BRAIN RESEARCH TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31st MARCH 2022
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 2022 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, develop new treatments and 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 £1,608,000 (2020/21: £1,383,000) and income from our investment portfolio of £421,000 (2020/21: £368,000). Donations included funding of £293,369 from the Medical Research Charities COVID Support Fund for Early-Career Researchers.
Our research
Again, this year, we were delighted to award more research funding than anticipated.
During the period, and notwithstanding the on-going Covid-19 challenges, we awarded grants of £2,203,000 (2020/21: £2,355,000) to institutions throughout the UK as part of our commitment to the funding of vital research.
We awarded three PhD Studentships and four Project Grants following national calls. We funded ongoing 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 £64,000 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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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
Review of the year
Our 50th anniversary in October 2021 was cause for reflection, rather than celebration. Technological advances made during the last 50 years have driven remarkable progress in our understanding of the brain, in both health and disease. Since the very first CT scan of a human brain in 1971, continued advances in brain imaging have revolutionised our understanding of the living brain and the changes related to different diseases. However, despite the remarkable advances made, we are all too aware of just how much remains to be done as progress in some disease areas remains extremely limited.
Our determination remains as resolute today as it was in 1971, to help all those with a neurological condition to live better, longer. As a result of the on-going difficulties of Covid-19 throughout 2021-2022, like many charities, we continued to adapt our activities during the year.
Fundraising activities
Our fundraising plans were severely impacted by the Covid-19 pandemic and this impact was particularly felt in our flagship fundraising stream, the London Marathon. The 2020 marathon was cancelled entirely and the 2021 event took place later in the year, October as opposed to the traditional April date. Despite the challenges faced by our 206 runners, the team completed the 26.2 miles raising an astounding £600,000. We increased our visibility and stewardship of our runners by working with four other neurological charities; this included pre-race collaboration at the expo, and race day collaboration at cheering points along the course and at the finish.
Additionally, we continued our partnership with three other charities on the virtual Brainathlon challenge, which involved a walk, run and climb that took place in October.
A number of other physical activities began to take place again, notably the Great North Run. We also had a number of people undertake challenges ranging from climbing Scafell Pike to completing a Tough Mudder in Yorkshire to cycling from Lands End to John O’Groats.
We started work on a major donor strategy with a view to events being held during 2022/23.
We continued with our strategy to develop our communications activities and had a year on year increase in website traffic of 107.15% and an increase of 19.64% in our social media followers. In addition we saw an increase of 12% in online donation.
We continued to increase engagement with our supporters, and with our digital stewardship activities for regular supporters.
In August 2019, at the age of 33, Louise suffered a seizure that led to the diagnosis of a brain tumour. The diagnosis was a grade 2/3 diffuse astrocytoma. Her world turned upside down. Being an A&E nurse, she fully understood that life can change at any moment, but never believed it would be her own life.
She had successful surgery that removed most of the tumour, but was told that around 20% of the tumour remained – and that the chances were high that this would eventually grow further and develop into a high-grade tumour.
Louise found it difficult to deal with the emotional aspects of her diagnosis, and her neuropsychologist recommended that she try running. During the first Covid lockdown, she thought she might as well give this a go and started the ‘Couch to 5k’ program. She continued from there and in October 2021, just 18 months after her first foray into running, she completed the London Marathon as part of Team #BrainResearch. She ran with friend Emma and together they raised the staggering sum of £10,500!
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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
During the year, in light of the pandemic and exceptional applications, we again awarded more research funding than originally anticipated. We sustained our core funding of two national calls for PhD Studentships and Project Grant funding. In addition, we delivered an Impact Report to reflect the culmination of our 50 year anniversary in October 2021.
Our fundraising activity was particularly disrupted by the pandemic in 2020/21 with income falling by 24% compared to our budget for the year. As a result of this we were able to make revised plans for 2021/22 which has lead to 16% increase in fundraising income compared to last year.
Further information on our financial performance is provided in the financial review section on page 6.
Charitable activities
During the year, in light of the pandemic and exceptional applications, we again awarded more research funding than originally anticipated. We sustained our core funding of two national calls for PhD Studentships and Project Grant funding. Research grants of £2,203,000 were awarded, which included £64,000 of Covid-19 related extension funding, representing an increase of 25% from the original budget set at the start of the year.
In addition, we delivered an Impact Report to reflect the culmination of our 50 year anniversary in October 2021.
For the year 2022/23, we hope to award grants of over £1,900,000. 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 continue to emerge from Covid-19, the ongoing war in Ukraine and deepening economic challenges mean that uncertainty remains about the fundraising landscape. However, Brain Research UK remains nimble and adaptable to changing circumstances and committed to funding the best science to achieve the greatest impact for people affected by neurological conditions
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 or is to be pursued.
Objectives for 2022/23
Our objectives for research activities in 2022/23 are:
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To sustain our core funding of two national calls for PhD Studentships and Project Grant funding
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• To undertake a review of our Research Strategy to ensure we are funding the neurological areas with greatest unmet need
Our objectives for fundraising activities in 2022/23 are:
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To develop further our unique, as well as collaborative, event and challenge activities
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• To develop our major donor and special event activities
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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
The Trustees understand that the benefits of neurological research is 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 their donations is an important consideration for those who give so generously to support the Charity’s work.
Achievements and performance
Despite the ongoing pandemic, the 12-month period to 31st March 2022 delivered in line with the original budget that included expected regular giving, a strong performance by our London Marathon runners and a solid contribution from our community fundraising.
In light of the pandemic, our plans to develop further our major donor fundraising activities focussed on developing plans for events in 2022/23, one of which is to take place in June 2022.
Following national calls, we awarded three PhD studentships, two in brain tumours and one in brain and spinal cord injury. We also awarded four project grants: two in brain tumours and one in each of brain and spinal cord injury and headache and facial pain.
In March 2022, our Impact Report was submitted to the Board of Trustees.
As part of our strategic partnership plan, we continued with our collaborative fundraising activities: the London Marathon and Brainathlon and the 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.
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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
Financial review
| 2021-22 | 2020-21 | |
|---|---|---|
| Results and review of the period under review | £’000 | £’000 |
| Total income | 2,029 | 1,751 |
| Expenditure on raising funds | (844) | (722) |
| --------------- | --------------- | |
| 1,185 | 1,029 | |
| Expenditure on Research | (2,330) | (2,526) |
| Expenditure on Information & Awareness | (74) | (63) |
| Increase/(decrease) in investment values | 283 | 2,249 |
| --------------- | --------------- | |
| Net increase/(decrease) in funds | (937) | 689 |
| ======= | ======= |
Donations
Total income includes donations of £1,608,000 received during the 12 month period (£1,383,000 in 2020/21). These comprise: event income of £501,000, individual giving income of £372,000, legacies of £437,000, grant income of £184,000 and trusts, corporate, major donor income of £114,000. 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 2022 are £14,041,000 (fixed assets) and £1,385,000 (current assets). This represents a fall in the balances from 2020/21 which were £14,067,000 and £1,844,000 respectively. The fall is due to the deficit of £937,000 during the year.
Our investment portfolio was heavily impacted by the Covid-19 pandemic in the early part of 2020 just prior to the start of the 2020-21 financial year. The recovery of the investment market during the 2020-21 period contributed to the significant increase in the valuation of £2,249,000 in the prior year.
During 2021-22 investment markets have steadied leading to an unrealised gain of £283,000 on our portfolio valuation and this is reflected in the income and expenditure account.
Our investment income for the year is £421,000 compared to £368,000 for the previous year.
Further information about our investment performance is given in the investment policy section and note 8 of the accounts.
Research funded
Our aim is to improve the lives of those living with neurological conditions – to help people live better, longer. Our objects allow us to fund research into all neurological conditions. This is a broad remit, within which some disease areas have a higher profile and a higher level of research funding than others.
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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
Following a review in 2016, we identified three disease areas where there is a particular disparity between the level of unmet need and the level of current research investment: brain tumours, brain and spinal cord injury, and headache and facial pain. We determined to focus our research funding on these three areas in the short- to medium-term, rather than spreading our funding more thinly across the full range of neurological conditions
This year, we awarded research funding totalling £2,203,000.
We invested £1.5 million in research in these priority areas, in the form of four new project grants and three PhD studentships.
We also provided an extra £60,000 of funding to existing grant-holders, to help them overcome the disruption caused by Covid; this is further to the £130,000 awarded for Covid extensions last year.
In addition, we funded our second joint fellowship with the Royal College of Surgeons. Their Surgical Research Fellowships offer junior trainee surgeons the opportunity to obtain research training, providing one year’s salary and some research costs. We co-funded neurosurgical trainee Harsh Bhatt, who subsequently went on to receive one of our PhD studentships.
Through the Sobell Endowment, we continued to provide core funding to support what is now the Department of Neuromuscular Diseases and its Head, Professor Linda Greensmith and renewed our funding this year with a new three-year grant of £479,000.
Note 22 in the accounts details the extensive programme of research funded by the Charity during the 12 month financial period to 31st March 2022.
Around 4,300 people are diagnosed with a lowgrade glioma (LGG) every year in the UK, predominantly teenagers and young adults.
Whilst low-grade glioma is a slow-growing tumour, it ultimately progresses to high-grade glioma (HGG). There is no treatment that can halt this deadly transformation. The only treatments available are surgery for diagnosis and to ‘debulk’ the tumour, followed by radiotherapy, and then a prolonged surveillance period using MRI to pick up tumour progression. When this progression occurs, the prognosis is around two years.
Neurosurgeon Richard Mair proposes that the prolonged surveillance period in people with low-grade glioma is the perfect time to intervene. He believes that patient prognosis could be extended significantly by intervening whilst the cancer remains low-grade, rather than waiting for it to progress.
The problem is that little is known about how and why LGG progresses to HGG and there are no treatments to block this progression. With our funding, Richard is investigating the changes that underlie tumour progression, with the ultimate aim of identifying new therapeutic targets so that drugs can be developed or repurposed to halt progression.
This represents a key step on the pathway towards the development of a treatment that could block the progression from low-grade to high-grade glioma and significantly improve the outlook for the young patients typically affected by this disease.
Information and awareness
During the period to 31st March 2022, our information and awareness expenditure was £74,000 (2020/21:£63,000) and this reflected updates to our website and general communication activities.
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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
Future plans
Having approved our 2020-2023 Strategy in December 2019, Covid has meant that activities needed to be adapted if not curtailed. During 2022/23, we will revisit and adapt the strategy as we continue to emerge from the pandemic.
Our focus remains 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.
Our strategy will continue to include the following:
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Research: we will continue to fund world class, impactful neurological research.
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Collaboration: we will work collaboratively, across both fund-seeking and grant-making activities, with likeminded organisations with shared purpose.
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Fundraising: we will focus on developing our existing flagship fundraising streams, such as the London Marathon, and will seek to grow sustainable income from major donor and corporate fundraising channels.
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Communications: we will diversify our communications activities to ensure that we retain existing, and attract new, supporters.
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Organisation: we will focus on being a lean, agile, modern and adaptable organisation that can mobilise and respond quickly to changing circumstances.
Financial performance
The Charity received income of £2,029,000 during the year to 31st March 2022 (2020/21: £1,751,000). Notably we were able to increase our income from fundraising from £1,383,000 to £1,608,000 during the year and were able to benefit from increased income from investments (£421,000, compared to £368,000 during 2020/21).
As can be seen in Notes 2 and 3, the Charity’s income comes from a number of diverse sources. In the previous year the Charity was heavily impacted by the disruption caused to our events programme by the pandemic. The London Marathon represents our flagship fundraising event and the absence of this in 2020, and further disruption during 2021, caused our income to fluctuate year on year. With the most recent marathon taking place in October 2021, and other smaller scale events becoming viable again, we were able to significantly increase our income from events from £181,000 to £501,000 this year.
This increase in income has offset smaller falls in income from individuals, trusts and corporates with this fundraising stream becoming more challenging post lockdown. In addition, the Charity was successful in applying for funding from the Medical Research Charities COVID Support Fund for Early-Career Researchers and £184,098 of income has been recognised in the 2021/22 financial year.
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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
Despite the fundraising challenges posed by the pandemic and economic uncertainty, we maintained our commitment to research by spending £2,404,000 on our charitable activities (2020/21: £2,589,000). This includes direct research spend of £2,351,000 (as outlined in Note 18). This means that for every pound we spent during 2021/22, 74 pence was spent on our charitable activities (2020/21: 78 pence).
Due to the increase in our investment portfolio valuation, an unrealised gain of £283,000 was recognised during the year (2020/21: £2,249,000), which leaves the year with a deficit of £937,000. This contrasts to 2020/21 where a surplus of £689,000 was recognised but this was largely due to the significant unrealised investment gains made during the year as the investments markers rebounded after the fall at the beginning of the pandemic.
The impact of the deficit on our funds position can be seen below.
Funds
The Charity’s total funds at 31st March 2022 were £10,637,000 (2020/21: £11,574,000).
The funds are split as follows:
| 2021/22 | 2020/21 | |
|---|---|---|
| General Funds | £ 925,000 | £ 1,000,000 |
| Designated Funds |
£ 6,556,000 | £ 6,999,000 |
| Restricted Funds |
£ 156,000 | £ 140,000 |
| Endowment Funds |
£ 3,000,000 | £ 3,435,000 |
| £10,637,000 | £11,574,000 |
----- Start of picture text -----
2021/22 General Funds
9%
Endowment
Funds
28%
Designated
Restricted Funds
Funds 62%
1%
----- End of picture text -----
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 budgeted non-grant expenditure from our 2022/23 budget comes to £925,000 and this is therefore the balance reflected in our general funds.
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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
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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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
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 diect research spend amounting to £2,351,000 and a further £2,593,000 held in a designated fund for future research.
The Charity has assessed the on going impact on its fundraising activities in the current climate and formulated a budget for the forthcoming year, which has taken into account the uncertainty of returning to business as usual. The budget for 2022/23, similar to the revised budget for this year, is cautious and reflects financial repercussions of the pandemic and the current economic uncertainty.
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 adapted budgets during 2020/21 and 2021/22 in order to maintain stability and take pragmatic actions. 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 in the last two years.
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 in 2021/22 and 2020/21.
Aside from the immediate risks posed by the current economic uncertainty, the Charity operates with the longterm 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 had to be adapted due to the pandemic with the focus now being on maintaining our current income portfolio. However, the principles of the strategy remain, and 2022/23 will be year of consolidation as well as seeking alternative fundraising streams.
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.
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BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
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 31st March 2022, a rolling return of 4.4% was achieved against a composite benchmark of 5.9%.
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REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
g 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 | Fourth Floor, 5 Chancery Lane, |
| London WC2A 1LG | |
| 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 | |
| Dr Allister Wilson (retired June 2021) | |
| Paul Wright | |
| Professor Joanna Wardlaw (appointed March 2022) | |
| Scientific Advisory Panel | Professor Kevin Talbot, Chair of Panel |
| Dr Faisal Amin | |
| Dr Anish Bahra (appointed January 2022) | |
| Professor Rob Brownstone | |
| Professor Alasdair Coles (resigned May 2021) | |
| Professor Liam Gray (appointed October 2021) | |
| Professor Oliver Hanemann | |
| Professor Henry Houlden (resigned May 2021) | |
| Professor Silvia Marino (appointed January 2022) | |
| Professor Simona Parrinello (resigned December 2021) | |
| Professor Alexandra Sinclair (resigned September 2021) | |
| Professor Willie Stewart (appointed January 2022) | |
| Professor Nick Ward | |
| Senior management | Caroline Blakely, Chief Executive |
| Snezana Bjelogrlic, Head of Finance | |
| Pippa Ball, Head of Fundraising |
Professional advisors Auditors Solicitors Haysmacintyre LLP Stone King LLP 10 Queen Street Place Boundary House London EC4R 1AG 91 Charterhouse Street London EC1M 6HR 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 TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
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 nine members (2020/21: 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.
The Investment Committee monitors the Charity’s investment performance, portfolio and policy recommending any changes in strategy to the Trustee Board. The terms of reference for this committee are regularly monitored and updated accordingly.
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 page13.
The Charity is a member of the Association of Medical Research Charities (AMRC), an umbrella organisation of the leading medical and health research charities in the UK. AMRC members aim to follow the highest standards of accountability in medical and health research funding. Membership of AMRC requires the use of independent peer review in the allocation of all grants for research.
Day-to-day running of the Charity is undertaken by the Chief Executive.
IT, telephony, database management, fundraising and financial consultancy services are provided by external service providers.
Appointment of trustees
Trustees are appointed by either invitation or recruitment to ensure the right balance of skills and experience on the Board and to stimulate the growth and development of the Charity. Selection is based on the ability to contribute to Charity management, business, and scientific, financial, investment, legal, fundraising, campaigning and marketing skills.
The term of appointment is three years, renewable twice in normal circumstances. As a result of the pandemic and the uncertainty it has created during the financial period, the Trustees agreed to appoint Jim Gollan and Jonathan Kropman for a further term even though they had already completed three terms. This was intended to provide stability while the Charity made the transition through the pandemic.
New trustees receive a thorough induction into the work of the Charity.
One new trustee was appointed during the financial period.
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.
14
BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
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.
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)
- The AMRC is an umbrella organisation of leading medical and health research charities in the UK. As a member, we follow the highest standards of accountability in medical and health research funding. Membership of AMRC requires the use of independent peer review in the allocation of all grants for research.
Fundraising Regulator (FR)
- The Fundraising Regulator is the UK’s independent regulator of charitable fundraising that ensures public protection, accountability and excellence in fundraising. Their Code of Fundraising Practice sets out the responsibilities that apply to fundraising carried out by charitable institutions and thirdparty fundraisers in the UK. As a member, we adhere to the highest standards and highlight our Supporter Charter.
Institute of Fundraising (IoF)
-
The IoF is the professional membership body for UK fundraising; as a member, we follow its recommendations.
-
Neurological Alliance (NA)
-
The NA is a coalition of more than 80 organisations working together to transform outcomes for the millions of people in England with a neurological condition. The NA keeps their members appraised of patients survey outcomes, any and all public policy changes that affect our beneficiaries and strengthen the voice of people affected by the neurological conditions.
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.
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:
-
Select suitable accounting policies and then apply them consistently;
-
Observe the methods and principles in the Charities SORP;
-
Make judgments and estimates that are reasonable and prudent;
-
State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business
15
BRAIN RESEARCH TRUST
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 Brain Research UK is the working name of Brain Research Trust
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:
-
There is no relevant audit information of which the charitable company's auditor is unaware; and
-
The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
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 21 June 2022 by:
and signed on its behalf
Jim Gollan
Jim Gollan (Chair of Trustees)
16
BRAIN RESEARCH TRUST
AUDIT REPORT FOR THE YEAR ENDED 31 MARCH 2022
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 2022 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:
-
give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022 and of the charitable company’s net movement in funds, including the 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.
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:
-
the information given in the Trustees’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors’ report included within the Trustees’ Annual Report have 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 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).
17
BRAIN RESEARCH TRUST
AUDIT REPORT FOR THE YEAR ENDED 31 MARCH 2022
Brain Research UK is the working name of Brain Research Trust
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:
-
adequate accounting records have not been kept by the charitable company; or
-
the charitable company 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’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
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:
-
Inspecting correspondence with regulators and tax authorities;
-
Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
-
Evaluating management’s controls designed to prevent and detect irregularities;
-
Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
-
Challenging assumptions and judgements made by management in their critical accounting estimates.
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.
18
BRAIN RESEARCH TRUST
AUDIT REPORT FOR THE YEAR ENDED 31 MARCH 2022 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:[21 June 2022]
19
BRAIN RESEARCH TRUST REPORT AND ACCOUNTS STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
| Notes | Unrestricted Funds |
Restricted Funds |
Endowment Funds |
2022 | 2021 | |
|---|---|---|---|---|---|---|
| £’000 | £’000 | £’000 | £’000 | £’000 | ||
| Income and endowments | ||||||
| Donations and legacies | 2 | 1,391 | 217 | - | 1608 | 1,383 |
| Investments | 3 | 296 | - | 125 | 421 | 368 |
| ------------ | ------------ | ------------ | ------------ | ------------ | ||
| Total income | 1,687 | 217 | 125 | 2,029 | 1,751 | |
| ------------ | ------------ | ------------ | ------------ | ------------ | ||
| Expenditure on | ||||||
| Raising funds: | ||||||
| Investment management costs | 4 |
62 | - | 26 | 88 | 38 |
| Fundraising | 4 | 756 | - | - | 756 | 684 |
| ------------ | ------------ | ------------ | ------------- | ------------ | ||
| Total expenditure on funds | 4 | 818 | - | 26 | 844 | 722 |
| ------------ | ------------ | ------------ | ------------- | ------------ | ||
| Charitable activities: | ||||||
| Research | 4 | 1,511 | 201 | 619 | 2,330 | 2,526 |
| Information & awareness | 4 | 74 | - | - | 74 | 63 |
| ------------ | ------------ | ------------- | ------------- | ------------ | ||
| Total expenditure on charitable activities |
1,585 | 201 | 619 | 2,404 | 2,589 | |
| ------------ | ------------ | ------------ | ------------- | ------------ | ||
| Total expenditure | 2,403 | 201 | 645 | 3,248 | 3,311 | |
| ------------ | ------------ | ------------ | ------------- | ------------ | ||
| Net income/(expenditure) and | ||||||
| net movement in funds before gains/(losses) on investment |
(716) | 16 | (520) | (1,220) | (1,560) | |
| assets | ||||||
| Net gains/(losses) on investment assets |
7 | 198 | - | 85 | 283 | 2,249 |
| ------------ | ------------ | ------------ | ------------- | ------------ | ||
| Net income/(expenditure) | (518) | 16 | (435) | (937) | 689 | |
| ------------ | ------------ | ------------ | ------------- | ------------ | ||
| Transfers between funds | - | - | - | - |
- | |
| Net movement in funds | (518) | 16 | (435) | (937) | 689 | |
| Reconciliation of funds | ||||||
| Total funds brought forward as | ||||||
| At 31 March 2021 | 12 | 7,999 | 140 | 3,435 | 11,574 | 10,885 |
| ------------ | ------------ | ------------ | ------------ | ------------ | ||
| At 31 March 2022 | 12 | 7,481 | 156 | 3,000 | 10,637 | 11,574 |
| ======= | ======= | ======= | ======= | ======= |
There are no recognised gains and losses other than those shown in the above Statement of Financial Activities.
The notes on pages 26 to 37 form part of these accounts.
20
BRAIN RESEARCH TRUST BALANCE SHEET AS AT 31 MARCH 2022
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 Company registration No. 07345516 (England and Wales) (Brain Research UK is the working name of Brain research Trust)
| Notes | 2022 | 2021 | |||
|---|---|---|---|---|---|
| £’000 | £’000 | £’000 | £’000 | ||
| Fixed assets Tangible fixed assets |
7 | 3 | - | ||
| Investments | 7 | 14,041 | 14,067 | ||
| -------------- | -------------- | ||||
| Total fixed assets | 14,044 | 14,067 | |||
| Current assets | |||||
| Sundry debtors | 8 | 691 | 427 | ||
| Investments | 1,385 | 1,844 | |||
| Cash at bank and in hand | 445 | 407 | |||
| -------------- | -------------- | ||||
| Total current assets | 2,521 | 2,678 | |||
| Liabilities | |||||
| Creditors falling due within one year | 9 | (3,112) | (2,582) | ||
| -------------- | -------------- | ||||
| Net current assets | (591) | 96 | |||
| -------------- | -------------- | ||||
| Total assets less current liabilities | 13,453 | 14,163 | |||
| Creditors falling due after one year | 10 | (2,816) | (2,589) | ||
| --------------- | --------------- | ||||
| Net assets | 10,637 | 11,574 | |||
| ========= | ========= | ||||
| The funds of the charity: | |||||
| Unrestricted Funds | |||||
| Investment Fund | 12 | 3.963 | 4,554 | ||
| Grants Fund | 12 | 2,593 | 2,445 | ||
| --------------- | --------------- | ||||
| 6,556 | 6,999 | ||||
| General Fund | 925 | 1,000 | |||
| --------------- | --------------- | ||||
| 7,481 | 7,999 | ||||
| Restricted Funds | |||||
| Restricted Funds | 12 | 156 | 140 | ||
| --------------- | --------------- | ||||
| 156 | 140 | ||||
| Endowment Funds | |||||
| Marks Endowment Fund | 12 | 1,866 | 1,760 | ||
| Sobell Endowment Fund | 12 | 381 | 958 | ||
| Watts Endowment Fund | 12 | 753 | 717 | ||
| --------------- | --------------- | ||||
| 3,000 | 3,435 | ||||
| --------------- | --------------- | ||||
| 10,637 | 11,574 | ||||
| ========= | ========= |
Approved and authorised for issue by the Board of Trustees on 21 June 2022 and signed on its behalf by:
Jim Gollan
..................................... Jim Gollan (Chair)
The notes on pages 26 to 37 form part of these accounts.
21
BRAIN RESEARCH TRUST STATEMENT OF CASH FLOWS
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
(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: Purchase of property, plant and equipment 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 3 724 |
2022 £’000 (1,148) 727 (421) 2,251 |
£’000 2,099 |
2021 £’000 (666) 2,099 1433 818 2,251 689 (2,249) (368) 284 978 (666) 407 1,844 2,251 At 31 March 2022 £'000 445 1,385 |
|
|---|---|---|---|---|---|
| 1,830 | |||||
| (937) (283) (421) (264) 757 |
|||||
| (1,148) | |||||
| 445 1,385 |
|||||
| 1,830 | |||||
| 2,251 (421) |
1,830 |
The notes on pages 26 to 37 form part of these accounts.
22
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(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 13 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 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.
23
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022 (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 2% - 5% p.a.
Leases
Rentals paid under operating leases are charged to income on a straight line basis over the lease term.
24
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022 (Brain Research UK is the working name of Brain Research Trust)
Staff benefits
The Charity makes pension provision for its employees by contributing to a personal pension scheme of their 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:
-
General fund (unrestricted)
-
Investment fund (designated)
-
Grants fund (designated)
-
Miriam Marks fund (expendable endowment)
-
Sobell fund (expendable endowment)
-
Watts fund (expendable endowment)
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.
25
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
| Unrestricted | Restricted | |||
|---|---|---|---|---|
| 2 | DONATIONS and LEGACIES | funds | funds | TOTAL |
| 2022 | 2022 | 2022 | ||
| £’000 | £’000 | £’000 | ||
| Individuals | 372 | - | 372 | |
| Trusts, corporates & major donors | 81 | 33 | 114 | |
| Income from events | 501 | - | 501 | |
| Legacies | 437 | - | 437 | |
| Grants | - | 184 | 184 | |
| -------------- | -------------- | -------------- | ||
| 1,391 | 217 | 1,608 | ||
| ======== | ======== | ======== | ||
| Unrestricted | Restricted | |||
| funds | funds | TOTAL | ||
| 2021 | 2021 | 2021 | ||
| £’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 | |||
| 3 | INVESTMENT INCOME | funds | funds | TOTAL |
| 2022 | 2022 | 2022 | ||
| £’000 | £’000 | £’000 | ||
| Dividends and interest on | ||||
| Investments | 296 | 125 | 421 | |
| Deposit account interest | - | |||
| -------------- | -------------- | -------------- | ||
| 296 | 125 | 421 | ||
| ======== | ======== | ======== | ||
| Unrestricted | Restricted | |||
| funds | funds | TOTAL | ||
| 2021 | 2021 | 2021 | ||
| £’000 | £’000 | £’000 | ||
| Dividends and interest on | ||||
| Investments | 258 | 110 | 368 | |
| Deposit account interest | - | |||
| -------------- | -------------- | -------------- | ||
| 258 | 110 | 368 | ||
| ======== | ======== | ======== |
26
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
| 4 | EXPENDITURE | Direct | Grants | Support | TOTAL |
|---|---|---|---|---|---|
| 2022 | 2022 | 2022 | 2022 | ||
| £’000 | £’000 | £’000 | £’000 | ||
| Raising funds | |||||
| Investment management fees | 87 | - | 1 | 88 | |
| Fundraising costs | 720 | - | 36 | 756 | |
| ------------- | ------------- | ------------- | ------------- | ||
| Total expenditure on raising funds | 807 | - | 37 | 844 | |
| Research | 155 | 2,121 | 54 | 2,330 | |
| Information & awareness | 69 | - | 5 | 74 | |
| ------------- | ------------- | ------------- | ------------- | ||
| Total charitable activities | 224 | 2,121 | 59 | 2,404 | |
| ------------- | ------------- | ------------- | -------------- | ||
| Total | 1,031 | 2,121 | 96 | 3,248 | |
| ======= | ======= | ======= | ======= | ||
| Direct | Grants | Support | TOTAL | ||
| costs | awarded | costs | |||
| 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 | |
| ======= | ======= | ======= | ======= |
See note 22 for details of grants awarded in 2021-22.
Support costs of £96k (2021: £103k) comprise of property and office costs and other sundry expenses and are allocated on the basis of staff costs. Governance costs of £55k (2021: £60k) are regarded as support costs and are apportioned to fundraising, research and charitable activity proportionately to the value attributed to each of these activities.
27
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
5 SUPPORT COSTS
| 5 SUPPORT COSTS |
|||||
|---|---|---|---|---|---|
| Information | TOTAL | ||||
| Raising funds | Research | & awareness | |||
| 2022 | 2022 | 2022 | 2022 | ||
| £'000 | £'000 | £'000 | £'000 | ||
| Management | 1 | - | - | 1 | |
| Legal and professional | 1 | - | - | 1 | |
| Telecomms and IT | 22 | 14 | 3 | 39 | |
| Human resources | - | - | - | - | |
| Governance | 15 | 39 | 1 | 55 | |
| 39 | 53 | 4 | 96 | ||
| Information | TOTAL | ||||
| Raising funds | Research | & awareness | |||
| 2021 | 2021 | 2021 | 2021 | ||
| £'000 | £'000 | £'000 | £'000 | ||
| Management | 1 | - | - | 1 | |
| Legal and professional | 5 | 4 | 1 | 10 | |
| Telecomms and IT | 19 | 11 | 3 | 33 | |
| Human resources | - | 1 | - | 1 | |
| Governance | 15 | 43 | 2 | 60 | |
| 40 | 59 | 6 | 105 | ||
| 6 | NET INCOME | 2022 | 2021 | ||
| £’000 | £’000 | ||||
| This is stated after charging: | |||||
| Auditor remuneration - audit | fees (excludes VAT) | 13 | 13 | ||
| - other fees (excludes VAT) | - | 1 | |||
| Operating lease charges | 50 | 25 | |||
| ====== | ====== |
The Trustees did not receive any remuneration during the period. No trustees were reimbursed (2021: 0) for travel expenses. No amounts were paid to third parties on behalf of the trustees.
28
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
(Brain Research UK is the working name of Brain Research Trust)
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
7 SALARIES AND EMPLOYMENT COSTS
| SALARIES AND EMPLOYMENT COSTS | ||
|---|---|---|
| 2022 | 2021 | |
| £’000 | £’000 | |
| Salaries | 287 | 293 |
| Social security costs | 29 | 28 |
| Pension costs | 24 | 23 |
| Freelancers | 111 | 125 |
| ---------- | ---------- | |
| 451 | 469 | |
| ====== | ====== |
The average headcount of staff employed by the charity during the period was 6 (2021: 6)
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Headcount | Headcount | FTE | FTE | |
| Research | 1.6 | 1.5 | 1.1 | 1.1 |
| Information and awareness | 0.4 | 0.4 | 0.3 | 0.3 |
| Raising funds | 3.3 | 3.3 | 2.9 | 2.8 |
| Governance | 0.7 | 0.7 | 0.5 | 0.4 |
| 6.0 | 5.9 | 4.8 | 4.6 |
During the period, the number of senior employees who received emoluments falling within the following ranges was:
| following ranges was: | ||
|---|---|---|
| 2022 | 2021 | |
| No. | No. | |
| £120,000 - £129,999 | - | - |
| £80,000 - £89,999 | 1 | 1 |
| ---------- | --------- | |
| 1 | 1 | |
| ====== | ===== |
During the period, these staff received employer pension contributions of £6,427 (2021: £6,720).
Key management personnel
In 2022, 3 (2021: 3) members of staff formed the senior management team. Their remuneration amounted to £204,000 including social security and pension costs (£207,000 in 2021).
29
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
8 INVESTMENTS
(a) Equities
| Unrestricted | Endowment | TOTAL | ||
|---|---|---|---|---|
| funds | funds | |||
| 2022 | 2022 | 2022 | ||
| £’000 | £’000 | £’000 | ||
| Brought forward at 1 April 2021 | 5,069 | 5,454 | 10,523 | |
| Additions | 390 | 165 | 555 | |
| Disposals | (1,176) | (497) | (1,673) | |
| Net (loss)/gain on revaluation | 354 | 149 | 503 | |
| ------------ | ------------- | ------------ | ||
| Market value at 31 March 2022 | 4,637 | 5,271 | 9,908 | |
| ------------- | ------------- | ------------ | ||
| Historical cost at 1 April 2021 | 6,570 | 2,816 | 9,386 | |
| ======= | ======= | ======= | ||
| Historical cost at 31 March 2022 | 6,807 | 2,876 | 9,683 | |
| ======= | ======= | ======= | ||
| 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) | |
| Increase in unrealised (losses)/gains | 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 | |
| ======= | ======= | ======= | ||
| (b) | Fixed interest securities | |||
| Unrestricted | Endowment | TOTAL | ||
| funds | Funds | |||
| 2022 | 2022 | 2022 | ||
| £’000 | £’000 | £’000 | ||
| Brought forward at 1 April 2021 | 1,416 | 1,766 | 3,182 | |
| Additions | 676 | 286 | 962 | |
| Disposals | (675) | (285) | (960) | |
| Increase in unrealised gains/(losses) | (155) | (66) | (221) | |
| ------------ | ------------- | ------------ | ||
| Market value at 31 March 2022 | 1,262 | 1,701 | 2,963 | |
| ====== | ======= | ======= | ||
| Historical cost at 1 April 2021 | 2,204 | 945 | 3,149 | |
| ====== | ======= | ======= | ||
| Historical cost at 31 March 2022 | 2,198 | 929 | 3,127 | |
| ====== | ======= | ======= |
30
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
| 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 |
| ====== | ======= | ======= |
The total investment holding included unrealised investments gain of £503k (2021: gain £2,222k) on equities and £221k losses (2021: gain £26k) on fixed interest securities, a total unrealised gain of £283k (2021: gain £2,249k).
| 2022 | 2021 | |||
|---|---|---|---|---|
| £’000 | £’000 | |||
| (c) | Cash held for investment purposes | 1,170 | 362 | |
| ======== | ======== | |||
| (d) | Unrealised forex gains/(losses) | - | - | |
| ======== | ======== | |||
| (e) | Total at bid-price (including cash) | 14,041 | 14,067 | |
| ======== | ======== | |||
| (f) | Gains/(losses) on investments | |||
| Unrestricted | Endowment | TOTAL | ||
| funds | funds | |||
| 2022 | 2022 | 2022 | ||
| £’000 | £’000 | £’000 | ||
| Net gains/(losses) on investment assets | 198 | 85 | 283 | |
| ====== | ======= | ======= | ||
| Unrestricted | Endowment | TOTAL | ||
| funds | funds | |||
| 2021 | 2021 | 2021 | ||
| £’000 | £’000 | £’000 | ||
| Net gains/(losses) on investment assets | 1,579 | 670 | 2,249 | |
| ====== | ======= | ======= | ||
| 9 | SUNDRY DEBTORS | 2022 | 2021 | |
| £’000 | £’000 | |||
| Legacies and accrued income | 23 | 4 | ||
| Other debtors | 28 | 54 | ||
| Prepayments | 640 | 369 | ||
| ------------- | ------------- | |||
| 691 | 427 | |||
| ====== | ====== |
31
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
10 CREDITORS FALLING DUE WITHIN ONE YEAR
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| £’000 | £’000 | |||||
| Trade creditors | 205 | 119 | ||||
| Grants payable | 3,112 | 2,432 | ||||
| Accruals | 19 | 20 | ||||
| Social security and other taxes | 10 | 9 | ||||
| Other creditors | 119 | 2 | ||||
| Deferred income | 17 | - | ||||
| ------------- | ------------- | |||||
| 3,482 | 2,582 | |||||
| ======= | ======= | |||||
| 11 | CREDITORS FALLING DUE AFTER | ONE YEAR | ||||
| 2022 | 2021 | |||||
| £’000 | £’000 | |||||
| Grants payable | 2,816 | 2,589 | ||||
| ------------- | ------------- | |||||
| 2,816 | 2,589 | |||||
| ====== | ======= | |||||
| 12 | GRANTS PAYABLE | |||||
| 2022 | 2021 | |||||
| £’000 | £’000 | £’000 |
£’000 | |||
| Balance at start of period | 5,021 | 3,969 | ||||
| Grants awarded in period | 2,203 | 2,351 | ||||
| Released prior year provision | 40 | 36 | ||||
| Adjustment for time value of money | (83) | (40) | ||||
| __ | ___ | |||||
| 2,160 | 2,347 | |||||
| Grant Invoices paid in period | (1,623) | (1,295) | ||||
| ------------ | ------------ | |||||
| Balance at end of period | 5,558 | 5,021 | ||||
| ======= | ======= | |||||
| Payable within one year | 2,742 | 2,432 | ||||
| Payable after one year | 2,816 | 2,589 | ||||
| ------------ | ------------ | |||||
| 5,558 | 5,021 | |||||
| ======= | ======= |
Note 22 shows details of grants awarded in the period
During the period, grants totalling £2,203k were awarded to research institutions as per note 18. 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:
32
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
13 FUNDS
| FUNDS | ||
|---|---|---|
| 2022 | 2021 | |
| £’000 | £’000 | |
| Grants fund | 1,576 | 1,608 |
| Marks fund | - | 535 |
| Sobell fund | 627 | 146 |
| Watts | - | 26 |
| Other restricted funds | - | 40 |
| ---------- | ---------- | |
| 2,203 | 2,355 | |
| ====== | ====== |
14 STATEMENT OF FUNDS
| Total | Grants | Other | Investment | ||||
|---|---|---|---|---|---|---|---|
| 2021 | income | payable | expenditure | gains | Transfers | 2022 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| UNRESTRICTED | |||||||
| FUNDS | |||||||
| General fund | 1,000 | - | - | - | - | (75) | 925 |
| Designated | |||||||
| funds | |||||||
| Investment fund | 4,554 | 1,687 | - | (1,102) | 199 | (1,375) |
3,963 |
| Grants fund | 2,445 | - | (1,302) | - | - | 1,450 | 2,593 |
| ---------- | ---------- | ---------- | ----------- | ----------- | ---------- | ----------- | |
| Total unrestricted | |||||||
| funds | 7,999 | 1,687 | (1,302) | (1,102) | 199 | - |
7,481 |
| ====== | ====== | ====== | ====== | ====== | ====== | ====== | |
| RESTRICTED | |||||||
| FUND | |||||||
| Marks income | |||||||
| fund | - | - | - | - | - | - | - |
| Sobell income | |||||||
| fund | - | - | - | - | - | - | - |
| Watts income | |||||||
| fund | - | - | - | - | - | - | - |
| Other funds | 140 | 217 | (201) | - | - | - | 156 |
| ---------- | ---------- | ---------- | ----------- | ----------- | ---------- | ----------- | |
| Total restricted | |||||||
| funds | 140 | 217 | (201) | - | - | - |
156 |
| ====== | ====== | ====== | ====== | ====== | ====== | ====== | |
| ENDOWMENT | |||||||
| FUNDS | |||||||
| Marks fund | 1,760 | 64 | 9 | (13) | 46 | - |
1,866 |
| Sobell fund | 958 | 35 | (627) | (7) | 22 | - |
381 |
| Watts fund | 717 | 26 | - | (5) | 15 | - |
753 |
| ---------- | ---------- | ---------- | ---------- | ----------- | ----------- | ------------ | |
| Total endowment | ---------- | ||||||
| funds | 3,435 | 125 | (618) | (25) | 83 | - |
3,000 |
| ====== | ====== | ====== | ====== | ====== | ====== | ====== | |
| Total funds | 11,574 | 2,029 | (2,121) | (1,127) | 282 | - |
10,637 |
| ====== | ====== | ====== | ====== | ====== | ====== | ====== |
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.
33
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
15 STATEMENT OF FUNDS – 2021 COMPARATIVES
| 01 Apr | Total | 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 | (1,514) | (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 | ||
| ====== | ====== | ====== | ====== |
====== | ====== | ====== | |||
| 16 | FINANCIAL INSTRUMENTS | 2022 | 2021 | ||||||
| £’000 | £’000 | ||||||||
| Financial instruments | measured at fair value through | the SoFA (a) | |||||||
| Listed investments | 12,874 | 13,705 | |||||||
| Financial assets measured at amortised cost (b) | |||||||||
| Cash | 3,000 | 2,613 | |||||||
| Debtors | 691 | 427 | |||||||
| Financial liabilities measured at amortised cost (c) | |||||||||
| Creditors | (5,928) | (5,171) | |||||||
| ------------- | ------------ | ||||||||
| Net financial assets at amortised cost | 10,637 | 11,574 | |||||||
| ======= | ======= |
(a) Financial assets measured at fair value.
(b) Financial assets include cash, trade and, staff loans and other debtors.
(c) Financial liabilities include trade creditors, other creditors, accruals and grants payable.
34
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
| 17 | ANALYSIS OF NET ASSETS | ||||
|---|---|---|---|---|---|
| Investment | Fixed |
Other |
Total | ||
| BETWEEN FUNDS | assets | assets |
assets |
assets | |
| 2022 | 2022 |
2022 |
2022 | ||
| £’000 | £’000 |
£’000 |
£’000 | ||
| Investment, Grants and General funds | 9,871 | 3 |
(2,393) |
7,481 | |
| Marks fund | 2,134 | - |
(268) |
1,866 | |
| Sobell fund | 1,165 | - |
(784) |
381 | |
| Watts fund | 871 | - |
(118) |
753 | |
| Restricted funds | - | - |
156 |
156 | |
| -------------- | -------------- |
-------------- |
-------------- | ||
| 14,041 | 3 |
(3,407) |
10,637 | ||
| ======== | ======== |
======== |
======== | ||
| ANALYSIS OF NET ASSETS – 2021 | |||||
| 18 | COMPARATIVES | ||||
| Investment | Other | Total | |||
| 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 | |||
| ======= | ======= | ======= | |||
| 19 | OPERATING LEASES | 2022 | 2021 | ||
| £’000 | £’000 | ||||
| Commitment expiring: | |||||
| Within one year | 50 | 25 | |||
| ---------- | -------- | ||||
| 50 | 25 | ||||
| ====== | ===== |
At 31 March 2022, the Charity had the future minimum operating lease payments as set out above. The charge to the Statement of Financial Activities is £27k (2021: £25k)
20 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 (2021: £23k). Contributions totalling £2k (2021: £2k) were payable to the fund at the balance sheet date and are included in creditors.
35
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
21 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).
22 GRANTS AWARDED IN 2021-22
| Description Disease PhD Studentships (Grants Fund) Mr Harsh Bhatt, Cardiff University Brain tumours A study of telomere biology in gliomas and drivers of genomic instability Danielle Marsh, University of Hull Brain tumours The epigenetic regulatory protein CBX2 as a novel therapeutic target for glioblastoma multiforme Phoebe Ivain, Imperial College London Brain and spinal cord injury Fixel-based analysis for the evaluation of white matter Injury in neonatal hypoxic-ischemic encephalopathy Covid-19 grant extension PhD sub-total Project Grants (Grants Fund) Dr Dirk Sieger , University of Edinburgh Brain tumours Analysing the impact of extracellular vesicles on the establishment of glioma promoting functions in microglia Dr Zahraa Al-Ahmady, Nottingham Trent University Brain and spinal cord injury A targeted approach to inhibit ferroptosis in a rodent model of intracerebral haemorrhage Mr Richard Mair, University of Cambridge Brain tumours Using a cross-species genomics approach to reveal the interplay between hypoxia and epigenomic deregulation in the transformation from low grade glioma to secondary glioblastoma Dr Anna Andreou, King's College London Hypothalamic and immune interactions in cluster headache Headache and facial pain Covid-19 grant extensions Project Grants sub-total |
Total £ 119,618 106,581 110,278 11,473 |
|---|---|
| 347,950 | |
| 298,427 272,137 299,613 268,328 52,744 |
|
| 1,191,249 |
36
BRAIN RESEARCH TRUST NOTES TO THE FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022
(Brain Research UK is the working name of Brain Research Trust)
| Mr Harsh Bhatt, Cardiff University Brain Research UK - Royal College of Surgeons Joint Research Fellowship Brain tumours Other Research (Endowment & Restricted Funds) Sobell Chair Neuromuscular disease Total grants awarded Adjustment for underspends 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 |
36,500 627,347 |
|---|---|
| 2,203,046 | |
| (38,364) 40,171 (83,359) |
|
| 2,121,494 |
37