ANNUAL REPORT & FINANCIAL STATEMENTS 31 DECEMBER 2021 I Il q* Wings for Life UK Spinal Cord Research Foundation Company Number: 07371291 Charity Number: 1138804 NGS SPIlL CORD RESEMCH FOUMDAMOM.
WINGS FOR LIFE UK SPINAL CORD RESEACH FOUNDATION CONTENTS Page Trustees, report 4-17 Statement of trustees, responsibilities 18 Independent auditor's report 19-21 Statement of financial activities 22 Balance sheet 23 Statement of cash flows 24 Notes to the financial statements 25-32
KEY INFORMATION LEGAL NAML. Wings for Life UK Spinal Cord Research Foundation OPERATING NAME Wings for Life UK BOARD OF TRUSTEES Mr. l. Rako, Chairman Mr. D. Mitsch Mr. S. Marthinsson Mr. R. Elliott Ms. A. Gerhardter Mr. P. Charles Mr. P. Stewart CHIEF EXECUTIVE OFFICER Emma Hind REGISTERED OFFICE ADDRESS Seven Dials Warehouse, 42-56 Earlham Strèet. London. IVC.2H 9LA AUDITOR HW Fisher LLP, Acre House. 11-15 William Road. London. NWI 3ER BANKERS HSBC, 6th Floor, 71 Queen Victoria Street, London, EC4N 4AY COMPANY NUMBER UK REGISTERED CHARITY NUMBER 07371291 1138804 WEBSITE www.win s. forlife.com
TRUSTEES, REPORT The trustees present the annual report and financial statements of Wings for Life UK Spinal Cord Research Foundation (also known by the working name "Wings for Life UK") for the year ended 31 December 2021 which also includes the Director's Roport as required by company law. The financial statements have been prepared in accordance with the accounting policies set out in the attached financial statements and comply with the charitable company's memorandum and articles of association. the Companies Act 2006 and Accoiintin8 and Reporting by Charities: Statement of RecotnJnended Practice applicable to charities preparing their accounts in accordance with the Financial Roporlin8 Standard applicable in the United Kin8dotn and Republic of Ireland {FRS 1021 (effective from l January 2019). About Us The trustees of the charity, who are also the directors of the company for the purposes of coiiipany law, and who have served during the year and up lo the dale of this report are shown below: Mr. l. Rake Mr. D. Milsch Chairnian Ms. A. Gerhardter Mr. P. Stewart Mr. S. Marthinsson Mr. R. Elliott Mr. P. Charles The registered office of the company and the administrative office of the charity is Seven Dials Warehouse, 42-56 Earlham Street. London, WC2H 9LA. The principal address of the charity and the correspondence address for the charity's key contact is the same as aforementioned.
TRUSTEES, REPORT Wings for Life UK is an independent. UK-based, self-governing. grant-making organisation. The charity does however work together with other countries where Wings for Life also independently operates. For the purpose of clarily, the following natnes and definitions are used throughout.. Wings for Life- all countries where the organisation independently operates (Note. Wings for Life is re8lStered in Austria. Germany. USA and UK). Wings for Life UK- the UK office of the charity which is independently re8lStered and self-8overnin8. Wings for Life is a not-for-profit spinal cord research foundation. Our mission is to find a cure for spinal cord injury. We fund world-class scientific research and clinical trials around the globe aimed at healin8 the injured spinal cord. Our work focuses on how to minimise damage, stimulate repair and restore function after an injury lo the spinal cord has been sustained. To date. the global charity as a whole has funded 259 spinal cord research projects and clinical trials. and a number of vital breakthroughs have been made. In 2022, we are anticipating fundin8 for a further 17 projects. subject to final contracts. bringing our total to 276. "Our mission is to find a cure for spinol cord injury. Wefund world-class scientific research and clinical trials around the globe aimed at healing the injured spinal cord"
TRUSTEES, REPORT OBJECTIVES & ACTIVITIES When setting the objectives and planning the work of the charitable company for the year, the trustees have given careful consideration to the Charity Commission's general guidance on public benefit and, where relevant. its supplementary guidance. The charitable objective of Wings for Life UK is to advance and promote medical research for the benefit of the public into the nature. causes, diagnosis, prevention, treatn]ent and cure for all forn]s of spinal cord injuries. In order to achieve these objectives. Wings for Life UK raises money through various fundraisin8 initiatives in order to give grants to world class scientists conductin8 research and clinical trials with a view to curin8 spinal cord injury. Public Benefit Wings for Life UK is achieving public benefit by fundin8 research in the UK which is advancing sci8ntific and clinical progress working towards our mission: to find a cur8 for spinal cord injury. Our ultimate goal is that Wings for Life funded research will translate into outcomes which benefit the quality of life for people living with a spinal cord iiijury. Wings for Life UK funded scientists are given flexible grants designed to empower them to spend their money in whatever way will advance their results the fastest. Any monies not spent at the end of a grant year can be carried over in a 'no cost extension,. To tTack progress and performance, annual reports are submitted by Wings for Life funded researchers and are shared with the trustee board. All Wings for Life funded scientists are also encouraged to publish their results in reputable scientific journals so that their learning can be shared with the wider scientific community and increase the pace of progress within the field of spinal cord injury research.
TRUSTEES, REPORT You can find all publications showing the advancements being uncovered through projects funded by Wings for Life across all research fields related to spinal cord injury on the Wings for Lifo website: www.win forlife.com OUR FUTURE AIMS Wings for Life UK will continue to fund world class research in order to advance scientific and clinical progress towards a cure for spinal cord injury. During 2021 we funded eight projects (although one was suspended due to Covi(Klg): six in the UK {includin8 one newly funded project) and two internationally in Canada and The Neiherlands. Moving forwards. our aim is to fund more clinical trials. both in ihe UK and globally. in order to accelerate forward treatment options available to anyone affected by a spinal cord injury. We are committed to the long-term pursuit of our goals, as achieving major brèakthroughs in science, and then translating them into therapies for patients, can take significant time and investmenl. Scientif ic Aims In 2022, Wiiigs for Life UK will continue supporting our existing researcheTS as well as funding new projec.ts. In line with our ain] of funding Tnore clinic81 tri815, we will fund two new clinical based projects in Canada and Australia. There are two other clinical projects in the pipeline, subject to final contracts. which we are anticipating we will commence funding during 2022. One of which will be a major funding commitment across multiple sites and represent a major step forward for acute spinal cord injury treathient. Wings for Life UK will also continue to work together with other relevant spinal reseaTch charities on collaborative initiatives.
TRUSTEES, REPORT Fundraising Aims The goal for the Wings for Life UK staff team in 2022 will be to rebuild following a tough period of fundraising during the Covid-19 pandemic and look to increase our sustainable income streams in line with our five-year strategy. OUR FUNDRAISING PRACTICES Wings for Life UK believes in maintaining the highest standards in our fundraising. As such, we are a tnetnber of the Fundraising Regulator and cotnply with best practice in fundraising through their Code of Fundraisin8 Practice. Wings for Life UK didn't employ any Professional Fundraisers or partner with any Comiiiercial Participators to carry out any fundraisin8 activities on our behalf durin8 2021. Nor did we work with any 'on behalf of volunteers, only 'in aid of fundraising volunteers, where {Inore often than not) we were aware of their planned activity in advance. We endeavour to build personal relationships with our individual fundraisers. the majority of which fundraise using a credible online fundraisin8 platform such as justgivin8.com or virginmoneygiving.com. As far as we are aware. Wings for Life UK. and our'in aid of volunteers, did not fail to comply with any fundraising standards. Furthermore. we didn't approach members of the public unsolicited, nor did we carry out a public fundraising appeal or a marketing campaign to encourage donations. We received zero complaints in 2021 regarding our fundraising activity.
TRUSTEES, REPORT INCOME IN 2021 Despite the challenges of fundraising during the Covid-19 pandemic, we still tnanaged to raise £I.711110n (2020 = £I.611110) through various fundraising activities. Events During 2021, despite the ongoing pandemic. we were able to successfully deliver one of our key fundraising events. the Clay Day, raising £175,000. Overall, however, our fundraising and supporter enga8en]ent opportunities continued to be significantly affected. The pandemic also affected our income from third party events. many of which were cancellod. We did benefii from a virtual event with our partner Red Bull Racing as well as continuing to benefii from the Wings for Life World Ruli event. or8anised by Red Bull. Now in its eighth year, this unique global running event was once again executed virtually to great success. Over 184.000 runners and wheelchair users participated, raisin8 nearly £3.5million for Wings for Life. Wings for Life UK benefitted from a donation from the global funds raised of £435.178. Corporate Partners Several corporations supported us in 2021. Our primary Corporate Partner Red Bull Company Ltd. continued to be a major donor: their donations were used to cover the majoTlty of running costs. We al.so received donations from our other partners including Red Bull Racing, we.sleyan Bank & Wesleyan Foundation, Hexagon Metrology, Canongate Books, The Detail group, Jet Import, The Running Group, Berry, NrrB, Richmond Marketing, Frank Taylor & Associates and Scuderia AlphaTauri. We also benefited from discounted support and gift-in-kind from a number of other companies including Sparkloop, Hedsor House. Moet Hennessy, Red Bull Racing, Heineken and E2B.
10 TRUSTEES, REPORT Philanthropy In 2021, we continued with our philanthropy programtne and gratefully received donations from Trusts & Foundations including Travis Roy Foundation and Spencer Wills Trust. The donation from the Travis Roy Foundation was restricted to a specific research project, in line with the donor's request. Individual Fundraisers In 2021, we were supported by a fantastic group of individuals who raised money for Wings for Life UK through their own fundraisin8 activities. Nolably, Steven Dowd, incepted the 'Endurow Challen8e'_ a live. fully inclusive indoor rowing fundraiser in aid of Wings for Life. The Endurow Challenge raised over £24,000. EXPENDITURE IN 2021 Wings for Lifo UK'S overhead costs were almost entirely covered by donations. Total funds w8re £2,726,792 of which £60,529 were restricled funds at year end. 2022 research liabilities at year end stand at £219.404. During a Trustees meeting in April 2022 the board agreed to fund two new scientific projects. subject to contracts. There are two other UK clinical projects in the pipeline, which are administered by our Accelerated Translational Program (ATP- see page 12 for further detail). Should these projects be accepted by the ATP, they will be presented to the Trustees for funding approval. Financial Position & Reserves Policy Over the last few years, our scientific liabilities have significantly decreased, initially due to the transfer of a major clinical trial, ReNetX Bio, to the Wings for Life office in the USA. In 2021, there were no UK projects selected to fund so we didn't take on any further commitments. Our fundraising income has remained stable, so we have continued to accrue a generous cash balance which currently more than offsets our total liabilities.
TRUSTEES, REPORT This has been in anticipation of the major funding commitment we are expecting in 2022. By nature, the translation from scientific discovery lo applied therapeutics is a long and diflicult Toad due to regulatory burdens, cotnplexities of clinical trial design, pationt recruitment and retention barriers, and the high cost of cutting-edge research. The Wings for Life Accelerated Translational Program (ATP) is assisting the applicants to find the best way forward in the clinical translation of this project. Subject to the revised application being approved. and final contracts. we are anticipating we will commence fundin8 of this project durin8 2022123. Given that our scientific liabilities fluctuate on an annual basis, yet our fundraising income is r81atively stable, the board have aimed to ensure that unrestricted reserves should not fall below the equivalent of six months. runnin8 Costs. Six months budgeted running costs for 2021 equates to £178,306. Currently our free reserves stand at ,666,263 so we are well above the approved figure. The trustees would like lo keep this under annual review. Grant Making Policy In order to decide where bost to invest our funds, Wings for Life UK sopks recommend8tions frotn the Wings for Life Scientific Advisory Board ISABI. which consists of scientists with an international reputation in the field of spinal cord injury research, and is based in Austria. Annually, Wings for tife grant applications are received from across the globe at whic.h point the SAB checks to see whether the project proposal complies with Wings for Life's research criteTia. The most important Principle is that all projects must have the potential to have a real impact on the field of spinal cord injury research.
12 TRUSTEES, REPORT If an executive summary is deemed suitable, the researcher is asked to send in a full application. Once received, these are collated and sent out to peer reviewers- anonymous to the applicant - who are reputable researchers and opinion leaders in theiT fields. They score the project proposals, providing valuable quality assurance to the SAB. The SAB then use these scores to rank the projects. In line with our scientific objectives, Wings for Life is tnaking significant strides forward in translatin8 promisin8 research into clinical trials. It is widely recognised that this isn't an easy process. The Wings for Life Accelerated Translational Program (ATP) was set-up and is led by Prof. Armin Curt. Wings for Life Clinical Research Director. The ATP will provide both funding and networking support to successful applicants in order to accelerate the clinical traiislation of their high calibre, Promisin8 therapies. The ATP Support Network - a network of clinicians, scientists. and other professionals with expertise in all aspects of clinical trials - will be called upon. as required. to assisl in ensuring that treatments with auspicious potential are translated in the most scientifically rigorous and efficient way possible. Going Concern The financial statements have been prepared on a going concern basis. The trustees have a.sses.sed whether the use of the going concern assumption i.s appropriate in preparing these financial statements. The Irustees have made this assessment in respect of a period of one year from the date of approval of these financial statements. As stated in note 1.2, the Trustees have considered the effect of the Covid-19 pandemic on Wings for Life UK. The Coronavirus pandemic has continued to cause some disruption to our fundraising in 2021, mainly through the cancellation of events and lack of fac&to- face meetings. Whilst our overall fundraising was below pre-pandemic levels, we were still able to raise a healthy £1.7million for spinal cord research. and our pipeline for 2022 is looking optimistic.
13 TRUSTEES, REPORT Wings for Life UK is in a strong financial position: the majority of our administration costs have historically been covered by discretionary donations from Red Bull Company Ltd. and we currently have a generous cash balance and low liabilities. All these factors tnean we can continue lo ep10Y all our staff on a full-time basis and can comfortably continue to underwrite our existing and future research commitments. The Trustees consider that whilst the pandemic is continuing to cause some disruption, they are extremely confident that Wings for Life UK can continue as a 80ing concern for the foreseeable future. RESTRICTED FUNDS In 2021 Wings for Life UK held restricled funds for two research projects in our portfolio: ReNetX Bio, Inc. clinical trial into the safety. tolerability. and efficacy of Axer-204, a No80 Trap biologic in subjects with chronic spinal cord injury (funds to be utilisod in 2021) loost Verhaagen's project to test regulatable chondroitinase gene delivery for acute and chronic spinal cord injury See note 16 for further detail.
14 TRUSTEES, REPORT OUR GOVERNANCE, STRUCTURE & MANAGEMENT Organisational Structure The overall strategic direction and governance of Wings for Life UK is determined by our board of trustees. They delegate authority for the day-to4lay running of the organisation to the operational teatn in the UK which consists of: E. Hind Chief Executive Officer. UK Philanthropy Manager Partnerships Manager Event Manager Iresi8ned August 2021) Fundraisin8 Specialist Finance Manager Event Manager (joined January 2022) H. Haines R. Ayers A. Trown C. Browning C. Fetterman E. Eveleigh-Hill Wings for Life UK is an independently registered charity with its own governance structurès however the UK staff team do consult with the team at Wings for Lif& Austria on key matters. Governance & Management The governing body of Wings for Life UK is our board of trustees. who meet at least tliree time..s per year. If the board agrees to recruit a new member a thorough recruitment proc.es.s i.s conducted and the final decision is brought to a trustee meeting for approval. When the board forn]ally elect a new member, this decision is minuted and the new trustee is invited to the next meeting. New trustees are given a comprehensive induction, and a training program is in place to ensure they have sufficient knowledge of the charity and the sector.
15 TRUSTEES, REPORT All trustees are required to sign documentation on appointment including a Contract Agreement, Conflict of Interest, Code of Conduct and Declaration of Eligibility, to ensure they fully undorstand their key responsibilities in governing Wings for Life UK, enabling thetn to fulfil their role to the best of their abilities. On an annual basis. all trustees are required to sign an Automatic Disqualification Declaration. Relationships with Related Parties Our stnall staff team at Wings for Life UK works with the staff teatn at Wings for Life Austria on marketing & communications. financial reportin8. and international fundraising initiatives. Wings for Life UK is very fortunale that the majority of the organisation's overheads during 2021 were paid for by our principle corporate partner, Red Bull Coinpany Ltd. In addition to this Red Bull Company Lid. also contributed a further £119,704 as gift in kind. This tneans that IOOO/o of all donations received were directed towards Wings for Life UK'S activities. Represenlation on Olher Bodies Mr. Jamie Rake, Chairman of Wings for Life UK, works as Head Coach of Europe for Red Bull, and Mr. Peter Charles, Trustee, works as the Managing Director of Red Bull UK. This ensures that we have representation from our primary corporate partner on the trustee board. Ms. Anita Gerhardter, Trustee, is also the Chief Executive Officer of Wings for Life globally, her base being in Austria. Anita provides the Board with input and advice to ensure that UK activities are aligned to the overarching priorities of Wings for Life globally.
16 TRUSTEES, REPORT Risk & Corporate Governance Matters The trustoes are responsible for ensuring that the charity has an appropriate system of controls, financial and otherwise. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention of fraud and other irregularities. Wings for Life UK have a risk re8lSter in place which is reviewed once a year. Each Tlsk, and its potential impact, is tneasured as High, Mediutn or Low. The board then works through the actions required io mili8ate those risks and attributes responsibilities to the staff of Win8s for Life UK or where appropriate. to themselves. The trustees all agree that Brexit has not had any significant impact on Wings for Life UK. No high impact risks have been identified. The medium impact risks have an action plan in place to mitlgate them. Financial Risk Management Wings for Life UK receives donations which, historically. have almost entir81y covered the running costs of Wings for Life UK. These donations have resulted in all other donations being used for research. Wings for Life UK has no borrowings. Key Management Personnel The key management personnel of the charity comprises the trustees and Emma Hind as c.hief Executive Officer of Wings for Life UK. Trustees do not receive remuneration for their role as a trustee of Wings for Life UK. The remuneration of the Chief Executive Officer is set by the Chairman of the Board of Trustees based upon an annual appraisal of performance against set objectives by the Chairman of the Board of Trustees.
17 TRUSTEES, REPORT Disclosure of inf ormation to auditor Each of the trustees has confirtned that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. Independenl Auditor The reappointment of HW Fisher LLP as auditor will be proposed to the Trustees following completion of the 2021 audit. The Trustees Report was approved by the Board of Trustees Mr. J Rake Trustee ,.L Dated: 16 Jun 2022
Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
The trustees, who are also the directors of Wings for Life UK Spinal Cord Research Foundation for the purpose 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 year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION
Opinion
We have audited the financial statements of Wings for Life UK Spinal Cord Research Foundation (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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the information given in the trustees' report, which includes 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
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the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION
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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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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
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of our planning process:
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We enquired of management the systems and controls the charity has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The charity did not inform us of any known, suspected or alleged fraud.
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We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: the Charity SORP, FRS 102, Charities Act 2011 and Companies Act 2006.
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We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
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Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
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The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
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Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
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Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
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Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimate of gifts in kind
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Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
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Assessing the validity of the classification of income, expenditure, assets and liabilities between unrestricted and restricted funds.
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Documenting and verifying all significant related party balances and transactions.
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Reviewing documentation such as the charity board minutes, for discussions of irregularities including fraud.
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.
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.
Andrew Rich (Senior Statutory Auditor)
for and on behalf of HW Fisher LLP
Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom
.........................
HW Fisher LLP 16/6/22
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted funds 2021 Notes £ Income from: Donatons and legacies 3 1,338,005 Other trading actvites 4 261,482 Total income 1,599,487 Expenditure on: Raising funds 5 376,213 Charitable actvites Medical research 6 302,038 Grant transferred 6 - Total charitable expenditure 302,038 Total resources expended 678,251 Gross transfers between funds 11 - Net income for the year/ Net movement in funds 921,236 Fund balances at 1 January 2021 1,745,027 Fund balances at 31 December 2021 2,666,263 |
Restricted funds 2021 £ 87,100 - 87,100 - 76,850 - 76,850 76,850 - 10,250 50,279 60,529 |
Total Unrestricted funds 2021 2020 £ £ 1,425,105 1,448,714 261,482 60,512 1,686,587 1,509,226 376,213 301,615 378,888 918,063 - (254,237) 378,888 663,826 755,101 965,441 - 50,000 931,486 593,785 1,795,306 1,151,242 2,726,792 1,745,027 |
Restricted funds 2020 £ 116,600 - 116,600 - 33,300 - 33,300 33,300 (50,000) 33,300 16,979 50,279 |
Total 2020 £ 1,565,314 60,512 |
|---|---|---|---|---|
| 1,625,826 | ||||
| 301,615 | ||||
| 951,363 (254,237) |
||||
| 697,126 | ||||
| 998,741 | ||||
| - | ||||
| 627,085 1,168,221 |
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| 1,795,306 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET
AS AT 31 DECEMBER 2021
| Notes Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year Other creditors 13 Net current assets Creditors: amounts falling due afer more than one year 14 Net assets Income funds Restricted funds 16 Unrestricted funds |
2021 £ 173,878 2,787,732 2,961,610 234,818 |
£ 2,726,792 - 2,726,792 60,529 2,666,263 2,726,792 |
2020 £ 48,492 2,350,494 2,398,986 471,645 |
£ 1,927,341 (132,035) 1,795,306 50,279 1,745,027 1,795,306 |
|---|---|---|---|---|
The financial statements were approved by the Trustees on .........................16 Jun 2022
Jamie Rake .............................. Mr J P Rake Trustee
Company Registration No. 07371291
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
| 2021 Notes £ Cash fows from operatng actvites Cash generated from operatons 19 Net cash used in investng actvites Net cash used in fnancing actvites Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2020 £ £ 437,238 - - 437,238 2,350,494 2,787,732 |
£ 519,404 - - |
|---|---|---|
| 519,404 1,831,090 |
||
| 2,350,494 |
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
Charity information
Wings for Life UK Spinal Cord Research Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Seven Dials Warehouse, 42-56 Earlham Street, London, WC2H 9LA, United Kingdom.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
The Coronavirus pandemic continued to cause some disruption to our fundraising in 2021, mainly through the cancellation of events and lack of face-to-face meetings. Whilst our overall fundraising was below pre-pandemic levels, we were still able to raise a healthy £1.7million for spinal cord research, and our pipeline for 2022 is looking optimistic.
The majority of our administration costs have historically been covered by discretionary donations from Red Bull Company Ltd. and we currently have a generous cash balance and low liabilities. Both these factors mean we can continue to employ all our staff on a full-time basis and can comfortably continue to underwrite our existing and future research commitments.
The trustees are confident that Wings for Life UK can continue as a going concern for the foreseeable future thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
The value of donated services and gifts in kind provided are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of financial activities.
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
(Continued)
1.5 Resources expended
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measure reliably.
All expenditure is accounted for on an accrual basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:
-
Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This includes fundraising event costs, the costs of raising donations, staff costs associated with fundraising, and an allocation of support and governance costs including donated services, goods and facilities.
-
Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include charitable grants and donations and an allocation of support and governance costs.
Grants payable are recognised in the period in which the approved offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised only when the conditions attaching to the award are fulfilled. Grants offered subject to conditions, which have not been met at the balance sheet date, are noted as a potential commitment, but are not treated as a liability.
Staff costs are allocated over the different categories of costs on the basis of estimated time spent by members of staff in those areas. All other costs are categorised as either support costs which include governance costs, and are allocated in proportions based upon a suitable rate applicable to the nature of the cost involved.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
1.7 Financial instruments
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised as the amount payable or receivable when the instrument is first recognised together with any subsequent transaction costs.
1.8 Employee benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Accounting estimates related to the valuation of gifts in kind are based on the cost that the Charity would be expected to pay for those services.
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
3 Donations and legacies
| Unrestricted funds 2021 £ Donatons and gifs 1,338,005 Donatons and gifs Donatons from corporate sponsors 1,050,962 Donatons from individuals 127,947 Donatons in kind 156,346 Trusts and Foundatons 2,750 1,338,005 |
Restricted funds 2021 £ 87,100 - - - 87,100 87,100 |
Total Unrestricted funds 2021 2020 £ £ 1,425,105 1,448,714 1,050,962 1,184,851 127,947 131,647 156,346 132,216 89,850 - 1,425,105 1,448,714 |
Restricted funds 2020 £ 116,600 - - - 116,600 116,600 |
Total 2020 £ 1,565,314 |
|---|---|---|---|---|
| 1,184,851 131,647 132,216 116,600 |
||||
| 1,565,314 |
4 Other trading activities
| 5 | Unrestricted Unrestricted funds funds 2021 2020 £ £ Fundraising events 261,482 60,512 Raising funds Unrestricted Unrestricted funds funds 2021 2020 £ £ Fundraising and publicity Staging fundraising events 113,878 47,948 Donatons in kind for fundraising costs 36,642 21,149 Staf costs 225,693 232,518 376,213 301,615 |
Unrestricted Unrestricted funds funds 2021 2020 £ £ Fundraising events 261,482 60,512 Raising funds Unrestricted Unrestricted funds funds 2021 2020 £ £ Fundraising and publicity Staging fundraising events 113,878 47,948 Donatons in kind for fundraising costs 36,642 21,149 Staf costs 225,693 232,518 376,213 301,615 |
|---|---|---|
| 301,615 |
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
| 6 Charitable actvites Staf costs Transfer of ReNetX Bio, Inc. grant to WfL (US) Grant funding of actvites (see note 7) Share of support costs (see note 8) Share of governance costs (see note 8) Analysis by fund Unrestricted funds Restricted funds 7 Grants payable Grants to insttutons: Imperial College London Cambridge University Netherlands Insttute Bradbury Kings College University Health Network Toronto University College London |
Medical research Grant transferred Total 2020 2020 2020 £ £ £ 46,753 - 46,753 - (254,237) (254,237) 46,753 (254,237) (207,484) 763,716 - 763,716 121,236 - 121,236 19,658 - 19,658 951,363 (254,237) 697,126 918,063 (254,237) 663,826 33,300 - 33,300 951,363 (254,237) 697,126 Medical research Medical research 2021 2020 £ £ - 177,000 177,000 - - 153,700 - 172,000 - 170,644 - 90,372 177,000 763,716 |
Medical research Grant transferred Total 2020 2020 2020 £ £ £ 46,753 - 46,753 - (254,237) (254,237) 46,753 (254,237) (207,484) 763,716 - 763,716 121,236 - 121,236 19,658 - 19,658 951,363 (254,237) 697,126 918,063 (254,237) 663,826 33,300 - 33,300 951,363 (254,237) 697,126 Medical research Medical research 2021 2020 £ £ - 177,000 177,000 - - 153,700 - 172,000 - 170,644 - 90,372 177,000 763,716 |
Medical research Grant transferred Total 2020 2020 2020 £ £ £ 46,753 - 46,753 - (254,237) (254,237) 46,753 (254,237) (207,484) 763,716 - 763,716 121,236 - 121,236 19,658 - 19,658 951,363 (254,237) 697,126 918,063 (254,237) 663,826 33,300 - 33,300 951,363 (254,237) 697,126 Medical research Medical research 2021 2020 £ £ - 177,000 177,000 - - 153,700 - 172,000 - 170,644 - 90,372 177,000 763,716 |
|
|---|---|---|---|---|
| Medical research |
||||
| 2021 £ 48,565 - 48,565 177,000 127,401 25,922 378,888 302,038 76,850 378,888 |
||||
| 697,126 | ||||
| 663,826 33,300 |
||||
| 697,126 | ||||
| Medical research |
Medical research |
|||
| 2021 £ - 177,000 - - - - 177,000 |
2020 £ 177,000 - 153,700 172,000 170,644 90,372 |
|||
| 763,716 |
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
| 8 Support costs Support costs Governance costs £ £ Staf costs 14,566 - Ofce costs 112,835 - Audit fees - 12,600 Accountancy - 2,852 Legal and professional - 3,601 Ofce costs - 6,869 Allocated to charitable actvites 127,401 25,922 |
2021 Support costs Governance costs £ £ £ 14,566 16,728 53 112,835 104,508 - 12,600 - 9,300 2,852 - 2,724 3,601 - 2,081 6,869 - 5,500 153,323 121,236 19,658 |
2020 £ 16,781 104,508 9,300 2,724 2,081 5,500 |
|---|---|---|
| 140,894 |
Governance costs includes payments to the auditors of £12,600 (2020 : £9,300) for audit fees and £1,800 for accountancy (2020 : £2,340).
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
10 Employees
The average monthly number of employees during the year was:
| Grantmaking and fundraising Support Total Employment costs Wages and salaries Social security costs Other pension costs |
2021 Number 4 2 6 2021 £ 247,043 22,111 19,670 288,824 |
2020 Number 4 2 |
|---|---|---|
| 6 | ||
| 2020 £ 253,315 22,556 20,181 |
||
| 296,052 |
The key management personnel of the charity in charge of controlling, running and operating the charity on a day to day basis comprise the trustees and the Chief Executive Officer of Wings for Life UK, Emma Hind. The total staff costs, including pension and social security costs, attributable to the Chief Executive Officer during the year was £97,130 (2020: £93,505).
The number of employees whose annual remuneration was £60,000 or more were:
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Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
| 10 | Employees | (Contnued) | |
|---|---|---|---|
| 2021 | 2020 | ||
| Number | Number | ||
| £70,000 - £79,999 | - | 1 | |
| £80,000 - £89,999 | 1 | - |
11 Transfers
The prior year transfer to unrestricted funds relates to funding received for a specific project in 2020 which had already been expensed in full against unrestricted funds in 2019.
12 Debtors
| 12 Debtors |
||
|---|---|---|
| Amounts falling due within one year: Other debtors Prepayments and accrued income 13 Other creditors falling due within one year Grants payable Accruals and deferred income 14 Creditors: amounts falling due afer more than one year Grants payable |
2021 £ 3,623 170,255 173,878 2021 £ 219,404 15,414 234,818 2021 £ - |
2020 £ 3,375 45,117 |
| 48,492 | ||
| 2020 £ 453,524 18,121 |
||
| 471,645 | ||
| 2020 £ 132,035 |
15 Retirement benefit schemes
Defined contribution schemes
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £19,670 (2020 - £20,181).
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| Balance at | 31 December | 2021 | £ | 16,979 | - | 43,550 | 60,529 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| The income funds of the charity include restricted funds comprising the following unexpended balances of donatons and grants held on trust for specifc purposes: | Movement in funds Movement in funds |
Balance at Incoming Resources Transfers Balance at Incoming Resources |
1 January 2020 resources expended 1 January 2021 resources expended |
£ £ £ £ £ £ £ |
ReNetX Bio- chronic spinal cord injury study 16,979 - - - 16,979 - - |
Papadopoulos/St George’s University of London Neurosciences - 50,000 - (50,000) - - - |
Verhaagen/Netherlands Insttute for Neuroscience - 66,600 (33,300) - 33,300 87,100 (76,850) |
16,979 116,600 (33,300) (50,000) 50,279 87,100 (76,850) |
The frst donaton was received from OMV Refning & Marketng GmbH. The funds were restricted to ReNetX Bio, for the purpose of their chronic spinal cord injury study. | The second donaton was received from the Garfeld Weston Foundaton. The funds were restricted to the Papadopoulos contract, which was fully expensed in the prior year. | The third donaton was received from Travis Roy and these funds were restricted to the Verhaagen contract, of which half of this amount was expensed in the year. |
Draft Financial Statements at 27 May 2022 at 12:51:28 WINGS FOR LIFE UK SPINAL CORD RESEARCH FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
| 17 Analysis of net assets between funds Unrestricted funds 2021 £ Fund balances at 31 December 2021 are represented by: Current assets/(liabilites) 2,666,263 Long term liabilites - 2,666,263 |
Restricted funds 2021 £ 60,529 - 60,529 |
Total Unrestricted funds 2021 2020 £ £ 2,726,792 1,877,062 - (132,035) 2,726,792 1,745,027 |
Restricted funds 2020 £ 50,279 - 50,279 |
Total 2020 £ 1,927,341 (132,035) |
|---|---|---|---|---|
| 1,795,306 |
18 Related party transactions
Red Bull Company Limited covers almost all on-going administration costs of the charity which are accounted for as donations and donations in kind. Additionally donations in kind from Red Bull Company Limited were staff costs £6,869 (2020: £1,059) and office costs of £112,835 (2020 : £111,067).
| 19 Cash generated from operatons Surplus for the year Movements in working capital: (Increase)/decrease in debtors (Decrease) in creditors Cash generated from operatons 20 Analysis of changes in net funds The charity had no debt during the year. |
2021 £ 931,486 (125,386) (368,862) 437,238 |
2020 £ 627,085 16,907 (124,588) |
|---|---|---|
| 519,404 | ||
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