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2021-03-31-accounts

BRAIN RESEARCH TRUST

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

Registered Charity Number: 1137560 Registered Company Number: 07345516 (Brain Research UK is the working name of Brain Research Trust)

BRAIN RESEARCH TRUST CHAIR’S STATEMENT

REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2021 Brain Research UK is the working name of Brain Research Trust

Chairman’s introduction

Our cause

Brain Research UK funds essential research to discover the causes of, to develop new treatments for and to improve the lives of those affected by neurological conditions.

Within this broad remit, we aim to focus our funding in areas where research investment is needed most urgently. Since 2016, our focus has been on research into brain and spinal cord injury, brain tumours, and headache & facial pain. In each of these three areas, there is a large unmet patient need that is not reflected in current levels of research funding.

Our vision is a world where everyone with a neurological condition lives better, longer.

Our income

Throughout the year, despite the challenges of Covid-19, our supporters remained determined to raise funds. The pandemic elicited a range of creative fundraising activities, enabling us to continue to fund vital neurological research.

Funds received during the period came from donations of £1,383,000 (2020/18: £1,820,000) and income from our investment portfolio of £368,000 (2020/18: £681,000).

Our research

During the period, we awarded grants of £2,355,458 (2020/18: £2,098,970) to institutions throughout the UK as part of our commitment to the funding of vital research.

We were delighted to award three PhD Studentships and four Project Grants following national calls. We funded two Brain Research UK Miriam Marks Fellowships as well as on-going grants to UCL Institute of Neurology from endowments and restricted funds and awarded a new joint fellowship with the Royal College of Surgeons.

In addition, given the interruption of research caused by the pandemic, we awarded over £140,000 to Covid-19 related extensions.

With thanks to our supporters

It is only thanks to the generosity of all our supporters that we have been, and continue to be, able to fund vital life-changing, life-saving neurological research.

Jim Gollan Chair of Trustees

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REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2021 Brain Research UK is the working name of Brain Research Trust

Impact of Covid-19

As a result of Covid-19, like many other charities, we had to adapt our activities during the year and to postpone the expected roll out of a new strategy, approved in 2019.

Fundraising activities

Due to the pandemic, the London Marathon – our flagship fundraising event – was initially postponed and then cancelled. Therefore, our key focus became stewardship, ensuring runners remained engaged, informed and updated at all times and working with those who were motivated to move from physical to virtual activities during the year. Consequently, 84% of our original 2020 team are taking part in the 2021 event. In addition, we also experienced reduced income from challenge events and community fundraising as an inevitable result of the three lockdowns.

As well as supporting The Virtual 2.6 Challenge in April and The Virtual Marathon in October, we launched two new virtual activities including a Weekly Lottery and the Brainathlon, a collaborative virtual challenge event involving a walk, run and climb organised with two other neurological charities.

On New Year’s Eve 2018, Namita sustained a traumatic brain injury at her local gym that led to post-concussion syndrome and chronic migraine for over a year. The London Marathon 2019 was her first public outing after the injury and it inspired her to enter the ballot for the 2020 marathon, where she successfully gained her Own Place. In choosing to run for the charity, she wanted to help raise awareness of brain conditions.

We continued with the strategy to develop our communications activity, most notably our social media presence and the introduction of several new campaigns. These included the launch of our #OneForAll social media campaign highlighting stories of supporters touched by more than one neurological condition, one of the key factors that differentiate us from other neurological charities. In addition, we launched our #TeamBrainTuesday initiative to promote the work of other neurological charities, in line with our strategic aim to work collaboratively. As a result of this increased activity, we saw a growth in our online following and an increase in engagement across all of our social media channels and website: over 50% increase in website traffic and over 10% increase in Facebook and Instagram followers.

We maintained our digital stewardship activities for regular supporters and increased income from Trusts and Foundations activities.

Overall, compared to the pre-pandemic budget, we experienced a 24% drop in our fundraising income but were able to reduce expenditure in fundraising and overhead costs. Further information on our financial performance is provided in the financial peformance section on page 7.

Charitable activities

According to an AMRC survey, the results of which were circulated in April 2021, 32% of AMRC charities had to cancel or delay research projects that are crucial to developing new treatments and 1 in 2 AMRC charities plan to cut their research spend over the next year by an average of 37%. In addition, the survey suggests that 56% of AMRC charities will have to cancel or delay funding for early career researchers and skilled research roles.

During the year, in light of the pandemic and exceptional applications, we awarded more research funding than originally anticipated. Research grants of £2,351,000 were awarded, which included £140,000 of Covid-19 related extension funding, representing an increase of 22% from the original budget.

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REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2021 Brain Research UK is the working name of Brain Research Trust

For the year 2021/22, we hope to award grants of over £1,500,000. This will include our core funding plans that deliver a key strategic aim to support early career researchers: £800,000 in project grant funding and £240,000 in PhD studentship awards.

The future

As we start to exit lockdown, uncertainty remains about the fundraising landscape. However, as evidenced during 2020/21, Brain Research UK is well positioned to respond quickly and effectively to changing circumstances. We remain committed to funding the best science to achieve the greatest impact for people affected by neurological conditions. As soon as there is a clarity on future circumstances, we will deliver a revised post-Covid strategy.

Charitable objects

To promote and support by all available means for the public benefit research and investigation into and study of diseases of the nervous system and allied subjects, and particularly the causes, means of prevention, diagnosis, method of treatment and cure of such diseases and publication of such research, study and investigation which term shall include the promotion and support of University College London Institute of Neurology (Queen Square) and such other institutions in which such research investigation or study is being or is to be pursued.

Objectives for 2021/22:

As a result of on-going uncertainty around Covid-19, our objectives for 2021/22 are as follows:

The Trustees understand that the benefits of neurological research are long-term but believe that the knowledge gained from each research project funded is a step towards understanding how these diseases happen and how to treat them. Trustees also understand that measuring the impact of donations is an important consideration for those who give so generously to support the Charity’s work.

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REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2021 Brain Research UK is the working name of Brain Research Trust

Achievements and performance

As a result of Covid-19, the 12-month period to 31st March 2021 was not as expected, most notably with the cancellation of the London Marathon 2020. However, despite this, we invested in developing virtual events and virtual challenge activities, culminating in preparation for a new collaborative event, Brainathlon, in April 2021 in partnership with Brain Tumour Research and Epilepsy Research UK.

Our plans to develop further our major donor fundraising activities were delayed due to the pandemic.

Following national calls, we awarded three PhD studentships, one in each of our priority areas: brain tumours, brain and spinal cord injury, and headache and facial pain. We also awarded four project grants: three in brain tumours and one in headache and facial pain.

A draft Impact Report was submitted to the Board of Trustees, with a final Report due in 2021/22.

As part of our strategic partnership plan, we introduced two collaborative activities: a fundraising initiative, Brainathlon, as above, and a grant making initiative with the Royal College of Surgeons to fund a joint fellowship.

In addition, we continued our operating model that helps to maximise fundraising income whilst keeping operational costs to a minimum.

12 month period 18 month period
2020-21 2018-20
Results and review of the period under review £’000 £’000
Total income 1,751 2,501
Expenditure on raising funds (722) (1,207)
--------------- ---------------
1,029 1,294
Expenditure on Research (2,526) (2,364)
Expenditure on Information & Awareness (63) (98)
Increase/(decrease) in investment values 2,249 (1,055)
--------------- ---------------
Net increase/(decrease) in funds 689 (2,223)
======= =======

Donations

Total income includes donations of £1,383,000 received during the 12 month period (£1,820,000 in 2018/20). These comprise: event income of £181,000, individual giving income of £414,000, legacies of £557,000 and trusts, corporate, major donor income of £231,000. The full breakdown of the donation categories can be seen in Note 2 of the accounts.

Investment performance

Our investment balances at 31[st] March 2021 are £14,067,000 (fixed assets) and £1,844,000 (current assets). These balances reflect a significant gain in valuation since 31[st] March 2020, when the balances were £13,548,000 (fixed assets) and £582,000 (current assets). The investment portfolio was heavily impacted by the Covid-19 pandemic in the early part of 2020 and an investment loss of £1,055,000 was recorded in our previous accounts to 31st March 2020.

During the year investment markets have recovered and our portfolio has grown in value. An unrealised gain of £2,249,000 has been included within our portfolio valuation and is reflected in the income and expenditure account.

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REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2021 Brain Research UK is the working name of Brain Research Trust

Our investment income for the year is £368,000 compared to £681,000 for the previous 18 month period.

Further information about our investment performance is given in the investment policy section and note 7 of the accounts.

Research funded

Neurosurgeon Ryan Mathew brings together a

collaborative team from the Universities of Leeds, Nottingham and York to tackle the problematic cancer cells that remain in the so-called ‘margin zone’ following brain tumour surgery.

One of the main barriers to successful treatment of brain cancer is that the tumours do not have a clean boundary as they infiltrate the surrounding healthy brain. This means that cancer cells are left behind after surgery, in a margin zone that comprises both cancer cells and healthy brain tissue. The cells in this margin zone are the root of relapse and being able to eliminate them holds the key to treatment that is most likely to be successful in the long-term.

Very little is known about the way that the cells in the margin zone behave, as most research has focused on the main lump. This collaborative team is developing new tools to enable the study of these cells in a living system and work on better ways to eliminate them.

This will accelerate the development of effective treatments for these devastating tumours.

We received a strong response to this year’s call for applications for PhD studentships. In response, we awarded £348,230 to fund three new PhD studentships at UCL Queen Square.

Institute of Neurology (two awards) and Imperial College London (one award) (2018/20: £360,000, three studentships).

We also ran our annual national call for project grant applications, resulting in the award of funding of £1,086,425 to fund four new projects at King’s College London, the University of Strathclyde, the University of Cambridge and the University of Leeds (2018/20: £875,527 for three projects).

In collaboration with UCL Queen Square Institute of Neurology, we issued our first national call for applications for research fellowships in neurodegenerative conditions. We made two awards under the call, totalling £535,369, funded from the restricted Miriam Marks Fund.

We paid on-going grants to UCL Queen Square Institute of Neurology from the Sobell Endowment totalling £145,937 (2018/20: £252,622).

We collaborated with the Royal College of Surgeons for the first time to award a joint research fellowship to a neurosurgical trainee, at a cost of £32,500.

In addition, we agreed to consider requests for costed extensions to enable our grant-holders to overcome the disruption caused by Covid-19 and to successfully complete their research projects. We awarded 13 extensions at a total cost of £140,632.

Note 20 in the accounts details the extensive programme of research funded by the Charity during the 12 month financial period to 31st March 2021.

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Brain Research UK is the working name of Brain Research Trust

Information and awareness

During the period to 31st March 2021, our information and awareness expenditure was £63,000 (2018/20: £98,000) and this reflected updates to our website and general communication activities.

Future plans

As a result of the global pandemic, like many other organisations, our year 2020/21 was disrupted and fragmented. However, our strategy remains focused on how to deliver greater impact on those living with a neurological condition through the funding of more research, underpinned by stable, secure financial foundations.

Our key aim is to maximise fundraising income while keeping our operational costs low in order to fund essential research and accelerate its progress – ultimately making positive change for our beneficiaries and helping to realise our vision of a world where everyone with a neurological condition lives better, longer.

Highlights of our strategy are summarised below.

Financial performance

The Charity received income of £1,751,000 during the 12 month financial period to 31[st] March 2021 (£2,501,000 in the 18 months to 31[st] March 2020). Our ability to fundraise during the year was significantly constrained by the Covid-19 pandemic.

As can be seen in Notes 2 and 3, the Charity’s income comes from a number of sources. The Charity has been heavily impacted by the absence of the London Marathon during 2020 with this being our flagship fundraising event. In addition, the difficulty of being able to carry out community challenges and event fundraising, has contributed to the fall in events income to £181,000 (£853,000 in the 18 month period to 31[st] March 2020). For context, the budgeted income for London Marathon was £718,000 but we were only able to realise income of £130,000 from sponsorship received prior to the first lockdown and from the virtual event.

The fall in income has been partially offset by an increase in fundraising income from streams including trusts, and major donors amounting to £788,000 (£278,000 in the 18 month period to 31[st] March 2021).

As a result of the fall in fundraising income, the Charity scaled back much of its fundraising activity for the year and capitalised on opportunities to remain efficient. The change in operating model that was implemented in previous years meant that our operations remained lean and adaptable to change. A revised budget was put in place after the first lockdown started and our operating plan amended accordingly. Consequently, we were able to reduce our expenditure on raising funds to £722,000 (£1,207,000 in the 18 month period to 31[st] March 2020). This includes deferring expenditure for London Marathon places to 2021/22 when we expect the next event to take place. We were able to utilise some savings in our overheads without having to obtain government assistance on any emergency Covid-19 scheme. We did not furlough any staff.

Despite the fundraising challenges, we maintained our commitment to research by spending £2,589,000 on our charitable activities (£2,462,000 in the 18 month period to 31[st] March 2020). This includes direct research spend

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A of £2,355,000 (as outlined in Note 18). This means that for every pound we spent during 2020/21, 78 pence was spent on our charitable activities.

Due to the increase in our investment portfolio valuation, an unrealised gain of £2,249,000 was recognised during the year, which leaves the year with a surplus of £689,000 and increase in our funds position.

Funds

The Charity’s total funds at 31[st] March 2021 were £11,574,000 (2018/20: £10,885,000).

The funds are split as follows:

2020/21 2018/20
General Funds £ 1,000,000 £ 750,000
Designated Funds £ 6,999,000 £ 6,602,000
Restricted Funds £ 140,000 £ 269,000
Endowment Funds £ 3,435,000 £ 3,264,000
£11,574,000 £10,885,000

General Funds

The general fund is used to provide a buffer for unforeseen activities and is maintained on the basis of being the higher of £750,000 or 9 months of non-grant expenditure (overheads and fundraising costs). 9 months of

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Brain Research UK is the working name of Brain Research Trust

budgeted non-grant expenditure from our 2021/22 budget comes to £1,000,000 and this is therefore the balance reflected in our general funds.

Designated Funds

The Charity holds two designated funds:

Grants Fund: This fund is in place to cover the next two years of expected unrestricted grant awards. The fund will be expended as the grant awards are made and then replenished in order to cover the planned future commitments.

Investment Fund: The Charity benefits from the income generated by its investment portfolio for a significant proportion of total income. As income and unrealised movements can change significantly from year to year, the investment fund was put in place to provide a cushion against these fluctuations. It is therefore the balance of the Unrestricted Funds after taking into account the General and Grant Fund. The fund is held in an investment portfolio which has increased in value since last year.

Restricted funds

These funds have been donated for specific projects or research activities. They are reviewed on an ongoing basis, to ensure restricted funds are utilised in accordance with the donors' wishes as soon as is practicable.

Endowment funds

These funds have been endowed for use on specific projects or research activities at the Institute of Neurology (IoN). All the endowment funds are expendable.

Balances and detailed movements on funds are detailed in Note 12.

Reserves policy

The Charity has developed a reserves policy that identifies and plans for the maintenance of essential activities and reflects the risks associated with the Charity’s business model, spending commitments, potential liabilities and financial forecasts.

The policy is as outlined in the General Funds and Designated Funds sections above. It is devised with the intention of maintaining adequate funds within general funds to ensure that the Charity could operate effectively in the short term. Furthermore, adequate funds are to be kept aside for the continuity of grant funding.

The Board reviews the adequacy and relevance of the reserves policy periodically to assess its validity in light of changing circumstances. The policy was reviewed by the Trustees during the current financial period and remains unchanged. Given the uncertainty of the pandemic and the impact on financial performance, it provides a sufficient buffer for the Charity to continue operations in the short to medium term.

Grant awarding policy

Brain Research UK funds research on a national basis into neurological conditions. Other than awards made from three restricted endowment funds, our research funding is awarded in open national competition.

As a member of the Association of Medical Research Charities, our policy is to fund research that has been subject to rigorous assessment, including external peer review. Our grant-making processes were subject to audit by the AMRC in 2020, and we are pleased to report that we passed the audit and were awarded a certificate of best practice.

During the period under review, the Charity’s Scientific Advisory Panel maintained its focus on the three ‘priority research areas introduced during 2016: acquired brain and spinal cord injury, neuro-oncology, headache and facial pain. We issued two national calls for grant applications in these three areas – one for project grants and one for PhD studentships.

Outside of the three priority areas, we collaborated with UCL Queen Square Institute of Neurology to issue a call for applications for research fellowships in neurodegenerative conditions, funded by the Miriam Marks Fund, and we collaborated with the Royal College of Surgeons to fund a joint research fellowship.

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Going concern

The accounts are approved during a period where there is much uncertainty as a result of the emergence and international spread of Covid-19. The Charity, as a grant making organisation, has continued to meet its strategy of supporting ongoing research. This is evidenced by this year’s research awards amounting to £2,355,000 and a further £2,445,000 held in a designated fund for future research.

The Charity has assessed the potential impact on its fundraising activities in the current climate and formulated a revised budget for the year, which took into account the uncertainty of returning to business as usual. The budget for 2021/22 is cautious and reflects financial repercussions of the ongoing pandemic.

The Trustees have considered different scenarios in the current climate; this has included forecasting and cash flow forecasts for a 12 month period from signing the accounts. Whilst fundraising activities remain unpredictable, and investment markets are more volatile, the Trustees are confident that the financial forecasts prepared support the going concern assumption.

The Charity has a strong reserve position and has available resources, as demonstrated by the level of general funds outlined above and the robust reserve policy. Our annual and mid-year financial planning processes take into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure. Our cash deposits could easily be drawn down should working capital be required. We believe that there are no material uncertainties that call into doubt the Charity’s ability to continue.

Risk assessment

The Trustees review the risks facing the Charity and the steps needed to mitigate them. The Board receives and discusses an annual report of identified risks and the control systems designed to respond to them.

The Charity is currently facing the repercussions of the Covid-19 pandemic with fundraising income significantly impacted. The Charity therefore operated with a revised budget during 2020/21 and scaled back expenditure. As part of its risk assessment process, the Charity had already altered its operating model to become leaner and more flexible to changing circumstances. This therefore helped to mitigate the income risk that was evident this year.

Furthermore, the Charity operates with diversified income streams; this has proved to be important this year. Whilst many areas of fundraising saw income fall, we received additional legacy income and saw growth in trusts and major donors. We plan on maintaining our income diversity to manage the income risk.

Our reserves policy is intended to give us continuity of operation in the short to medium term and we are supplemented by a strong reserve position. There is a risk that research projects funded by us become delayed or unable to complete. As a result of this, the Charity awarded additional funding to grant recipients that were affected by the pandemic.

Aside from the immediate risks posed by the pandemic, the Charity operates with the long-term risk of being able to raise and maintain sufficient income to fulfil our research aspirations. With the fundraising environment becoming particularly challenging due to a number of environmental and economic factors, the Charity is susceptible due to its reliance on voluntary and investment income. In order to manage this risk, the Charity approved a new fundraising strategy in December 2019 that aimed to build on our core London Marathon income stream and diversify into other income streams. The implementation of this strategy has been delayed due to the pandemic with the focus now being on maintaining our current income portfolio. However, the principles of the strategy remain and we would hope to continue its implementation as the year progresses.

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Brain Research UK is the working name of Brain Research Trust

The Charity holds a substantial investment portfolio of over £14 million from which regular income is received. Given its magnitude, protection of the portfolio is vital and effective management of the portfolio constitutes a further risk. To mitigate this, the portfolio is closely managed in line with the investment policy below with the investment manager’s performance and asset allocation appraised quarterly by the Investment Committee.

The risk register is reviewed annually by the Trustees and was last approved during their March 2021 meeting.

Fundraising approach and performance

The Charity undertakes a range of fundraising activities, including direct mail and fundraising events. No fundraising activities were carried out by either a professional fundraiser or commercial participator. The Charity is registered with the Fundraising Regulator and adheres to the standards of the Fundraising Code of Practice. During the period, no complaints were received.

Investment policy

The articles of association provide the Trustees with the power to invest funds not immediately required. Given the long-term nature of the Charity’s commitment to fund research, the Board aims to invest reserves so as to protect capital from inflation and generate additional returns for future disbursement. The investment portfolio, which is managed by Sarasin & Partners LLP, is a diversified portfolio of UK and overseas equities, gilts, corporate bonds, property, hedge funds, commodities and cash deposits. The Investment Committee monitors the performance of investments and reviews social, environmental and ethical considerations on a quarterly basis.

Our intention is to achieve average returns over the long term of 2.5% per annum above UK CPI; in addition, to protect capital reserves from inflation and generate funds for disbursement in support of Brain Research UK’s mission. Over the 12 months to 31[st] March 2021, a rolling return of 20.5% was achieved against a composite benchmark of 19.8%.

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Brain Research UK is the working name of Brain Research Trust

Structure, governance and management

Brain Research Trust is a company limited by guarantee (registration number 07345516; incorporated 13 August 2010) and a registered charity (registration number 1137560) regulated by the Charity Commission. It is governed by a Board of Trustees, chaired by Jim Gollan, under powers defined in the Memorandum and Articles of Association amended 21st December 2015 and 7th March 2019. Brain Research UK is the working name of Brain Research Trust.

Name Brain Research Trust; working name Brain Research UK
Charity registration number 1137560 (registered in England and Wales)
Company registration number 07345516 (registered in England and Wales)
Registered office BWB Charity Hub
10 Queen Street Place
London EC4R 1BE
Trustees Jim Gollan, Chair of Trustees
Jonathan Kropman, Deputy Chair of Trustees
Jerry Storrs, Treasurer
Professor John Pickard MA, MChir, FRCS, FRCSEd, FMedSci
Aoife Regan
Professor Sir Doug Turnbull, MBBS, MD, PhD, FRCP, FMedSci
Allister Wilson
Paul Wright
Scientific Advisory Panel Professor Kevin Talbot MBBS, DPhil, FRCP, Chair of Panel
Dr Faisal Amin
Professor Rob Brownstone MD, PhD, FRCSC, FCAHS
Professor Alasdair Coles BM BCH, PhD, FRCP
Professor Oliver Hanemann MD, PhD, FRCP
Professor Henry Houlden MBBS, PhD
Professor Simona Parrinello
Professor Alexandra Sinclair MBChB (Hons) MRCP PhD
Professor Nick Ward MD, FRCP
Senior management Caroline Blakely, Chief Executive
Snezana Bjelogrlic, Head of Finance
Pippa Ball, Head of Fundraising
Professional advisors
Auditors Solicitors
Haysmacintyre LLP Bates Wells & Braithwaite
10 Queen Street Place London LLP
London EC4R 1AG 10 Queen Street Place
London EC4R 1BE
Investment Managers Bankers
Sarasin & Partners LLP Clydesdale Bank PLC
Juxon House 30 St. Vincent Place
100 St Paul’s Churchyard Glasgow G1 2HL
London EC4M 8BU

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Brain Research UK is the working name of Brain Research Trust

Governance and management

The Charity’s memorandum and articles of association are the primary governing documents. Trustee indemnity insurance is in place together with a conflicts of interest policy.

In the period under review the management of the Charity was as follows:

The Board of Trustees, who are also directors of the Charity for the purposes of the Companies Act, currently comprises eight members (2018/20: eight) and meets quarterly. The Board is responsible for determining the overall strategy of the Charity and is accountable for its operational, financial and managerial performance.

There is one standing Committee of the Board that meets quarterly.

A Scientific Advisory Panel (SAP) meets periodically and also communicates via email, to evaluate and rank research grant applications recommending to the Trustees which projects should be funded. The members of the SAP are independent, drawn from various neurological disciplines, and are actively involved in neurological research. SAP members are listed on page 12.

Appointment of trustees

Management

The Trustees exercise executive responsibility for the governance of the Charity and, through the Chairman, supervise the management of the Charity by the Chief Executive. The Chairman and Chief Executive also task the Board with decision-making on strategic management issues as well as overseeing the research grants application process and monitoring the progress of awarded grants.

The day-to-day running of the Charity has been delegated to the Chief Executive and includes the operational running of the Charity and the coordinating of fundraising appeals.

All staff posts are periodically evaluated to ensure that salary levels are reflective of industry and organisational needs, as well as individual and charity performance. In recruitment of a new post, an assessment is made of the requirements of the role in terms of skills, experience, competency and urgency. The salary is then determined on the basis of this assessment and the current market conditions. The salary of the CEO is periodically reviewed by the Board.

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Membership of Regulatory Bodies and other organisations

We are committed to the highest standards of fundraising and grant making as demonstrated by our membership of the following organisations

Association of Medical Research Charities (AMRC)

Fundraising Regulator (FR)

Institute of Fundraising (IoF)

Neurological Alliance (NA)

Public benefit

The Trustees confirm that they have complied with the Charities Act 2011 to have due regard to public benefit guidance published by the Commission in determining the activities undertaken by the Charity. Research funded by the Charity meets the Charity Commission’s test for Public Benefit. In addition, although only a small percentage of the population may suffer from a particular neurological disease, the application of the results of the research is not restricted by gender, ethnicity, religion or ability to pay and in that respect the public at large benefit.

Change of financial year

In the prior year, the Trustees had resolved to change the Charity’s financial year-end to 31[st] March from 30[th] September. The final statements of the prior year and disclosures were prepared on the basis of an 18 month accounting period to run from 1[st] October 2018 to 31[st] March 2020.

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Brain Research UK is the working name of Brain Research Trust

Statement of Trustees’ responsibilities:

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

Company law requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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

In so far as we are aware:

Auditors

The auditors, Haysmacintyre LLP, were re-appointed during the period in accordance with Section 485 of the Companies Act 2006.

The report of the Trustees has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised for issue by the Board of Trustees on 25 June 2021 and signed on its behalf by:

Jim Gollan (Chair of Trustees)

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2021

Brain Research UK is the working name of Brain Research Trust

Independent auditor’s report to the members of Brain Research Trust

Opinion

We have audited the financial statements of Brain Research Trust for the year ended 31 March 2021 which comprise of the Statement of Financial Activities, Balance Sheet, Cashflow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report and the Chair’s statement. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

17

BRAIN RESEARCH TRUST

AUDIT REPORT FOR THE PERIOD ENDED 31 MARCH 2021

Brain Research UK is the working name of Brain Research Trust

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 25, 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the environment in which it operates, we identified that the principal risks of noncompliance with laws and regulations related to data protection legislation and employment (including taxation), and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

17

BRAIN RESEARCH TRUST

AUDIT REPORT FOR THE PERIOD ENDED 31 MARCH 2021

Brain Research UK is the working name of Brain Research Trust

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. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Siobhan Holmes (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

Date: 25 June 2021

18

BRAIN RESEARCH TRUST REPORT AND ACCOUNTS STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

Notes Unrestricte
d Funds		 Restricted
Funds		 Endowment
Funds		 2021
(12 mth)		 2020
(18 mth)
£’000 £’000 £’000 £’000 £’000
Income and endowments
Donations and legacies 2 1,252 131 - 1,383 1,820
Investments 3 258 110 - 368
------------ ------------ ----------- ------------- --------
Total income 1,510 241 - 1,751 2,501
------------ ------------ ----------- ------------- ---------
Expenditure on
Raising funds:
Investment management
costs		 4 27 11 - 38 78
Fundraising 4 684 - - 684 1,129
------------ ------------ ----------- ------------- ---------
Total expenditure on funds 4 711 11 - 722 1,207
------------ ------------ ----------- ------------- ---------
Charitable activities:
Research 4 1,668 150 708 2,526 2,364
Information & awareness 4 63 - - 63 98
------------ ------------- ------------- ------------- ---------
Total expenditure on
charitable activities		 1,731 150 708 2,589 2,462
------------ ------------ ----------- ------------- ---------
Total expenditure 2,442 161 708 3,311 3,669
------------ ------------ ----------- ------------- ---------
Net income/(expenditure)
and net movement in funds
before gains/(losses) on		 (932) 80 (708) (1,560) (1,168)
investment assets
Net gains/(losses) on
investment assets		 7 1,579 - 670 2,249 (1,055)
------------ ------------ ----------- ------------- ---------
Net income/(expenditure) 647 80 (38) 689 (2,223)
------------ ------------ ----------- ------------- ---------
Transfers between funds (209) 209 -
 -
Net movement in funds 647 (129) 171 689 (2,223)
Reconciliation of funds
Total funds brought forward as
At 31 March 2020 12 7,352 269 3,264 10,885 13,108
----------- ------------- ------------- --------- -----------
At 31 March 2021 12 7,999 140 3,435 11,574 10,885
====== ======= ======= ======= =======

There are no recognised gains and losses other than those shown in the above Statement of Financial Activities.

The notes on pages 21 to 36 form part of these accounts.

20

BRAIN RESEARCH TRUST BALANCE SHEET AS AT 31 MARCH 2021

REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Company registration No. 07345516 (England and Wales) (Brain Research UK is the working name of Brain research Trust)

Notes 2021 2020
£’000
£’000		 £’000
£’000
Fixed assets
Investments 7 14,067 13,548
---------------- ----------------
Total fixed assets 14,067 13,548
Current assets
Sundry debtors 8 427 711
Investments 1,844 582
Cash at bank and in hand 407 236
-------------- --------------
Total current assets 2,678 1,529
Liabilities
Creditors falling due within one year 9 (2,582) (1,974)
--------------- ---------------
Net current assets 96 (445)
----------------- -----------------
Total assets less current liabilities 14,163 13,103
Creditors falling due after one year 10 (2,589) (2,218)
----------------- -----------------
Net assets 11,574 10,885
=========== ===========
The funds of the charity:
Unrestricted Funds
Investment Fund 12 4,554 4,457
Grants Fund 12 2,445 2,145
---------------- ----------------
6,999 6,602
General Fund 1,000 750
---------------- ----------------
7,999 7,352
Restricted Funds
Restricted Funds 12 140 269
---------------- ----------------
140 269
Endowment Funds
Marks Endowment Fund 12 1,760 1,846
Muller Endowment Fund 12 - -
Sobell Endowment Fund 12 958 860
Watts Endowment Fund 12 717 558
---------------- ----------------
3,435 3,264
------------------ ------------------
11,574 10,885
=========== ===========

Approved and authorised for issue by the Board of Trustees on 25 June 2021 and signed on its behalf by:

..................................... Jim Gollan (Chair)

The notes on pages 21 to 36 form part of these accounts.

21

BRAIN RESEARCH TRUST STATEMENT OF CASH FLOWS

REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

Cash flows from operating activities:
Net cash used in operating activities
Cash flows from investing activities:
Net proceeds from sale of investments and
reinvestments
Net cash provided by investing activities
Cash flows from financing activities:
Change in cash equivalent in the period
Cash and cash equivalent at start of period
Cash and cash equivalent at end of period
Reconciliation of cash flows from operating
activities
Net income / (expenditure) for the period
Adjust for:
(Gains) / losses on investments
Dividends and interest from investments
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash used in operating activities
Analysis of cash and cash equivalents
Cash in hand
Cash equivalents on deposits
Total cash and cash equivalent
Analysis of changes in net debt
Cash and cash equivalents
Cash
Investment cash
Total
£’000
2,099		 2021
£’000
(666)
2,099
1,433
818
2,251
689
(2,249)
(368)
284
978
(666)
818
1,433
2,251

21

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

1. ACCOUNTING POLICIES

Company status

The company is a company limited by guarantee registered in England and Wales. The members of the company are the Trustees named on page 12 In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Basis of preparation of accounts

The financial statements have been prepared under the historical cost convention as modified to include the revaluation of investments. The format of the financial statements has been presented to comply with the Companies Act 2006, FRS102 The Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practice Accounting and Reporting by Charities (“SORP 2015”) (Second edition effective 1 Janaury 2019). The Charity is a Public Benefit Entity as defined by FRS102.

Going concern

The Trustees consider that there are no material uncertainties which would cast doubt on the Charity’s ability to continue as a going concern.

The accounts are approved during a period where there continued to be uncertainty as a result of the emergence and international spread of a coronavirus (COVID-19). The Charity, as a grant making organisation, has continued to meet its strategy of supporting ongoing research. It has assessed the potential impact on its fundraising activities in the current climate and has formulated a revised budget for the current year, which takes into account the uncertainty of returning to business as usual.

The Trustees have considered different scenarios in the current climate; this has included forecasting and cash flow forecasts for a 12 month period from signing the accounts. Whilst fundraising activities will reduce in the short term, and investment markets are more volatile, the Trustees are confident that the financial forecasts prepared support the going concern assumption.

The Charity has a strong reserve position and has available resources, as demonstrated by the level of general funds outlined above and the robust reserve policy. Our cash deposits could easily be drawn down should working capital be required. We believe that there are no material uncertainties that call into doubt the Charity’s ability to continue.

Income

All income is recognised once the Charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably.

Donations and legacies income includes donations and gifts in wills which are recognised where there is entitlement, probability of receipt and the amount of the gift is measurable.

Expenditure

Expenditure is recognised as soon as the related liability is incurred and has been classified under headings that aggregate all costs relating to that category. Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure.

Employment benefits, including holiday pay, are recognised in the period in which they are earned. Termination benefits are recognised in the period in which the decision is made and communicated to the relevant employee(s).

Expenditure on raising funds comprises fundraising costs and investment management costs.

Expenditure on charitable activities comprises expenditure directly related to the awarding of grants to institutions, and provision of information and awareness.

Support costs represent indirect costs relating to raising funds and the Charity’s charitable activities. Support costs, including governance costs, are allocated to activities on bases that represent the Trustees’ best estimate of actual use. The bases used to allocate costs to the above categories of expenditure are set out in note 4.

22

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021 (Brain Research UK is the working name of Brain Research Trust)

Governance costs comprise the costs of running the Charity, including strategic planning for its future development, auditors’ remuneration, certain legal costs and all costs of complying with constitutional and statutory requirements, such as costs of Board meetings and of preparing the statutory accounts.

Research grants

Grants payable are in respect of grants approved by the Trustees, having due regard for the recommendations of the Scientific Advisory Panel. The full value of the grants approved is accounted for when the grant awards or commitments are made.

Investment income

Income from fixed interest stocks, loans and deposits is included in the accounts on an accrual basis. Income from other securities is accounted for on a cash received basis.

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities.

Fixed assets and depreciation

Office and computer equipment with a cost of £500 or more are capitalised and depreciated on a straight-line basis of 25% per annum.

Investments

The Charity’s investments are of a kind that qualify as basic financial instruments. Investments are included in the balance sheet at fair value (bid price).

Realised gains are the difference between sales proceeds and the carrying value of the investment. The carrying value is the fair value at the beginning of the period or the purchase cost where the investment was acquired during the period.

Unrealised gains are the change in value of investments after taking into account any movements in investment holdings such as purchases and disposals of investments.

Realised and unrealised gains are accounted for within the Statement of Financial Activities.

Financial instruments

Basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable are accounted for on the following basis:

Cash and cash equivalents

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

Debtors and creditors

Debtors and creditors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognised as expenditure

Grant commitments for awards with expected payments exceeding twelve months have been discounted using market rates for cash matching the term of the liabilities with rates between 0.4% - 1% p.a.

Leases

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

Staff benefits

The Charity makes pension provision for its employees by contributing to a personal pension scheme of their

23

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021 (Brain Research UK is the working name of Brain Research Trust)

choice. All contributed costs are accounted for on the basis of charging the cost of providing pensions over the period when the Charity benefits from the employees' services The Charity has no further liability under the scheme. In October 2016 all employees not already in an approved scheme were auto-enrolled into a multi-employer pension scheme administered by the Peoples Pension.

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Termination benefits are accounted for on an accrual basis and in line with FRS 102.

Funds

Brain Research Trust consists of six funds as follows:

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives.

Designated funds are amounts that have been set aside at the discretion of the Trustees.

Restricted income funds comprise unexpended balances of donations and grants held in trust to be applied for specific purposes.

All the endowment funds are expendable. Each of the restricted and endowment funds are for the purpose of funding research into neurological conditions.

Allocation of costs to the Funds

Costs which are specific to an individual fund are charged to that fund. All other costs are charged to the unrestricted funds.

Critical accounting judgements and estimates and key sources of estimation uncertainty

In the application of these accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may ultimately differ from those estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The preceding accounting policies have been applied consistently in dealing with items which are considered material in relation to the Charity’s financial statements.

24

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

Unrestricted Restricted
2 DONATIONS and LEGACIES funds funds TOTAL
2021
2021 2021 (12 mth)
£’000 £’000 £’000
Individuals 413 - 413
Trusts, corporates & major donors 178 54 232
Income from events 181 - 181
Legacies 480 77 557
------------ ------------- --------------
1,252 131 1,383
======= ======== =========
Unrestricted Restricted
funds funds TOTAL
2020
2020 2020 (18 mth)
£’000 £’000 £’000
Individuals 689 - 689
Trusts, corporates & major donors 87 87 174
Income from events 853 - 853
Legacies 104 - 104
------------ ------------- --------------
1,733 87 1,820
======= ======== ========
Unrestricted Restricted
3 INVESTMENT INCOME funds funds TOTAL
2021
2021 2021 (12 mth)
£’000 £’000 £’000
Dividends and interest on
Investments 258 110 368
Deposit account interest -
------------ ------------- --------------
258 110 368
======= ======== ========
Unrestricted Restricted
funds funds TOTAL
2020
2020 2020 (18 mth)
£’000 £’000 £’000
Dividends and interest on
Investments 484 197 681
Deposit account interest -
------------ ------------- --------------
484 197 681
======= ======== ========

25

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

4 EXPENDITURE Direct Grants Support TOTAL
costs awarded costs (12 mth)
2021 2021 2021 2021
£’000 £’000 £’000 £’000
Raising funds
Investment management fees 37 - 1 38
Fundraising costs 644 - 40 684
------------ ------------- ------------- -------------
Total expenditure on raising funds 681 - 41 722
Research 118 2,351 57 2,526
Information & awareness 58 - 5 63
------------ ------------- ------------- -------------
Total charitable activities 176 2,351 62 2,589
------------- ------------- ------------- --------------
Total 857 2,351 103 3,311
======= ======= ======= =======
Direct Grants Support TOTAL
costs awarded costs (18 mth)
2020 2020 2020 2020
£’000 £’000 £’000 £’000
Raising funds
Investment management fees 76 - 2 78
Fundraising costs 1,060 - 69 1,129
------------ ------------- ------------- -------------
Total expenditure on raising funds 1,136 - 71 1,207
Research 165 2,115 84 2,364
Information & awareness 88 - 10 98
------------ ------------- ------------- -------------
Total charitable activities 253 2,115 94 2,462
------------ ------------- ------------- --------------
Total 1,389 2,115 165 3,669
======= ======= ======= =======

See note 20 for details of grants awarded in 2021

Support costs of £45k (2020: £74k) comprise of property and office costs and other sundry expenses and are allocated on the basis of staff costs. Governance costs of £60k (2020: £91k) are regarded as support costs and are apportioned to fundraising, research and charitable activity proportionately to the value attributed to each of these activities.

26

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

SUPPORT COSTS

SUPPORT COSTS
Management
Legal and professional
Telecomms and IT
Human resources
Governance
Management
Legal and professional
Telecomms and IT
Human resources
Governance		 Information
TOTAL
Raising funds
Research
& awareness
(12 mth)
2021
2021
2021
2021
£'000
£'000
£'000
£'000
1
-
-
1
5
4
1
10
19
11
3
33
-
1
-
1
15
43
2
60
40
59
6
105
Information
TOTAL
Raising funds
Research
& awareness
(18 mth)
2020
2020
2020
2020
£'000
£'000
£'000
£'000
5
3
1
9
1
1
-
2
35
20
6
61
1
1
-
2
29
59
3
91
71
84
10
165
2021 2020
5 NET INCOME (12 mth) (18 mth)
£’000 £’000
This is stated after charging:
Auditor remuneration - audit fees (excludes VAT) 13 13
- other fees (excludes VAT) 1 1
Operating lease charges 25 25
====== ======

The Trustees did not receive any remuneration during the period. No trustees (2020; 3) were reimbursed (2020: £1,852) for travel expenses. No amounts were paid to third parties on behalf of the trustees.

27

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

6 SALARIES AND EMPLOYMENT COSTS

SALARIES AND EMPLOYMENT COSTS
2021 2020
(12 mth) (18 mth)
£’000 £’000
Salaries 293 282
Social security costs 28 30
Pension costs 23 20
Freelancers 125 229
---------- ----------
469 561
====== ======

The average headcount of staff employed by the charity during the period was 6 (2020: 4)

2021 2020
(12 months) (18 months) 2021 2020
Headcount Headcount FTE FTE
Research 1.5 1.0 1.1 0.7
Information and awareness 0.4 0.3 0.3 0.2
Raising funds 3.3 1.9 2.8 1.7
Governance 0.7 0.4 0.4 0.3
5.9 3.6 4.6 2.9

During the period, the number of senior employees who received emoluments falling within the following ranges was:

following ranges was:
2021 2020
(12 months) (18 months)
No. No.
£120,000 - £129,999 - 1
£80,000 - £89,999 1 -
---------- ---------
1 1
====== =====

During the period, these staff received employer pension contributions of £6,720 (2020: £8,640).

Key management personnel

In 2021, 3 (2020: 3) members of staff formed the senior management team. Their remuneration amounted to £207,000 including social security and pension costs (£225,000 in the 18-month period 2018/2020).

28

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

7 INVESTMENTS

(a) Equities

Equities comprise ordinary shares quoted on recognised stock exchanges together with hedge fund investments in the alternative investment market.

Unrestricted Endowment TOTAL
funds funds
2021 2021 2021
£’000 £’000 £’000
Brought forward at 1 April 2020 4,029 5,007 9,036
Additions 3,128 1,341 4,469
Disposals (3,643) (1,561) (5,204)
Net (loss)/gain on revaluation 1,555 667 2,222
------------ ------------- ------------
Market value at 31 March 2021 5,069 5,454 10,523
------------- ------------- ------------
Historical cost at 1 April 2020 7,158 2,924 10,082
======= ======= =======
Historical cost at 31 March 2021 6,570 2,816 9,386
======= ======= =======
Unrestricted Endowment TOTAL
funds funds
2020 2020 2020
£’000 £’000 £’000
Brought forward at 1 October 2018 4,973 5,382 10,355
Additions 5,260 2,159 7,419
Disposals (5,227) (2,135) (7,362)
Increase in unrealised (losses)/gains (882) (494) (1,376)
------------ ------------- ------------
Market value at 31 March 2020 4,124 4,912 9,036
------------- ------------- ------------
Historical cost at 1 October 2018 5,376 2,304 7,680
======= ======= =======
Historical cost at 31 March 2020 7,158 2,924 10,081
======= ======= =======

(b) Fixed interest securities

Fixed interest securities are quoted on recognised stock exchanges

Unrestricted Endowment TOTAL
funds funds
2021 2021 2021
£’000 £’000 £’000
Brought forward at 1 April 2020 1,840 1,947 3,787
Additions 743 319 1,062
Disposals (1,185) (508) (1,693)
Increase in unrealised gains/(losses) 18 8 26
------------ ------------- ------------
Market value at 31 March 2021 1,416 1,766 3,182
====== ======= =======
Historical cost at 1 April 2020 2,610 1,066 3,676
====== ======= =======
Historical cost at 31 March 2021 2,204 945 3,149
====== ======= =======

29

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

Unrestricted Endowment TOTAL
funds funds
2020 2020 2020
£’000 £’000 £’000
Brought forward at 1 October 2018 1,801 1,929 3,730
Additions 844 346 1,190
Disposals (1,033) (422) (1,455)
Increase in unrealised gains/(losses) 228 93 321
------------ ------------- ------------
Market value at 31 March 2020 1,840 1,946 3,786
====== ======= =======
Historical cost at 1 October 2018 2,414 1,093 3,507
====== ======= =======
Historical cost at 31 March 2020 2,610 1,066 3,676
====== ======= =======

The total investment holding included unrealised investments gain of £2,222k (2020: losses £1,376k) on equities and £26k gain (2020: gain £321k) on fixed interest securities, a total unrealised gain of £2,249k (2020: losses £1,055k).

2021 2020
£’000 £’000
(c) Cash held for investment purposes 362 726
======== ========
(d) Unrealised forex gains/(losses) - -
======== ========
(e) Total at bid-price (including cash) 14,067 13,548
======== ========
(f) Gains/(losses) on investments
Unrestricted Endowment TOTAL
funds funds
2021 2021 2021
£’000 £’000 £’000
Net gains/(losses) on investment assets 1,579 670 2,249
====== ======= =======
Unrestricted Endowment TOTAL
funds funds
2020 2020 2020
£’000 £’000 £’000
Net gains/(losses) on investment assets (655) (400) (1,055)
====== ======= =======
8 SUNDRY DEBTORS 2021 2020
£’000 £’000
Legacies 4 37
Other debtors 54 23
Prepayments 369 651
------------- -------------
427 711
====== ======

30

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

9 CREDITORS FALLING DUE WITHIN ONE YEAR

2021 2020
£’000 £’000
Trade creditors 119 200
Grants payable 2,432 1,751
Accruals 20 12
Social security and other taxes 9 9
Other creditors 2 2
------------- -------------
2,582 1,974
====== =======
10 CREDITORS FALLING DUE AFTER ONE YEAR
2021 2020
£’000 £’000
Grants payable 2,589 2,218
------------- -------------
2,589 2,218
====== =======
11 GRANTS PAYABLE
2021 2020
(12 months) (18 months)
£’000 £’000 £’000
 £’000
Balance at start of period 3,969 5,377
Grants awarded in period 2,351 2,099
Released prior year provision 36 52
Adjustment for time value of money (40) (36)
__ ___
2,347 2,115
Grant Invoices paid in period (1,295) (3,523)
------------ ------------
Balance at end of period 5,021 3,969
======= =======
Payable within one year 2,432 1,751
Payable after one year 2,589 2,218
------------ ------------
5,021 3,969
======= =======

Note 20 shows details of grants awarded in the period

During the period, grants totalling £2,351k were awarded to research institutions as per note 20. Each grant is made in accordance with the terms of the individual trust funds held by the charity. The total grants made during the period, as analysed by fund in note 12, were:

2021

2020

31

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

£’000 £’000
Grants fund 1,608 1,235
Marks fund 535 -
Sobell fund 146 213
Watts 26 611
Other restricted funds 40 40
---------- ----------
2,355 2,099
====== ======

12 STATEMENT OF FUNDS

Total Grants Other Investment
2020 income payable expenditure gains Transfers 2021
£’000 £’000 £’000 £’000 £’000 £’000 £’000
UNRESTRICTED
FUNDS
General fund 750 - - - - 250 1,000
Designated
funds
Investment fund 4,457 1,511 - (929) 1,579 (2,064) 4,554
Grants fund 2,145 - (1,514) - - 1,814 2,445
-------- --------- ---------- ------------ ------------ ----------- ------------
Total unrestricted
funds 7,352 1,511 (1514) (929) 1,579 - 7,999
===== ====== ====== ====== ====== ====== ======
RESTRICTED
FUND
Marks income
fund 43 62 - (6) - (99) -
Sobell income
fund 32 30 - (3) - (59) -
Watts income
fund 34 19 - (2) - (51) -
Other funds 160 130 (130) (20) - - 140
-------- --------- ---------- ------------ ------------ ----------- ------------
Total restricted
funds 269 241 (130) (31) - (209) 140
===== ====== ====== ====== ====== ====== ======
ENDOWMENT
FUNDS
Marks fund 1,846 - (535) - 350 99 1,760
Sobell fund 860 - (146) - 185 59 958
Watts fund 558 - (26) - 134 51 717
--------- ---------- ---------- ------------ ------------ ----------- ------------
Total endowment
funds 3,264 - (707) - 669 209 3,435
====== ====== ====== ====== ====== ====== ======
Total funds 10,885 1,752 (2,351) (960) 2,248 - 11,574
====== ====== ====== ====== ====== ====== ======

Designated funds represent amounts set aside by the Trustees as disclosed within the Trustees’ Report.

All the Endowment funds are expendable. Each of the Restricted and Endowment Funds are for the purpose of funding research into Neurological Conditions.

The Marks fund is for research into the first causes of deterioration of memory. The Sobell fund is for a chair of neurophysiology at the Institute of Neurology. The Watts fund is for research into motor neurone disease.

32

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

13 STATEMENT OF FUNDS – 2020 COMPARATIVES

01-Oct Total Grants Other Investment
2017 income payable expenditure gains Transfers 2020
£’000 £’000 £’000 £’000 £’000 £’000 £’000
UNRESTRICTED
FUNDS
General fund 750 - - - - - 750
Designated funds
Investment fund 5,334 2,217 (1,430) (655) (1,009) 4,457
Grants fund 2,388 - (1,252) - - 1,009 2,145
-------- --------- ---------- ------------ ------------ ----------- -----------
Total unrestricted
funds 8,472 2,217 (1,252) (1,430) (655) - 7,352
===== ====== ====== ======= ======== ====== ======
RESTRICTED
FUND
Marks income fund - 73 - (30) - - 43
Sobell income fund - 61 - (29) - - 32
Watts income fund - 63 - (29) - - 34
Other funds 149 87 (40)
(36)		 - - 160
-------- --------- ---------- ------------ ------------ ----------- -----------
Total restricted
funds 149 284 (40) (124) - - 269
===== ====== ====== ======= ======== ====== ======
ENDOWMENT
FUNDS
Marks fund 1,990 - - - (144) - 1,846
Sobell fund 1,198 - (212) - (126) - 860
Watts fund 1,299 - (611)
-		 (130) - 558
-----------
--------- ---------- ---------- ------------ ------------ ----------- -
Total endowment
funds 4,487 - (823) - (400) - 3,264
======= ====== ====== ======= ======== ====== ======
Total funds 13,108 2,501 (2,115) (1,554) (1,055) - 10,885
======= ====== ====== ======= ======== ====== ======
14 FINANCIAL INSTRUMENTS 2021 2020
£’000 £’000
Financial instruments measured at fair value through the SoFA (a)
Listed investments 13,705 12,822
Financial assets measured at amortised cost (b)
Cash 2,613 1,544
Debtors 427 711
Financial liabilities measured at amortised cost (c)
Creditors (5,171) (4,192)
------------
------------- -
Net financial assets at amortised cost 11,574 10,885
======= =======

(a) Financial assets measured at fair value.

(b) Financial assets include cash, trade and, staff loans and other debtors.

33

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

(c) Financial liabilities include trade creditors, other creditors, accruals and grants payable.

15 ANALYSIS OF NET ASSETS

15 ANALYSIS OF NET ASSETS
Investment Other Total
BETWEEN FUNDS assets assets assets
2021 2021 2021
£’000 £’000 £’000
Investment, Grants and General funds Reserve 9,903 (1,904) 7,999
Marks fund 2,124 (364) 1,760
Sobell fund 1,168 (210) 958
Watts fund 872 (155) 717
Restricted funds - 140 140
-------------- -------------- --------------
14,067 (2,493) 11,574
======== ======== ========
ANALYSIS OF NET ASSETS – 2020
16 COMPARATIVES
Investment Other Total
assets assets assets
£’000 £’000 £’000
Investment, Grants and General funds
Reserve		 9,620 (2,268) 7,352
Marks fund 1,490 356 1,846
Sobell fund 1,219 (359) 860
Watts fund 1,219 (661) 558
Restricted funds - 269 269
----------- ----------- -----------
13,548 (2,663) 10,885
======= ======= =======
17 OPERATING LEASES 2021 2020
£’000 £’000
Commitment expiring:
Within one year 25 25
---------- --------
25 25
====== =====

At 31 March 2021, the Charity had the future minimum operating lease payments as set out above. The charge to the Statement of Financial Activities is £25k (2020: £25k)

18 PENSION COMMITMENTS

The Charity operated a defined contribution scheme for its employees. The assets of the scheme are held separately from those of the Charity in independently administered funds. The pension cost charge represents contributions payable by the Charity which amounted to £23k (2020: £21k). Contributions totalling £2k (2020: £2k) were payable to the fund at the balance sheet date and are included in creditors.

34

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

19 RELATED PARTY

The only related party transactions made in the period relate to payments made to key management personnel who are the senior management team (see note 6 for details) and reimbursement to Trustees (see note 5 for details).

20 GRANTS AWARDED IN 2020-21

Description
Disease
PhD Studentships (Grants Fund)
Isobel Chick, UCL Queen Square IoN
ABI
Face-to-face comprehension and production in aphasia: do
multimodal non-arbitrary cues play a role?
Lauren Gay, Imperial College London
Neuro-oncology
Defining mechanisms and new treatments for headache and
raised intracranial pressure
Clarissa Rocca, UCL Institute of Neurology
HFP (Cluster
headache)
Investigating channel and pump genes in cluster headache
Covid-19 grant extension
PhD sub-total
Project Grants (Grants Fund)
Mr Ryan Mathew, University of Leeds
Brain tumours
Characterising and therapeutically targeting the margin zone of
infiltrative glioma using new in vivo patient-derived craniotomy
orthotopic models
Dr Manav Pathania, University of Cambridge
Brain tumours
(DIPG)
Adaptive immune responses in traumatic brain injury
Dr Megan Crawford, University of Strathclyde
Headache
(migraine)
Manipulating microglial/macrophage function via CSF1R to improve
functional recovery and neuroplasticity after stroke
Professor Khuloud Al-Jamal, King’s College London
Brain
tumours
Can immunogenic cell death be exploited in brain cancer?
Covid-19 grant extensions
Project Grants sub-total		 Total
£
108,313
120,000
119,917
59,950
408,180
296,355
297,918
192,806
299,346
80,682
1,167,107

35

BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

(Brain Research UK is the working name of Brain Research Trust)

Yizhou Wan, RCS/University of Cambridge
Fellowship
Other Research (Endowment & Restricted Funds)
Sobell ‘Chair of Neurophysiology’
Neurophysiology
Professor Antonella Spinazzola, UCL Institute of Neurology
Parkinson’s disease
Brain Research UK Miriam Marks Professorial Research
Felllow in Neurodegenerative Diseases: Mitochondrial DNA
dysfunction at the nexus of organelle interactions causing PD
Dr jonathan Rohrer, UCL Institute of Neurology
Frontotempor
al dementia
Sobell Department of Motor Neuroscience & Movement
Administration support costs (Restricted Fund)
Covid-19 grant extension
Other Research sub-total
Total grants awarded
Release of previous year’s adjustment of the time value of
grants payable after one year
Adjustment fotr the time value of grants payable after one
year
Grand Total		 32,500
145,937
230,438
304,931
40,000
26,365
747,671
2,355,458
35,485
(40,171)
2,350,772

The details of grant awards made in previous years can be found in the annual accounts available at: https://www.brainresearchuk.org.uk/annual-review-and-accounts

36