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2020-12-31-accounts

CHARITY REGISTRATION NUMBER: 1107671 COMPANY REGISTRATION NUMBER: 05303176

THE NICHOLLS SPINAL INJURY FOUNDATION

(A COMPANY LIMITED BY GUARANTEE)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE NICHOLLS SPINAL INJURY FOUNDATION

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Contents Page
Legal and administration information 1
Report of the trustees 2 – 8
Report of the Independent Auditors 9 - 11
Consolidated statement of financial activities 12
Consolidated balance sheet 13 - 14
Notes to the consolidated financial statements 15 - 25

Page 1

THE NICHOLLS SPINAL INJURY FOUNDATION

LEGAL AND ADMINISTRATION INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2020

Charity Number: 1107671 Company Number: 05303176 Principal and Registered Office: 27 Old Gloucester Street London WC1N 3AX Auditors: DNG Dove Naish LLP Eagle House 28 Billing Road Northampton NN1 5AJ Bankers: CAF Bank Ltd 25 Kings Hill Avenue Kings Hill Kent ME19 4JQ Barclays Pall Mall Corporate Banking Centre Pall Mall Corporate Group 50 Pall Mall London SW1A 1QA Shawbrook Bank Limited Lutea House Warley Hill Business Park The Drive Great Warley Brentwood CM13 3BE Virgin Money Jubilee House Gosforth Newcastle upon Tyne NE3 4PL

Nationwide Building Society Nationwide House Pipers Way Swindon SN38 1NW

Page 2

THE NICHOLLS SPINAL INJURY FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

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 December 2020. 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 Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Nicholls Spinal Injury Foundation is a company limited by guarantee governed by its Memorandum and Articles of Association dated 2 December 2004, the date of incorporation. It was registered as a charity with the Charity Commission on 18 January 2005. The charity began activity on 16 May 2005.

Directors and Trustees

The directors of the charity are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

The trustees serving during the year and since the year end were as follows:

David Nicholls - Chairman Fred Watt Willy Bauer OBE – resigned 17 February 2020 Alastair Storey OBE Dr Bobby Prasad FRCP MBA Piers Adam John Warren – appointed 7 May 2021

The trustees are appointed for an initial period of five years which is subject to renewal or extension at the expiry of the initial period of appointment. The principal role of the trustees is to discharge the objectives of the charity, assist with the charity’s efforts to raise funds and to develop the profile of the organisation. Prospective new trustees are considered by the trustees from time to time.

The charity has an appropriate induction plan for new trustees, focusing on the responsibility of trustees and the awareness of the impact of spinal cord injuries, the current state of related medical solutions and cures and the nature of key research initiatives being carried out currently and prospectively.

Coronavirus

The outbreak of the coronavirus pandemic in the UK in March 2020 has been devastating, resulting in the loss of thousands of lives and tragedy for so many people. Despite the uncertain and challenging times, nsif Trustees and staff have remained focused on our vision for a world where a cure for paralysis from spinal cord injury is available for all that require it.

Organisation

Throughout 2020 the Board of Trustees continued to use their contacts and specialist knowledge not only to support the charitable aims of the organisation but to ensure its continuity and buoyancy at a time of great uncertainty in the charity sector.

There were no additions to the Board nor resignations during 2020. Existing members focused on dayto-day governance, strategic long-term planning, overseeing projects, events, raising awareness and so much more.

Charlotte Mitchell continued to lead the administration team throughout 2020. With the increasing financial pressure exerted by Covid-19, it became necessary to use the government’s Job Retention Scheme to furlough two staff members between April to August. Following this, the difficult decision was made to make one staff member redundant. This was not taken lightly. A proactive approach was deemed vital in securing the charity’s response to the pandemic, to ensure its future as a grant giving entity.

Page 3

THE NICHOLLS SPINAL INJURY FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

Organisation (continued)

The charity is structured so that the nsif team and Trustees meet regularly in order to manage its affairs. Board meetings were moved online during the pandemic, allowing the frequency to increase beyond the usual quarterly interactions.

The Management Board comprises of individuals from a variety of backgrounds including, finance, business management, hospitality, communications, medicine, events, and those whose lives have been touched by spinal cord injury. All activities are closely monitored by Trustees who are also supported by a wide network of professional contacts.

Risk Management

Risk management is at the heart of all management processes. Risks are regularly discussed, as are steps to mitigate them. The Trustees also have a risk management strategy, which comprises:

The Nicholls Spinal Injury Foundation faces the same or similar risks as all small charities, such as maintaining efficient running costs and fundraising in a highly competitive and uncertain environment following the pandemic.

Public Benefit

The Trustees have complied with their duty to have due regard to the Charity Commission guidance on public benefit. They consider that nsif’s objectives and activities are a clear indication of public benefit.

Objectives and Activities

nsif’s objectives are:

The charity’s current fundraising activity has several goals to raise the necessary finance in the challenging environment created in the wake up Covid-19. These include increasing its public profile, especially through online channels; expanding its network of fundraisers; positioning itself as a leading spinal injury research charity to attract high-level donations; planning significant fundraisers for 2021 and beyond.

Grant Making Policy

nsif has committed to supporting the OEC Transplantation Project led by Professor Ying Li at University College London’s (UCL) Institute of Neurology until October 2022, at a total planned cost of £289,651. This will likely be extended a subsequent year to October 2023. This work focuses on cell therapy to treat spinal cord injury and plans to lay the groundwork for a UK clinical trial. Alongside this, funding of the Professor Geoffrey Raisman PhD Fellowship continues until December 2021, at a total of £99,970 for the three-year programme.

The charity is the sole funder of the Walk Again Project led by Dr. Pawel Tabakow at Wroclaw Medical University. Detailed funding agreement documentation in support of this work has been signed by all parties. Following the delay, outlined in more detail below, it is intended that the procedure on the second patient will take place as soon. At this point, project costs will increase significantly to cover the patient’s hospital stay, surgical costs and treatment. On 31st December 2020 £556,645 of project costs are outstanding over the subsequent four years.

Page 4

THE NICHOLLS SPINAL INJURY FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

During 2020 severe delays borne out of the Covid-19 pandemic impacted both projects. Despite this, the charity’s absolute commitment to both the Institute of Neurology at UCL and the Wroclaw Walk Again Project has not waivered.

The work detailed will account for all the charity’s current grant-making abilities. The level of reserves as set out in the accounts are committed for this sole purpose. We have worked with Deloitte to evaluate the project needs; therefore, we are not seeking new applications at present.

2020 Achievements and Performance

UCL

PhD Fellowship

The Geoffrey Raisman Fellowship, a three-year PhD scholarship at UCL’s Institute of Neurology, began in 2019. The programme was set up to honour the late and great Professor Geoffrey Raisman, who dedicated his life’s work to studying the repair of spinal cord injuries. Over five decades Geoffrey’s research made a huge impact upon the medical community, from his introduction of the term ‘plasticity’ to his later collaboration with Polish neurosurgeon Pawel Tabakow. It was his steadfast belief in the importance of encouraging the next generation of scientists that led nsif to set up this scholarship in his name.

Kamile Minkelyte was the first student to be chosen for the programme. Unfortunately, for a large portion of 2020 the laboratory at UCL’s Queens Square House was closed as social distancing measures were implemented. Kamile utilised this time to prepare her thesis and Viva, converting from an MPhil to PhD degree. Her work focused on the use of mucosa olfactory ensheathing cells (OECs) found in the nasal passage, alongside the bulb OECs used for Darek Fidyka’s procedure. Work on improving cell survivability both pre and post transplantation was also developed. For this, immunosuppressants and cell storage conditions were examined. The outcome of this research continues to enhance the overall understanding of how OECs contribute to spinal cord injury repair.

OEC Transplantation Project

nsif continues to fund world-class research at UCL’s Institute of Neurology, led by Professor Ying Li and Neurosurgeon, Professor Ahmed Ibrahim. The work of the team spans several areas including cell storage, use of biomaterials to enhance OEC yields, the development of protocols with both mucosa and bulb OECs, collaborating with the Polish clinical team and, importantly, to lay the groundwork for a robust UK clinical trial with the support of the NHS’ Clinical Research Network.

Between April to October, Professor Ying Li, Dr Daqing Li and Modinat Liadi were furloughed by the university whilst access to the laboratory was restricted. This delayed the commencement of the next phase of the research programme by nine months, to 1[st] November 2020. This delay is reflected in the financial statements which show a total of £67,524 was issued in grants to UCL by the charity in 2020, a marked decrease on budget.

Progress of the project was hugely interrupted by the Covid-19 pandemic. With manufacturing delays of medical grade materials, human tissue samples unable to be collected, as well as limited laboratory access on the grounds of safety. Despite these varied challenges the team restarted at full steam in November and remain committed to achieving their goal of developing a therapy that will improve the lives of those living with SCI.

From 2020 the team were joined by Neurosurgeon Ahmed Ibrahim, who has held a strong interest in OEC cells since completing his PhD under Geoffrey Raisman in 2012. The team continue to advance their laboratory models to a stage where a UK clinical trial is possible.

Page 5

THE NICHOLLS SPINAL INJURY FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

The project continues to receive great interest from the global medical community and several exciting collaborations are being developed.

A monthly grant to cover the administrative support of the OEC Transplantation Project by Judith Jolleys was made to April and then resumed from November 2020. This frees up the scientists’ valuable time allowing them to focus on important tasks such as their on-going collaboration with the Polish Walk Again Team.

The collaboration between UCL and Dr Pawel Tabakow’s team in Poland was also maintained. As well as providing training to support the on-going clinical work, Professor Li’s team have finely tuned the Glial Neuropatch; a device made of collagen and embedded with OECs to be used in the next Polish surgical procedure. Studies suggest that this method should further improve patient outcomes.

The Wroclaw Walk Again Project

During 2020 £15,256 was expended by nsif to the Walk Again Project based in Wroclaw, Poland. The impact of the pandemic was heavily felt by Dr Pawel Tabakow as the project was forced to lapse whilst medical staff were redeployed, restrictions imposed, and supply chains interrupted.

The large-scale capital project to update the laboratory’s ventilation system, set across five floors, at the University of Wroclaw was suspended for part of 2020. This work was necessary to bring the facility in line with the European Medicines Agency’s guidelines for laboratories working with Tissue Engineered Products, as shown in Article 2 of Regulation (EC) No 1394/2007. Whilst the building work is not being funded by the charity, its completion is vital before the next clinical procedure can be performed. Despite the logistical challenges, the ventilation units were installed by the close of 2020. Minor construction work on the walls of the laboratories remains. Once complete, we will be a huge step closer to performing the surgical procedure on the second patient.

The second patient, who has a complete spinal cord injury at T5/T6, has completed the initial course of preoperative rehabilitation. A global team of independent experts in the field of neurorehabilitation and neurophysiology determined that the patient had made no neurological recovery and was therefore suitable for the surgical procedure. Despite the delays caused by the laboratory upgrade and the pandemic, the patient remains highly motivated to participate in the study.

£10,000 was contributed to Darek Fidyka’s continued rehabilitation. While the cost and frequency of rehabilitation decreased on prior years, it made up 66% of nsif’s total annual grant spend in Poland. Since the surgical procedure in 2012, Darek has continued to make progress. Reports submitted in both April and October 2020 detailed how visible improvements to spine stability and muscle coordination were noted during walking and cycling exercises. The current state of progress with Darek will continue to inform the direction of rehabilitation for future patients.

Fundraising

Throughout the year the Trustees closely monitored all fundraising activity. No formal complaints were made by the public and no fundraisers nor external companies were employed. The charity believes that fundraising should always be carried out in a respectful, open, honest manner, in line with the requirements of the Fundraising Regulator. Despite the extreme difficulties, the bulk of our fundraising continued to be generated through events and community fundraising. Persistent approaches and undue pressure are not placed upon our supporters, whose backing we are extremely grateful for.

Total income decreased by 62% on 2019 to £128,205. Events which always make up the bulk of nsif ’s fundraising income were suspended or drastically reduced as restrictions were introduced to manage Covid-19.

Important grass root fundraisers such as the London Marathon and Prudential bike challenge were also cancelled. While the charity worked hard to engage supporters digitally, income was hard hit.

Page 6

THE NICHOLLS SPINAL INJURY FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

Government funding was very specifically focused on charities providing Covid-related services and support. The only means of accessing financial aid was through the Furlough Scheme, open to UK businesses. This provided £13,538 of funding to cover part of the staff costs for two employees between April to August.

The onset of the crisis led our traditional funding streams to collapse overnight. This created a pressing need to adapt and evolve as the social and political landscape changed in the wake of Covid-19. New methods of engaging support and maintaining our existing network were examined. While social media was key, the charity also utilised other online tools to its advantage.

The fundraising auction ordinarily held in person was moved entirely online. This generated £20,680 of income. Using digital channels allowed nsif to extend the auction’s reach. People participated across the UK and beyond without the need to attend in person.

The 2.6 challenge, organised by the London Marathon, attracted the interest of several supporters. This challenge was conducted online and allowed participants to come up with creative ideas to raise money for their chosen charity. One supporter scaled her staircase 1,300 times, 2.6 miles, the equivalent height of Ben Nevis, Scafell Pike and Snowdon. Another was pushed 2.6 miles across central London in her wheelchair on a hot summer’s day while dedicated Patron Claire Lomas MBE scaled the entire distance of her garden without the aid of a wheelchair. All attracted huge support and donations from afar.

Despite the difficulties, Claire Lomas MBE continued to raise funds and awareness for nsif during 2020. Activities included the annual motorcycle Ride Out in September and the generation of corporate sponsorship for her next challenge, obtaining her Private Pilot’s License for a solo flight. We continue to be extremely proud and look forward to supporting Claire in the fundraising endeavours planned for 2021 and beyond.

We are now looking ahead towards the future and adjusting to the ‘new normal’. Challenges continue to await nsif in this rapidly changing and uncertain environment. To overcome these, we continue to remain adaptable and open to new innovative methods of fundraising to achieve our goal of funding a biological cure for paralysis from SCI.

Events

Since the onset of the Covid-19 pandemic in March 2020 Trustees have given careful consideration to the ongoing format of nsif ’s events. The safety of staff and participants has been at the heart of all discussions, alongside the financial sustainability of the organisation. Government advice continues to be closely monitored and acted upon wherever necessary.

The Charity Golf Tournament was held later than usual, in September when social distancing measures allowed. It raised £31,325 from the online auction and donations and £15,188 in ticket sales. The format was drastically slimmed down, held on a single day without the usual live auction and Gala Dinner. A huge amount of work went into the execution of the event. While the total amount raised was significantly less than 2019, we were delighted that the event could go ahead. It would have not been possible without the support of Paul Gibbons and Leaderboard Golf, to whom we are extremely grateful.

Regrettably, the Clay Pigeon Flush Day at Pennsport Shooting School had to be postponed, as did the Charity Carol Concert and Hildon Water’s Guards Polo fundraiser, for which nsif had previously been a beneficiary.

The Golf Day and Clay Pigeon Flush are planned for 2021 in their usual format. The team continue to work on ensuring their success while remaining mindful that changes to the format may become necessary.

Page 7

THE NICHOLLS SPINAL INJURY FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

Investment Powers and Policy

Under the Memorandum and Articles of Association the Trustees have the power to invest the funds of the charity as they see fit. At this early stage of the charity’s development the trustees have retained all surplus funds as deposits with leading financial institutions, and remain committed to maximising the return on these, whilst ensuring security in the current financial climate.

Financial Review

Through events, community fundraisers and general donations £107,223 was raised. While this figure represents a 68% decrease on the prior year, it covered the charity’s 2020 overhead costs. Going forward the primary focus will continue to remain on events, which has always proven to be a successful route for the charity.

Under the Government’s Furlough Scheme, the charity was able to claim for some financial support towards its biggest expense, staff costs. £13,538 was claimed for two members of staff who were placed on the scheme between April to August. Following this, one member of staff was sadly made redundant, and their responsibilities absorbed by the remaining team.

The intercompany debt owed from the trading subsidiary, TNSIF Limited, has now been repaid in full. From 1 January 2021 TNSIF Limited will become a dormant entity. All events and trading activity will be conducted through the charity. The purpose of this is to reduce the administrative burden and to save on legal and accounting costs.

Despite the impact of the Covid-19 pandemic on fundraising, the charity’s cash position remains strong at £922,618. The reserves are committed in their entirety to projects over the next three years, but their existence provides a short-term financial cushion at a time when fundraising abilities have been curtailed by Covid-19.

Trustees continue to closely monitor the on-going situation to ensure the long-term financial sustainability of the charity during these uncertain times.

Reserves Policy

The Trustees set their own reserves policy. It is primarily aimed at generating sufficient general reserves to meet working capital requirements and to allow the charity to continue even if there is a prolonged period when fundraising proves more difficult. As such, this policy allows the charity to continue to pursue its charitable objectives at a time when the coronavirus pandemic has caused a severe economic downturn.

With our Financial Trustee we continue to explore how to maximise returns on our investments. The current market is monitored, and a number of different financial institutions are used in order to limit risk and enhance returns.

As we enter a significant grant making phase, it has been necessary to have adequate cash reserves at our disposal.

As at 31 December 2020, such reserves totalled £876,488.

Related Parties

The charity’s wholly owned subsidiary, TNSIF Limited, continued to operate the trading necessary to run the Golf Day in 2020 however it has since been made dormant. TNSIF Limited donates the greater part of its profits to the charity under Gift Aid (see note 4 to the accounts). The company was incorporated on 26 April 2005 and began trading on 11 August 2005.

Page 8

THE NICHOLLS SPINAL INJURY FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of The Nicholls Spinal Injury Foundation for the purposes of company law) are responsible for preparing the Report of the Trustees 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 period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

Auditors

The auditors, DNG Dove Naish LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 9[th] September 2021 and signed on its behalf by:

Page 9

REPORT OF THE AUDITORS TO THE TRUSTEES OF

THE NICHOLLS SPINAL INJURY FOUNDATION (A COMPANY LIMITED BY GUARANTEE)

Opinion

We have audited the financial statements of The Nicholls Spinal Injury Foundation (the 'charitable parent company') for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charitable Company Balance Sheet, and the Notes to the Consolidated Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the group and charitable parent company 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 group’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 trustees are responsible for the other information. The other information comprises the information included in the Group annual report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Page 10

REPORT OF THE AUDITORS TO THE TRUSTEES OF

THE NICHOLLS SPINAL INJURY FOUNDATION (A COMPANY LIMITED BY GUARANTEE)

Matters 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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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:

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: timing of recognition of income, posting of unusual journals along with complex transactions and manipulating the charitable company’s key performance indicators to meet targets. We discussed these risks with client management, designed audit procedures to test the timing of revenue, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks .

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 11

REPORT OF THE AUDITORS TO THE TRUSTEES OF

THE NICHOLLS SPINAL INJURY FOUNDATION (A COMPANY LIMITED BY GUARANTEE)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

DNG Dove Naish LLP Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Eagle House 28 Billing Road Northampton Northamptonshire NN1 5AJ

Date: 10 September 2021

Page 12

THE NICHOLLS SPINAL INJURY FOUNDATION

CONSOLIDATED STATEMENTS OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Unrestricted
Funds
Restricted
Funds
£
£
Income
and
Endowments
from:
Donation and legacies
4
57,359
-
Other trading activities
5
69,189
-
Investment income
6
1,657
-
Other income
-
-
_
_
Total
Income
and
Endowments
128,205
-
_
_
Expenditure on
Raising funds
7
74,182
-
Charitable activities
Funding
research
and
development from spinal cord
injury
8
120,710
-
_
_
Total Expenditure
194,892
-
_
_
Net income/(expenditure)
11
(66,687)
-
Transfer between funds
-
-
Tax on activities
13
11
-
_
_
Net movement in funds
(66,676)
-
Reconciliation of funds
Total funds brought forward
943,164
-
_
_
Total funds carried forward
876,488
-

 Total
Funds
2020
£
57,359
69,189
1,657
-
_
128,205
_
74,182
120,710
_
194,892
_
(66,687)
-
11
_
(66,676)
943,164
_
876,488
 Total
Funds
2019
£
56,648
279,950
2,367
73
_
339,038
_
117,519
186,158
_
303,677
_
35,361
-
(11)
_
35,350
907,814
_
943,164

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

All incoming resources and resources expended derive from continuing activities.

Page 13

THE NICHOLLS SPINAL INJURY FOUNDATION

CONSOLIDATED AND COMPANY BALANCE SHEET

FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Fixed Assets
Tangible fixed assets
17
Investments

Current assets
Debtors
18
Cash at bank and in hand
Liabilities
Creditors falling due within one year
19
Net current assets
Total
assets
less
current
liabilities
Net assets
Funds of the Charity
Unrestricted income funds
22
Restricted income funds
22
Total charity funds		 Group
2020
£
176
-
_
176
4,020
922,618
_
926,638
(50,326)
_
876,312
_
876,488
_
876,488
_
876,488
-
_
876,488
 Charity
2020
Group
2019
Charity
2019
£
£
£
176
592
592
100
-
100
_
_
_
276
592
692
4,020
3,051
18,052
922,618
997,841
987,806
_
_
_
926,638
1,000,892
1,005,858
(50,326)
(58,320)
(55,465)
_
_
_
876,312
942,572
950,393
_
_
_
876,588
943,164
951,085
_
_
_
876,588
943,164
951,085
_
_
_
876,588
943,164
951,085
-
-
-
_
_
_
876,588
943,164
951,085

All funds held within the balance sheet at the reporting date are held in general unrestricted funds.

The notes at pages 15 to 25 form part of these accounts.

Page 14

THE NICHOLLS SPINAL INJURY FOUNDATION

CONSOLIDATED AND COMPANY BALANCE SHEET – CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2020

The charitable company is entitled to exemption from audit under Sections 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for:

These group financial statements have been audited under the requirements of Section 144 of the Charities Act 2011.

These group financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies and with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102).

The group financial statements were approved by the Board of Trustees on 9[th] September 2021 and were signed on its behalf by:

Page 15

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting Policies

Basis of preparation

The consolidated financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted in the preparation of the financial statements are set out below.

The Nicholls Spinal Injury Foundation is an incorporated charity limited by guarantee, registered in England and Wales. The charity’s number and registered office address can be found on page 1.

Presentation currency

The presentation currency of the financial statements is the Pound Sterling (£).

Basis of consolidation

These financial statements consolidate the results of the charity and its wholly owned subsidiary TNSIF Limited on a line by line basis.

A separate statement of financial activities and income and expenditure account are not presented for the charity itself following the exemptions afforded by section 408 of the Companies Act 2006.

The registered office of TNSIF Limited is the same as the parent charity.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

Government grant income is recognised as it is receivable, to the extent that the grant has been expended by the end of the financial year. Unspent grants are shown on the balance sheet as liabilities.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that 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 allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT

All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Page 16

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting Policies (continued)

Taxation

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

Taxation for the year comprises current and deferred tax within the trading subsidiary company. Tax is recognised in the Statement of Financial Activities.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Computer equipment

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

Page 17

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting Policies (continued)

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of financial activities under administrative expenses.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the statement of financial activities. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Significant judgements and estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies above.

2. Legal status of the Charity

The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

Page 18

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

3. Comparatives for the Statement of Financial Activities

Note
Unrestricted
Funds
£
Income and Endowments from:
Donation and legacies
4
48,804
Other trading activities
5
279,950
Investment income
6
2,367
Other income
73
_
Total Income and Endowments
331,194
_
Expenditure on
Raising funds
8
117,519
Charitable activities
Funding research and development
from spinal cord injury
9
178,314
_
Total Expenditure
295,833
_
Net income/(expenditure)
12
35,361
Transfer between funds
-
Tax on activities
14
(11)
_
Net movement in funds
35,350
Reconciliation of funds
Total funds brought forward
907,814
_
Total funds carried forward
943,164
_
4.
Donations and Legacies
Donations
Legacy
Gift aid reclaimed
Government Grants		 Restricted
Funds
£
7,844
-
-
-
_
7,844

_
-
7,844
_
7,844
_
-
-
-
_
-
-
_
-
_
2020
£
38,034
-
5,787
13,538
_
57,359
_		 Total
Funds
2019
£
56,648
279,950
2,367
73
_
339,038
_
117,519
186,158
_
303,677
_
35,361
-
(11)
_
35,350
907,814
_
943,164
_
2019
£
45,829
5,006
5,813
-
_
56,648
_

Page 19

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

5.
Other trading activities
2020
£
Charitable fundraising events
49,201
Non-charitable trading events
19,988
_
69,189
_
6.
Investment income
2020
£
Interest bearing deposit accounts
1,657
_
7.
Raising funds
2020
£
Charitable event costs
64
Non-charitable event costs
10,764
Administration of trading subsidiary company
1,431
Consultancy
-
Staff costs
60,593
Publication costs
-
Professional fees
288
Printing, postage and stationery
15
Auditors remuneration – other non-audit services
696
Website donation fees
331
__

74,182
_
8.
Charitable activity costs
Grant funding
of activities
(see note 9)
Support costs
(see note 10)
£
£
Funding research and development into
a cure for spinal cord injury
82,780
37,930
_
_		 2019
£
199,027
80,923
_
279,950
_
2019
£
2,367
_
2019
£
2,495
50,118
2,757
735
58,548
1,526
288
187
419
446
__
117,519
_
Totals
£
120,710
_

Page 20

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

9.
Grants payable
2020
£
Grants to individuals and institutions
82,780
_
The total grants paid to institutions during the year was as follows:
2020
£
University College London
67,524
The Walk Again Project - Axis
15,256
_
82,780
 2019
£
148,089
_
2019
£
124,333
23,756
_
148,089

All grants made were to support medical research into spinal injuries

10. Support costs
Governance
Management Finance Costs Totals
£ £ £ £
Funding research and development
into a cure for spinal cord injury 33,955 170 3,805 37,930
_ _ _ _
Support costs, included in above, are as follows:
2020 2019
Funding research Funding research
and development and development
into a cure for into a cure for
spinal cord injury spinal cord injury
£ £
Secretarial costs 1,862 1,852
Staff costs 30,295 29,271
Insurance 456 478
Travel and subsistence 62 982
Printing, postage and stationery 14 187
Subscriptions 850 1,048
Recruitment fees - 550
Sundry - 175
(Profit)/Loss on disposal - (95)
Depreciation 416 422
Bank charges 170 229
Auditors remuneration – auditing of accounts 2,397 1,900
Auditors remuneration – other non-audit services 1,408 1,070
__ __
37,930 38,069
_ _

Page 21

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

11. Net income/(expenditure)

Net income/(expenditure) is stated after charging/(crediting):

Auditors remuneration for audit work
Auditors remuneration for non audit work
Depreciation – owned assets
(Profit)/Loss on disposal of assets
Staff costs
Wages and salaries
Social security
Pensions
The average number of employees for the year was as follows:
Administration		 2020
£
3,183
2,546
416
-
_
2020
£
84,418
4,435
2,035
_
90,888
_
2020
£
3
_		 2019
£
3,294
2,339
422
(95)
_
2019
£
81,091
4,953
1,775
_
87,819
_
2019
£
3
_

12. Staff costs

No employee received emoluments in excess of £60,000.

Key management remuneration totalled £49,741 (2019: £46,529) during the year.

13. Income Tax

Corporation tax for the period in TNSIF Limited
Prior period adjustment in TNSIF Limited		 2020
£
-
(11)
_
(11)
_		 2019
£
11
-
_
11
_

The charitable company is a registered charity and no provision is considered necessary for taxation. A taxation liability arises in the trading subsidiary if profits are retained.

14. Trustees remuneration and benefits

There were no trustees’ remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

Trustees expenses

There were no trustees expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.

Page 22

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

15. Auditor’s remuneration

Auditing of accounts
Preparation of financial statements
Auditing of accounts – subsidiary company
Other professional services
Taxation compliance		 2020
£
2,397
1,502
786
794
250
_
5,729
_		 2019
£
1,900
1,550
1,304
629
250
_
5,633
_

16. Trading subsidiary

The trading subsidiary TNSIF Limited (registration number: 05435777) is wholly owned by the charity and organises various fundraising events including an annual Golf Day. In principle the majority of the profits of the subsidiary are gifted to the charity but the subsidiary may retain profits to build up its working capital. The subsidiary has been valued in the accounts at the original nominal value plus the amounts retained as working capital. The trading subsidiary ceased to trade and was made dormant from 1[st] January 2021.

Turnover
Expenditure
Interest received
Tax
Profit
Assets
Liabilities
Reserves
Share capital		 2020
£
19,988
(12,195)
17
11
_
7,821
_
1,227
(1,227)
_
-
_
(100)
100
__
-
_		 2019
£
80,923
(52,875)
57
(11)
_
28,094
_
10,135
(17,956)
_
(7,821)
_
(7,921)
100
__
(7,821)
_

Page 23

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

17. Tangible fixed assets

Computer
Equipment
£
Cost
At 1 January 2020
1,593
Additions
Disposals
-
-
_
At 31 December 2020
1,593
_
Depreciation
At 1 January 2020
1,001
Charge for year
Eliminated on Disposals
416
-
_
At 31 December 2020
1,417
_
Net book value
At 31 December 2020
176
_
At 31 December 2019
592
_		 Total
£
1,593
-
-
_
1,593
_
1,001
416
-
_
1,416
_
176
_
592
_

All fixed assets are held in the group and charity balance sheet.

18. Debtors

Group
2020
£
Prepayments and accrued income
375
Other debtors
3,645
Amount due from subsidiary undertaking
-
_
4,020
_
19.
Creditors: amounts falling due within one year
Group
2020
£
Trade creditors
-
Other creditors
1,040
Accruals and Deferred income
12,484
Grants payable
34,811
Taxation and social security
1,991
Amount due to subsidiary undertaking
-
_
50,326
 Charity
2020
£
375
3,645
-
_
4,020
_
Charity
2020
£
-
1,040
11,257
34,811
1,991
1,227
_
50,326
 Group
2019
£
367
2,684
-
_
3,051
_
Group
2019
£
600
846
5,004
49,772
2,087
-
_
58,320
 Charity
2019
£
367
2,584
15,101
_
18,052
_
Charity
2019
£
-
846
2,760
49,772
2,087
-
_
55,465

Page 24

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

20. Control Relationships

The group is ultimately controlled by the board of trustees of the parent company, The Nicholls Spinal Injury Foundation.

21. Related Party Transactions

There have been no transactions with related parties during the year ended 31 December 2020, nor the year ended 31 December 2019.

22. Funds

Funds
Balance at Balance at
1 January 31 December
2020 Incoming 2020
Resources Expenditure Transfers
£ £ £ £ £
Unrestricted Funds
General funds 943,164 128,205 (194,881) 876,488
__ __ __ __ __
Restricted Funds
NSIF Hull and East - - - - -
Riding
__ __ __ __ __
- - - - -
__ __ __ __ __
Total funds 943,164 128,205 (194,881) - 876,488
_ _ _ _ _

Page 25

THE NICHOLLS SPINAL INJURY FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

22. Funds (continued)

Comparatives for 2019 Funds

Balance Balance at
at 1 31
January Incoming December
2019 Resources Expenditure Transfers 2019
£ £ £ £ £
Unrestricted Funds
General funds 907,8147 331,194 (295,844) - 943,164
__ __ __ __ __
Restricted Funds
NSIF Hull and East Riding - 7,844 (7,844) - -
__ __ __ __ __
- 7,844 (7,844) - -
__ __ __ __ __
Total funds 907,814 339,038 (303,688) - 943,164
_ _ _ _ _

The NSIF Hull and East Riding fund comprises funds raised by John and Angela Pye and donated to the charity for the continued support of spinal injury research.