The trustees present their annual report and financial statements for the year ended 31 December 2023.
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 charitable company'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
The Charity’s objectives are set out in the Memorandum of Association are to:
Advance, promote and assist in the rehabilitation of persons who have suffered head injuries resulting in brain damage and who reside in the area at which the Charity’s activities are targeted (as determined by the Charity from time to time), by the provision of such services and facilities as may from time to time be determined by it;
Support, inform and guide carers and families of people who have suffered head injuries; and
Maintain, develop and manage a Centre to assist with the rehabilitation of head-injured persons and to co-operate with any other bodies in the maintenance and management of such a Centre for the carrying on of all such activities as may be promoted by the Charity in furtherance of its object.
The Charity also has the general aim to support preventative measures to reduce the incidence and severity of brain injury.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.
Activities
To achieve these objectives the Charity carries out the following activities:
Communicates the range of the Charity’s services to local authorities, healthcare providers and the general public;
Provides Centre based services for those living with brain injury, their families and carers;
Provides Drop-In services for those living with brain injury, their families and carers;
Provides a one to one wellbeing support service within the community;
Identifies a range of appropriate activities that meet the needs of its service users, their families and carers;
Undertakes fundraising activities to generate income to meet the Charity’s objectives; and
Ensures that all staff and volunteers receive the training and support necessary in their work.
The Centre based service is provided in Tunbridge Wells, currently three days a week. The Charity receives payments from KCC, who pay a portion of the daily costs for individual users. Fees are also received from private users.
The Charity has provided Drop-In centres based in Sevenoaks, Maidstone and Tunbridge Wells.
The Charity has a Community Wellbeing Service, which has provided valuable support to those requiring the additional help of a support worker on a one to one basis.
Public Benefit
The specialist requirements for assisting children preclude the Charity from providing services to children with brain injury under the age of eighteen. Otherwise, the Charity’s services are available to all people with a brain injury, subject to an assessment of need, regardless of race, gender, religion, ethnicity or social grouping.
The trustees confirm that they have considered the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims, objectives and operations. They are satisfied that the provision of services ensures that the public benefit requirements are fully met.
Charitable activities
The charity has developed over the past year to deal with the challenging landscape that many small charities and groups are facing. With Local Authority cutbacks funding is increasingly difficult to obtain, the ever-rising cost of living means utilities and other outgoings have increased greatly and grant giving trusts and foundations are scaling back on their grant making activities in all but their key priority areas.
The Board of Trustees have worked closely with Kevin Bottrell the charity’s Business Manager to monitor and review the financial status of the charity, the services provided and the needs of the Brains Matter client group, In the past year new processes and procedures have enabled the charity to become more agile and responsive to external factors.
The charity has adopted a ‘whole team’ approach to development: All staff members are involved in fundraising, marketing and networking and regular team meetings ensure that staff are working to a common goal and that joined up working is in place.
In the Tunbridge Wells Activity Centre there has been an increase in the range of activities provided with all activities aimed at encouraging neuro-rehabilitation and include a greater emphasis on physical activities to support strength and balance and hand/eye coordination. Arts and craft sessions remain popular with clients as do quizzes and word games. These activities are all supported by a small team of dedicated volunteers.
We have a new full time Wellbeing Coordinator following the retirement of our two part time staff. Our new team member brings with her a wealth of experience and the Wellbeing Service continues to provide a valuable community based service with staff providing one to one support to clients with brain injury to help them achieve set goals and aspirations.
The Maidstone drop in moved to a new venue this year and attendee numbers remain steady. This year we have introduced talks from healthcare professionals on topics chosen by our clients. Sevenoaks drop in remains popular with a small number of clients who value the opportunity to meet friends in a relaxed community environment.
Through our networking and promotional activities excellent links and relationships are being built with healthcare professionals, key personnel with Kent County Council, charities and community groups and local businesses and sports clubs. We have been well supported by the local voluntary sector with us sharing information and resources, referring clients to each other and making use of networks and contacts.
Working with a specialist Brain Injury firm of solicitors we have an ABI navigator working across hospital sites and rehabilitation services to support clients with brain injuries and their families and raise the profile and presence of the charity in the community.
Our online presence has increased greatly this year across our upgraded website and social media platforms. The website is updated regularly with news and information for clients and their families.
Our social media is very active with a mixture of client stories, information about brain injury and news of what our clients have been doing with us and the trips we have been on.
We have a new website coming online in August 2024. The new website will be easier to navigate and will have a new look and additional features such as a web shop, an enhanced information library and more interactive pages.
We produce a newsletter every two months and the mailing list for this has nearly doubled over the last year. The newsletter contains information, stories, dates for the diary regarding upcoming events and pictures of clients engaging in a variety of activities. We welcome feedback and contributions from clients, family members and other local charities and community groups.
Staff
Kevin Bottrell the Charity’s Business Manager continues to lead Brains Matter and conducted a root and branch review of charity operations and is reducing outgoings whilst increasing the range and scope of activities and services for clients and families.
Deputy Manager Lisa-Rae Brough supports clients and is developing links with community groups and local businesses
Jane Stanley, our Finance Officer looks after the charity’s finances with Kevin, pays bills and sends out invoices and manages much of the day to day facilities functions.
This year Jenny Wilson moved on to a student support role with a local school. We have employed Julie Hemsley and Katie Hughes to the roles of Activities Coordinators. Both bring a great deal of experience and have brought a fresh outlook to our centre-based provision and have introduced a number of new activities. Julie and Katie also plan future events and look after our social media, newsletter and website functions.
Sarah Leefe-Griffiths and Julie Ransom (the Wellbeing Team) both retired in March 2024. Our new, full time Coordinator Tyne Chambers has joined the team and is working with clients on a one-to-one basis both in their homes and in community settings.
Our ABI Navigator role is currently vacant and we are searching for a suitable candidate to join the team. Our ABI and hospital work is presently being covered by other team members.
Trustees
The Board of Trustees have remained consistent over the past year. Unfortunately Angela Miles had to leave in March 2024 but Paul Lester, from Cripps Solicitors, has been welcomed on the board and has provided invaluable support.
The Trustees have regular meetings and any communication, as required to support any decisions that have needed to be made for future development of the charity.
Balance Sheet
At 31 December 2023 the Charity had total reserves of £524,836 as detailed in note 20 to the accounts. The premises at 3 Culverden Park have a net book value of £497,526 and are owned outright.
S.O.F.A.
For the year ended 31 December 2023 the Charity had a net deficit of £26,073.
The Charity’s existing core activities providing the day services (including the Drop-In services and an information/support service) generated £54,533 in fee income and incurred £183,524 in associated unrestricted expenditure.
This resulted in a deficit of £128,991 which was primarily funded from reserves.
The Wellbeing Support activity generated £21,329 income during the year and incurred £20,897 in association unrestricted expenditure. This resulted in a surplus of £432.
Donations and legacies of £73,448 were received.
Reserves policy
Note 20 to the accounts show the assets and liabilities attributable to the various funds. Unrestricted funds have been used during the year to fund the deficit arising.
The trustees’ reserves policy is reviewed on an annual basis and aims to maintain unrestricted funds as a level to allow sufficient liquidity for normal operations, to support the development of services and activities provided by the Charity and provide for a reasonable sum for contingencies. The reserve position is considered alongside the Charity’s annual budget and forecast cash flow requirements.
Whilst reserves remain low, positive changes are being seen in the Charity’s financial position and it remains a priority of the trustees and business manager to ensure reserves are replenished as soon as possible to ensure we are operating in line with our reserves policy.
Whilst not reflected in this year’s financial results, plans for the future remain extremely positive. Financial support by way of a part loan/part grant has been provided by the Charity’s bank and these funds will enable the Charity to continue with its strategic development plans.
The changes introduced by the business manager and his team have started to have a positive impact, not just on the financial position since the year end but also within the Charity itself and among the trustees, staff, volunteers, and clients.
Governing Document
Brains Matter Charity is a company limited by guarantee governed by its Memorandum and Articles of Association dated 3 June 1997 as amended by special resolutions dated 2 July 2012 and 15 May 2017. It is registered as a charity with the Charity Commission, number 1062884.
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:
Appointment of Trustees
The President, Chairman, Treasurer, Company Secretary and other trustees are elected by members at the Annual General Meeting and serve until the conclusion of the following Annual General Meeting. As part of the selection process, due consideration is given to the individual’s personal knowledge and the experience they would bring to the governing body.
The Charity complies with the requirements of the Charity Commission for governance. This includes the induction and training of trustees, staff and volunteers.
Organisation
The board of trustees, which can have up to 12 members, administers the Charity. The trustees meet regularly to manage its affairs. The day-to-day administration of the Charity is delegated to the Business Manager.
Risk management
The trustees have examined the major risks to which the charity is exposed and have developed systems to mitigate any impact they may have on the charity’s future. It is recognized that no system can give an absolute assurance against major risks.
The report was approved by the Board of Trustees.
The trustees, who are also the directors of Brains Matter Charity for the purpose of company law, are responsible for preparing the 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 charitable company 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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company 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 charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
I report to the trustees on my examination of the financial statements of Brains Matter Charity (the charitable company) for the year ended 31 December 2023.
As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Brains Matter Charity is a private company limited by guarantee incorporated in England and Wales and is registered as a charity with the Charity Commission. The company and charity registration numbers, registered office and principal place of business are given on the charity information page and the governing document details are set out in the trustees' report.
The financial statements have been prepared in accordance with the charitable company'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 charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, unless otherwise stated in the relevant accounting policy note(s). The principal accounting policies adopted are set out below.
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.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds include a designated investment fund representing the market value of investments and a designated new property fund representing the value of the charity's principal operating premises, which was funded by the general fund.
Freehold depreciation is charged directly to the designated fund and an annual transfer is made between unrestricted funds and designated funds to account for investment purchases and sales.
Restricted funds are subject to specific conditions imposed by donors or through the terms of an appeal, as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.
For legacies, entitlement is taken as the earliest of the date on which either: the charitable company is aware that probate has been granted; the estate has been finalised and notification has been made by the executors to the charitable company that a distribution will be made; or when a distribution is received from the state. Receipt of a legacy, in whole or part, is only considered probable when the amount can be measured reliably and the charitable company has been notified of the executors intention to make a distribution. Where legacies have been notified to the charitable company, or the charitable company is aware of the granting of probate and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Donated assets are recognised on the basis of the value of the gift to the charitable company which is the amount the charitable company would have been willing to pay to acquire the asset on the open market.
Grant or fee income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
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 under the following activity headings:
Raising funds comprises the costs of organising fundraising events, investment management fees, salary costs and expenditure on marketing and publicity.
Charitable activities comprises the costs of the day centre and the buddying & drop in centres undertaken to further the purposes of the charitable company, including their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include accountancy fees and governance costs. The basis on which support costs are allocated is set out in the charitable activities note in these financial statements.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Individual fixed assets costing £500 or more are capitalised at cost. 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 is not depreciated.
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at market value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the charitable company reviews the carrying amounts of its tangible 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).
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.
The charitable company 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 charitable company's balance sheet when the charitable company 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, 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, 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.
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
In the application of the charitable company’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.
Government grants
Fees and other generated income
Fees and other generated income
Fees and other generated income
Room and car park hire
Bank interest
Income from quoted investments
Raising funds
Direct costs of fundraising events
Other personnel costs
Premises
Insurance
Office
Direct expenditure on beneficiaries
Legal and professional
Independent examination
Accountancy
The average monthly number of employees during the year was:
Pension costs are allocated between activities and between restricted and unrestricted funds in proportion to the related staff costs incurred. Retirement benefits are accruing under money purchase schemes for six members of staff (2022: six).
The key management personnel of the charity comprise the trustees, business manager and deputy manager. The total employee benefits of the key management personnel were £81,860 (2022: £67,480).
The average monthly head count was eight staff, comprising two full time and six part time employees. (2022: one full time and six part time employees). The number of full time equivalent employees was as above.
The charitable company is exempt from corporation tax on its charitable activities.
The Trustee's have estimated the original cost of the freehold land in 2008 as £42,000 which represented 10% of the purchase price.
During the year an unsecured loan of £105,000 was received from CAF Bank. This is repayable over five years, at an interest rate of 6.50% per annum.
Other creditors include pension contributions of £1,851 (2022: £1,489).
Pension costs are allocated between activities and between restricted and unrestricted funds in proportion to the related staff costs incurred. Retirement benefits are accruing under money purchase schemes for six members of staff. (2022: six).
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Investment gains/losses and transfers
Investment gains/losses and transfers
The New Premises Fund was created in 2004 to finance the new premises at 3 Culverden Park.
The Equipment Fund comprises items of equipment donated for various purposes.
The Cash Fund consists of many gifts or grants which have been donated for various specific purposes.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Investment gains/losses and transfers
Investment gains/losses and transfers
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The claim that was made against Headway West Kent in 2021, relating to a historic incident in 2017, has finally been settled, with costs agreed. There are no financial implications on Brains Matter Charity.
There were no disclosable related party transactions during the year (2022 - none).