The Brightside Trust - GOV.UK
Transcript of The Brightside Trust - GOV.UK
The Brightside TrustFinancial statements for the year ended 31 March 2017
Legal and administrative information
Charity registration number 1159993
Registered office CAN Mezzanine32-36 Loman StreetLondonSE1 OEH
Trustees J D Berry
J RM HeronA JonesP Bell-Ashe
J SelbyR AndersonR EdmundsS PayneL ProctorL Byrne
J Beard
Solicitors Bates Wells Braithwaite
10 Queen Street PlaceLondonEC4R 1BE
Auditors Grant Thornton UI& LLPStatutory AuditorChartered Accountants4 Hardman Square
SpinningfieldsManchesterM3 3EB
Bankers: Natwest Bank pic180 London RoadHazel GroveStockportSI&7 4DH
The Brightside TrustFinancial statements for the year ended 31 March 2017
Index to the financial statements
Legal and administrative information
Report of the trustees
Report of the independent auditor to the trustees
Consolidated statement of financial activities
4 —8
9 —10
Consolidated balance sheet 12
Parent Charity balance sheet
Consolidated statement of cash florvs
13
14
Notes to the financial statements 15 —25
The Brightside TrustFinancial statements for the year ended 31 March 2017
Report of the trustees
The Trustees present their report together with the audited financial statements for the year ended 31
March 2017. The financial statements have been prepared in accordance with the accounting policies set
out on page 15.
The Financial Statements comply with the Charities Act 2011,The Trust Deed, and Accounting and
Reporting by Charities Statement of Recommended Practice applicable to Charities preparing their
accounts in accordance with the Financial Repoiting Standard applicable in the UK and Republic ofIreland (FRS102) (effective 1 January 2015),
The legal and administrative information set out on page 2 forms part of this report,
Structure, Governance and Management
The Brightside Trust was incorpoiated as a Charitable Incorpoiated Organisation (CIO) on 19January
2015 (registered charity number 1159993).The CIO became an active charity on 1 Apical 2015 when all the
activities, assets and liabilities of the former charity the Brightside Trust (registered charity number
1080243) ("the legacy charity) were transferred to the CIO. The year to March 2016 therefore represented
the first set of accounts for the new CIO. Brightside Social Enterprise Ltd was incorporated on 11
September 2015 and operates as the charity's trading subsidiary. The first accounts foi the Brightside
Social Enterprise Limited were for the period from incorporation to 30 September 2016. These accounts
therefore represent the twelve month period from 1 April 2016 to 31 March 2017 and are the first set ofconsolidated accounts for the parent charity and the trading subsidiary.
The aim of the charity and the trading subsidiary is to provide the young people that need it most with
knowledge, support and connections so that they can make confident and informed decisions enabling
them to fulfil their potential.
The trustees are appointed by the Board and serve foi a period of five years after which period they may
put themselves forward for re-appointment. The trust deed provides for a minimum of three trustees. The
aim of the board is to recruit trustees with skills and experience from a number of complementary areas
including education, government and the corporate sector. It is the intention of the trustees to meet
quarterly in order to discuss the broad strategy and areas for activity including review of major projects,reserves and risk management, Day to day management of the Trust is delegated to a chief executive with
supervision from the chairman and treasurer. The trustees who have served durIng the year are set out on
page 2.
New trustees are given a detailed induction briefing by the organisation, and are also required to attend
half a day's training at Brightside where they are briefed by members from all levels of the organisation
and are given a demonstration of the mentoring platform,
Pay and remuneration of the Chief Executive is set by the Chair of Trustees in consultation with the Board
of Trustees. The pay and remuneration of the Senior Management Team is set by the Chief Executive in
consultation with the Chair of Trustees.
The trustees have prepared and approved this Report of the Trustees and the financial statements as set
out on pages 11 to 27.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Report of the trustees
Objectives, activities, performance and future plans
Brightside has worked with 9,500 young people during the course of the year and has now supported over
80,000 young people since the organisation was founded in 2003. In 2016-17, Brightside's mentoring was
undeitaken by 3,500 volunteer mentors.
Over the last couple of yeats, Brightside has been developing a rigorous and sophisticated impact
performance management system. Following the development of a Theory of Change in 2015 identifying
desired behavioural and attitudinal changes, Brightside has developed an impact framework adopting
robust and quality-assured scales to measure these outcomes. These frameworks were intioduced across a
selection of Brightside's projects in the autumn of 2016, and the organisation is currently in the piocess ofanalysing the initial data produced.
Another major initiative has been the development of a new online mentoiing platform, designed to
ensure that design and functionality are as clear. and engaging as possible and to ensure that the Brightside
online mentoring service meets people's expectations of an online service at a time when most internet
access is conducted via mobile phone iather than through desktop computers, The new platform launched
in September 2016.
Brightside's membership of the wider Social Business Trust network is proving very positive as the
organisation scales up its growth and impact, During the year, Social Business Trust and its affiliated
corporate organisations have supported Brightside in strategic and business planning; impact
measurement; product development; pricing; marketing; legal and compliance procedures and also through
the mentoring oF senioi Brightside staff.
During the year, Brightside has worked on more than 60 separate projects throughout England and Wales.
In paiticular, we have worked with consortia of universities through the National Networks ofCollaborative Outreach programme (NNCO) in, for example, Devon and Cornwall, Greatei Manchestei,
Essex and Merseyside. In 2017, much of Brightside's focus will be on the delivery of new contiacts
working with university consortia throughout the country via the National Collaborative Outreach
Programme (NCOP).
In addition, our Bright IMowledge website —which provides information to young people on university
courses, student finance and caieeis —continues to be seen as an authoritative source of information by
young people receiving two million visitors during the year.
Brightside continues to influence national debate and priorities in relation to social mobility. Its work has
been cited in government reports published by the Department for Business, Industry and Skills, the
Department foi Education and the All-Party Parliamentary Group on Social Mobility. In addition,
Brightside's work was covered by BBCRadio, Sky News and the Times Higher Education.
In the summer of 2017, Brightside published a series of essays on widening participation in partnership
with Higher Education Policy Institute. One of the essay contributois was subsequently inteiviewed about
contextual admissions on the Today Programme on BBCRadio 4.
In order to better reflect its identity as a leading national social mobility charity, the Biightside Trust has
refreshed its brand and visual identity during the course of the year. We have also re-designed the
Brightside website —~mvw. thebri htsidetrust. oi .
Brightside will build on these foundations of nationwide reach, a new online mentoring platform and a
rigorous impact performance management system in the period ahead, with an initial priority ofdeveloping a new five year business plan designed to ensure we meet our overall ambitions of providing
evidenced, high-quality mentoiing support to young people throughout the country.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Report of the trustees
Financial review and investment policy
The group received income of $726,340 during the year from a number of sources including universities,
othei third sector organisations and corporates. Income for the year to 31 March 2018 is forecast to be in
the region of $1,100,000.
Expenditure, including direct pxoject expenditure and running costs, totalled $1,011,234. This includes
$60,558 (2016: $31,098) kom the capital designated fund to support technical development and
evaluation, and the trustees plan to invest money in these areas of activity on an annual basis.
Our investment objective is to preserve the value of capital in real terms, in order to provide funds for
future activities. Our investment is managed by Rothscluid Private Fund Management, and comprises a
holding of Accumulation Units in the Glenhuntley Portfolio Trust, We have confidence in our
Investment Manager's abilities to look after our funds wisely in ever changing financial markets, and are
satisfied with their current performance which we review quarterly.
Reserves
It is the policy of the charity to maintain free reserves at a level which equates to a minimum of six months
unrestricted expenditure. The trustees considei that this level will provide sufficient funds to cover
operational and governance costs and to allow for the long lead time kom pioject conception to securing
funding and commencing projects.
The charity holds a Designated Capital Reserve that was created by funds received kom the sale ofinvestments in prior years, An amount of income kom the investments held in the Designated Capital
Reserve will be used each year to fund investment projects for the charity.
The total funds of the group were $3,870,383 at 31 March 2017 (2016: g3,715,295). This includes
designated capital and project reserves of $3,331,098 (2016: $3,212,588), Tlus leaves net funds of$539,285 (2016: $502,707) which covers seven months operational expenditure of the group,
Risk management
The trustees have examined the major strategic, business and operational risks which the chaiity faces and
confirm that systems have been established to enable regular. reports to be produced so that the necessary
steps can be taken to lessen these risks.
Public benefit
The trustees confirm that they have referred to the Charity Commission's general guidance on public
benefit when reviewing the Trust's aims and objectives and in planning the future activities of the Trust,
These aie shown above in the section 'Objectives and activities'.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Report of the trustees
TrusteesThe present trustees (of the CIO) are shown on page 2, The trustees who served thioughout the year and
to the date of approval of these financial statements, except as noted, were as follows:
JD BerryJRM HeronA JonesP Bell-Ashe
J SelbyR AndersonR EdmundsS PayneL Proctor. (appointed 7+ December 2016)L Byrne (appointed 7+ Decembei 2016)
J Beard (appointed 7+ December 2016)
Trustees' Responsibilities Statement
The trustees are responsible for preparjng the Trustees' Report and the financial statements in accordance
with applicable law and regulations.
The Charities Act 2011 and regulations made thereunder requires the trustees to prepare financial
statements for each financial yeai in accordance with United I~gdom Generally Accepted Accounting
Practice (United IGngdom Accounting Standards and applicable law) including FRS102, the Financial
Reporting Standard applicable in the UI& and Republic of heland 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 charity 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 set out in the Statement of Recommended Practice applicable to
charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the
UI& and Republic of Ireland ('Charities SORP (FRS 102)')
~ make judgments and estimates that are reasonable and prudent
~ prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the charity will continue in business.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Report of the trustees
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain
the charity's transactions and 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 Chanties Act 2011 and
regulations made theieunder and the provisions of the trust deed. They are also responsible for safeguarding
the assets of the charity and hence foi taking reasonable steps for the prevention and detection of fraud and
othei irregularities.
In so far as the trustees are awaie:
~ there is no ielevant audit information of which the charity's auditors are 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 auditors are aware of that information,
Approval
Approved by the trustees and signed on their behalf by:
JRM Heron, Trustee
lw December 2017
GrantThornton
Independent auditor's report to the trustees ofThe Brightside Trust
We have audited the financial statements of The Brightside Trust for the year ended 31 March 2017
which comprise the consolidated statement of financial activities, the consolidated and charitable
company balance sheets, the consolidated statement of cash flows and the related notes. The financial
reporting framework that has been applied in their preparation is applicable law and United IGngdom
Accounting Standards (United IGngdom Generally Accepted Accounting Practice), including FRS 102,The Financial Reporting Standard applicable in the United IGngdom and Ireland.
This report is made solely to the charity's trustees, as a body, in accordance with the Charity's
(Accounts and Reports) Regulations 2008 made undei Section 154 of the Charities Act 2011. 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 chaiity and the
charity's trustees, as a body, for our audit woik, for this report, or for. the opinions we have formed.
Respective responsibilities of trustees and auditor
As explained more fully in the Trustees' Responsibilities Statement set out on pages 7 and 8, the
trustees are responsible for the preparation of the financial statements and for being satisfied that they
give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with
applicable law and International Standards on Auditing (UIZ and Ireland). Those standards require us
to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of 6nancial statements is provided on the Financial Reporting
Council's website at www. frc.org. uk/auditscopeukprivate.
Opinion on financial statements
In our opinion the financial statements:
~ give a true and fair view of the state of affairs of the charity and the group as at 31 March 2017
and of the group's income and expenditure for the year then ended;
~ have been propefly prepared in accordance with United IGngdom Generally Accepted
Accounting Practice; and
~ have been prepared in accordance with the requirements of the Charities Act 2011 and
regulations made thereunder.
10
6rantThornton
Independent auditor's report to the trustees ofThe Brightside Trust
INatters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us
to report to you if, in our opinion:
~ adequate accounting records have not been kept by the Charity in accordance with Section 130 ofthe Charities Act 2011; or
~ the financial statements are not in agreement with the accounting records; or
~ the information given in the financial statements is not consistent in all material respects with the
Report of the trustees.
~ we have not received all the information and explanations we require for our audit,
Tlat &~ 4k.
Grant Thornton UK LLPStatutory Auditor, Chartered AccountantsManchester
December 2017
Grant Thornton UI& LLP is eligible to act as an auditor. in terms of Section 1212 of the Companies Act
2006.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Consolidated statement of financial activities
INCOMENote
Unrestrictedand
Total funds
Unrestrictedand
Total funds
Voluntary income
Charitable activities
Other income
Income from investments
67,748
658,390
202
4,018,828
663,482
12,116
628
Total income
EXPENDITURE
726,340 4,695,054
Charitable activities (1,011,234) (771,910)
Total expenditure (1,011,234) (771,910)
Net (expenditure) /income beforegains/ losses on investment
Realised and unrealised gains and losses onrevaluation and disposal of investment assets
Net income for the year
Net movement in funds
Total funds brought forward
Total funds carried forward
13
13
13
(284,894)
439,982
155,088
155,088
3,715,295
3,870,383
3,923,144
(207,849)
3,715,295
3,715,295
3,715,295
The 2017 financial activities above include $351,536 of income and $506,627 of expenditure and
f439,982 of realised and unrealised gains relating to the parent charity. The 2016 comparatives relate
entirely to the parent charity,
The results relate wholly to continuing activities.
The accompanying notes form part of these financial statements.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Consolidated balance sheet
Fixed assetsInvestmentsTangible fixed assets
Intangible assets
31 Match2017
Note
3,400,8933,952
261,773
31March2016
3,260,9134,684
3,666,618 3,265,597
Current assetsCash at bank and in hand
Debtois
274,702259,917
140,200
531,313
Creditors: amounts falling due within one year
Net current (liabilities)/assets
Total assets less current liabilities
534,619
(330,854)
203,765
671,513
221,815
449,698
3,870,383 3,715,295
Net assets 3,870,383 3,715,295
Total funds 3,870,383 3,715,295
The financial statements were approved by the Board of Trustees and authorised for issue on i ~~December 2017 and signed on their behalf by:
Trustee
The accompanying notes form part of these financial statements.
The Brightside TrustFinancial statements for the year ended 31 March 2017
13
Parent Charity balance sheet
Fixed assetsInvestments
Tangible fixed assets
31 March2017
Note
5 3,400,893
8 3,952
31 March2016
3,260,9134,784
3,404,845 3,265,597
Current assetsCash at bank and in hand
Debtors
Creditors: amounts falling due within one year
Net current (liabilities)/assets
Total assets less current liabilities
10
132,319560,410692,729
(72,277)
620,452
140,200531,313671,513
221,815
449,698
Net assets
Charity fundsUnrestricted funds
Total funds
4,025,297 3,715,295
4,025,297 3,715,295
13 4,025,297 3,715,295
4,025,297 3,715,295
The fmmdd statements were approved by the Board of Trustees and authoiised for issue on l~December 2017 and signed on their behalf by:
Trustee
The Brightside TrustFinancial statements for the year ended 31 March 2017
Consolidated statement of cash Rows
2017 2016
Net cash provided by/(used in) operating activities
Net income for the period
(Gain)/ Losses on investments
Interest from investments
Decrease/(increase) in debtors
Increase in creditors
Depreciation
Amortisation
Transfer from legacy charity
155,087
(439,982)
(202)
271,396
109,039
3,573
43,352
3,715,295
207,849
(628)
(269,075)
19,699
5,556
(4,012,436)
142,263 (333,740)
Cash flow from investing activities
Inteiest from investments
Proceeds from sale of investments
Purchase of tangible fixed assets
Purchase of intangible fixed assets
Cash transferred from legacy charity
202
300,003
(2,841)
(305,125)
(7,761)
628
200,030
(2,010)
275,292
473,940
Change in cash and cash equivalents 134,502 140,200
Cash and cash equivalents brought forward 140,200
Cash and cash equivalents carried forward 274,702 140,200
The accompanying notes form part of these financial statements.
The Brightside TrustFinancial statements for the year ended 31 March 2017
15
Notes to the Financial statements
1 Principal accounting policies
Legal information
The Brightside Trust is a Charitable Incorpoiated Organisation (Charity no 1159993)and owns 100%of the issued share capital of Bxightside Social Enterprise Limited, a limited company (Company no,
09774291). Both organisations' registered office is CAN Mezzanine, 32- 36 Loman Street, London,
SE1 OEH.
The group delivers public benefit by pioviding support to young people as set out in the report of the
trustees.
Basis of preparation
The financial statements have been prepared in accordance with 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 2015) — (Chafities SORP (FRS 102)), the Financial Repoiting Standard
applicable in the UI& and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Brightside Trust meets the definition of a public benefit entity under FRS 102. Assets and
liabilities axe initially recognised at historical cost ox transaction value unless othe+vise stated in the
relevant accounting policy note(s).
The group financial statements consolidate those of the charitable company and its subsidiary
undertaking drawn up to 31 March 2017 on a line by line basis, eliminating inter-group transactions.
These financial statements represent twelve months activities of the Bxightside Trust and the Bxightside
Social Enterpiise Limited. The 2016 numbers do not include the trading activities of the Bxightside
Social Enterprise Limited on the grounds of materiality.
The financial statements are piesented in sterling (Q.
Going concernForecasts have been prepared which disclose that the group has significant headroom to operate with
existing funds fox the next 12 months. In view of this the ttwstees have a reasonable expectation that
the group has adequate resources to continue in operational existence fox the foreseeable future, bring
a period of not less than 12 months fxom the date of approval of these financial statements, For this
reason they continue to adopt the going concern basis in the financial statements,
IncomeIncome is recognised once the charity has entitlement to the funds, any performance conditions have
been met, it is piobable that the income will be received and the amount can be measured reliably.
Where income is received for projects befoxe any work is undertaken amounts are induded within
deferred grants, income is then ieleased in line with the delivery of the projects.
Donations
Donations comprises all income from grants and donations, and includes cash donations from the
Social Business Trust. In accordance with the Charities SORP (FRS 102), volunteer time through the
Social Business Trust or otherwise, is not recognised the financial statements. Donations under Gift
Aid together with the associated income tax recoveries aie credited as income in the year in which they
axe received,
The Brightslde TrustFinancial statements for the year ended 31 March 2017
Notes to the financial statements
Charitable trading income
Charitable trading income represents amounts receivable by the charitable company for services
provided aligned with the charitable company's objectives as disclosed on pages 5 of these financial
statements,
ExpenditureExpenditure is recognised once there is a legal or constructive obligation committing the charity to the
expenditure, it is probable that settlement will be required and the amount of the obligation can be
measured reliably. All expenditure is accounted foi on an accruals basis and has been classified under
headings that aggregate all costs related to the category.
Creditors and provisions are recognised where the charity has a present obligation resulting from a past
event that will probably result in the transfer of funds to a third party and the amount due to settle the
obligation can be measured or estimated reliably. Creditors and piovisions aie normally recognised at
their settlement amount aftei allowing foi any trade discounts due.
Irrecoverable VATIrrecoverable VAT is charged against the category of resources expended for which it was incurred.
Allocation of overhead and support costsOverhead and support costs have been allocated to charitable activities.
Fixed asset investment
Investments are a form of basic financial instrument and are initially recognised at their transaction
value and subsequently measured at their fair value, using closing mid-market value at the balance sheet
date. Any realised and unrealised gains and losses on revaluation or disposals are included in the
Statement of Financial Activities.
Income from investments is included, togethei with the related tax ciedit, in the yeai in which it is
receivable.
Interest on funds held on deposit is recognised when receivable, and the amount can be recognised
reliably by the charity; this is normally upon notification of the interest paid or. payable by the bank.
Tangible fixed assets and depreciationTangible fixed assets are stated at cost, net of depreciation. Depreciation is charged on leasehold
improvements, fixtures and fittings and computers which are written off on a straight line basis overtheir estimated useful life of three years.
Intangible fixed assetsIntangible fixed assets are stated at histoiic cost less accumulated amortisation. Amortisation is charged
on a straight-line basis for software over an estimated useful life of four years.
DebtorsTrade and other debtors are recognised at the settlement amount due after any trade discount offered.
Prepayments are valued at the amount prepaid net of any trade discounts due.
Financial instrumentsThe trust only has financial assets and financial liabilities of a kind that qualify as basic financial
instruments. Basic financial instr~ments are initially recognised at transaction value and subsequently
measured at their settlement value.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Notes to the financial statements
Fund accountingUnrestricted funds are available to spend on activities that further any of the purposes of the charity.
Designated funds are unrestricted funds of the charity which the trustees have decided at their
discretion to set aside to use for a specific purpose.
Current and deferred taxThe tax expense for the year comprises current and deferred tax. Tax is recognised in the statement offinancial activities, except that a change attributable to an item iecognised directly in equity is also
recognised directly in equity.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted orsubstantively enacted by the balance sheet date in the countries where the Charity operates and
generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but notreversed by the Balance sheet date, except that:
~ the recognition of deferred tax assets is limited to the extent that it is probable that they will be
recovered against the reversal of deferred tax liabilities or othei future taxable profits; and
~ any deferred tax balances are reversed if and when all conditions for retaining associated tax
allowances have been met.
Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by
the Balance sheet date.
Significant adjustments and key areas of estimation uncertainty
The trustees consider. there to be no items in the financial statements where they have had to make
significant judgements in the process of applying the Charity's accounting policies or key sources ofestimation uncertainty.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Notes to the financial statements
Operations of trading subsidiaries
The activities of Brightside Social Enterprise Limited for the twelve month period from 1 Apnl 2016to 31 March 2017 have been consolidated as part of these accounts. The 2016 numbers do not include
the activities of the company as they were not material.
A summary of the result of the trading subsidiary is set out below:
2017
TurnoverTotal Expenditure
Deftcit for the year
342,371~498,370
(155,999)
The net assets and liabilities of the subsidiary were:2017
Fixed assets 261,773
Current assets
Creditors: amounts falling due within one year
Net current liabilities
369,492(786,179)
(416,687)
Net liabilities (154,914)
Aggregate share capital and reserves (154,914)
The Brightside TrustFinancial statements for the year ended 31 Nlarch 2017
Notes to the financial statements
3 Income
2017 2016
Charitable activities
Trading activity 658,390
688,390663,482
663,482
DonationsTransfer from legacy charity
Donations received
OtherManagement charge received
67,748
67,748
4,012,436
6,392
4,018,828
12,116
Investments
Interest on cash deposits 202 628
Donations received includes cash income from the Social Business Trust of $19,703.
Consolidated analysis of charitable activities
Direct pxoject expensesPayroll expenses —direct project workPayroll expenses —administrative
Travel % AccommodationOverhead and support costs —charitable activities
Auditors remuneration (governance costs)Total Expenditure
2017
163,670357,877192,703
10,321275,590
11,073
2016
75,332344,553185,529
5,172156,824
4,500
1,011,234 771,910
The Brightside TrustFinancial statements for the year ended 31 March 2017
20
Notes to the financial statements
5 Investments —Group and Company
2017 2016
Opening Balance
Transfer from legacy charity
Disposal of investments in period
Gain/(Loss) in market value of investments in period
At 31 March —at market value
3,260,913
(280,636)
420,616
3,400,893
3,668,792
(214,103)
(193,776)
3,260,913
Realised and unrealised gains on investment assets
Gain/(Loss) on disposal of investments in period
Increase/(Decrease) in market value of investments in period
(280,636)420,616
439,982
(214,103)(193,776)
(207,849
Analysis of investments
Unit Trust 3,400,893 3,260,013
Investments are stated at maiket value, the Unit Tmst is managed by Rothschild and contains a mixture ofinvestments including equities, gilts and cash, All investments are tiaded in quoted public markets.
The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in
the financial review and investment policy and performances sections of the Trustees' Annual Report.
The main form of financial risk faced by the Charity is that of volatility in equity markets and investment
markets due to wider economic conditions, such as Biexit, the attitude of investors to investment risk, and
changes in sentiment incurring equities.
Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central
banks and market regulators has continued to provide for orderly trading in the markets and so the ability to
buy and sell quoted equities and stock is anticipated to continue. The Charity's investments are mainly traded in
markets with good liquidity and high trading volumes. The Charity has no material investment holdings in
markets subject to exchange controls or trading restrictions.
The Charity manages these investment risks by retaining expert advisors and operating an investment policy
that provides for a high degree of diversification of holdings within investment asset classes that are quoted on
recognised stock exchanges. The Charity does not make use of derivatives and similar complex financial
instruments as it takes the view that investments are held for their longer term yield total return and historic
studies of quoted financial instr~ments have shown that volatility in any particular five year period will normally
be corrected.
The charity also owns one g1 share, being 100% of the issued share capital, in Biightside Social Enterprises
Limited which was incorporated on 11 September 2015.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Notes to the financial statements
Tax
Parent charityAs a Charitable Incorporated Organisation, the parent charity is exempt from Corporation Tax,
SubsidiaryThe company does not have a tax liability as no profit was made in the period, The directors intend totransfer any profits made to the charitable holding company, the Brightside Trust, subject to adequate
reserves being available,
The group has an unrecognised deferred tax asset of $26,000 (2016: $9,000),
Intangible fixed assets
GroupSoftware
CostAt 1 April 2016Additions
At 31 March 2017
305,125
305,125
AmortisationAt 1 April 2016Provided in the year.
At 31 March 2017
43,352
43,352
Net book value
At 31 March 2017 261,773
Net book value
At 31 March 2016 237,500
Bxightside Social Enterprise Limited has contracted an external development agency to build a new
online mentorIng platform to support the activities of the company and the parent organisation. This
was built from November 2015 and went live in September 2016, when a large number of customers
transitioned to the new platform.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Notes to the financial statements
Tangible fixed assets
Group and charity
CostAt 1 April 2016Additions
At 31 March 2017
Computers
132,1431,703
133,846
Fixtures andFittings
3,474
3,474
LeaseholdImprovements
6,7501,138
7,888
Total
142,3672,841
145,208
DepreciationAt 1 April 2016Charge for the year.
At 31 March 2017
130,1791 892
132,071
2,485821
3,306
5,019860
5,879
137,6833,573
141,256
Net book amount
At 31 March 2017
Net book amount
At 31 March 2016
1,775
1,964
168
989
2,009
1,731
3,952
4,684
All tangible ftxed assets are used for charitable purposes.
Debtors
Group 2017 2016
Trade debtors
Prep aymentsOther debtorsLoanAccrued income
151,65029,002
383
78,882
150,80027,800
4,772297,966
49,975
259,917 531,313
Parent charity 2017 2016
Trade debtorsPrepaymentsOther debtorsIntercompany LoanAccrued income
29,002383
527,6013,424
150,80027,800
4,772297,96649,975
560,410
The loan is due from Brightside Social Enterprise Limited the subsidiary undertaking of the charity.
531,313
The Brightside TrustFinancial statements for the year ended 31 March 2017
Notes to the financial statements
Creditors: amounts falling due within one year
Group
Trade creditorsOther taxes and social securityAccrualsDeferred revenue
2017
38,59849,34742,595
200,314330,854
2016
6,62114,197
5,601195,396
221,815
Parent charity2017 2016
Trade creditorsOther taxes and social secuntyAccrualsDeferred revenue
4,33214,78129,32123,843
72,277
6,62114,197
5,601195,396
221,815
Financial Instruments
Group2017 2016
Financial assetsFinancial assets measured at amortised cost 426,352 291,000
Financial liabilitiesFinancial liabilities measured at amortised cost (81,193) (12,222)
Financial assets measured at amortised cost comprise cash and trade debtors.
Financial liabilities measured at amortised cost comprise trade creditors and accruals.
Parent charity2017 2016
Financial assetsFinancial assets measured at amortised cost 132,319 291,000
Financial liabilitiesFinancial liabilities measured at amortised cost (33,653) (12,222)
Financial assets measured at amortised cost comprise cash and trade debtors.
Financial liabilities measured at amortised cost comprise trade creditors and accruals.
The Brightslde TrustFinancial statements for the year ended 31 March 2017
Notes to the Financial statements
12 Staff costs and trustees' remuneration —Group and company
Salaries
Social Security Costs
The aveiage weekly number of employees during the year, calculated on
full time equivalent basis was:
2017
501,099
49,481
550,580
15
2016
479,456
50,626
530,082
16
13
One employee ieceived remuneration amounting to more than $60,000 in 2017 and 2016, with
remuneration in each year in the biacket of $80,000-$90,000.
James Heron received $16,014 for financial management services piovided in the year (2016: $16,800).James Heron, was reimbursed tiavel costs of $2,013 during the year (2016: +77). No other trustees
received any payments or reimbursements of expenses from the charity in either year.
Total key management personnel compensation payable during the year was $158,950 (2016: f154,975).
Funds and reserves
Group Unrestrictedfunds
CapitalDesignated
Funds
Project Total fundsDesignated
Funds
As at 1 Apni 2016TransferNet movement in year
502,70760,568
(260,905)
3,067,167(60,568)439,982
145,421
(23,989)
3,715,295
155,088
At 31 March 2017 302,370 3,446,581 121,432 3,870,383
Parent charity Unrestrictedfunds
CapitalDesignated
Funds
Project Total fundsDesignated
Funds
As at 1 ApR 2016TransferNet movement in year
502,70760,568(4,978)
3,067,167(60,568)439,982
145,421
(125,002)
3,715,295
310,002
At 31 March 2017 558,297 3,446,581 20,419 4,025,297
Unrestiicted funds comprise those funds which the Trustees may use in accordance with the Charitable
objectives. Capital Designated Funds are allocated to provide a long term reserve from which income will
be taken each year to invest in the charity. Project Designated funds are allocated to support specific
projects in the next financial year.
The Brightside TrustFinancial statements for the year ended 31 March 2017
Notes to the financial statements
14 Contingent liabilities
There were no contingent liabilities at 31 March 2017 or 31 March 2016.
Capital commitments
The trading subsidiary has capital commitments of $26,500 as at 31 March 2017 related to the building
of an online mentorIng platform which took place during 2016 and 2017.
16 Related party transactions
The charitable company has taken advantage of the exemption in Financial ReportIng Standard 102 and
has not disclosed transactions with its wholly owned subsidiaries.
Details of transactions with trustees are set out in note 12.
The Trustees consider that The Bxightside Trust had no other transactions during the year which need
to be disclosed as related patty transactions