BROOK YOUNG PEOPLE
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
Company number: 2466940
CONTENTS
TRUSTEES’ ANNUAL REPORT
Contents .............................................................................................................................. 1 Administrative details ......................................................................................................... 2 Introduction ......................................................................................................................... 4 Structure, Governance and Management ...................................................................... 4 Public benefit disclosure .................................................................................................... 6 Objectives and activities ................................................................................................... 7 Volunteering and participation ....................................................................................... 10 Achievements and performance ................................................................................... 11 Financial review ................................................................................................................ 13 Investments ....................................................................................................................... 15 Key risks and uncertainties ............................................................................................... 15 Plans for future periods ..................................................................................................... 16 Pension liabilities................................................................................................................ 16 Reserves ............................................................................................................................. 16 Going concern ................................................................................................................. 17 Statement of trustees’ responsibilities ............................................................................. 18 Independent auditor’s report to the members of Brook Young People ...................... 19
FINANCIAL STATEMENTS
Statement of financial activities ...................................................................................... 23 Balance sheet ................................................................................................................... 24 Cash flow statement ........................................................................................................ 25 Notes to the financial statements ................................................................................... 26
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Brook Young People 2022/23
ADMINISTRATIVE DETAILS
CHARITY NAME Brook Young People TRADING NAME Brook REGISTRATION Limited Company registered in England and Wales no. 2466940 Charity registered in England and Wales no. 703015 Charity registered with the Office of the Scottish Charity Regulator no. SC045788 REGISTERED OFFICE Penhaligon House, Green Street, Truro, TR1 2LH CHIEF EXECUTIVE Helen Marshall COMPANY SECRETARY Sally Hutchings AUDITORS Haysmacintyre LLP 10 Queen Street Place, London, EC4R 1AG BANKERS Lloyds Bank 1[st] floor, 5 St Paul’s Square, Liverpool, L3 9SJ SOLICITORS Penningtons Manches LLP 125 Wood Street, London, EC2V 7AW
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TRUSTEES
The following people have been trustees (and directors as defined by the Companies Act 2006) during the period and up to the date of signing:
Peter Beeby (appointed 29/06/2023) Scott Bennett (Chair) (resigned 31/03/2023) Dame Sally Dicketts (Chair) (appointed 01/04/2023) Clare Daly Maxine Evans (Deputy Chair) (resigned 26/04/2023) Milly Evans (appointed 29/06/2023) Leila Hashemi (appointed 29/06/2023) Pamela Leonce Chris Martin (resigned 28/06/2023) Peter Roscrow (appointed 21/09/2022) Sandy Sohal (appointed 23/11/2022) Saloni Thakrar (appointed 29/06/2023) Tim Tod (resigned 31/03/2023)
SENIOR MANAGEMENT
At the date of this report, the Executive Team comprises: Helen Marshall, Chief Executive
Dougie Boyd, Director of Education & Wellbeing
Laura Hamzic, Director of Digital & Communications
Sally Hutchings, Director of Business Support
Jo Oxlade, Director of Business Development & Income Generation
Kathleen Sadler, Director of Clinical Operations
Simon Theobald, Director of Finance
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INTRODUCTION
The trustees present their annual report and financial statements of the charity for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the charity’s Memorandum and Articles of Association, the Companies Act 2006, 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. (SORP 2015) (Second Edition, effective 1 January 2019).
STRUCTURE, GOVERNANCE AND MANAGEMENT
COMPANY STRUCTURE AND OWNERSHIP
During 2022/23 Brook Young People (Brook) had one subsidiary charity – Brook Scotland (company no. SC159534; charity no. SC023964) which is currently dormant.
Brook also has 4 dormant subsidiary companies which exist because there are property covenants in the names of those companies.
Since the end of the financial year, Brook has incorporated a new subsidiary company, Brook Aspire Ltd (company no. 14936876). Incorporated on 14 June 2023, Brook Aspire Ltd is a company limited by shares with 100% of the shares owned by Brook. Its purpose is as a trading subsidiary to generate income for the benefit of the charity. It has not yet commenced trading.
GOVERNING DOCUMENT AND CONSTITUTION
Brook is constituted as a company limited by guarantee and is a registered charity. Brook is governed by its Articles of Association, which were last reviewed and updated in July 2020. The business of the charity is managed by the board of trustees.
THE BOARD OF TRUSTEES
The composition of the Brook board is skills-led. All trustees are appointed by the board, and Brook’s members are the same group of people as its trustees.
The Articles of Association allow any person who is willing to act as a trustee, accepts membership of the charity, and who is not disqualified from acting as a trustee or a company director to be appointed as a trustee by a decision of the Board.
The board consists of a minimum of six and a maximum of fifteen trustees and meets formally at least four times per year. Trustees serve for fixed terms of three years unless they cease to be a trustee during this period. Trustees are eligible for reappointment for a second term by the board with the maximum period of office
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being two terms, with the exception of the Chair who may be reappointed for a third term in exceptional circumstances. The Chair may extend the second term of any trustee by one additional year in order to achieve a stable retirement cycle of trustees. The final term of our Chair, Scott Bennett, ended on 31 March 2023. The trustees expressed their thanks to Scott for his time as Chair. We are delighted to welcome our new Chair, Dame Sally Dicketts, who took up post on 1 April 2023.
The board may co-opt up to three additional trustees who hold office for a period of 12 months and who may be co-opted up to three times. At the time of this report, there were no co-opted trustees.
INDUCTION AND TRAINING OF TRUSTEES
Potential trustees are identified via a range of mechanisms to ensure there is diversity of skills, backgrounds and experience on the board. On appointment, and annually thereafter, all trustees are required to declare potential conflicts of interest, complete automatic disqualification self-declarations and checks of official registers are completed. Trustees complete a full induction process within which they agree to Brook’s key policies and statement of good governance. The induction process marks the beginning of an ongoing process of trustee training, mentoring, development and annual appraisal. A trustee skills audit was completed in June 2023 with priorities for trustee skills development identified. A governance diversity audit was completed in May 2023 with recommendations to strengthen diversity.
MANAGEMENT AND DECISION MAKING
The board delegates authority to its committees and to the Chief Executive within a written Scheme of Delegation. During 2022/23 Brook introduced two new committees, the Service Development Committee (October 2022) and the Participation Committee (February 2023). All committee terms of reference were reviewed and updated during the year. The roles of Brook’s four committees are:
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Risk, Finance and Audit Committee : to ensure that Brook manages its finances, risks, investments and trading operations effectively and efficiently in support of its charitable objectives.
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Quality and Assurance Committee : to review the performance of the organisation and ensure that a high quality of service is provided to Brook’s service users, overseeing clinical effectiveness and safeguarding.
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Service Development Committee : to provide strategic oversight of Brook’s innovation work in development and delivery of identified services, and ensure that Brook manages this growth safely and effectively.
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Participation Committee : to ensure that service user voice informs decisions made by the Board of Trustees. Membership of the committee includes representatives of Brook’s national service user participation forums.
The Board delegates all other matters including the day-to-day running of the organisation to the Chief Executive working within the framework of all decisions made by the Board and by Committees deciding under delegated authorities.
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Brook’s Executive Team comprises the Chief Executive, Director of Business Development & Income Generation, Director of Business Support, Director of Clinical Operations, Director of Digital and Communications, Director of Education & Wellbeing and Director of Finance.
The board of trustees have reviewed and adopted the Charity Governance Code. Where improvements could be made, the board agreed actions to increase compliance. These actions, alongside actions identified through other sources such as trustee appraisals and internal evaluations, formed the board development plan. All actions within the board development plan were completed in March 2023. A new board development plan will be produced during 2023/24.
PAY AND REMUNERATION
Brook operates a Pay and Benefits Policy . Salaries are routinely tested against the jobs market to ensure that account is taken of experience, qualifications, and demonstrable ability to perform the job. The starting salary may also be influenced by external factors such as market conditions or availability of specialist skills. In line with the principles of equal pay enshrined within the Equal Pay Act 1970 and supported by Brook’s commitment to equal pay and equality of opportunity, all salary offers are made with equal pay considerations in mind. Salaries are agreed with staff prior to the commencement of employment. Following benchmarking of all manager and senior staff salaries in March 2022, Brook completed benchmarking of all other staff roles during 2022/23.
Brook considers its key management personnel comprises the trustees, the Executive Team (detailed above) and the Medical Director.
None of the trustees of the charity received any remuneration for their services as trustees. Expenses were reimbursed as detailed in Note 7. In July 2023 remuneration was introduced for external expert advisors (non-trustees) appointed to Brook’s committees following benchmarking of other charities and health organisations.
RELATIONSHIPS WITH RELATED PARTIES
During 2022/23 the independent charity Brook Jersey has operated as a licensee of Brook. Brook received a fee from Brook Jersey in return for an exclusive licence in the Channel Islands to use the Brook identity, clinical governance framework, safeguarding support and key policies.
PUBLIC BENEFIT DISCLOSURE
Brook has a duty to report on our public benefit and we have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011.
Brook is a national charity supporting people with their sexual health and wellbeing. We offer a range of services to support our mission of helping people to live healthier lives. Brook fights for everyone’s right to safe, confidential, accessible healthcare, no matter who they are. We challenge stigma, amplify voices and provide lifelong
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support that meets the diverse needs of our communities. Our unique offer combines clinical services, relationships and sex education, outreach in community settings, wellbeing programmes and counselling. Our life-course approach to sexual health and wellbeing means that people can benefit from our holistic services at any stage of their life. The main activities Brook undertakes for the public benefit are:
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Clinical services : Everyone should feel empowered to access sexual health and wellbeing support. Our highly skilled clinical experts deliver free, confidential sexual health and wellbeing services for people of all ages. We provide contraception, STI testing and treatment, pregnancy testing and decision-making support, wellbeing programmes and counselling. We operate from our own specialist clinics, as well as integrated hubs and outreach in local communities. We also provide digital services, developed in partnership with our clinical staff and service users.
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Education and training : All young people have the right to high quality, inclusive relationships and sex education. Brook’s specialist educators work directly with young people, teachers, parents and carers to keep everyone safe and healthy. We offer a range of face-to-face and online RSE training programmes for teachers, sessions for young people, and we support schools to develop effective plans and policies.
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Campaigning and advocacy : Brook’s history is steeped in its courageous approach to tackling stigma and fighting for policy change. We engage with policymakers, MPs and sector experts to improve people's lives. We deliver national and local campaigns, informed by our expertise and shaped by data, that drive people to the help, support and services we know they need.
OBJECTIVES AND ACTIVITIES
OUR CHARITABLE PURPOSE
To promote the health, particularly sexual health of young people and those most vulnerable to sexual ill health, through providing information, education and outreach, counselling, confidential clinical and medical services, professional advice and training.
OUR VISION
Everyone is supported to live healthy lives, free from inequality and strengthened by fulfilling relationships.
OUR MISSION
Excellent sexual health, mental health and wellbeing is a right. Brook exists to fight for that right and we demand better, especially for young people. We challenge stigma, amplify voices and provide lifelong support that meets the diverse needs of our communities.
- Trustworthy : People turn to Brook when they need help, trusting in our confidential, non-judgmental support to keep them safe. Robust research,
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data and evidence underpins all our work, making Brook a trusted partner and an authoritative source of information and advice.
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Collaborative : Our service users are at the heart of our decisions. We listen to their needs, champion their rights and work with them to effect real change. We value and prioritise collaboration, sharing and growing our expertise to achieve the best possible outcomes for our communities.
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Inclusive : We are committed to tackling prejudice wherever we find it, challenging harmful attitudes and behaviours. We celebrate diversity, champion equality, and provide a welcoming and inclusive environment for everyone who needs us.
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Courageous : Brook is fearless when fighting for change. We stand up for what we believe and we demand to be heard. We relentlessly push the boundaries and are bold in our ambition to pioneer innovative services that meet everchanging needs.
OUR STRATEGIC AIMS AND STRATEGIES FOR ACHIEVING THEM
2022/23 was the final year of our strategic plan for 2020-2023. Over the three years of the strategy we aimed to increase access to our services, particularly for those facing barriers and discrimination. We worked to digitally transform our provision, driving innovative solutions to meet the ever-changing needs and expectations of our stakeholders. By championing the voice of young people, we challenged inequality and strove to effect meaningful change.
Our four strategic priorities during 2020-2023 were:
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Challenging inequality Transforming digitally
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• • Increasing accessibility Driving innovation
During 2022/23 we developed and launched our new strategic plan for 2023-2026. The consultation process included strategic planning sessions with our Board of Trustees and Executive Team, a Leadership Team awayday and facilitated staff workshops that engaged 35% of our total workforce, service user engagement through a facilitated workshop, surveys and online consultation, and an external stakeholder roundtable event.
Through this process we refreshed our vision and mission statements to those stated above, to better reflect our all-age delivery while not losing our focus on young people. We adopted a new core value of ‘Inclusive’ – proposed by both staff and service users, and we updated our strategic priorities.
Recognising that digital is now a fundamental part of how we operate, we embedded digital transformation across our plan. A new strategic priority of Fighting Stigma was introduced in response to our staff and service users’ desire for Brook to have a wider impact and to use our expertise to influence others, and the growing need for Brook to be a loud voice in defending rights that are increasingly under attack.
Our four strategic priorities for 2023-2026 are:
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Challenging Inequality : We are dedicated to broadening our offer by providing a range of support that addresses multiple interconnected and complex needs. We will amplify the voices of those most impacted by inequality informed by data, research and the participation of those with lived experience. Key to this will be collaboration with the experts and organisations that know these communities best, sharing knowledge and expertise to deliver equitable solutions with maximum impact for as many people as possible.
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Increasing Accessibility : It is not enough that services are accessible. Those who need them must feel safe, represented and welcomed. We will work to increase understanding of sexual health and wider wellbeing services, and challenge the stigmas that can prevent access. The voices of our service users, and those we are yet to reach, are critical to ensuring that our services are accessible to those who need them the most.
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Fighting Stigma : We will fearlessly stand up and shout loudly about issues others may consider too risky or taboo. We will evidence the harm caused by stigma, sharing real stories to show how the lives of young people and other communities are affected. We will use our platform to speak with authority and confidence, driven always by evidence, research, data and the voice of service users. We will challenge damaging narratives and model an open, inclusive, kind and positive approach.
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Driving Innovation : We continue to push boundaries and innovate to expand our reach and our services. We know that good sexual health and good mental health are inextricably linked. For as long as Brook has existed, young people have asked us for support with their wider wellbeing. Our robust safeguarding work evidences an alarming increase in unmet mental health and wellbeing needs at a time when the mental health system is unable to respond. Brook will pioneer new early intervention mental health and suicide prevention services for young people, with a range of support accessible from an organisation that young people already know and trust.
These strategic priorities are supported by strategic objectives. The strategy is - - published on our website: https://www.brook.org.uk/about brook/our strategy/
Our annual business plan details the performance indicators, targets and responsibilities associated with each objective, through which we set out to achieve our priorities.
ASSESSING OUR SUCCESS AND IMPACT
We measure our success through a Key Performance Indicator framework. Progress against each of our business plan measures and a RAG rated report of delivery against our Key Performance Indicators is reported quarterly to the Executive Team and to the board of trustees every six months.
We utilise robust data collection processes to quickly adapt to the evolving needs of our service users, enabling us to identify national and regional trends and develop innovative solutions to protect the most vulnerable. Our systemic collection of feedback through the independent digital platform iWantGreatCare has been
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highlighted by the General Medical Council as a positive example of how to gather continuous and meaningful patient feedback.
In 2022/23 we collected 14,899 feedback reviews from our service users:
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98.69% of clients rated our clinical services very good or good.
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Treating clients with dignity and respect was rated 4.96 out of 5.
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The ability of our clinical staff to provide timely information about care and treatment was rated 4.94 out of 5.
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Involving clients appropriately in decisions made about their health was rated 4.95 out of 5.
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81% of young people reported positive change in their knowledge of sexual health and relationships.
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96% of professionals rated our training services very good or good.
VOLUNTEERING AND PARTICIPATION
Our national Participation Forums were established in February 2022. The Forums offer continuous support and consultation to strengthen Brook’s offer to our service users.
In their first year, the 50 members from across the UK have:
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Supported Brook’s digital team to test out new digital tools;
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Worked with Brook’s policy team to discuss advocacy ideas;
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Supported the design of grant applications;
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Produced content for Brook campaigns including Sexual Health Week.
Three members of our national participation Forums have joined our new Participation Committee, working alongside Brook trustees and external expert advisors to oversee the impact of Brook’s participation work and make recommendations to the Board of Trustees on service user voice.
This year we established four local forums:
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Brook’s Professional Participation Forum: 10 professionals from England and Scotland who work with children, young people and adults reviewed and improved our mandatory RSE training offer;
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The Manchester College Local Forum: 15 young people with Special Educational Needs (SEN) explored how Brook’s services for young people with SEN could be improved;
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The Wirral Local Forum: 8 young people who identify as LGBT+ reviewed Brook’s gender and sexuality KS3 and KS4 education resources;
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- Brook’s CAMISH Participation Forum: Young people aged 17-21 in Camden and Islington focussed on the promotion of the local condom distribution scheme.
We were honoured to receive the Queen Elizabeth II Platinum Jubilee Volunteer Award in recognition of our outstanding work empowering and supporting young people. These one-off awards were set up to commemorate Queen Elizabeth II’s Platinum Jubilee and to recognise charities working with volunteers to provide 16-25 year olds with skills and opportunities. Brook is one of only 20 charities chosen to receive the award, which were personally approved by His Majesty the King.
ACHIEVEMENTS AND PERFORMANCE
SIGNIFICANT CHARITABLE ACTIVITIES UNDERTAKEN
Each year we assess our progress against our strategic aims. Further details are available in our Success Report, published on our website. Key highlights include:
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In July 2022, we launched our new young people's services in Camden and Islington. In partnership with Central and North West London NHS Foundation Trust, we are providing free sexual health and wellbeing services to under 25s in the London Boroughs of Camden & Islington as well as RSE support for professionals.
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Our life course approach to sexual and reproductive health is now firmly embedded in our strategic direction. Thanks to funding from the Department of Health and Social Care, we are delivering an innovative menopause support programme in Cornwall aimed at women and those experiencing the menopause with a specific focus on the impact on their working life.
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We allocated core capital funding to design and develop new clinical premises in partnership with Southend Council. This new shopping centre based clinic, launched in July 2023, offers innovative sexual health, education and wellbeing services for the local community.
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To help tackle widespread sexual harassment in schools, we conducted user research on behalf of the Department for Education to inform new guidance that will support RSHE delivery, consulting 180 teachers and schools.
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We worked with Scouts and Girlguiding to develop a suite of educational resources to help young people prepare for navigating relationships at their World Jamboree in South Korea, as well as in their home lives. 40,000 young people aged between 14-17 attended the event and benefitted from our high quality RSE.
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We adapted our My Life programme to specifically focus on supporting young people to build mental health literacy. The programme supports young people to develop an understanding of what it means to have positive mental health, normalises and destigmatises experiencing mental health difficulties, equips young people to label and manage their feelings and understand when and how to seek support.
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In Southend-on-Sea and the London Boroughs of Barnet, Lambeth, Southwark and Lewisham, we deliver HIV prevention programmes aimed at combatting stigma, normalising testing and reducing late diagnosis. This provision combines face-to-face community-based outreach with digital health promotion campaigns and in 2022/23 we reached more than 54,700 people.
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We were awarded a grant from the National Lottery Community Fund to improve pornography education in Wales for young people and professionals. We worked with over 80 young people in 7 schools across Rhondda Cynon Taff and Cardiff to understand how young people want to be taught about pornography. Thanks to their feedback, we updated and improved our pornography education offer.
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The theme for Sexual Health Week 2022 was Breaking Barriers. Supported by our headline sponsors, Pasante and MindWave, we amplified the voices of those who face access barriers and shone a light on the important work that Brook, partners and sector experts are doing to address health inequalities.
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In March 2023, we joined forces with Lil-Lets to deliver the Big Period Lesson Live. Aimed at years 6 and 7, the 60-minute lesson supported young people to better understand puberty, body changes and periods. 57,600 teachers and students tuned in to the live broadcast, from more than 650 schools.
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Building on the successful launch of Brook’s Digital Front Door – an innovative, user-led online platform that empowers our service users to take control of their sexual health and wellbeing – 22/23 saw us win our first digital home testing contract in Tameside, Trafford and Stockport as well as extending this functionality as part of our existing Dudley and Manchester services.
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Brook Learn is our bespoke digital learning platform for professionals, with 30,780 registered users from over 300 local authority areas. Our latest Brook Learn course, Introduction to RSE, had 1,200 registrations in the first 12 months with 92% rating it as ‘good’ or ‘very good’.
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In our commitment to digital accessibility, we strive for compliance with the Web Content Accessibility Guidelines (WCAG) 2.0 across our entire digital estate. We are proud to have met our 22/23 target of 80% compliance on brook.org.uk.
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Through our annual consultation we engaged neurodivergent and neurodiverse young people aged 16-25 years to gain insight on the ways they might choose to access a Brook service. The anonymous findings from this consultation will help us to shape and improve Brook’s clinical services for neurodivergent and neurodiverse young people.
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Through our 2022/23 small grants programme we distributed £50,000 to local community-based projects that improve the wellbeing of neurodivergent young people.
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Brook is committed to being a mentally healthy organisation. In February 2022, we ran a wellbeing conference for Brook staff with a programme of expert talks on the menopause, financial health, nutrition and guided relaxation opportunities.
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As part of our commitment to staff development, we have increased the number of Faculty Registered Trainers across the organisation, expanding our capacity to upskill our own clinical team. We have also updated our contraception and sexual health nurse-in-training programme, and in March 2023 we began delivery of the STI Foundation theory course.
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In addition to our Queen Elizabeth II Platinum Jubilee Volunteer Award detailed above, Brook was delighted to receive the following awards during 2022/23:
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Stonewall Workplace Equality Index Silver Award which recognises exceptional employers who are committed to supporting their LGBT+ staff and customers;
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The I Want Great Care Certificate of Excellence 2023 in recognition of outstanding care and positive reviews from our services users;
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A Bronze Lion award at Cannes Lions International Festival of Creativity 2022 for our #StopCyberflashing campaign, devised in partnership with creative advertising agency Grey;
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Best Partnership at the Performance Marketing Awards for our campaign to raise awareness of STIs and testing with The London Dungeon;
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LGBT Alliance Awards (nomination) for our positive impact on LGBT health in Teesside.
ACHIEVEMENT AGAINST OBJECTIVES
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1.43 million people helped through our frontline services.
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126,368 young people supported through our education and wellbeing work.
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34,330 people supported by our all-age clinical services.
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19,204 people helped through outreach in local communities.
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66% of our clinical clients aged under 25.
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60% of our clinical clients accessed digital services.
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73,260 people attended our Big RSE Lessons Live.
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693 service users engaged in participation opportunities.
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68% of clinical clients from the top 40% most deprived communities.
FINANCIAL REVIEW
FINANCIAL POSITION AT YEAR END
Our accounts for 2022/23 are presented on pages 23 to 38. Our income for the year totalled £13,032,700 (2022: £12,970,423), comprising £12,621,376 (2022: £12,395,903) unrestricted income and £411,324 (2022: £574,520) restricted income.
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Our expenditure for the period totalled £12,939,887 (2022: £12,264,992), comprising £12,519,717 (2022: £11,669,948) unrestricted expenditure and £420,170 (2022: £595,044) restricted expenditure. This resulted in a net movement of funds of £92,813 (2022: £705,431).
PRINCIPAL FUNDING SOURCES
Brook is primarily funded by:
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Local Authorities: £7,482,841
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Clinical Commissioning Groups / Integrated Care Boards[1] : £4,308,727
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Charitable foundations: £437,324
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Corporate sources: £129,750
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Commercial trading: £659,475
Brook’s services are commissioned by local authorities as part of their Public Health responsibilities. These funds enable the majority of our charitable activities including our clinical services. We seek grants, sponsorships and donations, and earn income by selling services and resources to enable non-commissioned activity, including our online information and support, participation activities, campaigning and advocacy, and investment in service development.
SIGNIFICANT EVENTS THAT HAVE AFFECTED FINANCIAL PERFORMANCE
In August 2022 we completed the lease for our new clinical hub in Southend-on-Sea. Located in the Victoria Shopping Centre, we have invested in a bespoke fit-out that provides our service users with a safe, welcoming environment that puts their needs first. The new premises allows us to relocate and integrate staff teams working across two temporary shared locations and provides security of tenure as well as brand visibility. The one-off capital investment, with support from Southend-on-Sea City Council, totals £425,000.
Recognising the challenges faced by the increasing cost of living, we chose to invest in our staff pay and conditions, undertaking salary benchmarking, implementing a 3% cost of living award, and bringing forward implementation of the increase in the Real Living Wage. Additionally, we made one-off cost of living awards to staff in salary bands 1-3, and provided a one-off fuel allowance payment for staff regularly claiming mileage for travel on Brook business. The total investment in 2022/23 was £453,500.
In December 2022 we were awarded a new 5 year contract with Buckinghamshire Council for the delivery of health promotion and outreach services in partnership with Positively UK and Spectra CIC. Mobilisation of this £600k pa contract commenced in 2022/23 and the service launched in April 2023. In May 2023, we successfully tendered for a new integrated sexual health services contract with Dudley Metropolitan Borough Council. This 3 year, £1.7m pa contract will
1 Integrated Care Boards (ICBs) replaced Clinical Commissioning Groups (CCGs) in the NHS in England from 1 July 2022
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commence in November 2023 and will be Brook’s fourth all-age clinical service, alongside our services in Cornwall, Blackburn with Darwen and Southend-on-Sea.
INVESTMENTS
Brook does not hold material financial investments. We have clear procedures for the investments of funds, with clear approval and authority limits. We assess the ethical acceptability of any proposed investment in terms of its fit with Brook’s objectives, policies and values, and the potential for any actual or perceived conflict of interest.
KEY RISKS AND UNCERTAINTIES
The Executive Team records the organisation’s strategic risks in Brook’s strategic risk register, which is reviewed quarterly and reported to the Risk, Finance & Audit Committee and the Board every six months. As at March 2023, there were two red rated risks on our strategic risk register:
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Failure in clinical delivery or clinical governance results in harm to a service user.
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Inadequate ICT systems adversely affect service delivery, efficiency and information governance.
One risk that had been rated red in March 2022 – Capacity issues associated with challenges in clinical recruitment – was sufficiently mitigated to be downgraded to an amber rating in December 2022.
Mitigating actions are monitored by the Executive Team and Board. Mitigations relating to the red-rated risks include:
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Development of the clinical staff quarterly review process built around the CQC lines of enquiry;
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Review of clinical governance systems including mechanisms for operational and clinical audits, and review of PGD systems and processes;
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Development of a new three-year ICT strategy and one-year action plan;
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Completion of ICT actions identified through independent penetration testing and Cyber Essentials Plus certification.
COVID-19
The COVID-19 pandemic was added to the strategic risk register in 2020/21. Originally rated red, the risk rating was reduced to green in March 2022, reflecting that our business plan and financial projections for the year were no longer significantly negatively impacted and the risk was mitigated and well managed. The risk was relegated from the strategic risk register in June 2022.
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PLANS FOR FUTURE PERIODS
Our annual business plan for 2023/24 sets out the activities that we will undertake in the first year of our new strategic plan. All of the activity within the plan contributes to our strategic priorities. During 2023/24 we will:
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Challenge inequality by working directly with marginalised communities to address the causes of health inequalities, broadening the use of our spaces to address multiple needs, and fighting for inclusive RSE as a universal right.
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Increase accessibility by working in partnership to grow our reach and expand into new geographic areas, dismantling barriers to access, and expanding our digital tools.
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Fight stigma by speaking out on sector issues and their impact, leading research into the links between sexual and mental health, and developing resources that enable others to address misinformation.
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Drive innovation by expanding our provision for adults, developing new mental health and suicide prevention offers, and developing new income streams to fund innovation.
Our business plan for 2023/24 aims to continue our process of digital transformation, with digital innovation now fully embedded as integral to the delivery of each of our strategic priorities. It also highlights the importance of continued investment in our people and our internal infrastructure to enable the services we provide to be the best they can possibly be.
PENSION LIABILITIES
The charity has a potential liability to the Pensions Trust (see Note 20). The present value at 31 March 2023 was £1,319 (2022: £2,068). In addition, Brook pays into a stakeholder scheme on behalf of its other employees.
RESERVES
Brook’s Managing Resources Pillar Policy states:
We will maintain a minimum level of unrestricted reserves equivalent to three months total operating costs, subject to regular review to ensure the policy remains appropriate to the organisation’s development.
The Reserves Policy was most recently reviewed and updated in November 2022.
RESERVES HELD
At 31 March 2023, Brook held £2,564,760 (2022: £2,471,947) total funds in reserve, as set out in note 15. Of these funds:
-
£188,334 are restricted and not available for general purposes;
-
£1,850,797 are for specific purposes, as set out in note 16;
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- £525,629 are available as free reserves.
Three months’ operating costs, and therefore our minimum level of unrestricted reserves is £2,550,000. Such minimum reserves provide a temporary buffer against planned and unplanned peaks and troughs of income and expenditure and mitigate financial risk.
At £2,376,426 our unrestricted reserves level is below this minimum threshold. We have implemented a number of cost saving and other initiatives as part of a wider multi-year plan to reshape the charity’s operations and deliver further surpluses in the future. It is expected that the charity will have unrestricted reserves above the minimum level by 2024/25.
GOING CONCERN
The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
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STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The trustees (who are the directors of Brook for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and have chosen to adopt United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
-
Select suitable accounting policies and then apply them consistently;
-
Observe the methods and principles in the Charities SORP;
-
Make judgements and estimates that are reasonable and prudent;
-
State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware:
-
There is no relevant audit information of which the charitable company’s auditor is unaware; and
-
The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The trustees report on pages 1 to18 was approved and signed on behalf of the trustees:
Signature:
Dame Sally Dicketts, Chair of the Board of Trustees
Date: 30 November 2023
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BROOK YOUNG PEOPLE
OPINION
We have audited the financial statements of Brook Young People for the year ended 31 March 2023 which comprise the Statement of Financial Activities, Balance Sheet, the Cash Flow Statement 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
-
give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
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Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
OTHER INFORMATION
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees’ Annual Report (which includes the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charity Accounts (Scotland) Regulations (as amended) require us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the charitable company; or
-
the charitable company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees’ remuneration specified by law are not made; or
-
• we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the
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small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
RESPONSIBILITIES OF TRUSTEES FOR THE FINANCIAL STATEMENTS
As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Care Quality Commission and safeguarding regulations, GDPR, health and safety regulations and employment law and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, and tax regulations.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators and tax authorities;
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-
Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
-
Evaluating management’s controls designed to prevent and detect irregularities;
-
Identifying and testing journals; and
-
Challenging assumptions and judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves 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 auditor’s report.
USE OF OUR REPORT
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Lee Stokes (Senior Statutory Auditor)
For and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen Street Place, London, EC4R 1AG
Date: 07 December 2023
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STATEMENT OF FINANCIAL ACTIVITIES
(Incorporating the income and expenditure account) For the year ended 31 March 2023
| For the year ended 31 March 2023 | For the year ended 31 March 2023 | ||
|---|---|---|---|
| Notes Unrestricted funds £ Restricted funds £ |
Total funds 2023 £ |
Total funds 2022 £ |
|
| Income Donations & legacies 12,482 - Grants 2 26,000 411,324 |
12,482 437,324 |
35,005 575,420 |
|
| Income from charitable activities Improving sexual health 3 12,554,704 - |
12,554,704 | 12,305,748 | |
| Other income 28,190 - |
28,190 | 54,250 | |
| Total income 12,621,376 411,324 |
13,032,700 | 12,970,423 | |
| Expenditure Costs of raising funds Fundraising 16,392 - |
16,392 | 3,677 | |
| Cost of charitable activities Improving sexual health 12,503,325 420,170 |
12,923,495 | 12,261,315 | |
| Total expenditure | 4 12,519,717 420,170 |
12,939,887 | 12,264,992 |
| Net Income / (expenditure) |
101,659 (8,846) |
92,813 | 705,431 |
| Net movement in funds for theyear |
101,659 (8,846) |
92,813 | 705,431 |
| Balance brought forward at 1 April 2022 |
2,274,767 197,180 |
2,471,947 | 1,766,516 |
| Balance carried forward at 31 March 2023 |
15 16 2,376,426 188,334 |
2,564,760 | 2,471,947 |
There were no gains or losses in the period other than as above. All activities are continuing and are within the Charity’s objects. The notes on pages 26 to 38 form part of these financial statements.
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BALANCE SHEET As at 31 March 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Notes £ £ |
£ | £ | |
| Fixed assets Tangible assets |
9 1,853,294 |
1,125,993 | |
| Total fixed assets | 1,853,294 | 1,125,993 | |
| Current assets Stocks Debtors Cash at bank and in hand |
10 174,755 11 897,809 958,546 |
160,679 1,355,710 1,254,991 |
|
| Total current assets | 2,031,110 | 2,771,380 | |
| Creditors: amounts falling due within one year |
12 (1,318,325) |
(1,411,122) | |
| Net current assets | 712,785 | 1,360,258 | |
| Total assets less current liabilities |
2,566,079 | 2,486,251 | |
| Creditors: amounts falling due after one year |
13 - |
(12,236) | |
| Provision for pension deficit | 20 (1,319) |
(2,068) | |
| Net assets | 2,564,760 | 2,471,947 | |
| Funds Restricted funds |
15 188,334 |
197,180 | |
| Unrestricted funds General funds Designated funds |
16 525,629 16 1,850,797 |
1,170,954 1,103,813 |
|
| Total funds | 17 2,564,760 |
2,471,947 |
The notes on pages 26 to 38 form part of these financial statements.
The financial statements were approved by the board of trustees on ___ 2023 and were signed on its behalf by:
Signature:
Dame Sally Dicketts, Chair of the Board of Trustees
Date: 30 November 2023
Company number: 2466940
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CASH FLOW STATEMENT For the year ended 31 March 2023
| For the year ended 31 March 2023 | ||
|---|---|---|
| Notes | 2023 £ 2022 £ |
|
| Net cash outflow from operating activities Cash flows from investing activities and deconsolidation Cash flows from financing activities |
a b c |
849,154 538,802 (1,110,821) (464,616) (34,778) (332,195) |
| Change in cash and cash equivalents | (296,445) (258,009) |
|
| Cash and cash equivalents at the start of the period | 1,254,991 1,513,000 |
|
| Cash and cash equivalents at the end of the period | 19 | 958,546 1,254,991 |
| Notes to the cash flow statement | 2023 £ 2022 £ |
|
| a. Reconciliation of net cash outflow from operating activities Net income Depreciation charges on fixed assets (Increase)/decrease in stocks (Increase)/decrease in debtors Increase in creditors |
92,813 705,431 382,770 278,696 (14,075) (20,791) 457,901 (708,508) (70,255) 283,974 |
|
| Net cash outflow from operating activities | 849,154 538,802 |
|
| b. Cash flows from investing activities and deconsolidation Purchase of property, plant and equipment Provision for pension deficit and other reserve movement |
(1,110,072) (455,947) (749) (8,669) |
|
| Cash flow from investing activities and deconsolidation | (1,110,821) (464,616) |
|
| c. Cash flows from financing activities Cash element of bank loan repayments |
(34,778) (332,195) |
|
| Cash flow from financing activities | (34,778) (332,195) |
The notes on pages 26 to 38 form part of these financial statements
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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
1. ACCOUNTING POLICIES
The following accounting policies have been used consistently in dealing with items which are considered material in relation to the company’s accounts.
1.1 BASIS OF ACCOUNTING
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: 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) (SORP 2015) (Second Edition, effective 1 January 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102.
The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern, and there is a rigorous 3 year strategic plan in place to continue to achieve a surplus position each year.
1.1.1 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods where necessary.
1.2 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.
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
The charity has no legacy income.
Grants are recognised in the statement of financial activities in the year in which the charity has entitlement to the income, the amount of income receivable can be measured reliably and there is probability of receipt.
Gifts in kind, including investments, are recognised at their market value on receipt.
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1.3 EXPENDITURE
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Expenditure is charged on an accruals basis. Governance costs relate to the general running of the charity, allowing the charity to operate and generate the information required for public accountability, as opposed to the direct management functions inherent in generating funds, service delivery or project work.
1.4 ALLOCATION OF SUPPORT AND GOVERNANCE COSTS
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees. As the charity has only one charitable activity being ‘improving the sexual health of young people and those most vulnerable to sexual ill-health’ all governance costs have been allocated to this.
Expenditure is charged on an accruals basis and is analysed between the charity’s main activities. Direct expenditure, including staff costs and associated establishment and overhead costs, is allocated directly to the relevant activity. Other staff costs and associated establishment and overhead costs are classified as support costs and are allocated to specific activities by reference to the time spent on each. The charity’s main activities are:
-
Charitable activities comprise expenditure related to the charitable objectives;
-
Costs of raising funds comprise expenditure related to fundraising activities and related publicity;
-
Governance costs comprise expenditure relating to the governance of the charity.
1.5
TANGIBLE FIXED ASSETS AND DEPRECIATION
Fixed assets costing more than £1,000 are capitalised and depreciated over their estimated useful lives, starting from the first month after capitalisation:
| Freehold property | 2% straight line |
|---|---|
| Leasehold property | period of the lease |
| Improvement to leasehold property | period of the lease |
| Computer equipment | 25% straight line |
| Fixtures, fittings and equipment | 20% straight line |
| Digital assets | 33% straight line |
1.6 STOCKS AND CONSUMABLES
Stocks are stated at the lower of cost and net realisable value. Consumable items for use in the clinics have been valued at cost as represented by the invoiced value and are included in stock values.
1.7 DEBTORS AND CREDITORS
Short term debtors are measured at transaction price, less any impairment and short term creditors are measured at the transaction price.
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1.8 TAXATION
The charity is exempt from corporation tax on its charitable activities.
1.9 OPERATING LEASES
Operating lease costs are charged to the Statement of Financial Activities on a straight line basis over the lease term.
1.10 PENSION SCHEME
The charity contributes to the personal schemes of certain employees. All such pension schemes are defined contribution schemes. The pension cost represents contributions payable by the company during the period.
Brook auto enrolled its staff in August 2015 into the Legal & General Worksave Pension Plan, scheme number Gf87785001.
Brook also contributes to the Pensions Trust’s Growth Plan (The Plan). The Plan is funded and is not contracted-out of the State scheme. The scheme is classified as a multi-employer defined benefit scheme where the share of assets and liabilities attributable to each member cannot be accurately quantified. As such contributions relating to current service are accounted for as they fall due but the commitment to make additional contributions in respect of past service deficit are accounted for once the commitment can be quantified. Contributions to both of these plans are accounted for as they fall due.
1.11 FUNDS
Restricted funds are the unexpended balances of income held on trust to be applied for specific purposes. Designated funds are unrestricted funds that are set aside at the discretion of the trustees for specific purposes: the purpose of specific designated funds is shown in the notes to the financial statements. General funds are the accumulated surplus of income over expenditure and are available for use at the discretion of the trustees in furtherance of the company’s objectives.
1.12 FINANCIAL INSTRUMENTS
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2. INCOME FROM GRANTS
| INCOME FROM GRANTS | |
|---|---|
| Unrestricted funds £ Restricted funds £ Total 2023 £ |
Total 2022 £ |
| Other grants 26,000 411,324 437,324 |
575,420 |
| Total grants 26,000 411,324 437,324 |
575,420 |
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| Unrestricted | Restricted |
Total | |
|---|---|---|---|
| funds | funds |
2022 | |
| Comparative figures | £ | £ |
£ |
| Other grants | 1,000 | 574,420 |
575,420 |
| Total grants | 1,000 | 574,420 |
575,420 |
3. INCOME FROM CHARITABLE ACTIVITIES
| Unrestricted funds £ Restricted funds £ Total 2023 £ |
Total 2022 £ |
|---|---|
| CCG/ICB funding 4,308,727 - 4,308,727 Local Authority funding 7,482,841 - 7,482,841 Trusts & Corporates 129,750 - 129,750 Education sales 587,636 - 587,636 Other income 45,750 - 45,750 |
4,588,322 6,916,073 100,271 656,970 44,112 |
| Total charitable activities 12,554,704 - 12,554,704 |
12,305,748 |
| Comparative figures Unrestricted funds £ Restricted funds £ Total 2022 £ |
|
| CCG/ICB funding 4,588,322 - 4,588,322 Local Authority funding 6,916,073 - 6,916,073 Trusts & Corporates 100,271 - 100,271 Education sales 656,970 - 656,970 Other income 44,112 - 44,112 |
|
| Total charitable activities 12,305,748 - 12,305,748 |
4. TOTAL EXPENDITURE
The charity has one charitable activity, being ‘ improving the sexual health of young people and those most vulnerable to sexual ill health’ . Costs are allocated to it as follows:
| Direct costs £ Support costs £ Total 2023 £ |
Total 2022 £ |
|---|---|
| Staff related costs 7,117,438 631,841 7,749,279 Clinical costs 2,652,899 - 2,652,899 Depreciation 356,476 26,294 382,770 Premises and IT 1,432,640 171,788 1,604,428 Other operational costs 183,300 - 183,300 Administration - 367,211 367,211 |
7,114,912 2,385,614 278,697 1,783,859 157,991 543,919 |
| Total expenditure 11,742,753 1,197,134 12,939,887 |
12,264,992 |
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| Direct | Support |
Total |
|
|---|---|---|---|
| costs | costs |
2022 |
|
| Comparative figures | £ | £ |
£ |
| Staff related costs | 6,534,850 | 580,062 |
7,114,912 |
| Clinical costs | 2,385,614 | - |
2,385,614 |
| Depreciation | 259,552 | 19,145 |
278,697 |
| Premises and IT | 1,592,860 | 190,999 |
1,783,859 |
| Other operational costs | 157,991 | - |
157,991 |
| Administration | - | 543,919 |
543,919 |
| Total expenditure | 10,930,867 | 1,334,125 |
12,264,992 |
5. GOVERNANCE COSTS
| GOVERNANCE COSTS | |
|---|---|
| 2023 £ |
2022 £ |
| Trustees’ expenses 1,651 Audit 23,970 Legal fees 16,402 |
323 25,740 17,052 |
| Total governance costs 42,023 |
43,115 |
6. STAFF COSTS
| STAFF COSTS | |
|---|---|
| 2023 No. |
2022 No. |
| Average number employed 233 |
245 |
| The aggregate payroll costs of these persons were as follows: 2023 £ |
2022 £ |
| Salaries 6,420,405 Social security costs 683,452 Pension costs 268,485 Other costs, including recruitment, training, temporary staff and consultants 146,920 |
5,936,733 563,326 253,938 136,492 |
| Total staff costs 7,519,262 |
6,890,489 |
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The number of employees earning in excess of £60,000 was as follows:
| The number of employees earning in excess of £60,000 was as follows: | |
|---|---|
| 2023 No. |
2022 No. |
| £60,000 - £70,000 3 £70,000 - £80,000 1 £80,000 - £90,000 2 £90,000 - £100,000 - £100,000 - £110,000 2 £120,000 - £130,000 - £130,000 - £140,000 1 £150,000 - £160,000 - £180,000 - £190,000 1 |
3 1 1 2 - 1 - 1 - |
The organisation considers the Key Management Personnel to be the senior management as referred to in the Trustees’ Annual Report. Total remuneration of this group in the year was £721,216 (2022: £808,821), which included employers pension costs of £10,397 (2022: £10,482). During the year the charity incurred redundancy costs totalling £6,173 (2022: £47,860).
7. TRUSTEES REMUNERATION AND EXPENSES
None of the trustees of the charity received any remuneration from the charity for their services as trustees (2022: £nil).
During the period, trustees were reimbursed for travelling expenses incurred in attending meetings and other expenses incurred on the charity’s behalf, totalling £1,651 (2022: £323).
8. NET INCOME / (EXPENDITURE)
Net income / (expenditure) for the period is stated after charging:
| Total 2023 £ |
Total 2022 £ |
|---|---|
| Auditors’ fee 23,970 Operating leases – land and buildings 545,180 Operating leases – other 20,433 Depreciation and loss on disposal of fixed assets 382,770 |
25,740 584,914 26,753 278,696 |
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9. TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETS | |
|---|---|
| Freehold property £ Leasehold property & improvements £ Furniture computers equipment £ |
Total £ |
| Cost As at 01 April 2022 513,831 2,778,727 2,115,708 Additions - 567,823 542,249 |
5,408,266 1,110,072 |
| As at 31 March 2023 513,831 3,346,550 2,657,957 |
6,518,338 |
| Depreciation As at 01 April 2022 348,741 2,417,190 1,516,343 Charge for the year 14,000 122,488 246,282 |
4,282,274 382,770 |
| As at 31 March 2023 362,741 2,539,678 1,762,625 |
4,665,044 |
| Net book value | |
| As at 31 March 2023 151,090 806,872 895,332 |
1,853,294 |
10. STOCK AND WORK IN PROGRESS
| 2023 £ |
2022 £ |
|---|---|
| Publications & consumables 174,755 |
160,679 |
| Total 174,755 |
160,679 |
| DEBTORS 2023 £ |
2022 £ |
| Trade debtors 426,987 Prepayments and accrued income 420,615 Other debtors 50,207 |
972,150 340,431 43,129 |
| Total 897,809 |
1,355,710 |
11. DEBTORS
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Amounts falling due within one year:
| Amounts falling due within one year: | |
|---|---|
| 2023 £ |
2022 £ |
| Trade creditors 978,456 Social security and other taxes 167,241 Accruals and deferred income 146,863 Loans 12,315 Other creditors 13,450 |
687,015 147,794 529,404 34,857 12,052 |
| Total 1,318,325 |
1,411,122 |
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Accruals and deferred income includes £48,367 (2022: £336,740) of income that was deferred to a future year in line with when the related work is carried out. All deferred income as at 31 March 2022 was released to the SOFA during the year.
13. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Amounts falling due after more than one year:
| Amounts falling due after more than one year: | |
|---|---|
| 2023 £ |
2022 £ |
| Loans - |
12,236 |
| Total - |
12,236 |
14. OPERATING LEASES
| Leases expiring 2023 Land & buildings £ 2023 Other £ 2022 Land & buildings £ |
2022 Other £ |
|---|---|
| Within one year 517,471 20,433 425,381 Within 2-5 years 448,598 61,298 498,338 Over five years - - 35,704 |
20,433 81,731 - |
| Total commitment 966,069 81,731 959,423 |
102,164 |
15. RESTRICTED FUNDS
| Balance 01/04/22 £ Income £ Expenditure £ |
Acquisition / transfers £ Balance 31/03/23 £ |
|---|---|
| Restricted assets 197,180 - (19,681) Restricted projects - 411,324 (400,489) |
- 177,499 - 10,835 |
| Total 197,180 411,324 (420,170) |
- 188,334 |
| Comparative figures Balance 01/04/21 £ Income £ Expenditure £ |
Acquisition / transfers £ Balance 31/03/22 £ |
| Restricted assets 217,704 - (20,524) Restricted projects - 574,520 (574,520) |
- 197,180 - - |
| Total 217,704 574,520 (595,044) |
- 197,180 |
Restricted assets are linked to specific properties whose future use is limited by covenants. Restricted projects are summarised in more detail below.
Restricted projects (summarised below) represent funds given to the charity for specific purposes. Any unspent at the yearend are carried forward.
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| Restricted projects Balance 01/04/22 £ Income £ Expenditure £ |
Additions / transfers £ Balance 31/03/23 £ |
|---|---|
| Peter Sowerby Foundation - 75,000 (75,000) The Charles Wolfson Charitable Trust - 25,000 (25,000) The Sackler Trust - 15,000 (15,000) Cornwall Council – DHSG Grant - 133,224 (133,224) National Lottery - 9,927 (9,927) Dutchy Health Grant - 2,941 (2,941) Southend Council – Victoria Centre - 82,700 (82,700) London School of Hygiene and Tropical Medicine - 2,500 (2,500) Safelives - 24,015 (24,015) John James Bristol Foundation - 5,000 (5,000) Masonic Charitable Grant - 32,017 (21,182) University of Birmingham - 4,000 (4,000) |
- - - - - - - - - - - - - - - - - - - - - 10,835 - - |
| Total - 411,324 (400,489) |
- 10,835 |
16. UNRESTRICTED FUNDS
| UNRESTRICTED FUNDS | |
|---|---|
| Balance 01/04/22 £ Income £ Expenditure £ |
Additions / transfers £ Balance 31/03/23 £ |
| Unrestricted funds 1,170,954 12,621,376 (12,156,627) |
(1,110,072) 525,631 |
| Designated funds Fixed assets funds 928,813 - (363,070) Dilapidations funds 175,000 - - |
1,110,072 1,675,795 - 175,000 |
| Total 2,274,767 12,621,376 (12,519,717) |
- 2,376,426 |
Designated funds have been created to represent the net book value of unrestricted fixed assets and an approximation of dilapidations owed on premises. All other funds are classified as general funds.
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17. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| ANALYSIS OF NET ASSETS BETWEEN FUNDS | |
|---|---|
| Tangible fixed assets £ Net current assets £ Long term creditors £ |
Total 2023 £ |
| Restricted funds 177,499 10,835 - General funds - 526,950 (1,319) Designated funds 1,675,795 175,000 - |
188,334 525,631 1,850,795 |
| Total 1,853,294 712,785 (1,319) |
2,564,760 |
| Comparative figures Tangible fixed assets £ Net current assets £ Long term creditors £ |
Total 2022 £ |
| Restricted funds 197,180 - - General funds - 1,185,258 (14,304) Designated funds 928,813 175,000 - |
197,180 1,170,954 1,103,813 |
| Total 1,125,993 1,360,258 (14,304) |
2,471,947 |
18. CONTINGENT LIABILITIES
Four of the properties owned by Brook were purchased with the assistance of public authorities. If Brook stops using the property for the intended purpose an amount is potentially repayable. The properties are regularly valued in order to assess the potential liability if any of the properties were sold or stopped being used. For three of the properties the potential liability would be based on a percentage of the future sale proceeds; these range from 81% to 100%. For the fourth property the liability is the repayment of the grants received or a relevant proportion of the sales value if higher. As the potential future sales values are unknown it is not possible to calculate the expected sales proceeds, and therefore the total potential liability. All four properties have been used for many years, and there is no indication or intention that Brook will cease carrying out its charitable activities at any of the locations.
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19. ANALYSIS OF CHANGE IN NET DEBT
| ANALYSIS OF CHANGE IN NET DEBT | |
|---|---|
| 1 April 2022 £ Cash flows £ Other non-cash changes £ |
31 March 2023 £ |
| Cash and cash equivalents Cash 1,254,991 (296,445) - |
958,546 |
| 1,254,991 (296,445) - |
958,546 |
| Borrowings Debt due within one year (34,857) 34,778 (12,236) Debt due after one year (12,236) - 12,236 |
(12,315) - |
| (47,093) 34,778 - |
(12,315) |
| Total commitment 1,207,898 (261,667) - |
946,231 |
20. PENSIONS
The company participates in the Pensions Trust Growth plan on behalf of some longserving employees, a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
| Deficit contributions | |
|---|---|
| From 1 April 2016 to | £12,945,440 per annum |
| 30 September 2025 | (payablemonthly andincreasing by 3% eachon 1stApril) |
| From 1 April 2016 to | £54,560 per annum |
| 30 September 2028 | (payable monthly and increasing by 3% each on 1stApril) |
| From 1 April 2019 to | £11,243,000 per annum |
| 31 January2025 | (payable monthlyand increasingby3% each on 1stApril) |
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
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Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
20.1 PRESENT VALUES OF PROVISION
| PRESENT VALUES OF PROVISION | |
|---|---|
| 31 March 2023 £ 31 March 2022 £ |
31 March 2021 £ |
| Present value of provision 1,319 2,068 |
10,737 |
20.2 RECONCILIATION OF OPENING AND CLOSING PROVISIONS
| RECONCILIATION OF OPENING AND CLOSING PROVISIONS | |
|---|---|
| Period ending 31 March 2023 £ |
Period ending 31 March 2022 £ |
| Provision at start of period 2,068 |
10,737 |
| Unwinding of the discount factor (interest expense) 40 |
50 |
| Deficit contribution paid (754) |
(4,358) |
| Remeasurements – impact of any change in assumptions (35) |
(4,361) |
| Provision at end of period 1,319 |
2,068 |
| ASSUMPTIONS 31 March 2023 %per annum 31 March 2022 %per annum |
31 March 2021 %per annum |
| Rate of discount 5,52 2.35 |
0.66 |
20.3 ASSUMPTIONS
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21. COMPARATIVE INFORMATION
STATEMENT OF FINANCIAL ACTIVITIES
(Incorporating the income and expenditure account) For the year ended 31 March 2022
| For the year ended 31 March 2022 | ||
|---|---|---|
| Unrestricted funds £ |
Restricted funds £ |
Total funds 2022 £ |
| Income from Donations & legacies 34,905 Grants 1,000 |
100 574,420 |
35,005 575,420 |
| Income from charitable activities Improving sexual health 12,305,748 |
- | 12,305,748 |
| Other income 54,250 |
- | 54,250 |
| Total income 12,395,903 |
574,520 | 12,970,423 |
| Expenditure Costs of raising funds Fundraising 3,677 |
- | 3,677 |
| Cost of charitable activities Improving sexual health 11,666,271 |
595,044 | 12,261,315 |
| Total expenditure 11,669,948 |
595,044 | 12,264,992 |
| Net income / (expenditure) 725,995 |
(20,524) | 705,431 |
| Net movement in funds for the year 725,995 |
(20,524) | 705,431 |
| Balance brought forward at 1 April 2021 1,548,812 |
217,704 | 1,766,516 |
| Balance carried forward at 31 March 2022 2,274,767 |
197,180 | 2,471,947 |
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