THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2021 Registered Company Number: 1900123 Registered Charity Number: 516477
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2021 CONTENTS Pages Officers and Advisers Governors. Report Auditor's Report 10-13 statement of Financial Activities and Income and Expenditure Account 14 Balance Sheet 15 Cash Flow Statement 16 Notes on the Financial Statements 17to27
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND Officers and Advisers Governors Focus.. Mr R Hindle Mr J Montgomery Mr C Gascoigne QAC.. Mr C Bradshaw Mi l Richards Prof J. Hilbourne Members.. Mr M Billingham Mr G Oakley (Chair) Mr M Quantrill Treasurer Mr J Dixon Company Secretary Mr P Taylor External Auditor Mazars LLP First Floor Two Chamberlain Square Birmingham B3 3AX Principal Bank Lloyds Bank PLC 36138 New Street Birmingham B2 4QZ Investment Managers Quilter Cheviot Investment Management Two Snowhill Birmingham B4 6GA Registered Office 49 Court Oak Road Harborne Birmingham B179TG
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND GOVERNORS, REPORT 31 March 2021 The Governors {who are also Trustees and Directors for the purposes of Charity and Company Lawl present their annual directors, report and financial statements of the Charitable Company for the year ended 31 March 2021. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, the Statement of Recommended Practice and the Financial Reporting Standard {FRS 1021. The Charitable Company is also known under its abbreviated name of BRIB. OBJECTIVES AND ACTIVITIES The Company has been established, as a Charity, to advance and promote the education and relief of blind people or those people significantly handicapped by defective vision or threatened by blindness, and of people with other disabilities and special needs by securing the provision of assistance and support and by other charitable means. Furthermore, it provides for facilities for recreation and leisure for the benefit of people with visual impairment and other disabilities. It carries out these objectives primarily by supporting organisations, principally Queen Alexandra College and Focus Birmingham, with the aim of enabling blind and disabled people to lead their lives to the maximum potential, improving the quality of life and encouraging independence. The support takes the form of grants, the provision of resources, expertise and encouragement to the organisations. The Governors are aware of the Charity Commission's general guidance on public benefit and believe that this support, together with Iheir on-going review of the Company's aims, objectives, future plans and grant making policy satisfies these requirements. Grant Making Policy It is the policy of the Governors to make grants only out of accumulated income and following a decision of a meeting of the Board. Grants will be considered out of surplus income available after all expenses have been adequately sourced. Grants may be made to qualifying individuals or to organisations whose principal purpose is the support of blind people and Ihose significantly handicapped by defective vision or threatened by blindness and other disabilities. The total amount of grants to be made by the Charity is determined by the Governors based on the level of available distributable reserves and the Charity's financial position. Applications for grants are considered at any meeting of the Board.
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND GOVERNORS, REPORT (continued) 31 March 2021 ACHIEVEMENTS AND PERFORMANCE The Charity received total income for the year of £880,895 (2020.. £915,174), and the Govemors are pleased to report that £985,384 (2020.. £785,361) has been distributed Of approved for distribution to its associated Charities. In particular, in February 2021 Governors approved grants totalling £221,000 to QAC and Focus to support with capital works in response to the COVID 19 pandemic. COVID 19 The Governors have continued to assess the impact of the COVID 19 global pandemic on the Charity. The Charity's investment portfolio recovered significantly in the year to 31 March 2021 and remains well above the minimum level of reseNes stipulated by Governors in the Reserves Policy. The Charity has a good asset base, no contingent liabilrties and its own projections show that BRIB has sufficient resetves and cash flow to maintain its operation going forward. There have b no significant events Sin the balan sheet date to change the Governors, assessment. FINANCIAL REVIEW RESULTS FOR THE YEAR Income forthis year was £880,895 compared to £915,174 in 2020 There were no Legacies or Bequests this year compared with £29,162 in 2020. While the majority of rent receivable is distributed to the associated Charrties as grants, BRIB continued to benefit from the rent receivable for Oakwood and Beech House. In furtherance of its objectives, the Charity made grants totalling £285,684 to Focus Bimingham (2020.. £189.994) and £699,700 to Queen Alexandra College 12020.. £595,367) This includes grants of £100,000 to QAC and £121,000 to Focus to support with capital works in response to the COVID 19 pandemic. The Charity did not make any grants to any other Charity during the year12020.' £nil}. The Charity's investment portfolio made a surplus of £444,012 on disposal and revaluation in the year to 31 March 2021, compared with a deficit of £262,902 in 2020. The Statement of Financial Activities on page 14 shows outgoing reSoUrS of £1,101,996 {2020.' £906,825) which when combined with income and the increase in the Charity's investment portfolio leads to the total net increase in funds for the year of £222,91112020.' decrease of £254,553). The Board is satisfied that its activities during the year, principally through its support of its associated charities, served to adequately discharge its charitable objects. FIXED ASSETS All tangible fixed assets are held for the purpose of carrying out the Charity's main objectives The Governors believe the market value ofthe Charity's freehold land and buildings to be more than their net book value, although no independent valuations have been obtained, as it is considered that the cost of obtaining the valuations is out of proportion to the usefulness of the information.
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND GOVERNORS, REPORT (continued) 31 March 2021 FINANCIAL REVIEW (continued) INVESTMENT POLICY AND PERFORMANCE The Governors, Investment Policy is to primarily invest in an appropriate mix of real assets, i.e. bonds, UK & international equf(ies, cash, and from time to lime, olher asset classes, in order to generate the required levels of return for the Charity to achieve its objectives. The mix of asset classes should redu the volatility which could result from a purely equity-based portfolio. Following a review by the Governors in 2014, the Investment Management Service has been carried out by Quiller Cheviot Sin July 2015. The Governors believe the investments continue to meet their requirements in temis of suitability. The portfolio is managed on a discretionary basis by a leading fimi of investment managers. A sub- committee of the Governors meets regularly with the investment managers and is charged with monitoring the performance against agreed benchmarks and ensuring that the porffolio is managed in line wrth the Statement of Investment Principles that the Board has approved. The composition of the benchmark includes separate indiS for each asset class, and includes the FTSE A15 Share Index, the FTSE British Government All Stocks, the FTSE All World ex UK Index and the FTSE Real Estate Index. The benchmark return for hedge funds is the HFRX sterling index, an index representative of the overall composition of the UCITS hedge fund universe. Inthe yearto 31st March 2021, thetotal retum on the portFolio was 24.9 %. This resultwas very heartening after a challenging year in 2020 due to COVID-19 and more than makes up the reduction in portfolio value in the year to 31 March 2020. Whilst the ramifications of the COVID crisis are likely to continue to affect both capital performan and income generation In future, the Governors note that the longer-term performance remains strong relative to the wider peer group. The Governors, investment policy takes account of ethical considerations and does not allow specific investment in the tobacco industry. Environmental Social and Governance (ESG) is an important part of Quilter's investment process and they regularty engage with both individual companies and external fund managers in relation to factors such as climate change, employee fights and board remuneration. Iv) RESERVES POLICY The Reserves of the Charty consist of Unrestricted Funds, £4,372,882 (2020.. £4,142,965) and no Restricted Funds {2020'. £7,006). The Governors may distribute the full value of the Unrestricted Funds at their discretion in carrying out the objects of the Charity. However, it is the aim of the Governors to manage the financial reSoUrS of the Charity so as to permit the associated Charities (Focus Bimingham and Queen Alexandra College) to enjoy the propety facilities on the Harborne site and to support financially the activrties of these tmo Charities where appropriate and feasible. Further support of blind, partially Shted and disabled people, as governed by BRIB'S constrtution, may also be made available.
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND GOVERNORS, REPORT Icontinued 31 March 2021 FINANCIAL REVIEW (continuedl Further to the above aims, the Governors intend to maintain all the resour5 invested in Fixed Assets and those earmarked to cover staff indemnities as designated reserves and not make them available for discretionary distribution. In addition, the Govemors intend to maintain reSoUrS invested in marketsble securities of approximately £1.5 million, the income from which will ftjnd BRIB'S on-going activities as a sustainable Charity. This is also a designated resetve and not available for discretionary distribution. The balance on the General Fund of £778,52612020'. £473,914} is available for discretionary distribution as detemiined by the Govemors. If the reSoUrS invested in market securities fall short of the above target, the Governors intend to bring such resources to this level as soon as possible. The target value of the investrnent portfolio is reviewed and determined by the Governors from time to time. The Restricted Funds are as detailed in note 15 to the accounts. They are not available for discretionary distribution by the Governors and may only be utilised for specific purposes. v) RISK ASSESSMENT AND MANAGEMENT The Govemors continue to assess the major risks to which the Charity is exposed, in particular those related to the operations and fInanS of the organisation and are satisfied that systems are either in place or are being developed to mitigate exposure to the major risks. An annual review of the Charity's risk register occurs, with particular emphasis on the risks revolving around the principal assets of the Charity, which generate the income from which the Charity exercises its grant powers. STRUCTURE, GOVERNANCE AND MANAGEMENT The Company, which is limited by guarantee (No 1900123). is registered as a Charity (No 516477) with the Charity Commission and entered in the Central Register of Charities. The Company is governed by its Memorandum and Articles of Association. On 1 April 1985 it took over the activities, assets, liabililies and funds of the unincorporated Charity of the same name which had existed Sin 1846. On 31 December 1997 the operations of Queen Alexandra College and Focus Bimiingham were transferred to their new charitable companies. The Birmingham Royal Institution for the Blind IBRIB) retained freehold propety and investments and the income from these is distributed by grants to these charib'es and others working with visually impaired people and people with other disabilrties The administration ofthe Charity is effected by a Board of Governors who are both Trustees ofthe Charity and Directors of the Company. The Board is made up of nine Governors, three of whom are appointed by Focus Birmingham, three by Queen Alexandra College and three bythe members ofBRIB. The Board of Governors set oul the general policies of the Charity, which are implemented by the honorary officers. The Govemors and honorary offirS {Company Secretary and Treasurer} are the Key Management Personnel of the Charity. All serve without remuneration. The financial records were maintained by Queen Alexandra College during the year under a service level agreement.
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND GOVERNORS, REPORT (Gontinuedl 31 March 2021 CONNECTED ORGANISATIONS Pfincipal conneded organisations are as follows.. QUEEN ALEXANDRA COLLEGE {QACI This Charity was eslablished in 1997 to take over Ihe further educatior) and training for work operations of BRIB on 31 Dernber 1997. It has been granted a long lease by BRIB on part of its Harborne sf(e and benefits from funding commrtments made by BRIB It has the right to appoint one third of the Govemors of BRIB and no decisions can be made by BRIB Governors unless at least one QAC representative is present and votes in favour. During the year it paid rent of £627,70012020. £627,700) to the Charity and reiVed grants of £699,700 {2020.. £595,367). FOCUS BIRMINGHAM This Charty was established in 1997 to take over, on 31 December 1997, the provision and promotion of serVIS to blind or partially sighted people in the community, the operations previously being called BRIB Vision servIs It also has been granted a long lease by BRIB on part of its Harborne site and benef1ts from funding commitments made by BRIB. It has the same representation and voting rights on BRIB'S board of Governors as Queen Alexandra College. During the year it paid rent of £164,690 (2020.. £164,690) to the Charity and reiVed grants of£285,68412020: £189,994}. NEW OUTLOOK HOUSING ASSOCIATION LIMITED The housing association operates housing and care facilities for blind and partially sighted people, largely built on land owned by BRIB. During the year it paid £24,000 to the Charity in respect of rent and new Tenancy Registrations (2020. £24.570).
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND GOVERNORS, REPORT (continued) 31 March 2021 REFERENCE AND ADMINISTRATIVE DETAILS Details of the Charty's advisors, curfent Governors and statutory information are set out on page 2 of these Financial Statements., the following were Governors during the year and unless otherwise indicated, seNed for the full year. Appointed by Focus Bim7ingham Appointed by Queen Alexandra College Mr. R Hindle Mr J Montgomery Mr C Gascoigne Mr. C Bradshaw Mr l Richards Prof. J. Hilbourne Elected by Members Mr. M Billingham Mr. G Oakley Mr. M Quantrill None of the Governors has any beneficial interest in the charitable Company and all seNed without remuneration. Governors recognise the need for training and have a Training Policy comprising induction arrangements for future new Governors and on-going training for existing Governors. As part of this all Governors have received a pack of briefing material recommended by the Charity Commission. The Charty paid £728 in the year for £1,000,000 of Directors and Officers Insuran cover (2020.. £728). FUTURE PLANS The Charity has set a budget for 2021-22,. activities will remain similar to previous years. STATEMENT OF GOVERNORS, RESPONSIBILITIES We are required under Charity and Company law to prepare financial statements for each financial period which give a true and fair view of the Charity's financial activities during the period and of its financial position at the end of the period. In prepanng financial statements giving a true and fair view we are required to.. Select sui(able accounting policies and apply them consistently., Observe the methods and principles in the Charities SORP., Make reasonable and prudentiudgements and estimates., State whether applicable accounb'ng standards have been followed and give details of any departures,. and Prepare the financial statements on the going concern basis unless rt is inappropnate to presume that the Charity will continue.
THE BIRMINGHAM ROYAL INSnTUTION FOR THE BLIND GOVERNORS, REPORT (continued 31 March 2021 STATEMENT OF GOVERNORS, RESPONSIBILITIES (continued) We are reswnsible for keeping accounting records which able us to ascertain with reasonable accuracy the financial position of the Charity and lo ensure that the financkgl statements comply with applicable law. We are also responsible for safeguarding the assets of the Charty and In for taking reasonable steps for the prevention and detection of fraud and other Irregularrties. DISCLOSURE OF INFORMATION TO AUDITOR So far as each of the Govemors are awa. there is no relevant audit Infcrmation las defined In the Companies Act 2(X6} ofwhich the Company's auditor is unaware, and each of the Govemors has taken all the st8PS that they ought to have taken as Governors to make themselves aware of any relevant audit information las defined) and to establish that the Company's auditor is aware of that Inft)rmatiOn. AUDITOR Mazars LLP have agr8ed to offer themselv8s for re-appointment as audrtor at the annual general meeting The Governors have prepared this report in accordance with the special provisions relating to COTnpanies subject to Ihe all companEs regime wthin part 15 of the Companies Act 2006. Signed on behaff of the Govemors G Oakley Chairman Registered Offi 49 Court Oak Road Harbome B17 9TG 30 June 2021
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND Opinion We have audited the financial statements ofThe Birmingham Royal Inslitution forthe Blind {the'Charity') for the year ended 31st March 2021 which comprise the Statement of Financial Activities, the Balan Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (Unrted Kingdom Generally Accepted Accounting Practits). In our opinion, the financial statements.. give a true and fair view of the state of the charity's affairs as at 31st March 2021 and of rts income and expenditure for the year then ended., have b&n properly prepared in accordance with United Kingdom Generally ACpIed Accounting Practice,. and have been prepared in accordan with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordan with International Standards on Auditing {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordan with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordan with these requirements. We believe that the audit evidents 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 Govemors, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, 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 concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report. 10
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND (continued) Other information The other infonnation comprises the information included in the Governors, report other than the financial statements and our audrtor's report thereon. The Govemors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infonnation and, expt to the extent othetwise explicitly stated in our report, we do not express any fonn of assurance conclusion thereon. In connection wrth our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or othewise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to detennine whether there is a material misstalement in the financial statements or a material misstatement of the other infomiation. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the worf( undertaken in the course of the audit.. the information given in the Governors, Report for the financial year for which the financial statements are prepared is consistent with the financial statements., and the Governors, Report have been prepared in accordan with applicable legal requirements. Matters on which we are required to report by exception In light ofthe knowledge and understanding of the Charity and its environment obtained in the course of the audrt, we have not identified material misstatements in the Governors, Report. We have nothing to report in respect of Ihe following matters in relatson to which the Companies Act 20C requires us to report to you if, in our opinion= adequate accounting records have not bn kept, or returns adequate for our audit have not been reiVed from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of Governors, remuneration specified by law are not made,. or we have not reiVed all the infortnation and explanations we require for our audit,. or the Govemors. were not entrtled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemption in preparing the Governor5, Report and from the requirement to prepare a Strategic Report.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND (Gontinued) Responsibilities of Governors As explained more fully in the Governors, Responsibilities Statement set out on page 8 and 9, the Governors {who 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 a Irue and fair view, and forsuch internal control as the Govemors determine is nesSaryt0 enable the preparation of financial statements that are free from material misstatement, whether due to fraud 01 error. In preparing Ihe financial statements, the Governors are responsible for assessing the Charitys ability lo continue as a going COnrn, disclosing, as applicable, matters related to going conrn and using the going concern basis ofaccounting unless Ihe directors either intend to ]uldate the company orto ase operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuran is a high level of assurance but is not a guarantee that an audit conducted in accordan with ISAS {UK} will always detect a matenal 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 Influen the economic decisions of users taken on the basis of the financial stalements. Irregularities, including fraud, are instances of nor)-compl1an with laws and regulations. We design procedures in line with our responsibilrties, outlined above, to detect material rnisstatements in respect of irregularities. including fraud. Based on our understanding of the chanty and its activities. we identified that the principal risks of non-compliance wrth laws and regulations related to the Charities Act 2011 and the Charities Statement of Recommended Practice, and we considered the extent to which non- Complian might have a material effect on the financial statements. We also considered those laws and regulations that have a dire impact on the preparation of the financial statements. such as the Companies Act 2006. We evaluated the Governors, and management's inntiveS and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and detennined that the principal risks were related to posting manual journal entries to manipulate financial performance, inappropriately shifting the timing and basis of revenue recognition, management bias through judgements and assumptions in signrficant accounting estimates, in particular in relation to fund accounting, and 5ignrficant one-off or unusual transactions Our audit prOdureS were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities} and fraud that are material to the financial statements. Our audrt procedures included but were not limrted to.. 12
Ian Holder
Ian Holder (Jul 15, 2021 18:02 GMT+1)
Jul 15, 2021
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND STATEMENT OF FINANCIAL ACTIVITIES (Including the Income and Expenditure account) FOR THE YEAR ENDED 31 March 2021 Unrestricted Restricted Funds Funds 2021 Total 2020 Totsl Notes Income Donations and Legacies Charitable Activities Rent and Tenancy Registrations 2,036 2,036 31,821 816,390 816,390 816,960 Investment Income Totsl Income 62,469 880,895 62,469 880,895 66,393 915,174 Expenditure on: Raising Funds Charitable Activities 16,105 1.078.885 16,105 7,006 1,085,891 16,119 890,706 Total Expenditure 1,094,990 7,006 1,101,996 906,825 Net Gainsl (losses) on Investment Assets Net movement in funds 444,012 444,012 (262,902) 222,911 (254,553} 229,917 I7,0() Balan @ 1st April 2020 BalanS @ 315t March 2021 4,142,965 4,372,882 7,006 4,149,971 4,404,524 4,372,882 4,149,971 2021 comparatives analysed beeen restricted and unrestricted funds are at note 20. Unrestricted Funds Income and Expenditure, Net of Historical Costs 2021 2020 Net Movement in Funds {above} (Less) ladd unrealised lossesl{gains) on investments 222,911 (406,5211 (254,5531 273,998 Difference beeen historical cost, depreciation charge and the actual depreciation charge of the year calculated on the revalued amount. 1,080 1,080 Historical Cost (Deficit) I Surplus for the year (182,530) 20,525 The deficit for the year for Companies Act 2006 purposes is £183,610 (2020.. surplus of £19,445). All amounts relate to continuing operations. 14
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND (Company No I9123 BALANCE SHEET as of 31 March 2021 2021 2020 Notes xed Assets Tangible Assets Inveslmenls 2.071,168 2,468.819 4,539,987 2,152,593 1,982,733 4,135,326 Current Assèts Debtors.. Amounts falliro due wthin one year Cash at Bank and In Hand 10 708 5,140 47,954 53.094 66,105 66,813 Cuent Liabilities Credrtors.. Amounts falling due within on8 year (233,918} {38.4491 Not Current {Liabilitiesy Assets {167,105) 14,645 Total Net Assets 4,372,882 4,149,971 The Funds of the Charity: Unrestricted Funds General Fund Revaluation Re5erye Designated Funds 13 778,525 625,120 2,969,236 4,372,882 473,915 626,2(Xi 3,042,&50 4,142,5 14 14 Restricted Funds". Otrei Funds 15 Total Funds 4,372,882 4,149,971 The financial statements are prepared in accordance with the provisions applicable lo companies subjeGI ID the small companJÈs' regime. The financial statements on pages 1410 27 were approved by the Govemors. aulhorised for issue on 30 June 2021, and sign8d on their behaf by.. G Oakley M Billi 1fj
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 March 2021 2021 2020 Note Cash flows from operating activities: Net Cash from Operating Activities Cash flows from investing activities: Dividend income Interest reiVed Proceeds from sale of investments Purchase of Investments (2.2441 {58,3261 62,465 66,266 127 670,380 486,132 (636,802) (566,136) Change in cash and cash equivalents in the reporting period 93,803 (71,937) Notes to the Ststement of Cash Flow 1. Reconciliation of net (expenditure)lincome to Net Cash flow from Operating Activities 2021 2020 Net (expenditure}Iincome for the year Adjustments for.. Depreciation charges (Gains) I losses on investments Bank Interest Re1vable and Investment Income 222,911 1254,553) 81.425 1444,012} 62,469 (202,145) 82,400 262,902 66,393 Decrease in Debtors Increase I (Decfeasel in Creditors and Deferred Income Net Cash Outflow from Operating Activities 4,432 195,469 (2,244) 7.246 89,9281 (58,3261 2. Analysis of Change in Net Funds At 1 April 2020 Cash Flows At 31 March 2021 Cash in Hand Held as part of investment portfolio 47,954 67,434 115,388 18,151 75.652 93,803 66,105 143,086 209,191 3. Reconciliation of Net Cash Flow to Movement in Net Funds Increase in Cash in the year Net Funds at 1 April 2020 Net Funds at 31 March 2021 93,803 115,388 209,191 16
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 March 2021 1. ACCOUNTING POLICIES (a) Basis of Accounting The financial statements have been prepared under the historical cost convention, modified to include the revaluation of assets and in accordan with the Companies Act 2006.These financial statements comply with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). In addition.. (1) BRIB is considered to be a public benefit entity. {2) The financial statements have been prepared under a going COnM basis, and there are no material COnrnS in this regard. The Governors have assessed that this remains valid in light of COVID-19. (3) BRIB is a Company limited by guarantee {1900123), incorporated in England and Wales with a registered Offi at 49,Court Oak Road, Harbome, Birmingham ,B17 9TG. (b) Uses of Estimates and Judgements When preparing the financial statements, management makes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The Governors are of the opinion that there are no signrficant key areas of managementjudgement and estimates used in the preparation of the financial statements. Ic) Tangible Fixed Assets Tangible fixed assets are recorded at cost or valuation. Tangible assets which have been donated to BRIB are recorded at their current use valuation at the time of acquisition. Expenditure of less than £1,000 on plant, fufniture, fixtures and fittings is charged as resources expended in the year of acquisition. Fixed assets funded by specrfic donation are capitalised and depreciated in line wrth the nomial depreciation rates shown below. Specific donations to acquire such assets are brought into the statemenl of financial activities when re*Vable and included in restricted funds. Depreciation on the value of such assets is charged against restricted funds. Depreciation is provided on all tangible fixed assets at rates calcuSated to write off the cost or valuation of each asset less its estimated residual value over its expected useful life as follows.. Land Freehold Property No depreciation Straight line basis over the expected useful lrfe of individual buildings, as determined by propety advisers (beeen 15 and 50 years). 10% on cost Fixtures and Fittings 17
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS Icontinued) YEAR ENDED 31 March 2021 1. ACCOUNTING POLICIES (continued (d) Income Income is included in the financial statements on an accruals basis. Income from legacies is accrued when the reIpt of the legacy is probable and the amount to be reiVed can be reliably estimated. le) Grants Grants reiVed towards specrfic projects are taken to income during the period in which they are re1Vable. Grants payable are recognised as expenditure when the commitment is entered into. Where such a grant is to be paid over by instalments, the outstanding balan is disclosed as a liability. (n Expenditure Expenditure is accounted for on an accruals basis. The cost of irrecoverable ValLte Added Tax is included with the item of expense to which it relates. (g} Investments Investments are stated at market value at the balan sheet date less provision for any permanent diminution in value occurring afterthe balance sheet date. Any gain or loss on disposal or revaluation is taken to the Statement of Financial Activtties. (h) Funds Restricted Funds These consist of monies reiVed by the Charity for specffic purposes less expendi(ure to date. Unrestricted Funds Designated Funds These funds, which have been set aside from the general fund, equate to the net book value of those tangible assets which are not represented by restricted funds together with such other sums as may be determined by the Governors from time to time. General Fund This fund represents the pemiitted distributable element of the accumulated surplus arising from the Charity's activities. (i) Voluntary Help No financial value has been attributed to the voluntary help received by the Chanty during the year. 18
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 March 2021 1. ACCOUNTING POLICIES (continued (i) Financial Instruments The Charity only has financial assets and financial liabilities of a kind that qualfy as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 2. CHARITABLE STATUS The Bimiingham Royal Institution for the Blind is a registered Charity and is exempt from Income Tax and Caprtal Gains Tax provided rts income and gains are applied for charitable purposes. 3. DONATIONS AND LEGACIES 2021 2020 General Fund Legacies Grants, Donations and Events 29,162 2,659 31,821 2,036 2,036 4. INCOME FROM INVESTMENTS 2021 2020 Listed Fixed Asset Investments Short Tem Deposits 62,465 66,266 127 66,393 62.469 5. COST OF RAISING FUNDS 2021 2020 Investment Management Fees 16.105 16,119 19
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS Icontinued) YEAR ENDED 31 March 2021 6. CHARITABLE ACTIVITIES 2021 2020 General Fund Grants to Queen Alexandra College Grants to Focus Birmingham Administration and Financial Services 699,700 285,684 19,082 595,367 189,994 22,945 1,004,466 808,306 Designated Funds Depreciation of Fixed Assets 74,419 75,392 Restrictsd Funds Depreciation of Fixed Assets Total 7,006 1,085,891 7,008 890,706 Administration and Financial Services costs include Govemance costs of £7,800 {2020.. £7,500) Audit fees amount to £7,800 (2020. £7,500). 7. GOVERNORS AND HONORARY OFFICERS The Govemors and honorary offiTrrs (Company Secretary and Treasurer) are the Key Management Personnel of the Charty. No remuneration was paid to any Govemor or honorary officer. 12020. Nill. During the year no expenses were claimed by any Governor or honorary officer {2020'. Nill. All expenses are incurred wholly and exclusively in carrying out their duties as Governors of the Charity and are in accordan with the Articles of Association. The Charity paid £728 in the year for £1,000,000 of Directors & OffirS Insuran cover12020.. £728}. 20
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 March 2021 8. FIXED ASSETS Freehold Land Freehold Buildings Total Cost or Valuation 1 April 2020 Disposals 31 March 2021 Depreciation 1 April 2020 Provided in the Year 31 March 2021 Net Book Values 31 March 2021 760,000 4,572,889 5,332,889 760,000 4,572,889 5,332,889 3,180,296 81,425 3,261,721 3,180,296 81,425 3,261,721 760,000 1,311,168 2,071,168 31 March 2020 760,000 1,392,593 2,152,593 The freehold land and buildings are the subject of long leases to Focus Birmingham and Queen Alexandra College. When the Company was incorporated in 1985, the existing assets of the unincorporated Charity were taken over and freehold land and buildings and short leaseholds were subsequently professionally revalued. As the assets comprise the prime properties for the main Charities which BRIB supports it is not considered e$Sary or appropriate to have the properties revalued at the current time. If freehold land and buildings had not been revalued, they would be stated at the following amounts-. 2021 2020 Historical Cost Depreciation based on historical cost Historical net book value 3,993,888 3,993,888 2.547,841 2,467,496 1,446,047 1,526,392 21
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS {continued) YEAR ENDED 31 March 2021 9. INVESTMENTS Listed Investments unstrICted Fund 2021 2020 Balan @ 1 April 2020 Less.. Cash held as part of portfolio Market Value @ 1 April 2020 Add.. Purchases Less.. Sales Gainsl (Losses) on disposal or revaluation Market Value @ 31 March 2021 Cash held as part of portfolio Total Investments 1,982,734 2,202,568 {67.4341 (104,371} 1,915,300 2,098,198 636,802 566,136 (670,3801 (486 1321 444,012 {262,9021 2,325,733 1,915,300 143,086 67.434 2,468,819 1,982,734 At 31 March 2021 no investment had a value in excess of 50/0 of the total value of the portfolio (2020 Findlay Park PIC American Sterting GBP had a value of £102,311) The market value of investments at 31 March 2021 is represented by the following.. Investments Listed on a Recognised Stock Exchange 2021 Total 2020 Total Fixed Interest Alternative Assets Equities Total 291,947 279,850 393,883 385,403 1,639,904 1,250.046 2,325,734 1,915,299 10. DEBTORS: Amounts falling due within one year 2021 2020 Associated Organisations Accrued Income Prepayments 526 526 4,432 182 5,140 182 708 22
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS Icontinuedl YEAR ENDED 31 March 2021 11. CREDITORS: Amounts falling due within one year 2021 2020 Associated Organisations Accruals 221,847 12,071 233,918 26,995 11,454 38,449 12. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Restricted Funds Funds Total Fund Balances at 31 March 2021 are represented by.. Tangible Fixed Assets Investments Current Assets Current Liabilities 2,071,168 2,468,819 66,813 233,918 4,372,882 2,071,168 2,468,819 66,813 233,918 4,372,882 13. RECONCILIATION OF MOVEMENT IN UNRESTRICTED FUNDS General Designatsd Fund Funds Note 14 2020 Total As at 1 April 2020 473,914 3.669,050 4,142,964 Movement in the Year 304,611 (74,694) 229,917 As at 31 March 2021 778,525 3,594,356 4,372,881 23
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS {continuedl YEAR ENDED 31 March 2021 14. DESIGNATED FUNDS Fixed Asset Reserve Revaluation Reserie Investment Reserve Staff Indemnities Total Balance at 1 April 2020 1,519,387 626,200 1,500,000 23,463 3,669,050 Movement in the year (73,339} {1,080) 1275) (74,694) Balan at 31 March 2021 1,446.048 625,120 1,500,000 23,188 3,594,356 The Fixed Asset Reserve represents together with the revaluation resee, the net book value of fixed assets purchased from unrestricted funds. Revaluation Reserve arose from the revaluation of freehold land and blIdingS in 1985 and is shown separately as required by Company Law. The Investment Resetve represents the minimum value of investments to be maintained by the Charity to provide future income to meet its anticipated expenses, as established by the Governors in their reserves policy. Staff Indemnities represent the potential liability that would fall to the Charity should any employee of Focus Birmingham and Queeri Alexandra College, whose employment transferred from the Charity in 1997, suffer redundancy. 15. RESTRICTED FUNDS Property Development Fund Balance at 1 April 2020 Movement in the year Balan at 31 March 2021 7,006 7,006 The Property Development Fund represents grants and donations reiVed in respect of the reptIOn and access facilities at Queen Alexandra College less depreciation of the assets to date. 24
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS {continued) YEAR ENDED 31 March 2021 16. CAPITAL COMMITMENTS There were no capital CL)mmitinents contracted up to 31 March 2021 {2020.' £nil). 17. OTHER FINANCIAL COMMITMENTS There were no other financial commitments contracted up to 31 March 202112020.. £nil). 18. CONTINGENT LIAIBILITIES There were no contingent liabilities as at 31 March 2021 (2020.. £nil). 19. CONNECTED ORGANISATIONS Principal connected organisations are as follows.. Queen Alexandra College {QACI This Charity was established in 1997 to take over the further education and training for work operations of BRIB on 31 Dernber 1997. It has bn granted a long lease by BRIB on part of its Harborne site and benefits from funding commitments made by BRIB. It has the right to appoint one third of the Governors of BRIB and no decisions can be made by BRIB Governors unless at least one QAC representative is present and votes in favour. During the year it paid rent of £627,700 (2020.. £627,700) to the Charity and reiVed grants of £699,70012020'. £595,367). At 31 March 2021, BRIB owed QAC £100,847 including an approved grant of £100,000 (2020. BRIB owed QAC £995). Focus Birmingham This Charity was established in 1997 to take over, on 31 December 1997, the provision and promotion of ServIS to blind or partially sighted people in the community, the operations previously being called BRIB Vision Services It also has been granted a long lease by BRIB on part of its Hartjorne site and benefits from funding commitments made by BRIB. It has the same representation and voting rights on BRIB'S board of Governors as Queen Alexandra College. During the year rt paid rent of£164,690 {2020.. 164,6901 to the Charity and received grants of £285,68412020. £189,994} At 31 March 2021, BRIB owed Focus £121,000, being an approved grant of £121,000 {2020.' BRIB owed Focus £26,000) New Outlook Housing Association Limited The housing association operates housing and care facilities for blind and partially sighted people, largely built on land owned by BRIB. During the year it paid £24.000 to the Charity in respect of rent and new Tenancy Registrations (2020.. £24,570). At 31 March 2021 New Outlook owed BRIB £52612020.. New Outlook owed BRIB £526) 25
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 March 2021 20. STATEMENT OF FINANCIAL ACTIVITY (2020) The Statement of Financial Activity for 2020 is analysed between Unrestricted and Restricted Funds as follows.. Unrestricted Funds Restricted Funds 2020 Total Income Donations and Legacies Charitable Activities Rent and Tenancy Registrations 31,821 31,821 816,960 816,960 Investment Income Total Income 66,393 915,174 66,393 915,174 Expenditure on: Raising Funds Charitable Activities 16,119 883,698 16,119 890,706 7,008 Total Expenditure 899,817 7,008 906,825 Net Gainsl (losses) on Investment Assets Net Movement in Funds (262,902) (262,9021 (247,545) {7,008} (254,5531 BalanS @ 1S1 April 2019 Balances @ 31st March 2020 4,390.510 4,142,965 14,014 7,006 4,404,524 4,149,971 26
THE BIRMINGHAM ROYAL INSTITUTION FOR THE BLIND NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 March 2021 21. OPERATING LEASES At 31 March 2021 the future minimum lease payments due to the Charity under non-cancellable operating leases in BRIB'S role as a lessor are as follows.. 2021 2020 Expiry date: Due within 1 year.. Land and buildings 67,380 67,380 Between 2 and 5 years.. Land and buildings 96,000 98,000 More than 5 years.. Land and buildings 1,634,000 1,658,000 For the majority of BRIB'S lease income, under the Transfer of Operations Agreement the Charty is committed to making a grant to QACI Focus equal to the rent re1Vable. The future minimum lease payments above are only for the element of the leases to QAC and Focus where the Charity is not committed to making a matching grant. 22. POST BALANCE SHEET EVENTS There have been no post balan sheet events that affect these accounts. 27