Charity registration number 1114999
Company registration number 05741930 (England and Wales)
THE BRAIN CHARITY
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
THE BRAIN CHARITY
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Professor W Chambers
J Blomley
V Boateng
I Craig
Dr P Moore
Dr J Picton
M Rea
J Sale
Dr N Silver
K E Swan
T G Walsh
Secretary
Dr J Picton
Charity number
1114999
Company number
05741930
Registered office
Norton Street
Liverpool
Merseyside
L3 8LR
Auditor
Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
L2 5RH
THE BRAIN CHARITY
CONTENTS
Page
Trustees' report
1 - 5
Independent auditor's report
6 - 10
Statement of financial activities
11
Balance sheet
12 - 13
Statement of cash flows
14
Notes to the financial statements
15 - 31
THE BRAIN CHARITY
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The trustees, who are also directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

 

Activities

 

The Brain Charity offers practical help, emotional support and social activities to anyone with a neurological condition and to their family, friends and carers.

 

We offer a range of services including counselling, employment support, welfare benefits advice, support for carers, social activities and a national information and advice service.

 

Mission, Values and Strategic Objectives

 

Our Mission

Our mission is to enable all those affected by neurological conditions to live longer, healthier, happier lives. We will fight together for an inclusive and just society: a world where stigma, hardship and isolation are replaced by compassion and understanding.

 

Our Values

 

Kindness We genuinely welcome everyone to our Charity and believe that each person has a unique talent and the ability to make the world a better place.

 

Commitment We will travel side by side with everyone throughout their journey no matter how complex, how long or how difficult. We roll up our sleeves whenever and wherever we need to.

 

Authenticity We accept and understand that the broadness of our own diversity and personal experience impacts directly on the level of quality and passion delivered within our services.

 

Courage We will challenge the status quo, welcome change and bravely take on any new challenges in the spirit of adventure.

 

Optimism We believe that equality for people with neurological conditions is now within reach and we will strive each and every day until prejudice and lack of opportunity are removed from our society.

Our Current Strategic Objectives

 

1. Deliver a range of essential and innovative services to meet the needs of our service users.

2. Achieve excellence in the quality of our services

3. Play our part in the wider disability equality movement by tackling discrimination at a local level.

4. Be ready for growth when it happens.

5. Increase income in order to reach out to more people.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

THE BRAIN CHARITY
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Achievements and performance

The Brain Charity has continued to grow in 2022/2023. The charity’s turnover increased by 29% this year, with income in excess £1.6M for the first time, as donations and legacies rose by over £200,000 despite expenditure on raising funds remaining broadly the same.

 

The nature of enquires has continued to be increasingly complex in nature, requiring more intense and longer-term support from our information and advice services. We spent substantially more on frontline services this year to better meet the needs of clients.

 

The Brain Charity also made investments in our IT infrastructure and CRM system, which will allow us to work more efficiently by capturing client data and analysing service outcomes better – future-proofing us for more growth.

 

Our year in numbers

 

Services

 

 

Projects based delivery

 

 

Staff and volunteers

 

 

Communicating

 

 

Future Development

The current strategic plan runs to 2024. There have been changes at the top with the CEO moving on in May 2023 and a new CEO starting in August 2023. A period of consolidation and engagement will support development of the next plan, launching January 2025.

 

The review and development of income streams for sustainability, using the CRM and improved systems to assist quality measurements, will be a key activity in the coming year.

THE BRAIN CHARITY
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Financial review

With continuing challenges from the global pandemic and the financial crisis, the Charity generated an overall deficit on the income and expenditure account.

 

An overall accounting deficit of £14,170 (2022: surplus £48,694) has been set against the reserves. This comprises an operating surplus of £4,878 (2022: £26,045) less a loss on investments of £19,048 (2022: gain £22,649).

 

It should be noted that the operating deficit includes depreciation totalling £40,111 (2022: £28,807) which did not impact the cash position. The performance on day to day operations before depreciation showed a surplus of £44,989 (2022: £54,852).

 

During the year the charity acquired computer software at a cost of £14,077 and made improvements and purchased items of equipment at the Norton Street premises costing £42,971.

 

The trustees are comfortable with this year's financial performance in the context of our long term strategy.

Reserves policy

 

The Charity's reserves policy is designed to provide the Charity with the financial flexibility to:

 

a) fund shortfalls when income does not reach expected levels.

b) fund unexpected expenditure, for example when projects over run or unplanned events occur.

c) ensure that the Charity is not unnecessarily holding back on spending in favour of using the resources it has to meet its charitable objectives.

Investment policy

 

The objective of the Charity's investment policy is to provide adequate financial resources to support the achievement of the charitable objectives. The trustees are willing to incur a medium level of risks with a balanced strategy and annually revisit their capacity to incur risk.

 

The trustees will not invest directly in tobacco or alcohol companies' shares.

THE BRAIN CHARITY
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Structure, governance and management

 

Sub-committees

 

The board of Trustees operates two sub - committees:

- Finance & Governance Committee

- Digital & Technology Governance Committee

 

These sub-committees are made up of suitably qualified Trustees and Senior Management and formally report back to the full board at each quarterly meeting.

 

Risk management

 

The Charity maintains a Risk Register to identify any major issues which may affect the Charity in order that it can assess the potential impact of these should they happen, and mitigate this where possible. The Risk Register uses a "Likelihood" v "Level of Impact" rating system to assess each perceived risk.

 

Governing document

 

The charity was incorporated on 14 March 2006 and registered as a Charity on 30 June 2006. On 1 April 2007 all the assets and activities of Mersey Neurological Trusts, an associated charity, were transferred to the Charity.

 

The Charity is controlled by its governing document, its Articles of Association, and constitutes a private company limited by guarantee, incorporated under the Companies Act 2006 in England and Wales. In February 2020, new Articles of Association were unanimously approved by the board and filed with Companies House, having been brought up to date in accordance with current legislation and best practice.

The trustees who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

 

Professor W Chambers
J Blomley
V Boateng
I Craig
Dr P Moore
Dr J Picton
M Rea
J Sale
Dr N Silver
K E Swan
T G Walsh

 

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

 

New Trustees

 

The Board is currently seeking new Trustees and would positively welcome applications from individuals from under-represented groups and from people with neurological conditions.

THE BRAIN CHARITY
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
Statement of Trustees' responsibilities

The trustees, who are also the directors of The Brain Charity for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

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; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that Mitchell Charlesworth (Audit) Limited be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' report was approved by the Board of Trustees.

Professor W Chambers
Trustee
17 October 2023
THE BRAIN CHARITY
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF THE BRAIN CHARITY
- 6 -

Opinion

We have audited the financial statements of The Brain Charity (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 its incoming resources and application of resources, 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.

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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

THE BRAIN CHARITY
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF THE BRAIN CHARITY
- 7 -
Matters on which we are required to report by exception

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

-

the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or

-

sufficient accounting records have not been kept; or

-

the financial statements are not in agreement with the accounting records; or

-

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of Trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the 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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

THE BRAIN CHARITY
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF THE BRAIN CHARITY
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

•    the nature of the industry and sector, control environment and business performance;

 

•    the charity's own assessment of the risks that irregularities may occur either as a result of fraud or error;

 

•    the results of our enquiries of management and members of the Board of Trustees of their own identification     and assessment of the risks of irregularities;

 

•    any matters we identified having obtained and reviewed the charity’s documentation of their policies and     procedures relating to:

 

•     identifying, evaluating and complying with laws and regulations and whether they were aware of any     instances of non-compliance;

 

•    detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or     alleged fraud; and

 

•    the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

 

•    the matters discussed among the audit engagement team regarding how and where fraud might occur in the     financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the charity's Statement of Financial Activities, (ii) the charity's accounting policy for revenue recognition (iii) the overstatement of salary and other costs. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Statement of Recommended Practice - 'Accounting and Reporting by Charities' issued by the joint SORP making body .

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty.

THE BRAIN CHARITY
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF THE BRAIN CHARITY
- 9 -
Audit response to risks identified

As a result of performing the above, we identified the presentation of the charity's Statement of Financial Activities, revenue recognition and overstatement of wages and other costs as the key audit matters related to the potential risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes the specific procedures we performed in response to those key audit matters.

 

In addition to the above, our procedures to respond to risks identified included the following:

 

 

 

 

 

 

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

THE BRAIN CHARITY
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF THE BRAIN CHARITY
- 10 -
Louise Casey (Senior Statutory Auditor)
for and on behalf of Mitchell Charlesworth (Audit) Limited
17 October 2023
Accountants
Statutory Auditor
3rd Floor
5 Temple Square
Temple Street
Liverpool
L2 5RH

Mitchell Charlesworth (Audit) Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE BRAIN CHARITY
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
328,652
22,570
351,222
109,344
27,749
137,093
Charitable activities
4
503,233
596,520
1,099,753
647,779
250,656
898,435
Other trading activities
5
90,981
-
90,981
137,336
-
137,336
Investments
6
90,721
-
90,721
88,854
-
88,854
Total income
1,013,587
619,090
1,632,677
983,313
278,405
1,261,718
Expenditure on:
Raising funds
7
193,337
-
193,337
206,466
-
206,466
Charitable activities
8
882,721
551,741
1,434,462
764,722
264,485
1,029,207
Total expenditure
1,076,058
551,741
1,627,799
971,188
264,485
1,235,673
Net gains/(losses) on investments
12
(19,048)
-
(19,048)
22,649
-
22,649
Net (outgoing)/incoming resources before transfers
(81,519)
67,349
(14,170)
34,774
13,920
48,694
Gross transfers between funds
24,837
(24,837)
-
28,319
(28,319)
-
Net movement in funds
(56,682)
42,512
(14,170)
63,093
(14,399)
48,694
Fund balances at 1 April 2022
1,006,446
-
1,006,446
943,353
14,399
957,752
Fund balances at 31 March 2023
949,764
42,512
992,276
1,006,446
-
1,006,446

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
THE BRAIN CHARITY
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
14
11,262
-
Tangible assets
15
672,700
667,024
Investments
16
305,248
281,554
989,210
948,578
Current assets
Debtors
17
176,337
155,850
Cash at bank and in hand
218,989
257,067
395,326
412,917
Creditors: amounts falling due within one year
18
(392,260)
(355,049)
Net current assets
3,066
57,868
Total assets less current liabilities
992,276
1,006,446
Income funds
Restricted funds
21
42,512
-
Unrestricted funds
Designated funds
22
630,000
630,000
General unrestricted funds
319,764
376,446
949,764
1,006,446
992,276
1,006,446
THE BRAIN CHARITY
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 13 -

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 17 October 2023
Professor W Chambers
Trustee
Company registration number 05741930
THE BRAIN CHARITY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(29,009)
(2,213)
Investing activities
Purchase of intangible assets
(14,077)
-
Purchase of tangible fixed assets
(42,971)
(91,220)
Purchase of investments
(91,056)
(42,469)
Proceeds from disposal of  investments
48,314
60,530
Investment income received
90,721
88,854
Net cash (used in)/generated from investing activities
(9,069)
15,695
Net cash used in financing activities
-
-
Net (decrease)/increase in cash and cash equivalents
(38,078)
13,482
Cash and cash equivalents at beginning of year
257,067
243,585
Cash and cash equivalents at end of year
218,989
257,067
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Charity information

The Brain Charity is a private company limited by guarantee incorporated in England and Wales. The registered office is Norton Street, Liverpool, Merseyside, L3 8LR.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

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

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

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds can be used in accordance with the Charity's objectives at the discretion of Trustees.

Restricted funds are subject to specific conditions by funders as to how they may be used. Restricted funds can only be used for particular restricted purposes within the objectives of the Charity.

 

Further explanations of the nature and purpose of each fund is included in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Where there are terms or conditions attached to incoming resources, particularly grants, then these terms or conditions must be met before the income is recognised as the entitlement conditions will not be satisfied until that point. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income.

THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

 

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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been included in support costs and allocated to activities on a basis consistent with the use of resources.

 

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Software
20% on cost
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
in accordance with the property
Leasehold land and buildings
10% on cost
Plant and equipment
10% on cost
Fixtures and fittings
10% on cost
Computers
33% on cost
Mechanical and electrical installation
5% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Long leasehold property depreciation is kept under review and includes long leasehold land which is not depreciated as it is deemed to have an infinite useful economic life.

 

All classes of tangible fixed assets are included at cost and are reviewed annually for evidence of impairment when there is an indication that the value of the asset may have fallen below its recoverable amount by way of physical deterioration, obsolescence or other change. Where this is the case the value of the asset is written down to its recoverable amount. The recoverable amount of an asset is measured by reference to its net realisable value.

 

There is no de-minimis limit above which tangible fixed assets are capitalised.

THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Taxation

The Charity is exempt from corporation tax on its charitable activities.

1.13
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15

Irrecoverable valued added tax

Any disallowed input tax incurred either forms part of the corresponding expended resource recognised within the Statement of Financial Activities or where appropriate is capitalised on the Balance Sheet as par of the cost of a fixed asset.

2
Critical accounting estimates and judgements

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

 

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

THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
3
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Donations and legacies
328,652
22,570
351,222
109,344
27,749
137,093
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
4
Charitable activities

Other projects

Corporate sponsorship

Total
2023

Other projects

Corporate sponsorship

Total
2022
2023
2023
2022
2022
£
£
£
£
£
£

Charitable activities

340,400
431,250
771,650
409,060
489,375
898,435

Grants

328,103
-
328,103
-
-
-
668,503
431,250
1,099,753
409,060
489,375
898,435
Analysis by fund
Unrestricted funds
71,983
431,250
503,233
158,404
489,375
647,779
Restricted funds
596,520
-
596,520
250,656
-
250,656
668,503
431,250
1,099,753
409,060
489,375
898,435
5
Other trading activities
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Fundraising events
27,770
104,633
Trading activity income: other
63,211
32,703
Other trading activities
90,981
137,336
6
Investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Rental income
80,799
80,184
Income from unlisted investments
9,706
8,668
Interest receivable
216
2
90,721
88,854
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
7
Raising funds
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Fundraising and publicity
Staging fundraising events
15,998
15,446
Other fundraising costs
1,980
7,912
Fundraising and publicity
17,978
23,358
Trading costs
Other trading activities
33,061
19,397
Staff costs
140,046
161,650
Trading costs
173,107
181,047
Investment management
2,252
2,061
193,337
206,466
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
8
Charitable activities

Other projects

 

Other projects

 

2023
2022
£
£
Staff costs
789,897
573,610

Charitable expenditure

66,588
40,011

Public relations

10,207
13,117
866,690
626,738
Share of support costs (see note 9)
551,368
386,323
Share of governance costs (see note 9)
16,404
16,146
1,434,462
1,029,207
Analysis by fund
Unrestricted funds
882,721
764,722
Restricted funds
551,741
264,485
1,434,462
1,029,207
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
9
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£
Staff costs
306,649
-
306,649
189,007
-
189,007
Depreciation
40,111
-
40,111
28,807
-
28,807

Bank charges

268
-
268
921
-
921

Sundries

64,388
-
64,388
36,297
-
36,297

Recruitment costs

4,332
-
4,332
5,476
-
5,476

Premises & other overheads

73,298
-
73,298
75,850
-
75,850

Office costs

5,994
-
5,994
4,913
-
4,913

Public relations

5,635
-
5,635
4,623
-
4,623

Postage and stationery

36,678
-
36,678
14,638
-
14,638

Irrecoverable VAT

14,015
-
14,015
25,791
-
25,791
Audit fees
-
11,247
11,247
-
9,648
9,648
Legal and professional
-
5,157
5,157
-
6,498
6,498
551,368
16,404
567,772
386,323
16,146
402,469
Analysed between
Charitable activities
551,368
16,404
567,772
386,323
16,146
402,469

Governance costs includes payments to the auditors of £6,450 (2022- £3,350) for audit fees.

10
Trustees

None of the trustees received any remuneration or other benefits for the year ended 31 March 2023 or for the year ended 31 March 2022

 

There were no Trustees' expenses paid for the year ended 31 March 2023 or for the year ended 31 March 2022

THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
11
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Management
4
5
Administration, finance, IT & HR
6
4
Carers' advocacy
4
5
Fundraising
2
3
Information and advice
10
11
Communications
1
1
Cafe and room hire
2
2
Employment, counselling and welfare
7
7
Young persons' projects
1
4
Training
1
-
Total
38
42
Employment costs
2023
2022
£
£
Wages and salaries
1,066,344
802,214
Social security costs
86,082
60,418
Other pension costs
84,166
61,635
1,236,592
924,267
The number of employees whose annual remuneration was more than £60,000 is as follows:
2023
2022
Number
Number
£60,001 to £70,000
1
-
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
12
Net gains/(losses) on investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Revaluation of investments
(21,063)
22,649
Gain/(loss) on sale of investments
2,015
-
(19,048)
22,649
13
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

14
Intangible fixed assets
Software
£
Cost
At 1 April 2022
-
Additions
14,077
At 31 March 2023
14,077
Amortisation and impairment
At 1 April 2022
-
Amortisation charged for the year
2,815
At 31 March 2023
2,815
Carrying amount
At 31 March 2023
11,262
At 31 March 2022
-
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
15
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Mechanical and electrical installation
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
529,221
50,000
73,785
47,608
94,492
122,854
917,960
Additions
41,680
-
1,291
-
-
-
42,971
At 31 March 2023
570,901
50,000
75,076
47,608
94,492
122,854
960,931
Depreciation and impairment
At 1 April 2022
4,091
-
70,481
46,854
60,783
68,726
250,935
Depreciation charged in the year
12,398
-
1,231
754
16,770
6,143
37,296
At 31 March 2023
16,489
-
71,712
47,608
77,553
74,869
288,231
Carrying amount
At 31 March 2023
554,412
50,000
3,364
-
16,939
47,985
672,700
At 31 March 2022
525,130
50,000
3,304
754
33,708
54,128
667,024
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
15
Tangible fixed assets
(Continued)
- 27 -

Land held under long leasehold with an original cost of £50,000 (2022 - £50,000) is not depreciated.

 

The freehold property was revalued at 19 September 2018 by Keppie Massie Ltd, independent valuers not connected with the charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

 

The property was valued at £480,000 and this is deemed to be the value of the property at 31 March 2023 other than the subsequent property improvements included within additions.

16
Fixed asset investments
Listed investments
£
Cost or valuation
At 1 April 2022
281,554
Additions
91,056
Valuation changes
(21,063)
Disposals
(46,299)
At 31 March 2023
305,248
Carrying amount
At 31 March 2023
305,248
At 31 March 2022
281,554
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
104,008
140,100
Other debtors
679
-
Prepayments and accrued income
71,650
15,750
176,337
155,850
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
18
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other taxation and social security
75,887
56,298
Deferred income
19
268,850
257,383
Trade creditors
18,957
8,240
Other creditors
14,243
23,358
Accruals
14,323
9,770
392,260
355,049
19
Deferred income
2023
2022
£
£
Other deferred income
268,850
257,383

Deferred income is included in the financial statements as follows:

2023
2022
£
£
Deferred income is included within:
Current liabilities
268,850
257,383
Movements in the year:
Deferred income at 1 April 2022
257,383
123,357
Released from previous periods
(253,552)
(122,357)
Resources deferred in the year
265,019
256,383
Deferred income at 31 March 2023
268,850
257,383
20
Retirement benefit schemes
Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £84,166 (2022 - £61,635).

THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
21
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Balance at
1 April 2021
Incoming resources
Resources expended
Transfers
Balance at
1 April 2022
Incoming resources
Resources expended
Transfers
Balance at
31 March 2023
£
£
£
£
£
£
£
£
£
Carers' Advocacy project
-
102,008
(78,652)
(23,356)
-
93,648
(79,398)
(14,250)
-
Dementia Project
-
(16,845)
(20,639)
37,484
-
63,185
(28,427)
(34,758)
-
Children & Young Person's Project
11,899
35,002
(35,162)
(11,739)
-
35,836
(40,517)
4,681
-
Sylvia Waddlove
2,500
-
-
(2,500)
-
-
-
-
-
Directions
-
28,723
(22,316)
(6,407)
-
10,723
(13,731)
3,008
-
New Horizons
-
50,000
(85,104)
35,104
-
76,558
(83,960)
7,402
-
LCC Older Care Project (Peace of Mind)
-
19,138
(10,230)
(8,908)
-
38,725
(35,387)
(3,338)
-
Gym
-
27,749
(4,091)
(23,658)
-
-
(2,775)
24,974
22,199
Befriending - Counselling
-
11,000
-
(11,000)
-
30,987
(45,630)
14,643
-
Speech Therapy National Lottery
-
9,884
(3,200)
(6,684)
-
-
-
-
-
Criminal Justice Project
-
11,746
(5,091)
(6,655)
-
35,452
(26,894)
(8,558)
-
The Value of You
-
-
-
-
-
40,992
(36,600)
(4,392)
-
Digital support - Multiply
-
-
-
-
-
9,648
(4,375)
(5,273)
-
Media Literacy - Safety Net
-
-
-
-
-
8,874
(2,926)
(5,948)
-
LCR Cares - Group Counselling, Mental Health & Wellbeing Fund
-
-
-
-
-
2,466
(2,145)
(321)
-
Talent Match
-
-
-
-
-
3,155
(838)
(2,317)
-
Information & Advice
-
-
-
-
-
145,881
(145,881)
-
-
Specialist Neuro Psychotherapy
-
-
-
-
-
390
-
(390)
-
Donation for meeting rooms
-
-
-
-
-
22,570
(2,257)
-
20,313
14,399
278,405
(264,485)
(28,319)
-
619,090
(551,741)
(24,837)
42,512
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
22
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Movement in funds
Movement in funds
Balance at
1 April 2021
Incoming resources
Resources expended
Transfers
Balance at
1 April 2022
Incoming resources
Balance at
31 March 2023
£
£
£
£
£
£
£
Norton Street Centre
530,000
-
-
-
530,000
-
530,000
Building improvements and maintanance
100,000
12,460
(94,853)
82,393
100,000
-
100,000
630,000
12,460
(94,853)
82,393
630,000
-
630,000

Norton Street Centre

This is the unrestricted net book value of the freehold property and long leasehold land.

 

Building improvement and maintenance

The Board have undertaken a review of the Norton Street premises, which is over 25 years old and have identified and scheduled potential repair works which will be required to the building over the next ten years. The Trustees have agreed to designate a proportion of unrestricted income each year to provide for those future works. The Board believes £100,000 will cover the costs of these repairs.

23
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 31 March 2023 are represented by:
Intangible fixed assets
11,262
-
11,262
-
-
-
Tangible assets
630,188
42,512
672,700
667,024
-
667,024
Investments
305,248
-
305,248
281,554
-
281,554
Current assets/(liabilities)
3,066
-
3,066
57,868
-
57,868
949,764
42,512
992,276
1,006,446
-
1,006,446
THE BRAIN CHARITY
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
71,795
65,708

The key management personnel of the charity is considered to comprise of the Chief Executive only.

25
Cash generated from operations
2023
2022
£
£
(Deficit)/surpus for the year
(14,170)
48,694
Adjustments for:
Investment income recognised in statement of financial activities
(90,721)
(88,854)
Gain on disposal of investments
(2,015)
-
Fair value gains and losses on investments
21,063
(22,649)
Depreciation and impairment of tangible fixed assets
40,111
28,807
Movements in working capital:
(Increase) in debtors
(20,488)
(122,420)
Increase in creditors
25,744
20,183
Increase in deferred income
11,467
134,026
Cash absorbed by operations
(29,009)
(2,213)
26
Analysis of changes in net funds

The charity had no debt during the year.

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