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2020-09-30-accounts

DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

Charity Registration No. 1184394

BRAVE FOUNDATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Chairman Bogdan Iwanov Reckalijsky
Secretary Galin Nikolaev Galev
Treasurer Bogdan Iwanow Reckalijsky
Trustees Bogdan Iwanow Reckalijsky
Galin Nikolaev Galev
Stanimir Stoyanov Pisev
Charity number 1184394
Principal address 98 Rowan Drive
Brandon
IP27 0HJ
Independent examiner
Brampton Accounting
85 Great Portland Street
W1W 7LT

DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Statement of financial position 5
Notes to the financial statements 6 - 8

DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

The trustees of the Brave Foundation (the Trustees) have pleasure in submitting their report together with unaudited accounts for the year ended 30 September 2020. The accounts have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP FRS 102), Financial Reporting Standard 102 (FRS 102) and the Charities Act 2011.

Objectives and activities

The Brave Foundation’s purposes as set out in the objects contained in the company’s Articles of Association are, for the public benefit, to relieve persons who are in need by reason of financial hardship, ill-health, alcohol or substance abuse, domestic violence or such other social or economic disadvantage.

The aim of the Brave Foundation is to provide free spaces for people in charitable need because of financial hardship, ill-health, alcohol or substance abuse, domestic violence or such other social or economic disadvantage to retreat and have respite. We pursue these aims through the building and managing of fully catered accommodation in Bulgaria close to the border with Macedonia. The particular emphasis of the accommodation is to provide retreat facilities for individuals and small groups who are in charitable need so they can focus on their recovery and return to health. Our aims fully reflect the purposes that the charity was set up to further.

We are a newly established charity and intend to review our aims, objectives and activities each year. This review will look at what we achieved, the outcomes of our work in the previous 12 months, the success of each of our activities and the benefits they have brought to those groups of people we are set up to help.

The review also helps us ensure our aims, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when considering our aims and objectives and in planning our future activities.

Achievements and performance

All the Brave Foundation’s activities this financial year have been focused on the establishment of a retreat and respite Centre and are undertaken to further its charitable purposes for the public benefit. To this end the Brave Foundation has continued to build the infrastructure for the site including kitchens and accommodation.

The Brave Foundation anticipates that the building work will be completed next financial year with a view to inviting its first beneficiaries to the retreat centre in 2022.

Financial review

Charity has received income of £77,983 and there is excess income over expense of £68.950 for the year ended 30 Sept 20. Reserves are held under the General Fund. The amount would be used to achieve the objectives of the organisation i.e mainly providing relief to vulnerable persons in need of shelter, food and other difficulties. Amount held in reserves held is £68,950. There are no uncertainties about the charity as a going concern. Continuous income from patrons is promised and is ongoing. Charity also builds infrastructure to be assured of continuous income in future.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 8 September 2017 and registered as a charity on 12 July 2019.

The company is governed by a Memorandum of and Articles of Association incorporated 8 September 2017 as amended by special resolution registered at Companies House on 17 June 2019 which established the objects and powers of the charitable company. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

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DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles of Association are known as the Trustees. Under the requirements of the Articles of Association the Trustees are appointed to serve by the members of the charitable company. The members of the charitable company are Bogdan Iwanow Reckalijsky, Galin Nikolaev Galev and those additional persons admitted to membership of the charitable company by the Trustees in accordance with the Articles of Association.

All Trustees give their time voluntarily and received no benefits from the charity.

The Trustees are selected by the members of the Brave Foundation to serve if they are interested in furthering the charitable objects of the Brave Foundation.

The Brave Foundation is affiliated with and works alongside a charitable organisation in Bulgaria called Fondatsia Hrabar.

Reference and administrative details

----- Start of picture text -----
Charity name Brave Foundation
Other name the charity uses None
Charity registration number 1184394
(in England and Wales)
Company registration 10952436
number
Charity’s principal address 98 Rowan Drive, Brandon, IP27 0HJ
and registered office
Trustee name Appointment and retirement dates
Bogdan Iwanow Reckalijsky From 08 September 2017 to present
Galin Nikolaev Galev From 21 June 2019 to present
Stanimir Stoyanov Pisev From 01 May 2020 to present
Tsvetan Petrov Marinov From 21 June 2019 to 01 May 2020
----- End of picture text -----

Exemptions from disclosure

None

Funds held as custodian trustee on behalf of others

The Brave Foundation does not hold funds as custodian trustee.

Declarations

The Trustees declare that they have approved the trustees’ report above. Signed on behalf of the Trustees

Bogdan Iwanow Recklijsky Trustee Dated: 13 May 2021

INDEPENDENT EXAMINER’S REPORT

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DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION

TO THE TRUSTEES OF BRAVE FOUNDATION

I report on the accounts of the charity for the year ended 30 September 20, which are set out on pages 4 to 10.

This report is made solely to the charity's trustees, as a body, in accordance with Section 154 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for my work, for this report, or for the opinions I have formed.

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the financial statements. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner’s statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities:

I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice.

Brampton Accounting 85 Great Portland Street W1W 7LT Dated: 13 May 2021

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DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Unrestricted
funds
Restricted
funds
2020
Notes
£
2020
£
Income from:
Voluntary income for charitable activities
3
77,983
-
Grant Income
3,432
-
Total income
81,325
-
Expenditure on:
Charitable activities
Costs of charitable activities
4
2,233
-
Support costs
5
992
-
Total charitable expenditure
3,225
-
Governance costs
9,240
-
Total resources expended
12,465
-
Net income/(expenditure) for the year/
Net movement in funds
68,950
-
Fund balances at 1 October 2019
0
-
Fund balances at 30 September 2020
68,950
-		 Total
2020
77,983
3,432
81,325
2,233
992
3,225
9,240
12,465
68,950
0
68,950		 Total
2019
49,154
49,154
33,992
6,762
40,754
8,400
49,154
0)
0
0

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION

STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2020

Current assets
Cash at bank and in hand
Notes
Creditors: amounts falling due within
one year
Net current assets
Income funds
Restricted funds
Unrestricted funds		 69,452
2020
69,452
(502)
 68,950
0
68,950
68,950		 89,662
2019
89,662
(89662)		 0
0
0
0

The financial statements were approved by the Trustees on 30 September 2020

Bogdan Iwanow Recklijsky Trustee Dated: 13 May 2021

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DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

Charity information

The organisation is a charitable company limited by guarantee, incorporated on 8 September 2017 and registered as a charity on 12 July 2019. The company is governed by a Memorandum of and Articles of Association incorporated 8 September 2017 as amended by special resolution registered at Companies House on 17 June 2019 which established the objects and powers of the charitable company. The principal address is 98 Rowan Drive, Brandon IP27 0HJ.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Charities Act 2011 and “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)" (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements 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 Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At 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. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity.

1.4 Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.

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DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs represent costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination costs linked to the strategic management of the charity.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand and bank.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to 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.

BASIC FINANCIAL ASSETS AND LIABILITIES

Basic financial assets and liabilities, which include debtors and creditors with no stated interest rate and receivables or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

1.8 Direct taxation

As a Charity, the Society is generally exempt from income tax and capital gains tax, but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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DocuSign Envelope ID: 2235E07A-2282-4D90-9491-DFD9D1DA159C

BRAVE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

3
Income
Voluntary income for charitable
activities
Grant Income - Furlough
4
Cost of Charitable activities
Equipment expensed
Direct costs for the projects
5
Support costs
Telephone and internet
Postage
Travel and motor expenses
salaries and wages
Sundry expenses
Bank charges		 Unrestricted
Restricted
Total
Total
Funds
Funds
2020
2019
77,983
0
77,983
49,154
3,432
0
3,432
0
81,415
0
81,415
49,154
Unrestricted
Restricted
Total
Total
Funds
Funds
2020
2019
2,233
0
2,233
3,353
0
0
0
30,639
2,233
0
2,233
33,992
Unrestricted
Restricted
Total
Total
Funds
Funds
2020
2019
525
0
525
87
6
0
6
0
143
0
143
108
0
0
0
5,250
309
0
309
935
9
0
9
382
992
0
992
6,762

6 Employees

There was one employee during the year (2019-1)

7 Related party transactions

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