**Charity registration no: 1129348 Company registration No: 03445616**
**NORTHWICK PARK INSTITUTE FOR MEDICAL RESEARCH (Trading as THE GRIFFIN INSTITUTE)**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
**THE GRIFFIN INSTITUTE**
## _**LEGAL AND ADMINISTRATIVE INFORMATION**_
|**Honorary President**|John Griffin|
|---|---|
|**Trustees**|Professor Robin Kennedy MBBS FRCS – Chairman|
||Mr Bruce Mauleverer QC FCIArb MA – Vice Chairman|
||Dr Janet Allen MD FRSE|
||Ms Kate Forster|
||Professor Anthony Goldstone CBE FRCP|
||Mr Simon Hubbert|
||Dr Gavin Jell|
||Mr Mark (Bertie) Leigh|
||Professor Vivek Mudera PhD|
||Ms Bonella Ramsay|
||Mr Hugo Robinson -Treasurer|
|**Company number**|03445616|
|**Charity number**|1129348|
|**Principal address and**|Northwick Park and St Mark’s Hospitals|
|**registered office**|Y Block|
||Watford Road|
||Harrow|
||HA1 3UJ|
|**Auditor**|Moore Kingston Smith|
||6th Floor|
||9 Appold Street|
||London|
||EC2A 2AP|
|**Bankers**|Lloyds Bank PLC|
||286-288 Station Road|
||Harrow|
||HA1 2EB|
|**Solicitors**|Bates Wells|
||10 Queen Street Place|
||London|
||EC4R 1BE|
## **THE GRIFFIN INSTITUTE**
## _**CONTENTS**_
|**Trustees report**|1|
|---|---|
|**Independent auditor’s report**|15|
|**Statement of financial activities**|19|
|**Balance sheet**|20|
|**Cash flow statement**|21|
|**Notes to the financial statements**|22|
## **THE GRIFFIN INSTITUTE**
## _**TRUSTEES’ REPORT**_
_**FOR THE YEAR ENDED 31 MARCH 2021**_
## **OBJECTS, OBJECTIVES AND ACTIVITIES**
The objects of the Charity are:
_**The advancement of education and the preservation and protection of the health of the public by the promotion of medical research into, and education in areas of, medical science and the publication of the useful results thereof.**_
## **OUR VISION**
To transform & restore patient health and quality of life.
## **OUR MISSION STATEMENT**
We aim to achieve our vision by:
- creating innovative clinical solutions underpinned by compelling science; and
- training the next generation of medical professionals in novel and translational techniques.
## **We aim to deliver the mission by: -**
**----- Start of picture text -----**
Delivering training for
advanced surgical and medical
Advancing research on tissue Creating a research hub and skills regulated by the Home
engineering and regenerative centre of excellence which Office and Human Tissue
medicine approaches by: delivers: Authority by:
**----- End of picture text -----**
|**Advancing research on tissue**
**engineering and regenerative**
**medicine approaches by:**
**Creating a research hub and**
**centre of excellence which**
**delivers:**
**Delivering training for**
**advanced surgical and medical**
**skills regulated by the Home**
**Office and Human Tissue**
**Authority by:**|**Advancing research on tissue**
**engineering and regenerative**
**medicine approaches by:**
**Creating a research hub and**
**centre of excellence which**
**delivers:**
**Delivering training for**
**advanced surgical and medical**
**skills regulated by the Home**
**Office and Human Tissue**
**Authority by:**|**Advancing research on tissue**
**engineering and regenerative**
**medicine approaches by:**
**Creating a research hub and**
**centre of excellence which**
**delivers:**
**Delivering training for**
**advanced surgical and medical**
**skills regulated by the Home**
**Office and Human Tissue**
**Authority by:**|
|---|---|---|
||||
|**Developing a novel wound**
**healing portfolio**
**Creating functional tissue and**
**organs to address liver**
**disease and transplantation**
**shortage**
**Improving quality of life for**
**sufferers of gut disorders**|**A pre-clinical facility with**
**scientific surgical expertise**
**Customised in vitro analysis to**
**complement pre-clinical live**
**experimentation**
**Creative collaborations**
**between academics, NHS**
**Trusts, charities, and**
**commercial partners**|**Commissioning and building a**
**state-of-the-art training centre**
**over the next three to five**
**years specialising in, but not**
**limited to, advanced surgical**
**training, simulation, and**
**robotics**
**We have expanded human**
**cadaveric training resources**
**to complement our**
**educational programmes**
**Becoming a leading Minimally**
**Invasive Surgery (MIS) training**
**centre that promotes**
**advanced training and**
**contributes to assessment and**
**accreditation by working with**
**training bodies**|
## **OUR VALUES**
As we strive to achieve our mission, we will lead by example in demonstrating the same values in everything we do and deliver:
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## **THE GRIFFIN INSTITUTE**
## _**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
## **Collaboration:**
- We will collaborate both internally and externally.
- We will work as a single Griffin Institute team.
- We will communicate with each other.
## **Excellence:**
- We shall value **scholarship** in all our teams and aim for our work to be **pioneering and translational** .
## **Honesty and integrity:**
- We will work with integrity and in a culture that is honest and transparent.
## **Patient focus:**
- Our ultimate value is that everything we do enables progress for patients.
## _**We aim to be flexible, innovative, and entrepreneurial.**_
## **ACHIEVEMENTS AND PERFORMANCE**
## **Summary of key achievements in the year: -**
1. 2020/21 was a period of continued growth with total income being 28% greater than the previous year. Financial performance was hindered by the Covid-19 pandemic with the growth in training being less than it might otherwise have been. We have seen growth in all our major income streams including voluntary donations, grants for R&D projects and training and contract research activities. This has been largely from an increase in robotic training, and we have also had a steady flow of pre-clinical work including a major stent study and sciatic nerve study
2. We remained open despite Covid-19 and our staff have remained positive and shown huge commitment to the success of the Institute. We have developed a code of practice for the safety of staff, trainees and visiting scientists.
3. We have been less successful in achieving our planned fundraising for unrestricted income. This work is ongoing but charitable trusts have largely closed for new applications during this time.
4. We retain a good relationship with our landlord, London North West University Hospitals NHS Trust (the NHS Trust) and following the end of the year, reached agreement on a payment plan for rent arrears that have increased during the Covid-19 pandemic.
5. We have spent nearly £400,000 on building a new robotic lab which will facilitate a new contract for robotic training, freeing up our existing theatres for increased pre-clinical work. This has been possible as we received a £500,000 Coronavirus Business Interruption Loan (CBIL) from our bank.
6. As well as the robotic training contract, we started negotiations for another new training lab to be used for laparoscopic training, with a customer funding the build cost through advanced billing for training courses to be delivered over the life of the contract.
7. We have progressed R&D in wound healing and the second generation Paste technology. It is envisaged that the Paste project will soon be ready for clinical trials, and we will be establishing a commercialisation strategy.
8. We have partnered with RAFT (Restoration of Appearance and Function Trust) and helped progress their Breast Reconstruction and Keloid projects. The Breast Reconstruction project will soon be ready for the Good Laboratory Practice (GLP) stage.
9. We have grown pre-clinical work despite Covid-19, although some projects have suffered delays as grants have been held back due to the coronavirus or supplies delayed.
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_**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
## **THE GRIFFIN INSTITUTE**
10. We have been very successful in growing the Trustee Board (see current list of trustees) and are pleased with the mixture of skills on the Board.
11. We have developed new partnerships, continuing to work closely with University College London (UCL) Division of Surgery.
## **Covid-19 additional activity**
Many charities in the UK are facing unprecedented challenges due to the impact of Covid-19. We have remained **open** and as a **front-line research charity** during all lockdowns and we are doing all we can to support our colleagues in other organisations to enable them to continue their vital research projects. Here are some of the ways we have been responding, and continue to respond to the Covid-19 crisis:
- **Partnering** with organisations working on immunology biomarkers directly related to Covid-19, providing workable solutions as they contribute to the containment and eradication of this pandemic.
- **Sharing** our expert resources to help and support the NHS with equipment and consumables for research as we fight together at the very frontline of this global crisis at Northwick Park Hospital.
- **Supporting** our local and overseas students, by teaching and supervising their work remotely ensuring they can continue with their research in a timely way which is important to their academic work and the projects they are completing
## **RESEARCH AND DEVELOPMENT**
We aim to carry out the best scientific research across the UK and support our surgeons and researchers of the future through our work. We have a strong partnership ethic to our work, and we aim to deliver viable products to work within healthcare systems through collaborating with other research and academic institutions.
During the year we continued to expand the scope of R&D, working closely with RAFT on the Breast Reconstruction and Keloid projects, as well as our own areas of research.
## **Research Projects in conjunction with RAFT**
## **Breast Reconstruction project:**
Approximately 50,000 women are diagnosed with breast cancer each year in the UK, approximately 40% of whom will undergo a mastectomy. Currently methods for breast reconstruction have unpredictable outcomes. In conjunction with RAFT, we are working to develop a breast implant from natural proteins, which are already present in the breast and will be used in conjunction with the patient’s own fat and stem cells. As the breast tissue grows, the implant will be absorbed, leaving behind a natural breast made with the patient’s own body tissue. We have now commenced pre-clinical trials.
## **Keloids project:**
Also called keloid scars, these are benign tumours of the skin that usually grow at the site of an injury. They can result from surgeries or minor skin injuries and can cause serious lumps and darkening of the affected skin, swollen blood vessels, redness and itching. They can also cause significant psychological and social challenges, negatively impacting on people’s feelings of self-esteem. Current treatment of keloids is ineffective and even when surgically removed, they tend to come back even larger than they were originally. Our strategic partners, RAFT, are working with us on a new and definitive treatment for keloids to prevent their recurrence after surgical removal.
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_**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
## **THE GRIFFIN INSTITUTE**
## **TGI R&D Research**
## **Orthopaedics:**
Hip replacements are one of the most successful surgeries in improving patient quality of life. However, revision hip replacements due to loosening of the implant and bone defects, account for 10% of surgeries, adding extra burden to the NHS and causing adverse impact on the patient’s life. We are working on how to regenerate new bone, to improve clinical performance and prevent future problems.
## **Wound Healing Solutions:**
The cost of chronic wound care is estimated to consume at least 6% of NHS expenditure in the UK, and unfortunately current treatment options leave many people with wounds that simply will not heal and may cause distress and very poor quality of life. We have developed skin substitutes that have been shown to accelerate wound closure. This research has benefit across many areas, including non-healing diabetic ulcers, pressure sores, surgical lacerations and wounds in children and older people who may be unable to tolerate the process of more traditional skin grafts. In 2020/21 we completed pre-clinical trials on our new wound healing **‘Paste’** and are now working on the second phase of our research.
**Dermal Hydrogel** : As part of our Wound Healing Solutions, we have also pioneered a new method to promote the rapid healing of serious burns, with an easy application of a semi-solid gel that can be applied directly to a burn and “fixed” with a UV light. This creates a dressing with the ability to regenerate skin whilst protecting the wound. As Hydrogel does not require refrigerated transport and storage, costs are considerably reduced, allowing for easier access, distribution, and application. Results so far are very promising.
**Wound Healing in People with Diabetes:** Our wound healing team is focused on hard to heal wounds, with a particular interest in diabetic foot ulcers (DFUs). Long standing DFUs are among a major cause of lower leg amputations in diabetes sufferers, a major healthcare concern. The difficulty in managing DFUs arises from a poor understanding of the natural course of diabetic wound pathology. Our wound healing team has developed a model simulating the changes seen in key cells of the skin that are involved in normal wound healing and we are planning further research in order to investigate the potential of reversing these changes.
The study, showing the effects of poorly controlled sugar was published in the April 2021 issue of Journal of Wound Care.
## **Inflammatory Bowel Disease & Bowel Cancer:**
50% of patients with Crohn’s Disease and 20% with Ulcerative Colitis as well as patients with Bowel Cancer may require a life-changing operation, which can involve removal of parts of the bowel, sometimes with the creation of a stoma. It is possible to live a full life with a stoma, but many patients endure issues such as poor nutrition, stigma and poor mental health and the prospect of life-long surgeries. We are currently working with St Mark’s Hospital on generating tissue-engineered short segments of intestine, to develop transplantable bowel tissue, potentially eliminating the need for a stoma.
## **Liver Tissue grown in the laboratory:**
A major limitation to the development of safe drugs to treat liver disease and Liver Cancer, is the use of appropriate pre-clinical testing tools. We are developing bio-engineered ‘mini-livers’, to enable the testing of new drugs on fully functional tissue created in the laboratory. Creating functional tissue through designing different formulations may potentially also help to meet the current transplantation shortage.
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## **THE GRIFFIN INSTITUTE**
_**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
## **R&D Grants**
During the year grant applications were submitted which covered the areas of wound healing, bowel tissue regeneration and regeneration of new bone in revision total hip replacement.
Additional funding of £125,000 was received from our subsidiary, Griffin Paste Research Limited to further the Paste research. At the year-end there were further grant applications in the pipeline focused on wound healing and bowel regeneration.
During 2021/22 we intend to progress our bowel research, working with St Marks’ Hospital, and continue with wound healing research, aiming to find partners so that our products can be delivered into mainstream healthcare.
## **Publications included:-**
1. Development and characterisation of a porcine liver scaffold for clinical application. Stem Cells & Dev, 2020; 29(5):314-326.
2. Decellularised Scaffolds: just a framework? Current Knowledge and Future Directions. J Tiss Eng, 2020 Jul 22;11:2041731420942903.
3. Three dimensional porous scaffolds derived from collagen, elastin and fibrin proteins orchestrate adipose tissue regeneration. Tissue Eng. 2021 May 27; 12:20417314211019238.
4. Bioactive glasses and electrospun composites that release cobalt to stimulate the HIF pathway for wound healing applications. Biomaterial Res. 2021; 25(1):1.
5. In vitro modelling of disease-induced changes in the diabetic wound fibroblast. J Wound Care. 2021; 30(4):300-303.
6. Chronic Leg Ulcers: Are Tissue Engineering and Biomaterials Science the Solution? Bioengineering (Basel). 2021; 8(5):62.
7. The Role of Galectin-9 as Mediator of Atopic Dermatitis: Effect on Keratinocytes. Cells 2021, 10(4), 947.
8. Galectin-1 and -3 as potential biomarkers in inflammatory skin diseases. International journal of molecular science. Inflammation EMID:f32c4a22e792a0d0 .2021 (submitted).
9. The use of injectable hydrogels in cutaneous wound healing. MDPI Open Access Journals; Polymers edition 2021 (in submission).
10. In Vitro Disease Models for Understanding Psoriasis and Atopic Dermatitis Pathogenesis. Frontiers in Bioengineering and Biotechnology. 2021 (in submission).
11. Use of an off-the-shelf decellularised porcine dermal paste as a bioactive substitute in full-thickness skin wounds (waiting for authors approval)
12. Emerging technology to promote scarless cutaneous healing (in writing)
13. Bi- and tri-layered off-the-shelf membranous constructs to aid skin wound care and regeneration (in writing).
## **Patents filed:**
Paste – first generation (filed: PCT/GB2021/050675)
Paste – second generation (filed: UK2103857.5)
Development of new tissue-engineered matrices from multiple mammalian organs/ tissues for Tissue Engineered (TE) applications: 3D matrices for disease modelling/ drug development/ personalised medicine; bio-ink for 3D printing, organ-on-chip (filed: UK 2103860.9) Skin Membranes (filed: UK 2105548.8
During the year, Professor Nader Francis (Director of Training) contributed to 15 publications and five textbooks and Professor Jia Hua (Director of Science) contributed to five publications. A full list of publications is available on the Institute’s website: www.griffinistitute.org.uk.
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**THE GRIFFIN INSTITUTE**
_**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
## **PRE-CLINICAL RESEARCH**
We continue to discuss experimental protocols for pre-clinical studies with new potential client groups and are looking at business development opportunities to increase this area of work.
During the year we undertook 36 projects including:-
- Safety and performance of flow diverting stents and their delivery systems
- Safety and effectiveness of a surgical robotic system and effectiveness of instruments
- Assessing which luminal fibres are most successful at producing axonal regeneration in a peripheral nerve neurotmesis model with repair using a silk conduit
- Testing efficacy of materials for bone regeneration (intended for dentistry)
- In vivo taste assessment of pharmaceutical compounds (the rat brief access taste aversion (BATA) model for taste assessment of pharmaceuticals)
- Evaluation of ChemoPatch for safety, that supports vascularisation the best, with a minimal immune response
- Validation of prototype sensing devices for use in endovascular surgery
- Developing a new endoscopic bowel flushing device
- Intravascular all-optical ultrasound as a guide for in-situ stent fenestration
- Biodistribution of drugs via ocular route
- Tracheas decellularisation
- Testing new haemostatic products: novel devices/formulations and novel routes of delivery/preparation
- To establish any physical or chemical alterations to blood components including cells
We continue to operate some projects under GLP, licenced by the MRHA (Medicines and Healthcare Products Regulatory Agency) and retain our certification.
Our long-term pre-clinical research goal is to contribute to improving patient health and quality of life by being a centre of excellence for pre-clinical research. We will achieve this by:
- Being involved in research strategy and protocol development
- Being part of the research process
- Employing experienced study directors
- Providing a large pre-clinical facility with our own theatre staff and facilities
- Offering surgical research specialties
- Maintaining Home Office and GLP accreditation
- Providing specialist skills including pathology
## **TRAINING**
We provide advanced training to British and overseas surgeons enabling them to remain at the forefront of surgical skills development. Over the last several years there has been a rapid increase in technological developments and an uptake of MIS (Minimally Invasive Surgical) procedures such as microsurgery, robotic, laparoscopic, and endoscopic surgery. This is largely as a result of the recognised benefits for the patient, including reduced post-operative pain, a faster recovery time, and a reduced stay in hospital with a quicker return to normal daily activities. However, MIS procedures require comprehensive and sustained training to ensure surgeons possess the required skills for patient safety. This has become even more important recently with the increasing public and professional scrutiny of surgical performance and patient safety. In the United States, for example, 10,624 adverse events related to robotic surgical procedures were reported between the years 2000 to 2013. In 2015 the Emergency Care Research Institute published an independent review on health technology hazards in which a lack of adequate robotic surgical training was identified as one of the top ten risks to patients. However, errors and near misses can be reduced and/or eliminated through high quality training, and we are well placed to provide this for our surgical community. We pride
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## **THE GRIFFIN INSTITUTE**
_**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
ourselves on our sought-after surgeon training programmes for complex operating procedures which are at the forefront of global surgical training and skills development, benefiting patient safety and well-being.
## **Training & Covid-19**
Due to the Covid-19 outbreak, our training activities were suspended in March 2020. We responded by developing online courses and educational materials for intercalated BSc UCL medical students and worked towards launching new courses in the UK in 2020/21.
Traditionally, specialist MIS training was not available in the UK and British surgeons had to travel to Continental Europe. Given the travel restrictions introduced to combat the current coronavirus pandemic, offering these training opportunities in the UK has become more important than ever. Additionally, during the height of Covid-19, over 4 million operations were cancelled, and thousands of training opportunities were lost through postponement of elective surgery and the lack of face-to-face teaching. We rose to the challenge, and we are proud that after restructuring programmes to comply with required safety measures, we remained open during the entire pandemic to deliver advanced surgical training throughout. This has allowed us to remain at the forefront of MIS surgical training and skills development, enabling approximately 300 surgeons to be trained here in the UK since the start of the pandemic, who otherwise would not have had any training due to travel restrictions.
## **New Training Facilities**
**Robotic Training** : Robotics is the fastest growing speciality in surgery today. During the period, we developed a world class robotic training centre.
**Laparoscopic Training:** We have finalised the development of a laparoscopic training centre that can fulfil local needs in the UK and help to repatriate the training that used to run in Europe.
**Flexible Endoscopy Training:** We are currently looking into the possibility of developing an integrated flexible endoscopy training unit that can support the training of UK surgeons.
During the financial year we continued to carry out training in endoscopic and laparoscopic skills. This is in addition to our live microsurgery, advance microsurgery, and endovascular courses.
We continued with our regular training courses including three microsurgery courses (two in December and one in January) in addition to two microsurgery workshops for UCL master students in January 2020.
The main educational achievements during the year were:
- Awarded HTA (Human Tissue Authority) licence to run training courses utilising human cadavers
- Secured a contract for over 20 cadaver robotic courses from March to September 2020
- Successfully ran the first robotic cadaver course at our centre.
We continue to meet key industry partners to discuss future collaboration and partnership.
## **Educational research achieved within last 12 months**
- A group of UCL students conducted an in-depth evaluation of our basic microsurgery course which included interviews and sending surveys to past delegates to find out how they used their skills following their attendance on the course and any feedback. A large number of responses were received, and a consultancy report put together which was very insightful and will help us to plan further courses.
- Current project ongoing with a former attendee of the microsurgery course who is helping to produce a new method of self-evaluation which would help the students to assess how they are doing throughout the course but also provide us with valuable data to show how the course impacts on the surgeon’s microsurgery skills.
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## **THE GRIFFIN INSTITUTE**
## _**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
Robotic training courses were delayed due to the Covid-19 pandemic and commenced in late July 2020. In 7 months, we have run 76 Robotic courses. (Up to Feb 2021).
Despite the pandemic, we have trained 43 surgeons through our microsurgery training course with a further 18 surgeons already booked up and paid for courses Jun/Jul 2021.
We have run nine colonoscopy training courses over 2020/21, training 30 surgeons and nurses from across the UK and Europe.
We continue to deliver our teaching activity commitments to both undergraduate and postgraduate students of UCL.
## **Long term vision for our training centre**
The long-term training goal is to develop a state-of-the-art advanced MIS skills training centre that can provide multi-modal training for highly specialist areas including laparoscopic and robotic surgery in the UK. This is to complement our current training resources and provide training for advanced MIS cancer surgery across multiple disciplines and specialties for the benefit of patient care.
We realised that there is a need to establish a training centre in the south of England that can provide a wide range of training of advanced skills to doctors and other health professionals in order to improve their professional competence. This will not only lead to an improvement of individual and team skills but will also aid safe diffusion of modern and advanced techniques and technology in a safe and controlled manner.
The main drivers for the new training centre are underpinned by patient safety needs as there are no particular training platforms for advanced robotic training in the UK. Robotic surgery is rapidly expanding across many specialties and currently its training is mostly being run abroad. This will cement London’s role as a world leading centre for training in advanced MIS.
We believe that the new training centre is well suited within The Griffin Institute with our well-established research and training resources and long history of developing and testing novel surgical applications and ground-breaking research. We wish to complement this by establishing a cadaver-based training facility that can provide an excellent model for advanced procedural skills training.
This is a three-to-five-year plan and implementing this will cost up to £7m to be raised via capital funding. We will achieve this by:
- Collaborating with industry, training organisations and professional bodies
- Developing objective methods of measuring training effectiveness and quality and satisfaction
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## **THE GRIFFIN INSTITUTE**
_**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
## **VOLUNTEERS**
We have provided work experience to a number of students who have contributed to areas such as producing case studies for future news releases. Professor Colin Green, Emeritus Scientific Director, continues to give us time and advice and we rely heavily on trustees to steer our direction. During the year we set up a scientific peer review panel chaired by Dr Janet Allen, and we are grateful to the panel members for their time and support.
## **FUNDRAISING ACTIVITIES**
During the year, a Fundraising Officer was recruited to increase fundraising activity. It is expected that this will take some time to impact. A sum of £28,135 was raised in the year, not including specific research grants.
130 applications were submitted to Trusts in the year to raise money for our training initiatives and general research work, and a capital appeal was developed for the robotics suite and other capital developments.
We also employed a fundraising consultant to develop a Griffin Institute sponsored walk which took place in June 21. This was run in conjunction with St Marks’ Hospital Foundation. All administration was carried out at, and by The Griffin Institute.
There were no fundraising complaints within the financial year. A new database was set up to ensure the adequate recording of donor information and GDPR compliance. Quarterly reports are produced for Trustees.
Our fundraising activities all adhere to our Safeguarding Policy.
## **FUTURE PLANS**
Our aims as stated in our business plan are:
1. To be a well-established world class training centre that leads advanced surgical training in the UK and Europe, offering cadaveric, live animal and virtual models within up-to-date laboratories.
2. To become a leading centre recognised for accelerating the translation of medical innovations through improved, ethical, and more clinically relevant pre-clinical models. Medical innovations specifically are medical devices, biomaterial, and regenerative medical products.
3. Through R&D, to continue to develop innovative techniques to target unmet patient needs by creating tailored solutions within tissue engineering and regenerative medicine.
4. To deliver the above we must attract, develop, and retain exceptional people supported by strong scientific and surgical leadership.
AND we must achieve significant partnerships with other institutions and scientists in order to progress.
In order to deliver the above in 2021/22 we will aim to work with new commercial sponsors to achieve two capital builds: a laparoscopic lab and an endoscopic training lab.
We will build on our pre-clinical research pipeline with significant project growth and continue to develop our staffing capabilities across a range of skills.
We will look at our commercialisation strategy and pipeline for ensuring that our translational research reaches patients.
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**THE GRIFFIN INSTITUTE**
_**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
## **Staffing**
We wish to attract, develop, and retain the right people supported by strong leadership. We continue to develop our team of surgeons and scientists to ensure that we have unparalleled skills within the Institute. Due to growth, Professor Jia Hua will be concentrating on pre-clinical research as Director of Surgery and Science, and we will seek a new Director for Research and Development with a specialism in regenerative medicine. Other senior appointments remain unchanged.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
Northwick Park Institute for Medical Research (trading as The Griffin Institute) (the **Institute** ) is a company limited by guarantee (company number: 03445616) and registered charity (charity number: 1129348). All of the trustees are members of the Institute and guarantee to contribute £10 each in the event of a winding up.
Permission has been given by the Secretary of State to omit the word “Limited” from the company name. The Institute is a registered charity and as such exempt from corporation tax on all activities. The Memorandum and Articles of Association were last amended by special resolution 17 July 2018. There have been no changes to the objectives and policies of the Institute in the year.
Permission was given by Companies House in June 2019 to use the trading name ‘The Griffin Institute’ in honour of our Honorary President, John Griffin.
The trustees, who are also the directors for the purpose of company law, and who served during the year were:
Professor Robin Kennedy MBBS FRCS – Chairman Mr Bruce Mauleverer QC, FCIArb MA – Vice Chairman Dr Janet Allen MD FRSE Ms Kate Foster (appointed 13 December 2020) Professor Barry Fuller PhD DSc F Soc Cryobiol (resigned 23 November 2020) Professor Anthony Goldstone CBE FRCP (appointed 6 May 2020) Professor George Hamilton MD FRCS (Glas) (resigned 23 November 2020) Mr Simon Hubbert (appointed 12 May 2020) Dr Gavin Jell (appointed 12 May 2020) Mr Mark (Bertie) Leigh (appointed 12 May 2020) Mr Keith Malkinson BBS FCA – Treasurer (resigned 30 June 2020) Professor Vivek Mudera PhD Ms Bonella Ramsay (appointed 15 July 2020) Mr Hugo Robinson (appointed 27 October 2020) – Treasurer
The trustees have the power to delegate tasks to sub-committees as well as the day-to-day management to a chief executive or other managers. The delegated power shall be to manage the Institute by implementing the policy and strategy adopted by and within a budget approved by the trustees and (if applicable) to advise the trustees in relation to such policy, strategy, and budget.
The trustees are responsible for setting strategies and policies for the Institute and for ensuring these are implemented. To assist with this work, the trustees have established three committees and one advisory board to supervise the management and supervision of the Institute which are:
- Finance Committee
- Human Resources Committee
- Governance Committee
- Scientific Advisory Board
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## **THE GRIFFIN INSTITUTE**
## _**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
The Finance Committee is responsible for reviewing and overseeing the financial management of the Institute. It will consider the Institute’s financial strategy and budgets (both annual and medium term) and recommend these to the trustees. It will monitor performance against budgets and suggest and monitor action plans where remedial steps are necessary.
The overall purpose of the Human Resources Committee is to actively initiate, help develop, monitor, and evaluate strategic HR actions and policies that will enhance and embed the Institute’s reputation as an employer, and enable us to recruit, develop, engage, and retain the best staff, volunteers, and trustees.
The overall purpose of the Governance Committee is to ensure there is an appropriate and effective governance framework which complies with best practice and charity commission guidelines and to advise the trustees on matters of governance.
The Scientific Advisory Board has been formed to review the scientific progress of the Institute, provide advice on future direction and assist/facilitate partnerships with academic groups as a way of increasing the profile and funding opportunities for the Institute
The trustees continue to consider the Charity Commission Code of Governance and during the 2020/21 year, a full review of the code was carried out to ensure we comply with best practice. The day to day running of the Institute is delegated to the CEO and Directorate, consisting of the Director of Training, Director of Surgery and Science, Head of Finance and HR Consultant. A wider team of senior managers also meets on a regular basis.
## **Trustee recruitment and training**
Any person who is willing to act as a trustee, and who would not be disqualified from acting as such, may be appointed to be a Trustee by a decision of the trustees.
During the year Prof Barry Fuller and Prof George Hamilton resigned as trustees after many years’ service. The trustees thank them for their invaluable contribution to the Institute.
During the year, Prof Anthony Goldstone, Mr Simon Hubbert, Dr Gavin Jell, Mr Bertie Leigh, Ms Bonella Ramsay, Mr Hugo Robinson and Ms Kate Foster were appointed as trustees. Following the year end, Mr Keith Malkinson resigned as a trustee. The current Trustee Board now has a range of skills and experience including medical expertise, leadership of public sector health organisations, medical and patent law, HR, finance, and commercial collaboration with private sector medical organisations.
All the trustees have a professional background and are familiar with the practical work of the Institute. New trustees are also provided with an information pack which includes general charity publications, a briefing note, budget, past minutes, and a copy of the Charity Commission’s “Essential Trustee” booklet. An induction meeting is held with the CEO. The Institute will support any formal training requested by its trustees.
The trustees keep the composition of the Trustee Board under constant review and seek to recruit trustees to fill any perceived skills gaps as and when they arise.
## **Senior Management Pay**
The remuneration of senior management is set by the Trustee Board after benchmarking with similar organisations. The remuneration of other staff is set by the senior management of the charity, albeit that the rewards and benefits strategies are subject to the HR sub committee’s oversight.
## **RISK MANAGEMENT**
The trustees are committed to maintaining a robust risk management framework to manage risk appropriately. The Trustee Board committees consider the Institute’s strategic and operational risks at each meeting. Once a year, the board formally reviews the risk policy, the risk register, and the approach to risk management.
11
## **THE GRIFFIN INSTITUTE**
## _**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
The risks arising from the Covid-19 pandemic are set out in the following section.
The other significant risk identified by the trustees is the risk of being unable to meet debts as they fall due, particularly to the NHS Trust. To this end the trustees agreed a robust financial plan which was reviewed by practitioners FRP advisory who then made a proposal for phasing of rent paid to the NHS Trust.
The Institute has not previously had a professional fundraising function and has relied on the personal connections of trustees and senior staff to generate voluntary donation income. Having identified this issue as part of the change management process, the Institute has developed a structured approach to fundraising (see fundraising strategy above) which is now being implemented. This will take some time to deliver, and the outcome is still uncertain. To mitigate this risk and other potential income shortfalls, the Institute has applied for and secured a loan of £500,000 from Lloyds Bank under the CBIL scheme. This loan should provide sufficient liquidity to cover any short-term income shortfalls.
## **COVID-19**
The outbreak of Covid-19 in the early part of 2020 while very disruptive, had a significant impact on our financial performance for the financial year due to the main restrictions and lockdown provisions coming into force towards the end of March 2020, which was just before the start of our financial year.
As a front-line scientific research and medical training organisation that was able to contribute to the understanding of and fight against coronavirus, it was imperative that we remained open during the lockdown. Doing so allowed us to partner with organisations working on immunology biomarkers directly related to Covid-19, providing workable solutions as they contributed to the containment and eradication of this pandemic and to share our expert resources to help and support the NHS with equipment and consumables for research as we fought together at the very frontline of this global crisis, at Northwick Park Hospital.
We also implemented steps to ensure a safe and secure working environment for staff and customers alike. Where possible, staff worked remotely from home or were placed on furlough where this was appropriate. Being situated on the Northwick Park Hospital site ensured we were aware of and benefited from the current best thinking on hygiene and infection control allowing those numbers of staff who did come to work to do so safely and with confidence.
Although we remained open, this was a challenging period with the expectation of lowered income due to delays in planned surgical training courses and the closure of universities affecting our contract research projects. To mitigate the risk this has had on our cashflow we have:
- Refocussed our surgical training courses on UK participants to mitigate the loss of overseas participants due to travel restrictions.
- Maintained dialogue with our training partners and established Covid secure protocols to ensure we are best placed to offer training courses once restrictions are eased sufficiently to allow this.
- Maintained dialogue with contract research customers to build the pipeline of potential projects while continuing to deliver on current projects during lockdown.
- Applied for a CBIL of £500,000 which was received on 13 July 2020. The loan has no interest or repayment obligations for the first 12 months and thereafter is repayable over five years.
- Initiated negotiations with the NHS Trust in order to phase the payment of rent outstanding for 2019/20.
- Furloughed up to six staff from April to July, in accordance with who was needed, whilst keeping the Institute open.
Drafted clear policies on hygiene, distancing, and PPE to ensure a safe working environment for our training and research activities.
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## **THE GRIFFIN INSTITUTE**
## _**TRUSTEES’ REPORT**_
_**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Regulatory compliance**
The Trustees have discussed the key risk of failing to meet regulatory compliance either with the Home Office, MRHA or HTA. A key objective has been set to ensure that adequate quality assurance is in place.
The other key risk is loss of key staff and staff resilience is under constant review by the management team.
## **Financial review**
The financial year to 31 March 2021 was one of significant growth compared to the previous year with the investment in our Training and Contract Research activities generating growth of 38%. Total income was £1.6m ( _2020: £1.2m_ ).
Expenditure on charitable activities was £3.0m ( _2020: £3.0m_ ).
The net deficit for the year was £1.3m ( _2020: £1.8m_ ). While this is clearly disappointing, it represents a significant improvement, reducing last year’s deficit by 38% and moving us closer to a break-even position. General unrestricted funds are now £5.8m, which is broken down in note 10 to the accounts. £7.1m is represented by tangible assets.
We are making good progress on our long-term plan to turn the Institute around over three years with growth in both training and contract income. Having achieved significant growth in 2020/21, we are anticipating a further year of growth in the coming year to take us to a modest surplus.
## **Investment**
The Institute holds shares in Videregen Ltd and Proterris Inc. These are both unlisted companies that have taken forward pre-clinical research and IP created at the Institute. At present there are no plans to liquidate these investments.
## **Going concern**
In light of the deficit incurred in the year and the net deficit on general unrestricted reserves, the trustees are keeping the financial performance of the Institute under continuous review.
During the year, we agreed a Time to Pay Agreement with HMRC with regard to PAYE arrears which spreads the liability over a period of 65 months. To date, we have met our obligations under this agreement.
Following the year end, we entered into a Payment Plan Agreement with our landlord and biggest creditor, the NHS Trust, which allows us to defer payment of rent and other arrears until April 2022 and then make monthly payments which spreads the liability over a period of 53 months. In the event excess cash is generated above a threshold, accelerated payments will be made. Further to this agreement we have paid half of the rent and service charges for the year ended 31 March 2022 in agreement with the NHS Trust
The trustees continue to closely monitor financial performance and future projections on a monthly basis and are satisfied that with the benefit of the payment arrangements noted above, we have sufficient cash flow to meet our obligations as and when they fall due and for this reason, are satisfied that it is appropriate to prepare the accounts on a going concern basis.
Further information can be found at note 1.3 of the Financial Statements.
## **Reserves Policy**
The trustees are disappointed to report a further deficit in the year which has taken unrestricted free reserves into negative territory. Our Reserves Policy is to generate and then maintain a sufficient level of reserves to enable normal operating activities to continue over a period of up to six months should a shortfall in income occur and to take account of potential risks and contingencies that may arise from time to time and we estimate this at £1.2m. Due to the long lead time required to establish and embed our long term financial improvement plan and the continued impact of Covid-19, a defecit is expected in the current year followed by
13
## **THE GRIFFIN INSTITUTE**
_**TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021**_
a surplus in 2022/23 contributing to rebuilding our unrestricted free reserves back to the required level, with a minimum free reserve of £400,000.
## **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 and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for:
- selecting suitable accounting policies and then apply them consistently
- make judgments and estimates that are reasonable and prudent
- observe the recommendations of the SORP FRS 102, subject to any material departures disclosed and explained in the financial statements
- state whether the financial statements comply with the trust deed, subject to any material
- preparing the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its activities.
The trustees are responsible for keeping adequate records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company’s Auditor is unaware; and
- they have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Auditor is aware of that information.
## **AUDITORS**
Moore Kingston Smith LLP have indicated their willingness to continue in office and are deemed to be reappointed in accordance with section 487(2) of the Companies Act 2006.
## **SMALL COMPANY EXEMPTION**
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
This Report was approved by the Board of Trustees on 8[th] June 2022 and signed on their behalf by:
Professor Robin Kennedy
Trustee
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**THE GRIFFIN INSTITUTE**
## _**INDEPENDENT AUDITOR’S REPORT**_ **TO THE MEMBERS OF NORTHWICK PARK INSTITUTE FOR MEDICAL RESEARCH**
## **Opinion**
We have audited the financial statements of Northwick Park Institute for Medical Research (the ’parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable 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 and parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.
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**THE GRIFFIN INSTITUTE**
## _**INDEPENDENT AUDITOR’S REPORT**_ **TO THE MEMBERS OF NORTHWICK PARK INSTITUTE FOR MEDICAL RESEARCH**
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ annual report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s Responsibilities for the audit of the financial statements**
We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
16
## **THE GRIFFIN INSTITUTE**
## _**INDEPENDENT AUDITOR’S REPORT**_
## **TO THE MEMBERS OF NORTHWICK PARK INSTITUTE FOR MEDICAL RESEARCH**
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
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**THE GRIFFIN INSTITUTE**
## _**INDEPENDENT AUDITOR’S REPORT**_ **TO THE MEMBERS OF NORTHWICK PARK INSTITUTE FOR MEDICAL RESEARCH**
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.
………………………………………………………….
Date: 8[th] June 2022
## **Neil Finlayson (Senior Statutory Auditor)**
for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
6th Floor 9 Appold Street London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006
18
## **THE GRIFFIN INSTITUTE**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**_FOR THE YEAR ENDED 31 MARCH 2021_**||||||||||
|---|---|---|---|---|---|---|---|---|---|
|||**Unrestricted**|**Designated**|**Restricted**|**Total**|**Unrestricted**|**Designated**|**Restricted**|**Total**|
|||**funds**|**funds**|**funds**|**2021**|**funds**|**funds**|**funds**|**2020**|
||**Notes**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|**Income from:**||||||||||
|Donations and grants|**3**|18,565|-|174,415|192,980|28,135|-|88,635|116,770|
|Charitable activities|**4**|1,209,333|-|-|1,209,333|617,733|-|245,761|863,494|
|Investment income||-|-|-|-|759|-|-|759|
|Rental income||181,046|-|-|181,046|249,566|-|-|249,566|
|||1,408,944|-|174,415|1,583,359|896,193|-|334,396|1,230,589|
|**Expenditure on:**||||||||||
|Raising funds||(33,702)|-|-|(33,702)|(32,037)|-|-|(32,037)|
|Charitable activities|**5**|(2,450,335)|(349,454)|(195,585)|(2,995,374)|(2,301,445)|(349,454)|(362,040)|(3,012,939)|
|**Net position before investments**||(1,075,093)|(349,454)|(21,170)|(1,445,717)|(1,437,289)|(349,454)|(27,644)|(1,814,387)|
|Net gains on investments|**12**|122,500|-|-|122,500|27,223|-|-|27,223|
|**Net income and expenditure after gains/(losses)**||(952,593)|(349,454)|(21,170)|(1,323,217)|(1,410,066)|(349,454)|(27,644)|(1,787,164)|
|**Additonal funds as MI investment**|**11**|127,500|-|-|127,500|-|-|-|-|
|**Transfers between funds**|**17/18**|6,323,203|(6,290,172)|(33,031)|-|46,740||(46,740)|-|
|**Net movement in funds**||5,498,110|(6,639,626)|(54,201)|(1,195,717)|(1,363,326)|(349,454)|(74,384)|(1,787,164)|
|Total funds brought forward||221,451|6,639,626|225,358|7,086,435|1,584,777|6,989,080|299,742|8,873,599|
|**Total funds carried forward**||5,719,561|-|171,157|5,890,718|221,451|6,639,626|225,358|7,086,435|
|**Net income and expenditure after gains/(losses)**||||||||||
|- Attributable to the Charity||(890,019)|(349,454)|(21,170)|(1,260,643)|(1,410,066)|(349,454)|(27,644)|(1,787,164)|
|- Attributable to the Minority Interest||(62,574)|-|-|(62,574)|-|-|-|-|
|||(952,593)|(349,454)|(21,170)|(1,323,217)|(1,410,066)|(349,454)|(27,644)|(1,787,164)|
|**Total funds carried forward**||||||||||
|- Attributable to the Charity||5,654,634|-|171,157|5,825,791|221,451|6,639,626|225,358|7,086,435|
|- Attributable to the Minority Interest||64,927|-|-|64,927|-|-|-|-|
|||5,719,561|-|171,157|5,890,718|221,451|6,639,626|225,358|7,086,435|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The notes on pages 22 to 34 form part of these financial statements.
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**THE GRIFFIN INSTITUTE**
## _**BALANCE SHEET AS AT 31 MARCH 2021**_
Registered number: 03445616
|**Notes**
**Fixed assets**
Tangible assets
**9**
Intangible assets
**10**
Investments in subsidiaries
**11**
Investments
**12**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within one year**
**14**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after more than one**
**year**
**15**
**Net assets**
**Income funds**
Restricted funds
**17**
Designated funds
**18**
General unrestricted funds
**19**
**Total charity funds**
Minority Interest share of subsidiary net assets
**16**
**Total funds**|**2021**
**2020**
**2021**
**2020**
**£**
**£**
**£**
**£**
7,092,830
7,091,531
7,092,830
7,091,531
5,000
-
-
-
5,000
50
891,723
891,723
891,723
891,723
7,989,553
7,983,254
7,989,553
7,983,304
241,256
406,438
241,256
406,438
462,352
237,144
337,499
237,144
703,608
643,582
578,755
643,582
(840,894)
(584,658)
(840,894)
(584,708)
(137,286)
58,924
(262,139)
58,874
7,852,267
8,042,178
7,727,414
8,042,178
(1,961,549)
(955,743)
(1,961,549)
(955,743)
5,890,718
7,086,435
5,765,865
7,086,435
171,157
225,358
171,157
225,358
-
6,639,626
-
6,639,626
5,654,635
221,451
5,594,708
221,451
5,825,792
7,086,435
5,765,865
7,086,435
64,927
-
-
-
5,890,718
7,086,435
5,765,865
7,086,435
**Group**
**Charity**|
|---|---|
These financial statements were prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies.
These financial statements were approved by the Board of Trustees and authorised for issue on .8 June 2022
**Professor Robin Kennedy Trustee**
The notes on pages 22 to 34 form part of these financial statements.
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**THE GRIFFIN INSTITUTE**
## _**CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from/(used by) operations
**A**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed assets
Interest received
**Net cash used in investing activities**
**Financing activities**
Loans received
**Net cash generated from financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**
**Cash generated from Operations**
Deficit for the year
**Adjustments for:**
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Loss on disposal of tangible fixed assets
Minority Interest share of subsidiary net income/(loss)
**Movements in working capital:**
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Cash generated from operations**
**A**|**2021**
**2020**
**£**
**£**
177,738
(598,209)
(455,180)
(189,779)
2,650
-
-
759
(452,530)
(189,020)
500,000
-
500,000
-
225,208
(787,229)
237,144
1,024,373
462,352
237,144
(1,195,717)
(1,787,164)
-
(759)
122,500
(27,223)
425,065
431,936
26,166
-
(127,500)
-
165,182
160,437
762,042
624,564
177,738
(598,209)|
|---|---|
The notes on pages 22 to 34 form part of these financial statements.
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**THE GRIFFIN INSTITUTE**
_**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
Northwick Park Institute for Medical Research (trading as The Griffin Institute ( **the Institute** )) is a private company limited by guarantee incorporated in England and Wales. As a company limited by guarantee each of its members commits to contribute £10 to the company's debts, liabilities and costs in the event of the company being wound up. The registered office is Northwick Park and St Mark's Hospitals, Watford Road, Harrow, Middlesex, HA1 3UJ, United Kingdom.
## **1.1**
## **Accounting convention**
The financial statements have been prepared in accordance with the Charities Act 2011, 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)" (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2**
## **Basis of consolidation**
The Group financial statements consolidate the financial statements of the Charity and its subsidiary undertaking, Griffin Paste Research Limited, which commenced trading in July 2020, for the year.
All financial statements are made up to 31 March 2021. All intra-group transactions, balances and unrealised gains on transactions between group entities are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. The summary financial statements of Griffin Paste Research Limited are shown in note 11.
## **1.3**
## **Going concern**
The Trustees consider that there are no material uncertainties about the Institute's ability to continue as a going concern for 12 months from the date of signing these financial statements. Due consideration for the effects of the Covid-19 outbreak has been taken. Growth experienced in the financial year is expected to continue in the coming year, underpinned by agreed medium term contracts for the provision of training facilities with the Institute's two largest clients, and additional contracts which have been secured post year end. the Trustees have further satisfied themselves that forecast income from contract research is reasonable. The Institute has also reached agreement with its landlord to phase the payment of rent arrears over a number of years. Revised forecasts are prepared and reviewed by Trustees on a regular basis and accordingly, the Trustees continue to adopt a going concern basis in preparing the financial statements. See Note 23 (post balance sheet events).
**1.4 Funds**
22
**THE GRIFFIN INSTITUTE**
_**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
Restricted funds are subject to specific conditions by donors 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.
Designated funds are amounts set aside by the Trustees for a specific project or purpose and do not form part of the Institute's general unrestricted funds.
General unrestricted funds are available for use at the discretion of the Trustees in furtherance of the charitable objectives unless the funds have been designated for other purposes.
## **1.5 Incoming resources**
Income is recognised when the Institute is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that the income will be received.
Donations, legacies, grants and other forms of voluntary income are recognised as incoming resources when received, except insofar as they are incapable of financial measurement.
Incoming resources from charitable activities, where related to performance and specific deliverables, are recognised as the Institute earns the right to consideration by its performance.
Investment income is included when received.
Rental income from operating leases (net of any incentives given to the lessees) is recognised on a straight-line basis over the lease term.
## **1.6**
## **Resources expended**
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Cost of generating funds comprises the cost associated with attracting voluntary income.
Charitable expenditure comprises those costs incurred by the Institute in the delivery of its activities and service for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Institute and include the audit fees and costs linked to the strategic management of the Institute.
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. floor areas, per capita or estimated usage.
## **1.7**
## **Tangible fixed assets**
Tangible fixed assets are initially measured at cost and in the case of donated assets, at market value and are subsequently measured at cost or market value, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or market value of assets less their estimated residual values over their useful lives on the following bases:
Land and buildings - Straight line basis over the term of the lease
Plant and machinery - 25% per annum on reducing balance basis Fixtures, fittings & equipment - 25% per annum on reducing balance basis
23
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
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 for the year.
At each reporting end date, the Institute 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).
## **1.8**
## **Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in the statement of financial activities for the year. Transaction costs are expensed as incurred.
## **1.9**
## **Intangible assets**
Intangible assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
## **1.10**
## **Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.11**
## **Financial instruments**
The Institute 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 Institute's balance sheet when the Institute 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.
## **1.12 Basic financial assets**
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## **1.13 Basic financial liabilities**
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## **1.14 Derecognition of financial liabilities**
24
**THE GRIFFIN INSTITUTE**
_**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
Financial liabilities are derecognised when the Institute's contractual obligations expire or are discharged or cancelled.
## **1.15**
## **Employee benefits**
The Institute operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Institute. The annual contributions payable are charged to the statement of financial activities.
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 Institute is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.16 Operating leases**
Rents applicable to operating leases, where substantially all the benefits and risk of ownership remain with the lessor, are charged to the statement of financial activities over the period in which the cost is incurred.
## **2 Critical accounting estimates and judgements**
In the application of the Institute's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:
Unlisted investments - the Institute has recognised a carrying value in two unlisted companies in which it has a shareholding. Determining the value of private companies which are not traded on an open market is inherently uncertain. The valuations are based on information such as the share price applying to a recent fundraising and a recently issued IRS 409A valuation certificate. The true value of the investments may be higher or lower and will depend on the success of the companies in exploiting the IP they are currently developing.
25
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
|**3**
**Donations and grants**
**Donations and gifts**
Voluntary donations
Fundraising events
**Grants analysis**
RAFT
John Fisher Foundation
James Tudor Foundation
Kirby Laing Foundation
IMET 2000
Other grants
Donations and gifts
Grants
**Donations and gifts**
Voluntary donations
Fundraising events
**Grants analysis**
John Fisher Foundation
RAFT
Donations and gifts
Grants analysis
**4**
**Charitable Activities Income**
Training courses and facilities
Contract research projects
Other income
Training courses and facilities
Contract research projects
Other income|**Unrestricted**
**Designated**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2021**
**£**
**£**
**£**
**£**
14,705
-
4,950
19,655
3,160
-
-
3,160|
|---|---|
||17,865
-
4,950
22,815|
||-
-
97,355
97,355
-
-
25,000
25,000
-
-
13,000
13,000
-
-
10,000
10,000
-
-
7,500
7,500
700
-
16,610
17,310|
||700
-
169,465
170,165|
||17,865
-
4,950
22,815
700
-
169,465
170,165|
||18,565
-
174,415
192,980|
||**Unrestricted**
**Designated**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2020**
**£**
**£**
**£**
**£**
6,180
-
-
6,180
21,955
-
-
21,955|
||28,135
-
-
28,135|
||-
-
50,000
50,000
-
-
38,635
38,635|
||-
-
88,635
88,635|
||28,135
-
-
28,135
-
-
88,635
88,635|
||28,135
-
88,635
116,770|
||**Unrestricted**
**Designated**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2021**
**£**
**£**
**£**
**£**
641,727
-
-
641,727
522,041
-
-
522,041
45,565
-
-
45,565|
||1,209,333
-
-
1,209,333|
||**Unrestricted**
**Designated**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2020**
**£**
**£**
**£**
**£**
277,555
-
-
277,555
322,339
-
245,761
568,100
17,839
-
-
17,839|
||617,733
-
245,761
863,494|
26
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
|**5**|**Charitable Activities Expenditure**|||
|---|---|---|---|
|||**2021**|**2020**|
|||**£**|**£**|
||Direct costs|1,865,694|1,853,148|
||Staff costs|1,077,043|1,040,655|
||Support and governance costs (note 7)|52,637|119,136|
|||2,995,374|3,012,939|
||**Analysis by fund**|||
||Unrestricted funds|2,450,335|2,301,445|
||Designated funds|349,454|349,454|
||Restricted funds|195,585|362,040|
|||2,995,374|3,012,939|
|**6**|**Support and Governance costs**|||
|||**2021**|**2020**|
|||**£**|**£**|
||Audit fees|18,381|41,385|
||Legal and professional|34,256|77,751|
|||52,637|119,136|
|**7**|**Net income/(expenditure) for the year**|||
|||**2021**|**2020**|
|||**£**|**£**|
||**This is stated after charging:**|||
||Depreciation|425,065|431,936|
||Auditors' renumeration|||
||Prior Year|-|13,260|
||Current Year|18,381|18,000|
||Non-audit services|-|10,125|
||**Trustees**|||
||No trustees received any remuneration or expenses during the year or previous year.|||
|**8**|**Staff Costs and Numbers**|**2021**|**2020**|
|||**£**|**£**|
||Gross salaries - Institute staff|794,195|706,500|
||Gross salaries - Seconded staff|153,541|213,227|
||Employer National Insurance contributions|86,634|75,279|
||Pension costs|42,673|45,649|
|||1,077,043|1,040,655|
||The average monthly head count of employees are as follows:|**2021**|**2020**|
|||**No.**|**No.**|
||Institute staff|19|14|
||Seconded staff|3|5|
|||22|19|
The Institute's key management personnel comprises the trustees and the senior management team. The total emoluments paid to key management personnel were £177,995 (2020: £80,720).
The number of employees whose gross benefit fell between the following bands:
|£60,001 - £70,000
£70,001 - £80,000|**2021**
**2020**
**No.**
**No.**
1
-
1
1|
|---|---|
||2
1|
27
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
## **Tangible fixed assets Group and Charity**
|**Fixtures,**
**Leasehold**
**Plant and**
**fittings and**
**Improvements**
**machinery**
**equipment**
**Total**
**£**
**£**
**£**
**£**
**Cost**
At 1 April 2020
8,553,765
1,641,146
10,046
10,204,957
Additions
397,566
57,614
-
455,180
Disposals
(1,638)
(126,790)
(10,046)
(138,474)
At 31 March 2021
8,949,693
1,571,970
-
10,521,663
**Depreciation and impairment**
At 1 April 2020
(1,671,341)
(1,432,796)
(9,289)
(3,113,426)
Depreciation charged in the year
(364,453)
(59,855)
(757)
(425,065)
On disposals
82
99,530
10,046
109,658
At 31 March 2021
(2,035,712)
(1,393,121)
-
(3,428,833)
**Carrying amount**
At 31 March 2021
6,913,981
178,849
-
7,092,830
At 31 March 2020
6,882,424
208,350
757
7,091,531
**Intangible fixed assets**
**Group**
**Intellectual**
**Property**
**£**
**Cost**
At 1 April 2020
-
Additions
5,000
At 31 March 2021
5,000|**Fixtures,**
**Leasehold**
**Plant and**
**fittings and**
**Improvements**
**machinery**
**equipment**
**Total**
**£**
**£**
**£**
**£**
**Cost**
At 1 April 2020
8,553,765
1,641,146
10,046
10,204,957
Additions
397,566
57,614
-
455,180
Disposals
(1,638)
(126,790)
(10,046)
(138,474)
At 31 March 2021
8,949,693
1,571,970
-
10,521,663
**Depreciation and impairment**
At 1 April 2020
(1,671,341)
(1,432,796)
(9,289)
(3,113,426)
Depreciation charged in the year
(364,453)
(59,855)
(757)
(425,065)
On disposals
82
99,530
10,046
109,658
At 31 March 2021
(2,035,712)
(1,393,121)
-
(3,428,833)
**Carrying amount**
At 31 March 2021
6,913,981
178,849
-
7,092,830
At 31 March 2020
6,882,424
208,350
757
7,091,531
**Intangible fixed assets**
**Group**
**Intellectual**
**Property**
**£**
**Cost**
At 1 April 2020
-
Additions
5,000
At 31 March 2021
5,000|**Fixtures,**
**Leasehold**
**Plant and**
**fittings and**
**Improvements**
**machinery**
**equipment**
**Total**
**£**
**£**
**£**
**£**
**Cost**
At 1 April 2020
8,553,765
1,641,146
10,046
10,204,957
Additions
397,566
57,614
-
455,180
Disposals
(1,638)
(126,790)
(10,046)
(138,474)
At 31 March 2021
8,949,693
1,571,970
-
10,521,663
**Depreciation and impairment**
At 1 April 2020
(1,671,341)
(1,432,796)
(9,289)
(3,113,426)
Depreciation charged in the year
(364,453)
(59,855)
(757)
(425,065)
On disposals
82
99,530
10,046
109,658
At 31 March 2021
(2,035,712)
(1,393,121)
-
(3,428,833)
**Carrying amount**
At 31 March 2021
6,913,981
178,849
-
7,092,830
At 31 March 2020
6,882,424
208,350
757
7,091,531
**Intangible fixed assets**
**Group**
**Intellectual**
**Property**
**£**
**Cost**
At 1 April 2020
-
Additions
5,000
At 31 March 2021
5,000|
|---|---|---|
||8,949,693
1,571,970
-
10,521,663||
||(1,671,341)
(1,432,796)
(9,289)
(3,113,426)
(364,453)
(59,855)
(757)
(425,065)
82
99,530
10,046
109,658||
||(2,035,712)
(1,393,121)
-|(3,428,833)|
||6,913,981
178,849
-|7,092,830|
||6,882,424
208,350
757|7,091,531|
|||**Intellectual**
**Property**
**£**
-
5,000|
|||5,000|
## **Fixed Asset Investments in subsidiaries**
The profit and loss and balance sheet of Griffin Paste Research, in which the Charity's has an investment at the balance sheet date of 50% ( _2020: 100%)_ of the share capital of Griffin Paste Research Limited is as follows:
|**Profit and loss**
Turnover
Expenditure
Loss
**Balance sheet**
Intangible fixed assets
Current assets
Total net assets
Called up share capital - Griffin Paste Research Ltd
Share premium
Profit and loss
The Charity's share of net assets is|**2021**
**2020**
**£**
**£**
-
(125,147)
-|
|---|---|
||(125,147)
-|
||5,000
124,853
50|
||129,853
50|
||100
50
254,900
-
(125,147)
-|
||129,853
50|
||64,927
50|
Griffin Paste Research Ltd (company number 12500698, registered office Y Block, Northwick Park & St Marks Hospitals, Watford Road, Harrow, HA1 3UJ) commenced trading on 1 July 2020 and its turnover, expenditure and profit/(loss) are summarised as follows:
28
Administrative expenses: £125,147
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
## **12 Fixed asset investments Group and Charity**
|**Cost or valuation**
At 31 March 2020
At 31 March 2021
**Carrying amount**
At 31 March 2021
At 31 March 2020
**Investments at fair value comprise:**
Videregen Ltd
Proterris Inc|**Unlisted**
**investments**
**Total**
**£**
**£**
891,723
891,723|
|---|---|
||891,723
891,723|
||891,723
891,723|
||891,723
891,723|
||**2021**
**2020**
**£**
**£**
864,500
864,500
27,223
27,223|
||891,723
891,723|
## **Details of the Institute's unlisted investments at 31 March 2021 are as follows:**
|**Name of undertaking &**||||
|---|---|---|---|
|**location**|**Nature of Business**|**Class of shares**|**% Held**|
|Videregen Ltd - UK|Development of Stem Cell Organ|Ordinary Shares|13.30%|
||Regeneration medicine|||
|Proterris Inc - USA|Clinical Development of Therapeutic|Common Stock|0.47%|
||Applications|||
## **13 Debtors**
|Trade debtors
Prepayments and accrued income
All amounts included in debtors are due within one year.|**2021**
**2020**
**£**
**£**
203,270
394,977
37,986
11,461
**Group and Charity**|
|---|---|
||241,256
406,438|
|||
## **14 Creditors: amounts falling due within one year**
|Trade creditors
Amounts due to subsidiary
Loans
Other creditors
Accruals and deferred income|**2021**
**2020**
**2021**
**2020**
**£**
**£**
**£**
**£**
234,885
146,583
234,885
146,583
-
-
-
50
75,000
-
75,000
-
268,443
168,863
268,443
168,863
262,566
269,212
262,566
269,212
840,894
584,658
840,894
584,708
**Charity**
**Group**|
|---|---|
During the year, the Institute completed a loan for £500,000 with Lloyds Bank PLC under the Coronavirus Business Interruption Loan scheme and executed a Debenture Deed under which the bank has a charge on all the Institute's property and assets.
Included in other creditors is an amount due in respect of pension contributions of £3,013 (2020 - £1,693).
29
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
|**15**
Trade creditors
Loans
Other creditors
**16**
**Minority Interest share of subsidiary net**
**assets**
**Creditors: amounts falling due after more**
**than one year**|**2021**
**2020**
**£**
**£**
1,390,599
955,743
425,000
-
145,950
-
**Group and Charity**|
|---|---|
||1,961,549
955,743|
|||
|**Minority Interest share of subsidiary net**
**assets**||
|---|---|
|**Cost or valuation**
At 31 March 2020
Share capital issued
Share premium issued
Net income/(loss) for the period
At 31 March 2021|**Group**
**Total**
**£**
-
50
127,450
(62,574)|
||64,927|
During the year, Griffin Paste Research issued new share capital at a premium which reduced the Instituite's interest in Griffin Paste Research from 100% to 50%.
30
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
|**17**
**Restricted funds**
**Group and Charity**
**Wolfson Unit**
_Training fees received on behalf_
_of the Wolfson Unit and_
_expended upon the completion_
_of each training course_
**Dr L Turner-Stokes**
_Conference speaking fees on_
_behalf of Drs Turner and Stokes_
_and expended upon the_
_completion of each conference_
_attendance_
**Tropical Diseases Prevention**
**Unit**
_Research into tropical diseases_
**Course administration service**
_Fees received on behalf of_
_course provider to deliver_
_courses for hospital doctors_
**Mr Lamont OBS and Gynae-**
**Research Funds**
_Gynaecology research_
**Dr Mouyis**
_Funds received from ABBVIE to_
_purchase_ _rheumatology_
_equipment_
**Wound Healing projects**
_Research projects developing_
_treatments to improve wound_
_healing following major trauma_
_or surgery_
**RAFT**
_Research projects developing_
_treatments for keloid scar tissue_
_and alternatives to breast_
_implants_
**Capital Equipment**
_Grant to purchase medical_
_equipment_|31
**Balance at**
**Incoming**
**Resources**
**Balance at**
**1 April 2020**
**resources**
**expended**
**Transfers 1 March 2021**
**£**
**£**
**£**
**£**
**£**
88,207
8,060
(95,417)
-
850
46,519
-
-
-
46,519
6,999
-
(6,999)
-
-
3,796
-
(1,752)
-
2,044
21,727
-
-
-
21,727
3,967
-
-
-
3,967
23,225
64,050
(30,767)
(26,637)
29,871
30,918
97,355
(60,650)
(6,394)
61,229
-
4,950
-
-
4,950
225,358
174,415
(195,585)
(33,031)
171,157|
|---|---|
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
|**17**
**Restricted funds (Continued)**
**Group and Charity**
**Wolfson Unit**
_Training fees received on behalf_
_of the Wolfson Unit and_
_expended upon the completion_
_of each training course_
**Dr L Turner-Stokes**
_Conference speaking fees on_
_behalf of Drs Turner and Stokes_
_and expended upon the_
_completion of each conference_
_attendance_
**Tropical Diseases Prevention**
**Unit**
_Research into tropical diseases_
**Course administration service**
_Fees received on behalf of_
_course provider to deliver_
_courses for hospital doctors_
**Mr Lamont OBS and Gynae-**
**Research Funds**
_Gynaecology research_
**Dr Mouyis**
_Funds received from ABBVIE to_
_purchase rheumatology_
_equipment_
**Wound Healing projects**
_Research projects developing_
_treatments to improve wound_
_healing following major trauma_
_or surgery_
**RAFT**
_Research projects developing_
_treatments for keloid scar tissue_
_and alternatives to breast_
_implants_|**Balance at**
**Incoming**
**Resources**
**Balance at**
**1 April 2019**
**resources**
**expended**
**Transfers 1 March 2020**
**£**
**£**
**£**
**£**
**£**
88,099
34,193
(34,085)
-
88,207
35,747
20,643
(9,871)
-
46,519
141,125
180,000
(267,386)
(46,740)
6,999
9,077
10,925
(16,206)
-
3,796
21,727
-
-
-
21,727
3,967
-
-
-
3,967
-
50,000
(26,775)
23,225
-
38,635
(7,717)
30,918|
|---|---|
||299,742
334,396
(362,040)
(46,740)
225,358|
32
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
## **18 Designated funds**
The income funds of the Institute include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
## **Group and Charity**
|**Group and Charity**|||||||
|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**|||**Balance at**|
||**1 April 2020**|**resources**|**expended**|**Transfers **|**1 March 2021**||
||**£**|**£**|**£**|**£**||**£**|
|Leasehold improvements|6,639,626|-|(349,454)|(6,290,172)||-|
||6,639,626|-|(349,454)|(6,290,172)||-|
|**Group and Charity**|||||||
||**Balance at**|**Incoming**|**Resources**|||**Balance at**|
||**1 April 2019**|**resources**|**expended**|**Transfers **|**1 March 2020**||
||**£**|**£**|**£**|**£**||**£**|
|Leasehold improvements|6,989,080|-|(349,454)||-|6,639,626|
||6,989,080|-|(349,454)||-|6,639,626|
|**General unrestricted funds**|||||||
|**Group**|||||||
|||||**Transfers and**||**Balance at**|
||**Balance at 1**|**Incoming**|**Resources**|**other**||**31 March**|
||**April 2020**|**resources**|**expended**|**movements**||**2021**|
||**£**|**£**|**£**|**£**||**£**|
|General unrestricted funds|221,451|1,531,444|(2,421,464)|6,323,203||5,654,634|
|Minortity Interest share of|||||||
|subsidiary net income|-|-|(62,573)|127,500||64,927|
||221,451|1,531,444|(2,484,037)|6,450,703||5,719,561|
||**Balance at**|**Incoming**|**Resources**|||**Balance at**|
||**1 April 2019**|**resources**|**expended**|**Transfers **|**1 March 2020**||
||**£**|**£**|**£**|**£**||**£**|
|General unrestricted funds|1,584,777|923,416|(2,333,482)|46,740||221,451|
|**Charity**|||||||
||**Balance at**|**Incoming**|**Resources**|||**Balance at**|
||**1 April 2020**|**resources**|**expended**|**Transfers **|**1 March 2021**||
||**£**|**£**|**£**|**£**||**£**|
|General unrestricted funds|221,451|1,533,944|(2,483,890)|6,323,203||5,594,708|
||**Balance at**|**Incoming**|**Resources**|||**Balance at**|
||**1 April 2019**|**resources**|**expended**|**Transfers **|**1 March 2020**||
||**£**|**£**|**£**|**£**||**£**|
|General unrestricted funds|1,584,777|923,416|(2,333,482)|46,740||221,451|
|**Analysis of net assets between funds**|||||||
|**Group**|||||||
|||**Unrestricted**|**Designated**|**Restricted**|||
|||**funds**|**funds**|**funds**||**Total**|
|||**£**|**£**|**£**||**£**|
|**Fund balances at 31 March 2021 are**|||||||
|**represented by:**|||||||
|Tangible assets||7,092,830|-||-|7,092,830|
|Intangible assets||5,000||||5,000|
|Investments||891,723|-||-|891,723|
|Current assets/(liabilities)||(308,443)|-|171,157||(137,286)|
|Long term liabilities||(1,961,549)|-||-|(1,961,549)|
|||5,719,561|-|171,157||33
5,890,718|
## **19 General unrestricted funds Group**
## **20 Analysis of net assets between funds Group**
**THE GRIFFIN INSTITUTE**
## _**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**_
|**20**
**Analysis of net assets between funds (contd)**
**Group**
Tangible assets
Investments
Current assets/(liabilities)
Long term liabilities
**Fund balances at 31 March 2020 were**
**represented by:**|**Unrestricted**
**Designated**
**Restricted**
**funds**
**funds**
**funds**
**Total**
**£**
**£**
**£**
**£**
451,905
6,639,626
-
7,091,531
891,723
-
-
891,723
(166,434)
-
225,358
58,924
(955,743)
-
-
(955,743)|
|---|---|
||221,451
6,639,626
225,358
7,086,435|
## **21 Operating lease commitments**
The Institute's has entered into a lease with its landlord which provides for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Between two and five years
Within one year
Between one and two years|**2021**
**2020**
**£**
**£**
608,557
496,305
690,096
496,305
698,028
1,197,610|
|---|---|
||1,996,681
2,190,220|
## **22 Operating lease income**
The Institute's has entered into a number of leases with subtenants which provides for future minimum lease income under non-cancellable operating leases, which fall due as follows:
|Between two and five years
Within one year|**2021**
**2020**
**£**
**£**
179,515
193,365
356,584
407,851|
|---|---|
||536,099
601,216|
## **23 Post balance sheet events**
The Institute entered into an agreement with its landlord to phase payment of rent arrears over five years with the potential for accelerated payments should the financial performance of the Institute allow. This agreement has ensured the Institute can continue to trade and meet its liabilities as they fall due.
## **24 Analysis of changes in net debt**
|Cash and cash equivalents
Borrowings
Due within one year
Due after more than one year
Total|**Balance at 1**
**April 2020**
**Cash flows**
**Balance at**
**31 March**
**2021**
**£**
**£**
**£**
237,144
225,208
462,352
-
(75,000)
(75,000)
-
(425,000)
(425,000)|
|---|---|
||237,144
(274,792)
(37,648)|
|||
||237,144
(274,792)
(37,648)|
34