken to achieve objectives

For the first part of the year, the main focus of the organisation was preparing to launch including:

We launched the Barn Theatre and Museum on 9 June 2022 with a hugely successful Press Launch. The opening programme of activity included:

d. Main activities undertaken to further the Charity's purposes for the public benefit

Our primary beneficiaries are children and young people. In the first year we are solely focusing on those living in Hastings and Rother, and will expand our reach over time.

Hastings is the 13th most deprived local authority in the country, and has the highest child poverty rate in the South East with an increase of more than 7% since 2015. It has the lowest educational attainment statistics in East Sussex (25.4% of residents have no qualifications – compared to 22.5% across England).

We are primarily reaching children and young people through schools, where Hastings has an average of 30% of children on free school meals. We are also developing partnerships to engage children and young people who experience disadvantage or have additional support needs. Partnerships developed so far include Hastings Foodbank, Fresh Visions youth service, East Sussex Looked After Children’s Service, East Sussex Foster Carers Association, a range of special schools and PRUs, Hastings and Rother Arts and Education Network, and Rother based Ukranian support group.

The Bright Foundation also benefits teachers, support workers, local artists and creatives, and families.

All activities instil confidence, nurture physical and emotional wellbeing, promote creativity and collaboration, encourage cultural awareness and understanding, and offer cross-curricular learning experiences.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Page 3

THE BRIGHT FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Achievements and performance

a. Main achievements of the Charity

The main achievement has been to launch the charity attracting 864 visitors between 9 June and 31 August 2022. Our engagement figures for this period include:

b. Key performance indicators

The key performance indicators for 2021-22 were to:

c. Review of activities

The Foundation achieved and exceeded all the KPIs for the year as the engagement figures above show. We have received phenomenal feedback, with all teachers rating their visit as Fantastic. Some of the feedback received includes:

“It was such an amazing day - well thought out and planned. It was really well delivered and some of the young people that attended have never been that attentive and focused before.” Group Leader

“Our Year 1 cohort learn about puppets in Term 6, so this experience was a perfect tool to enrich our curriculum. The children also had the valuable opportunity to work collaboratively - a skill which we have focused upon following the disruption to their first year at school.”

Deputy Headteacher, Dudley Infant School

“It was really special - I know the young people and their families were blown away by the beautiful show, and also the fantastic surroundings and all the effort that had been made to ensure the visit was a fun learning opportunity.”

Group Leader, Home Education Group

Page 4

THE BRIGHT FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Achievements and performance (CONTINUED)

“Today really has been such a happy day for me and my children. The setting and atmosphere in the garden at the festival was idyllic. The pace was perfect as was the amount and quality of things to do. The museum and facilities really are beautiful and all the staff/volunteers were incredibly welcoming and professional. I came away feeling very fortunate and overwhelmed by the act of generosity in making this afternoon free. I have worked for many years in event production and admit I can be super critical at such events but I honestly couldn’t fault today.”

Family Festival Attendee

We estimate 30% of children and young people visiting so far experience some form of disadvantage including:

Through creative play and learning these young people are developing concentration and focus; improving their gross and fine motor skills; expressing thoughts and opinions; collaborating with others; building a greater understanding of the world and different cultures; building confidence and ability to communicate with different people.

We secured excellent press coverage of our launch (which was attended by Jeremy Irons, Jim Broadbent, Anna Chancellor, Sinead Cusack and Hilary Kay) including a pre-launch half page feature in The Observer; broadcast coverage on ITV national news, BBC News South East, and BBC Radio Sussex; and post-launch coverage in local, national and international publications.

d. Factors relevant to achieve objectives

The launch of the foundation was delayed due to the pandemic.

e. Fundraising activities and income generation

John Bright and his company Cosprop Limited remain the sole funders of the Foundation for 2021-22.

In Autumn 2022 we were awarded our first small grant by South East Museum Development to take part in The Wild Escape 2023.

Throughout 2021-22 we offered all the activities for free. In October 2022 we introduced a Pay What you Can scheme for public events, to ensure that cost isn’t a barrier to enjoying the arts but those who can afford to pay do so to enable us to offer free access to those most in need.

We are currently planning a charity auction for February/March 2024 to sell film memorabilia and costumes from Cosprop and donated items from our Ambassadors. Our target for this is £350,000.

f. Investment policy and performance

The funds that have been made available to the Foundation have been tied up in the staffing, operational and programme needs. There were no additional funds that would have benefitted from investment.

Longer term the CAF bank have recommended Charity Investment specialists, Tilneys, because there will be a large inheritance at some point in the future. We have met with them and they are able to advise as and when the Foundation is in need of this service.

Page 5

THE BRIGHT FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Financial review

a. Going concern

The Trustees have reviewed the circumstances of the Charity and consider that adequate resources continue to be available to fund the activities of the Charity for the foreseeable future. The Trustees are of the view that the Charity is a going concern. The Trustees have assessed that the Charity has sufficient reserves and cash balances to mitigate any potential unforeseen impact arising.

The Trustees acknowledge that the Charity is not currently financially viable without the financial support of the related Company, Cosprop Limited. Cosprop Limited have committed to support the Charity for a minimum of 12 months to ensure the going concern basis is appropriate.

b. Reserves policy

Funds have been made available to the charity to enable the launch of the project and to meet the salaries of the staff employed. All funds are currently planned to be invested in this project to create a space to carry out its objectives and aims as detailed in the Achievement and Performance section. The charity does not expect to build any reserves until such time as the charity commences operations due to the continued support from the main benefactor, the trustees consider that the charity does not need to hold any additional reserves at this time.

c. Performance review

Most of the Charity's income is obtained from the estate of John Bright and his company, Cosprop Limited, the use of which is unrestricted. Our first year of operation was delivered within budget with a total expenditure of £412,135. There is a remaining general fund of £24,187 which will be carried forward to 2022-23.

d. Principal risks and uncertainties

The principal risk to the Foundation rests with its dependence on the sole funding stream coming from John Bright via Cosprop. This funding is dependent on the success of the business. Cosprop has had a very stable history of profitability over the past fifty-five years and there is nothing to indicate this will change. There was a financial impact on Cosprop as a result of closure during Lockdown, however the business has picked up and has been trading very profitably in 2022.

e. Financial risk management objectives and policies

The Board of Trustees is responsible for the organisation's systems of internal control, including risk management. The charity’s CEO is the officer who is responsible for the management of systems of internal control and the implementation of policies set by the Board. The Board monitors and scrutinises the budget, accounting practice and financial performance against budget.

Operations and day-to-day management is determined by financial regulations and internal controls are supervised by the Charity’s CEO, with support from the Trustees.

Throughout the year we have continued to review and evolve our risk management framework to ensure that we are comprehensively capturing risk across a range of categories; and so ensure that our register is fully updated; new risks registered and explored in detail; with recorded actions needed to mitigate against the risks, reported through to the Board at every full board meeting and, where relevant, specific meetings are called to respond to urgent risks.

Page 6

THE BRIGHT FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

f. Principal funding

John Bright has committed to funding the Foundation via his company, Cosprop Limited. This will continue until the Foundation is able to carry out fundraising. John Bright has bequeathed Cosprop Limited, including its property in Islington, Rodgers Farm and the new property in St Leonards, The Admiral Benbow to the Foundation.

Structure, governance and management

a. Constitution

The Bright Foundation is a charitable incorporated organisation and is registered as a charity in England and Wales with number 1179452. The Charity is constituted by a CIO constitution dated 3 August 2018 as amended on 24 March 2020 (“the CIO constitution”) when the name of the Charity was changed from The Children’s Art and Education Foundation to The Bright Foundation.

b. Methods of appointment or election of Trustees

The management of the Charity is the responsibility of the Trustees who are appointed by the Trustees in accordance with the terms of the CIO Constitution.

When appointing new Trustees, the Board will give consideration to the skills and experience mix, and diversity of existing Trustees in order to ensure that the Board has the necessary skills to contribute fully to the Charity's development.

c. Organisational structure and decision-making policies

The board of Trustees oversees the overall the management and operations of the charity and compliance with its statutory obligations. The board of trustees meets quarterly.

Senior Management of the Charity’s operations on a day-to-day basis was delegated by the Trustees to the CEO who began a handover from the previous manager who had been gifted by Cosprop in June 2021 and took up the full-time position as CEO in November 2021.

The Charity has five staff to plan and deliver the programme and works with a range of consultants and creatives. The core staff are the CEO, an Arts and Education Manager who plans and delivers the programme and helps curate the exhibitions; an Operations and Communications Manager; a Venue Coordinator responsible for the day-to-day running of the Barn Theatre and Museum; and a Caretaker/Groundskeeper responsible for the maintenance and upkeep of Rodgers Farm.

d. Policies adopted for the induction and training of Trustees

Provision for the induction and training of Trustees is led through the charity’s managers and Chair of the Board. This includes the role of the Trustees, the strategic intention of the charity’s Business Plan, and a briefing on all activities, the organisation's financial position, systems, reporting, and management policies. A Trustee Induction Pack of information underpins this training. Publications such as "The Essential Trustee: what you need to know" (Charity Commission) are also issued to new Trustees.

e. Pay policy for key management personnel

Chris Garlick has undertaken the role of Senior Manager until the appointment of Polly Risbridger in June 2021. His service was gifted to Foundation by Cosprop Limited. The CEO salary has been benchmarked against equivalent roles in the arts education / charity sector.

Page 7

THE BRIGHT FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (CONTINUED)

f. Related party relationships

Both John Bright and Chris Garlick are connected to Cosprop Limited as senior managers in that company. All transactions between the two organisations are only 1 way, with benefit to the Charity only.

g. Trustees' indemnities

Under the terms of the CIO Constitution, the Trustees are:

h. Plans for future periods

The Bright Foundation’s aims for 2022-23 are:

Following a Staff and Board Development Day we have agreed to give ourselves a two year creative testing period to experiment with different projects, programmes and ways of working before developing a full business Plan for 2024-27. We are appointing an Evaluation Consultant in April 2023 to work with us to evaluate these first two years and will produce an Impact Evaluation Report in September 2024.

We will be launching our second venue, the Benbow Arts Space in December 2023. This will be a youth arts and exhibition space with a History of Cinema exhibition showcasing John Bright’s private collection charting the making and presentation of film from 1890 to today. A programme of creative exploration, skills development and industry masterclasses for young people aged 11-21 years will be delivered through 2024. We will be recruiting a group of Young Ambassadors to help co-curate and plan this exhibition and programme. We are also working in partnership with De La Warr Pavilion’s Talent Accelerator, DV8 Sussex and Fresh Visions youth centres on this programme.

At the Barn Theatre and Museum we will continue to deliver and expand our programme, developing new partnerships and working with new collaborators. The programme plans for 2022-23 include:

Page 8

THE BRIGHT FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (CONTINUED)

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappoointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

J Bright (Chair of Trustees) Date:

Page 9

THE BRIGHT FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, 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 Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Memorandum of Association. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

J Bright (Chair of Trustees) Date:

Page 10

THE BRIGHT FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BRIGHT FOUNDATION

OPINION

We have audited the financial statements of The Bright Foundation (the 'Charity') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance 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 Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 11

THE BRIGHT FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BRIGHT FOUNDATION (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement 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 to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Page 12

THE BRIGHT FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BRIGHT FOUNDATION (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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:

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to the completeness of income in respect of donations. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We have also obtained an understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities Act 2011, Charities SORP 2019 and FRS 102.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity’s ability to operate or avoid a material penalty. These included data protection legislation, employment law and health and safety.

Our procedures to respond to risks identified included the following:

We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.

Page 13

THE BRIGHT FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BRIGHT FOUNDATION (CONTINUED)

As a result of the inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in the financial statements or non-compliance with regulation, will be detected by us. This risk increases the further removed compliance with a law and regulation is from the events and transactions reflected in the financial statements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one-off error, as this may involve intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

USE OF OUR REPORT

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an Auditors' 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 Charity and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Pamela Tuckett FCA DChA (Senior statutory auditor)

for and on behalf of Statutory Auditors Chartered Accountants Statutory Auditors Salt Quay House Plymouth PL4 0BN Date:

Bishop Fleming LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 14

THE BRIGHT FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022

Note
INCOME FROM:
Donations and legacies
4
Charitable activities
5
Investments
6
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
7
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD
14		 Unrestricted
funds
2022
£
464,570
4,375
12
468,957
412,135
412,135
56,822
973,085
56,822
1,029,907		 Total
funds
2022
£
464,570
4,375
12
468,957
412,135
412,135
56,822
973,085
56,822
1,029,907		 Total
funds
2021
£
19,638
-
-
19,638
129,645
129,645
(110,007)
1,083,092
(110,007)
973,085

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 18 to 30 form part of these financial statements.

Page 15

THE BRIGHT FOUNDATION

BALANCE SHEET AS AT 31 AUGUST 2022

Note
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
18
Creditors: amounts falling due within one
year
13
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
14
Unrestricted funds
14
TOTAL FUNDS		 4,375
54,419
58,794
(34,607)		 2022
£
1,005,720
24,187
1,029,907
-
1,029,907
1,029,907		 -
83,431
83,431
(18,784)		 2021
£
908,438
64,647
973,085
-
973,085
973,085

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

J Bright (Chair of Trustees) Date:

The notes on pages 18 to 30 form part of these financial statements.

Page 16

THE BRIGHT FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Note
Cash flows from operating activities
Net cash provided by/ (used in) operating activities
17
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
18
The notes on pages 18 to 30 form part of these financial statements		 2022
£
79,191
(108,203)
(108,203)
(29,012)
83,431
54,419		 2021
£
(158,336)
(183,841)
(183,841)
(342,177)
425,608
83,431

Page 17

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. GENERAL INFORMATION

The Charity is a charitable unincorporated organisation registered in England and Wales, within the United Kingdom. The registered Charity number is 1179452 and the registered office is 2 London Road, St Leonards-on-sea, East Sussex, TN37 6AE.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 January 2019 which has since been withdrawn.

The Bright Foundation 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 stated in the relevant accounting policy.

2.2 GOING CONCERN

At the year end, the Charity held £1,085,226 of reserves which are all designated to the capital build project and associated costs. The Trustees have reviewed the circumstances of the Charity and consider that adequate resources continue to be available to fund the activities of the Charity for the foreseeable future. The Trustees are of the view that the Charity is a going concern. The Trustees have assessed that the Charity has sufficient reserves and cash balances to mitigate any potential unforeseen impact arising.

At the year end, the Charity has unrestricted general funds of £24,187 and are forecasting further surpluses for years ending August 2023 and August 2024 at a similar level seen in the current year. Since the year end £430,000 has been recieved from related company, Cosprop Limited to fund activities for year ending August 2023.

The Trustees acknowledge that the Charity is not currently financially viable without the financial support of the related company, Cosprop Limited. Cosprop Limited have committed to support the Charity for a minimum of 12 months to ensure the going concern basis is appropriate.

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.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Charity's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Page 18

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. ACCOUNTING POLICIES (continued)

2.3 INCOME (CONTINUED)

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to 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.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 GOVERNMENT GRANTS

Government grants of a revenue nature are credited to the Statement of Financial Activities as the related expenditure is incurred.

2.6 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 19

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. ACCOUNTING POLICIES (continued)

2.7 TANGIBLE FIXED ASSETS AND DEPRECIATION (CONTINUED)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.8 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.10 PENSIONS

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.11 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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 20

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The Charity has no material or key accounting estimates.

4. INCOME FROM DONATIONS AND LEGACIES

Donations
Donations
COVID-19 grant
TOTAL 2021		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
-
464,570
Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
18,617
1,021
-
1,021
18,617		 Total
funds
2022
£
464,570
Total
funds
2021
£
18,617
1,021
19,638

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Charitable Activities 4,375 4,375 -

6. INVESTMENT INCOME

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Investment income 12 12 -

Page 21

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Charitable Activities
Charitable Activities		 Activities
undertaken
directly
2022
£
237,677
Activities
undertaken
directly
2021
£
97,417		 Support
costs
2022
£
174,458
Support
costs
2021
£
32,228		 Total
funds
2022
£
412,135
Total
funds
2021
£
129,645

Page 22

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED) ANALYSIS OF SUPPORT COSTS

Depreciation
Hospitality
Consultancy fees
Legal fees
Office equipment & stationery
Insurance
Travel expenses
Rent and Rates
Premises costs
Building works
Repairs and renewals
Accountancy fees
Internet
Bank charges
Grounds maintenance
Other Staff Expenses
Advertising
Software and Subscriptions
Sundry expenses
Vehicle Expenses
Governance costs
8.
AUDITORS' REMUNERATION
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor for services not relating to the audit of
the Charity's annual accounts:
All non-audit services not included above		 Total
funds
2022
£
10,921
446
13,100
4,962
2,487
4,481
1,258
37,912
3,622
-
42,472
7,293
1,192
94
-
1,505
16,885
3,209
9,950
305
12,364
174,458
2022
£
8,050
3,440		 Total
funds
2021
£
193
-
-
3,929
3,789
2,649
246
-
2,055
487
3,973
1,169
117
85
136
-
-
-
-
-
13,400
32,228
2021
£
7,100
3,040

Page 23

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

9. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
177,829
17,065
6,996
201,890		 2021
£
94,590
3,257
2,830
100,677

The average number of persons employed by the Charity during the year was as follows:

2022 2021
No. No.
Staff 5 3

No employee received remuneration amounting to more than £60,000 in either year.

All Trustees and certain senior employees who have authority and responsiblility for planning, directing and controlling the activities of the Charity are considered to be key management personnel as listed on page 1. Total remuneration, including employer pension contributions, in respect of these individuals is £67,384 (2021: £15,317).

10. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 August 2022, expenses totalling £304 were reimbursed or paid directly to 1 Trustee (2021 - £NIL to Nil Trustees).

Page 24

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 September 2021
Additions
Transfers between classes
At 31 August 2022
DEPRECIATION
At 1 September 2021
Charge for the year
At 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021		 Long-term
leasehold
property
£
-
79,236
907,665
986,901
-
4,935
4,935
981,966
-		 Plant and
machinery
£
366
-
-
366
73
73
146
220
293		 Fixtures and
fittings
£
600
21,448
-
22,048
120
4,409
4,529
17,519
480		 Office
equipment
£
-
1,119
-
1,119
-
224
224
895
-		 Computer
equipment
Assets
under
construction
£
£
-
907,665
6,400
-
-
(907,665)
6,400
-
-
-
1,280
-
1,280
-
5,120
-
-
907,665		 Total
£
908,631
108,203
-
1,016,834
193
10,921
11,114
1,005,720
908,438

The transfer from assets under construction to long-term lease property relate to the development of the site at Rodgers Farm, Hastings. The Charity leases the related land at this site under an operating lease over a 50 year period. This site is to be bequeathed to the Charity.

Page 25

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12. DEBTORS

2022 2021
£ £
DUE WITHIN ONE YEAR
Trade debtors 4,375 -

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other taxation and social security
Other creditors
Accruals		 2022
£
11,843
5,141
6,133
11,490
34,607		 2021
£
5,900
1,567
1,177
10,140
18,784

Page 26

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR
Balance at 1
September
2021
£
Income
£
Expenditure
£
Transfers
in/out
£
Balance at
31 August
2022
£
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Capital Build Project
973,085
-
(10,921)
43,556
1,005,720
GENERAL FUNDS
General Funds
-
468,957
(401,214)
(43,556)
24,187
TOTAL UNRESTRICTED
FUNDS
973,085
468,957
(412,135)
-
1,029,907
DESIGNATED FUNDS
Capital Build Project- This represents general funds which have been designated to the capital build
project. All funds are currently planned to be invested in this project to create a space to carry out its
objectives and aims when the Charity commences operations.
STATEMENT OF FUNDS - PRIOR YEAR
Balance at
1 September
2020
£
Income
£
Expenditure
£
Transfers
in/out
£
Balance at
31 August
2021
£
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Capital Build Project
1,083,092
-
(193)
(109,814)
973,085
GENERAL FUNDS
General Funds
-
18,617
(128,431)
109,814
-
RESTRICTED FUNDS
COVID-19 Grant
-
1,021
(1,021)
-
-
TOTAL OF FUNDS
1,083,092
19,638
(129,645)
-
973,085		 Balance at
31 August
2022
£
1,005,720
24,187
1,029,907
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Capital Build Project
GENERAL FUNDS
General Funds
RESTRICTED FUNDS
COVID-19 Grant
TOTAL OF FUNDS
-
-
973,085

Capital Build Project - This represents general funds which have been designated to the capital build project. All funds are currently planned to be invested in this project to create a space to carry out its objectives and aims when the Charity commences operations.

Page 27

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. SUMMARY OF FUNDS

SUMMARY OF FUNDS - CURRENT YEAR

Balance at 1 Balance at
September Transfers 31 August
2021 Income Expenditure in/out 2022
£ £ £ £ £
Designated funds 973,085 - (10,921) 43,556 1,005,720
General funds - 468,957 (401,214) (43,556) 24,187
973,085 468,957 (412,135) - 1,029,907
SUMMARY OF FUNDS - PRIOR YEAR
Balance at Balance at
1 September Transfers 31 August
2020 Income Expenditure in/out 2021
£ £ £ £ £
Designated funds 1,083,092 - (193) (109,814) 973,085
General funds - 18,617 (128,431) 109,814 -
Restricted funds - 1,021 (1,021) - -
1,083,092 19,638 (129,645) - 973,085

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2022
£
Tangible fixed assets
1,005,720
Current assets
58,794
Creditors due within one year
(34,607)
TOTAL
1,029,907		 Total
funds
2022
£
1,005,720
58,794
(34,607)
1,029,907

Page 28

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED) ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Tangible fixed assets
Current assets
Creditors due within one year
TOTAL		 Unrestricted
funds
2021
£
908,438
83,431
(18,784)
973,085		 Total
funds
2021
£
908,438
83,431
(18,784)
973,085
17.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net income/expenditure for the year (as per Statement of Financial
Activities)
ADJUSTMENTS FOR:
Depreciation charges
Decrease/(increase) in debtors
Increase/(decrease) in creditors
NET CASH PROVIDED BY/ (USED IN) OPERATING ACTIVITIES
18.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand		 FROM OPERATING
2022
2021
£
£
56,822
(110,007)
10,921
193
(4,375)
2,333
15,823
(50,855)
79,191
(158,336)
2022
2021
£
£
54,419
83,431

Page 29

THE BRIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

19. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand At 1
September
2021
£
83,431
83,431		 Cash flows
At 31
August 2022
£
£
(29,012)
54,419
(29,012)
54,419		 Cash flows
At 31
August 2022
£
£
(29,012)
54,419
(29,012)
54,419
54,419

20. PENSION COMMITMENTS

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £5,291 (2021: £2,830). Contributions totalling £233 (2021: £1,177) were payable to the fund at the balance sheet date and are included in other creditors.

21. RELATED PARTY TRANSACTIONS

During the year, donations of £440,001 (2021: £Nil) were received from a company where a Trustee is a director. Rental income of £4,375 (2021: £Nil) was also received from this company and purchases of £464 (2021: £Nil) were made from the company. The Charity also received a gift in kind from this company for employee time costs. A donation of £15,474 (2021: £13,047) has been recognised in respect of this. A gift in kind was received for donated time for a museum exhibition from this company of £7,200 (2021: £Nil). At the balance sheet date, £3,911 (2021: £Nil) was owed to the Charity from this company.

During the year, gifts in kind were received from a Trustee amounting to £1,895 (2021: £5,570) in relation to utility bills. At the balance sheet date £Nil (2021: £Nil) was owed to the Charity.

During the year, rent of £35,000 (2021: £Nil) and purchases of £643 (2021: £Nil) were made to a company, in which a Trustee is a director. At the balance sheet date, £6,708 (2021: £Nil) was owed to this company.

During the year, purchases of £18,083 (2021: £Nil) were made to a proprietor, in which a Trustee is a director. At the balance sheet date, £Nil (2021: £Nil) was owed to this company.

The Charity has a lease in place with a Trustee for use of land in which a peppercorn rent is paid.

22. CONTROLLING PARTY

The Charity is controlled by the Trustees.

Page 30