OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

ANNUAL REPORT 2021/22

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 FOR THE DAVID NOTT FOUNDATION

Registered charity number: 1162537

----- Start of picture text -----
2
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

CONTENTS

3

WELCOME FROM THE CHAIR OF THE BOARD OF TRUSTEES

AS CHAIR OF THE BOARD OF TRUSTEES I WOULD LIKE TO EXTEND A WARM WELCOME TO ALL OUR STAKEHOLDERS AND TO THANK YOU AGAIN FOR YOUR INTEREST IN THE WORK OF THE DAVID NOTT FOUNDATION. WE SIMPLY COULDN’T DO WHAT WE DO WITHOUT YOUR ENGAGEMENT AND SUPPORT.

The year in review saw the Foundation return to in-person teaching with HEST courses delivered for the first time since the Covid pandemic in Erbil, Somaliland and Turkey, for Syrian surgeons. Whilst we are proud of how we adapted to more online solutions during the pandemic, a digital offering in isolation is no substitute for in-person learning, so we are delighted to be back on the road again. Strategic partnerships are at the heart of our delivery model and our return to in-country HEST courses were only made possible by working alongside valued operational partners, both old and new.

Now that we have all adapted to living and working with Covid, our ability to continue to offer face to face training is predicated on our ability to invite new clinicians to become part of our team. With that in mind, this year also saw us introduce our first Train the Trainers course in London, to help to attract and expand our Faculty, and this will be core to our ambition to be a sustainable organisation in the years to come.

----- Start of picture text -----
SOMALILAND, MARCH 2022
----- End of picture text -----

4

----- Start of picture text -----
LOCAL SURGEONS SUTURE A PROSTHETIC
HEART IN ERBIL, IRAQ, NOVEMBER 2021
----- End of picture text -----

As always, we remain eternally grateful to our supporters and donors for maintaining their support in recent years, even when we were unable to get to the countries where our training is needed most. We hope that you are as excited and enthusiastic as we are, now that we are physically delivering our courses again. Given our return, we are now investing heavily in equipment, to ensure our training remains of the absolute highest quality, but of course our costs continue to rise. World economies are feeling the effects of disrupted supply chains, increasing commodity and manufacturing prices, and rising interest rates, all of which adversely affect our cost base.

The devastating war in Ukraine unfortunately is a stark reminder that conflict is omnipresent in the world and the European continent is not immune. We are incredibly proud of our own emergency response to Ukraine and in the period under review we conducted our first online training session for trauma doctors in the country just nine days after Russia’s invasion. Remarkably, David and the Faculty went on to deliver six in-person HEST courses in Ukraine outside this reporting period, later in 2022, which

have had significant long-term impact and benefit for those clinicians working close to the frontline.

As we have emerged from the Covid pandemic, we have had the chance to reflect on the work we do, and how we want to take the charity forward, with your support. Our strategy remains clear and consistent: to strengthen and deepen knowledge and effect sustainable change in a select number of countries, whilst retaining the ability to respond to crises. This was clearly demonstrated in this year in review, through the countries that we taught in, alongside our Ukraine response.

Finally, I would like to express my thanks to Elly and the DNF team, who work so hard and deliver so much, with such finite resources. We are genuinely excited about our future and what we can deliver, alongside our stakeholders. Nobody else is doing what the DNF is doing, and we are even more committed to furthering our impact, in a responsible, focused and sustainable way.

GRAHAM HODGKIN

CHAIR OF THE BOARD OF TRUSTEES

5

EMERGING FROM THE PANDEMIC: HITTING THE GROUND RUNNING

THE COVID-19 PANDEMIC CONTINUED TO IMPOSE RESTRICTIONS ON INTERNATIONAL TRAVEL AND GATHERING PEOPLE TOGETHER FOR TRANCHES OF THE PERIOD UNDER REVIEW.

ACTIVITIES

Whilst we were proud of our efforts to adapt to the restrictions imposed by the pandemic, we have always believed that there is no substitute for inperson teaching, so the David Nott Foundation returned to training abroad as soon as we were able to responsibly do so. At the same time, we decided to expand our strategic ambition beyond surgeons to a ‘whole of the operating theatre’ approach and developed new innovations in teaching equipment to support training. Our first in-person teaching since the pandemic was held in July 2021. This was our inaugural ‘Train the Trainers’ course to build capacity in the Foundation by increasing the size of our teaching Faculty and thereby the number of courses we can deliver whilst maintaining the highest standards and quality. We were hosted by the Wellcome Collection and had been honoured to be the Wellcome Trust’s charity of the year in 2020, so hold the course at the Collection was a continuation of that much-valued partnership. 25 doctors attended, several of which have since been selected to serve as DNF faculty on HEST courses.

Our resumption of the Hostile Environment Surgical Training (HEST) course followed a few months later in Erbil, Iraq, in November 2021. We were careful to respect all local advice and the guidance of our partners, MSF-Belgium, to safeguard the health of the DNF team and all those we met. Shortly thereafter in December 2021 we welcomed scholars to the cadaveric Surgical Training for Austere Environments (STAE) course held in the UK. A number of places on the course were given to recent refugees arriving in the UK from Syria and Afghanistan, several of whom David Nott had operated with in eastern Aleppo in 2013 and 2014.

to travel and safety guidelines. This we did in November 2021 in Erbil, Iraq; our first overseas HEST course since visiting Hajjah, Yemen, in January 2020 before the pandemic halted all in-person activities.

We are especially grateful to our donors as a return to our core activity of face-to-face teaching and full operations has naturally resulted in a substantial increase in expenditure in 2021/22 versus the prior year and is set to do so further with a full programme of activities for the 2022/23 financial year. Post-pandemic, the cost to train a doctor abroad has risen with the increased costs of air fares, insurance and the variety and quantity of innovative training materials the Foundation utilises to make training as realistic and engaging as possible.

EMPLOYEES

For the first three quarters of 2021, the Foundation team largely worked remotely in line with UK Government guidance and we chose not to maintain a permanent office space. The end of the UK Government’s stay at home advice prompted the Foundation to obtain an office once again and a suitable space was secured in October 2021 in Hammersmith, west London.

With Co-Founder Eleanor Nott re-appointed as CEO in November 2021, the Foundation again had the leadership to drive forward the charity’s strategic vision. The Trustee board was delighted to have the contribution of new Trustee Kamila Kingstone, appointed in September 2021. Kamila brings a wealth of experience from her work as a civil servant in the Cabinet Office and previously as a journalist for the Guardian and Independent newspapers.

FINANCES

The Foundation has been fortunate in largely maintaining its income through the pandemic thanks to outreach to our committed donor base, to whom we are enormously grateful. The continued generosity of our supporters meant we were well-prepared to quickly re-commence training abroad whilst adhering

In the period under review, the Foundation also appointed a Finance Manager (part-time) and Communications and Engagement Manager. Alison Aldrich-Blake has brought considerable expertise and professionalism to the financial management of the Foundation and Christie Norris has spearheaded a thoughtful communications strategy which has substantially increased our profile and the quality of our engagement with supporters.

6

OBJECTIVES AND ACTIVITIES

OUR VISION

Our vision is a global network of highly-trained healthcare workers providing the best care to patients in austere or conflict-affected environments, and sharing that knowledge with their peers.

footprint each time we visit a particular state. We are also looking to extend our clinical faculty, who can deliver all of the DNF training programmes in the same way David does, and with the same impact.

THE NEED FOR WHAT WE DO

OUR MISSION

The David Nott Foundation has a mission to deliver the best surgical training to those who need it most. In conflict zones and austere environments, we strive to deliver training which gives doctors the skills they need to improve surgical outcomes and save more lives.

Our purpose remains: “The advancement of health and the saving of lives by funding and/ or delivering or facilitating training (either alone or in partnership with other organisations) for surgeons and medical professionals, to enable them to address the needs of patients in conflict and disaster zones and other austere environments.”

We are a humanitarian organisation dedicated to helping those who are injured in the many intractable conflicts raging across our world. The best way we can help is by leveraging the unparalleled experience of our Co-Founder, David Nott. Based on David’s thirty years of experience as a humanitarian surgeon, the Foundation has designed a surgical training programme which equips doctors with the knowledge they need to manage a vast array of injuries faced in conflict. Decisionmaking strategies are at the heart of the training, as doctors have difficult decisions to make in mass casualty settings, often with minimal resources and limited recourse to clinical investigations.

OUR LEGACY

Because we share knowledge, not things, our legacy remains long after our small team has departed and has the potential to last generations. As part of our commitment to make our training truly sustainable, we are focusing efforts on running courses where we train in-country teams, leading to a smaller UK-based

According to the UN Sustainable Development Goals, in May 2022 the number of people forced to flee conflict, violence, human rights violations and persecution surpassed 100 million. The UN also estimate that a quarter of the global population lived in conflict-affected countries at the end of 2020.

Confronted with such statistics, it is easy to feel helpless but we are motivated to do all we can to ensure that even where people are experiencing displacement, discomfort and fear, they at least have access to health in the form of safe, skilled surgical care.

FOCUS ON DR ESAYAS MUSTEFA FROM ETHIOPIA

Dr Esayas Mustefa is the only general surgeon in a 130km radius in Ethiopia. He joined our STAE course in December 2021. Dr Mustefa is often faced with catastrophic road accident injuries and bullet wounds caused by local violent confrontations. Sometimes he must work in challenging conditions, with limited equipment or electricity cuts. Since our course, Dr Mustefa says he has saved more lives and shared his knowledge with others.

“In my hospital, I had a patient with a bullet to the groin. I did damage control to stop the bleeding and keep him stable until his surgery, which I learned on the course. He survived. It was a great feeling. I also used to get nervous when opening abdomens, in all honesty. Anxiety would come. Since the course, I’ve become really calm and collected in difficult situations. Myself, my patients, my colleagues, all have benefited from my training.”

7

2021/22 ACHIEVEMENT AND PERFORMANCE

Returned to overseas in-person training: three HEST courses in 5 months in Iraq, Somaliland and Turkey, for Syrian surgeons

Deepened many of our valued existing, and developed new, operational partners, enabling us to make a swift return to teaching abroad

Expanded our teaching faculty with 25 doctors attending our first Train the Trainers course

Developed new innovations in teaching equipment including 3D printed organs to support teaching

Continued to deliver webinars to provide support and connection to our global community of healthcare workers

Continued to engage and inspire the next generation of humanitarian surgeons through the Friends of the David Nott Foundation student societies.

Welcomed recent refugees and doctors from abroad to the Surgical Training for the Austere Environment (STAE) course in December 2021

Reaccreditation of HEST by the Royal College of Surgeons of England

All time total Surgeons trained 831 28 STAE & hest courses in Palestine lebanon UK syria libya iraq Turkey yemen cameroon Somaliland Argentina kenya chile

8

PUBLIC BENEFIT

TRUSTEES CONTINUE TO HAVE REGARD TO THE GUIDANCE ISSUED BY THE CHARITY COMMISSION ON PUBLIC BENEFIT. THE FOUNDATION PROVIDES MEDICAL EDUCATION, TRAINING AND EXPERTISE. IT DOES SO WITH THE FOLLOWING PRINCIPAL PRODUCTS:

HOSTILE ENVIRONMENT SURGICAL TRAINING (HEST)

The HEST course is unique to the Foundation. A five-day course which covers all surgical specialisms, it equips doctors with the surgical skills and decisionmaking abilities to be able to address a variety of injuries they may face in conflict and disaster zones. Since the Foundation began operations in 2015, some 800 doctors have been taught life-saving surgical skills that have in many circumstances literally made the difference between life and death.

Our goal is to take the HEST course abroad to areas where it is needed most, sometimes to conflict frontlines. We understand these local requirements through needs assessments with local partner organisations.

We are hugely appreciative of the partners with whom we work. Their local knowledge and operational capability comprising logistics, risk analysis, security and transport means we are able keep our operations team to a minimum and reduce our expenditure. Our partners are also able, through their networks, to help identify the doctors who would benefit most from the teaching making sure we train those who will make the greatest impact.

Cadaveric teaching is not practical or locally acceptable in many settings, so to make HEST as realistic as possible, the Foundation has designed and commissioned a number of prosthetic organs and vessels in addition to our life-size, whole-body simulator model, Heston. The practical sessions support the lectures, videos and discussions and create a highly interactive and engaging programme.

The average cost to train a surgeon on the HEST course increased from the 2020/21 figure of £1,000 to £1,600 in 2021/22. This is largely due to

----- Start of picture text -----
TRAINING IN ERBIL, IRAQ
----- End of picture text -----

increased cost of air travel and the materials to make the prosthetic models increasing in price. The average cost of a HEST course was £45,000.

HEST FOCUS: ERBIL, IRAQ

We were delighted to visit Erbil, Iraq, in November 2021 where we trained 24 doctors in partnership with Medecins Sans Frontieres-Belgium. Many of those attending were from nearby Mosul, which was occupied by Daesh in 2014 and suffered extensive destruction in 2017 as the terrorists were driven from the city. This was the first time we had returned to Iraq since we ran HEST courses in Erbil and Mosul in 2017, in the weeks following the expulsion of Daesh from Mosul. In the meantime, we have trained a number of Iraqi doctors on the STAE scholarship programme, keeping that connection with the country and its brave healthcare workers strong.

9

HEST FOCUS: HARGEISA, SOMALILAND

In early March, we were honoured to be the guests of Edna Adan Ismail at the Edna Adan University Hospital in Hargeisa, Somaliland, where we taught 34 local doctors.

~~“IT WAS SO EXCITING TO~~

~~SEE THAT THE COURSE WAS~~

~~MAKING A BIG IMPACT IN SUCH A SHORT PERIOD.”~~

The HEST programme is always evolving; being refreshed with new video content and innovative practical sessions. As part of our strategy to move the focus from just the surgeon to a ‘whole of the operating theatre’ approach, we were delighted to also be joined by an anaesthetist on the Faculty who ran a workshop for the local anaesthetists and helped develop a HEST anaesthesia programme and made a foray into surgical nursing teaching. Michael Odesoji, our Nursing Lead, offered his reflections:

“Following David Nott’s ethos, it’s important to ask healthcare workers what they need, rather than deciding for them. Imposing knowledge without insight isn’t useful. Some of the topics the participants wanted to cover included how to form a safety checklist for surgery, emotional preparation of patients for operations and maintaining good antiseptic techniques in the operating theatre.

I helped design a bespoke surgical safety checklist for the Edna Adan Hospital, using the WHO surgical safety checklist template. The checklist was implemented and put into use in the operating theatre before the end of the course, which was incredible to see.”

----- Start of picture text -----
CONCLUDING TRAINING IN SOMALILAND
----- End of picture text -----

HEST FOCUS: GAZIANTEP, TURKEY, FOR SYRIAN DOCTORS

----- Start of picture text -----
TRAINING IN GAZIANTEP, TURKEY
----- End of picture text -----

The fortitude of Syrian healthcare workers inspired the creation of the David Nott Foundation and our connection with the doctors there is undiminished. In late March, we visited Gaziantep, Turkey, just over the border from northwest Syria to train 26 doctors. 11 years of conflict have severely restricted training opportunities for Syrian healthcare workers, particularly in the northwest, so our mission was important and timely.

DR MAHMOUD HARIRI FROM ALEPPO, SYRIA

~~“I FIRST MET DAVID IN 2013. HE~~

~~CAME TO US IN ALEPPO, AND WE LEARNED MANY THINGS. WE LEARNED TO BE MULTITASKING SURGEONS. I CAN NOW DO SURGERY ON THE KIDNEY, HEART, VESSELS. THIS IS THE NOTION OF THE MULTITASKING DOCTOR. A LOT OF LIVES HAVE BEEN SAVED.”~~

10

SCHOLARSHIPS TO ATTEND CADAVERIC TRAINING IN THE UK

TEACHING MATERIALS AND AIDS

Critical to the success of surgical teaching is the ability to observe, touch and feel the anatomy of a patient. With practical and ethical restrictions ruling out the use of cadavers on HEST courses, the Foundation has pioneered the creation of a number of teaching models to enhance the taught experience.

THE STAE COURSE AT THE ROYAL COLLEGE OF SURGEONS

The Surgical Training for Austere Environments (STAE) course was created and initiated by Professor David Nott and directed by him at the Royal College of Surgeons of England. The five-day course covers a similar programme to the HEST, but is based for the first four days in a lab where the teaching takes place with cadavers. The fifth day focuses on obstetric emergencies at the Royal College of Obstetricians and Gynaecologists.

The Foundation awards scholarships to surgeons who show promise in the field of humanitarian surgery and would struggle to meet the cost of attending the course or have demonstrated a commitment to undertaking humanitarian missions. The cost to train a surgeon on the STAE course, including visa fees, accommodation, flights and living costs, is £5,000 with each course costing approximately £70,000 to run.

In December 2021, we were able to welcome the first STAE scholars since the last course in late 2019. With various Covid-related restrictions on travel still remaining, and the usual difficulties in securing visas for participants to enter the UK, we decided to open up unfilled places to recent refugees arriving in the UK from Syria and Afghanistan.

Among the Syrian doctors we welcomed several whom David had operated with in eastern Aleppo in 2013 and 2014. To see them again and continue to support their surgical education was a great privilege and a joy. From Afghanistan we were joined by a doctor who had needed to leave the country in haste when coalition forces departed the country in August 2021.

----- Start of picture text -----
OUR SIMULATOR MODEL HESTON IN ACTION
----- End of picture text -----

The Foundation’s bespoke human simulator model, Heston, allows the faculty to demonstrate the anatomy of a patient in intricate detail. Heston is anatomically identical to a human body and made from materials that replicate the look and feel of human flesh, bone, skin and organs. Heston was built with the generous support of the Open Society Foundations and made to the precise specification of Professor David Nott.

The Foundation is always seeking new and innovative ways to make training more engaging and more accessible, especially in emergencies.

GRANTS

The Foundation awards occasional grants to faculty members and other training bodies to deliver training or conduct research that aligns with the Foundation’s mission and values. Grants may be given to individuals, private organisations and other charities and a policy covers the different parameters for making these awards.

During this reporting period, no such grants were awarded, but scholarships were awarded for the STAE course.

11

EMERGENCY RESPONSE: UKRAINE

Part of the strategic plan of the Foundation is to target support to a select number of states, to strengthen and deepen the teaching we provide through repeat missions and contacts and have a wider health system strengthening effect.

However, we always retain flexibility to be able to respond to emergencies in areas outside our strategic plan, where there is a critical and urgent need for conflict surgery training and, following a needs assessment, we judge that we can help. The shocking, unprovoked aggression shown by Russia against Ukraine constituted just such an emergency.

Foundation Co-Founders, Trustees and employees were appalled to wake to the news on February 24th that Russia had invaded Ukraine. We immediately started planning our response and how best to help the doctors, many of whom would be faced with patients suffering from catastrophic trauma injuries they had never encountered before.

----- Start of picture text -----
DAVID NOTT AND HENRY MARSH
----- End of picture text -----

Just nine days after Russia’s invasion, David ran a 12-hour training session on Zoom with surgeons inside Ukraine, assisted by Henry Marsh, the eminent neurosurgeon who has spent decades training and helping Ukrainian surgeons.

As a support and reference following the online session, we created a library of short videos covering a number of trauma injuries the doctors may encounter and possible ways to address them. Those videos were translated into Ukrainian so the content was easily accessible.

Outreach was conducted to ascertain which areas would most benefit from in-person HEST training. Over the course of 2022, in the financial year that followed, the Foundation visited Ukraine four times and held six HEST courses which taught doctors from Dnipro, Kharkiv, Odesa, Mykolaiv, Poltava and Zhytomyr life and limb-saving techniques.

DR NATALIA ROMANOVA’S STORY

Shortly after completing our surgical training course in Kharkiv, Dr Romanova put her new skills to the test. A number of children were rushed to hospital after a shelling attack. Metal shards from a cluster munition had penetrated the lung and heart of a 12-yearold boy – fatal injuries without rapid action.

Together, the team performed a thoracotomy and pericardiotomy, opening the chest and heart’s sac to find the source of bleeding. From there, the team removed a blood clot covering a tear in the boy’s heart and blocked the hole with a finger. Carefully and swiftly, they repaired the injury using a piece of the heart’s sac, before sewing the torn lung back together. Thanks to their speed and skill, Dr Romanova and her team saved the little boy’s life.

“My colleagues and I are very grateful to you for all the information and skills we gained within those three days of training. We were not used to work with such cases in peaceful times, so your professional guidance and knowledge are priceless for us now.”

TRAIN THE TRAINERS

In July 2021, the DNF held the first Train the Trainers (TTT) course with the aim of increasing the number of Faculty to enable us to deliver more courses. The next TTT course will be held in November 2022 and as part of our commitment to making our training truly sustainable we aim to have half the participants attending drawn from the countries where we teach. In the future, a greater proportion of faculty will be from the particular state, with all the benefits

in terms of language, communication and postcourse embedding of the teaching that implies.

Whilst the ongoing Covid-19 pandemic constrained our ability to deliver HEST courses in the first half of this financial year, as soon as we were able to safely and responsibly travel we got back on the road and managed to run three HEST courses in the five months between November 2021 and March 2022.

12

FUTURE PLANS

GOALS FOR 2022/23

In 2022, provided there are no further Covid-related disruptions, we will reach a milestone of 1,000 doctors trained worldwide since the Foundation was started in 2015.

We want to better support our community of healthcare workers by:

Running six HEST courses in target states with innovative teaching materials;

Translating written and recorded reference materials into relevant local languages;

Keeping the conversation going outside of courses by holding fortnightly webinars where cases can be discussed and feedback sought;

Making the David Nott Foundation teaching truly sustainable by running a Train the Trainers course in which the focus is on training doctors from our target states to deliver the HEST programme, gradually reducing the UK-based footprint and empowering local doctors to train and help their colleagues.

Nurturing our relationships with our partners; without them we could not do what we do and we are proud to work with local organisations who know the needs of their communities and strive to serve them.

Focus on a small number of target countries with the goal of having a health system-wide impact, whilst retaining the capacity to respond to crises.

----- Start of picture text -----
THANK YOU
----- End of picture text -----

13

FINANCIAL REVIEW

FINANCIAL POSITION

THIS WAS THE SIXTH FULL YEAR OF OPERATIONS FOR THE FOUNDATION. WHILST THE FINANCIAL YEAR BEGAN STILL FIRMLY IN THE PANDEMIC WITH ALL THE RESTRICTIONS THAT IMPLIES, BY THE END OF THE YEAR WE WERE DELIVERING IN-COUNTRY TRAINING AT PACE, NECESSITATING INCREASED ORDERS FOR EQUIPMENT AND ALL OTHER ASSOCIATED COSTS.

We thank them, and all those donors who wish to remain anonymous, for their support. Without them we would simply not exist and be able to train doctors to provide the best surgical care to those experiencing the horrors of conflict.

AS OF MARCH 31ST 2022, THE VALUE OF THE FOUNDATION’S INVESTMENT WAS AS FOLLOWS:

COIF charities investment fund accumulation units £776k

We are therefore incredibly grateful to our supporters for their generosity throughout the pandemic which enabled us to hit the ground running as soon as conditions allowed. Thanks to our loyal supporter base, we were able to focus solely on our impact: delivering high quality training in areas that needed it most and plan the year ahead with confidence.

The Foundation raised £999k in donations in the period to 31 March 2022, increased from £831k the previous year. Whilst we were not able to fundraise through in-person events for much of the year, David and other Faculty members gave a number of presentations and talks online and David’s book ‘War Doctor’ continued to stimulate interest in the work of the Foundation.

DONATIONS

----- Start of picture text -----
2021/22 999k
2020/21 831k
0 200 400 600 800 1,000 (£000)
----- End of picture text -----

EXPENDITURE

~~2021/22~~
~~2020/21~~		 330k 654k
0 200 400 600 800 1,000 (£000)

FUNDRAISING POLICY

The ongoing substantial support of the Syncona Foundation is something we are immeasurably grateful for. Such generous, multi-year commitments enable us to plan for the future with confidence and focus institutional efforts on delivering our mission.

We are also honoured to have received generous financial support from: Bloomsbury Publishing, the Boltini Trust, BMA Giving, Talbot Underwriting, Stanley Grundy Foundation, de Laszlo Foundation, Holbeck Charitable Trust and the Bernard Sunley Foundation. We were also touched to receive significant funds from legacies last year.

Our fundraising objective during the year was to strengthen our relationships with our longstanding and committed donors. We were delighted that our income in 2021/22 largely held to the same level as the previous year, however with the return to training abroad, investment in equipment and rising costs, we predict we will be running at a deficit by mid-2022.

14

INVESTMENT POLICY AND OBJECTIVES

The Foundation has developed a formal investment policy to protect cash assets against inflation and grow capital in real terms.

The Foundation’s investment objective is to achieve an average annual total return of inflation of CPI plus 4% over a rolling five-year period. Investments are managed by a third party on a discretionary basis reporting to the Board each quarter. The Foundation’s investments are well diversified, cost effective, and offer at least monthly liquidity. The portfolio performance for the year was 7.4% compared to a comparator index of 6.7%.

The Foundation’s ethical policy is applied to these investments in regard to companies involved in the manufacture of controversial weapons, strategic military weapons, non-military firearms, tobacco, pornography, and online gambling. The Foundation also prefers investment partners who integrate Environmental, Social and Governance factors into the investment process and engage in active ownership to improve company performance and change behaviour.

OPERATING RESERVE POLICY

The Operating Reserve refers to ringfenced cash set aside by the Board of Trustees to guarantee the stability of the programmes, employment, and ongoing operations of the organisation. As is best practice, the Operating Reserve provides an internal source of funds for

unforeseen situations such as a sudden increase in expenses, one-time unbudgeted expenses, unanticipated loss in funding, or uninsured losses.

Operating Reserves are not intended to replace a permanent loss of funds or eliminate an ongoing budget gap and, if the funds are used, it is the intention of the Foundation to replenish the reserve within a reasonably short period of time.

The Operating Reserve in 2021/22 was set for four months of average budgeted operating costs, a relatively conservative provision for an organisation of this kind. The calculation of average monthly operating costs includes all recurring, predictable expenses such as programme related expenses, salaries and occupancy, but excludes depreciation, in-kind, and other non-cash expenses. Four months of budgeted operating costs equates to £520,000.

After taking into account our reserves policy as summarised above, the Foundation is above the Board’s target for the year. The level of free reserves at the year-end is £2,266,248. This is calculated as the total funds of the charity less restricted funds and less fixed assets held for charity use. This leaves £1,746,248 available for contingencies. The restricted funds at 31 March 2022 were £90,875 and are not available for the general purposes of the charity. The Trustees are cognisant of the size of the reserve which accrued largely due to the inability to carry out teaching abroad. There are substantial plans for the years ahead however with plans to increase the number of HEST courses by 35%. We also continue to modestly expand our staff to be able to manage the increased training load. New equipment is also needed, as existing simulation models begin to experience wear and tear and the single-use models are again used to train abroad. The reserve is therefore not anticipated to be this size by the time of the next Trustees Annual Report. In a global inflationary environment, we will face increased costs across the board and the insurance for training in conflict areas such as Ukraine will also be expensive.

The amount of the Operating Reserve Fund will be calculated each year after approval of the annual budget, reported to the Board of Trustees, and included in the regular financial reports.

SUBSEQUENT EVENT

Since the year end the investment portfolio has decreased in value by £32,000 due to volatile market conditions. The trustees are monitoring the portfolio and taking investment advice as necessary.

15

STRUCTURE, GOVERNANCE AND MANAGEMENT

GOVERNING DOCUMENT

The charity is controlled by its governing document (the Constitution dated 9 June 2015) and is registered as a charitable incorporated organisation. The Constitution was amended on 2 July 2021 to protect the role of our CoFounders, David and Elly Nott, in determining the strategic direction of the charity despite not being Trustees or management themselves.

RECRUITMENT AND APPOINTMENT OF NEW TRUSTEES

Appointments to the Foundation are made following an appraisal of current needs, in terms of expertise, by the Board in conjunction with the Co-Founders.

other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

ORGANISATION

The Board of Trustees, which must have at least three members, administers the charity. The board normally meets at least quarterly but also informally on a very regular basis. In the absence of a CEO during part of the year in review, delegated authority was provided to the incumbent Operations Director and Head of Donor and Supporter Relations, with terms of delegation approved by the trustees, for operational matters including finance and employment.

RISK MANAGEMENT

REMUNERATION POLICY

All trustees give of their time freely and in a voluntary capacity and no trustee received remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in notes 15 and 25 respectively to the accounts. Compensation levels for all Foundation employees all is reviewed annually and normally increased in accordance with average earnings. The trustees also endeavour to benchmark roles against pay levels in other similar organisations.

The trustees have a risk management strategy which comprises:

an annual review of the principal risks and uncertainties that the charity faces

the establishment of policies, systems and procedures to mitigate those risks identified in the annual review and

the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

TRUSTEE INDUCTION AND TRAINING

New trustees undergo an orientation period to brief them on their legal obligations under charity law, the Charity Commission guidance on public benefit, and inform them of the content of the Constitution, the committee and decisionmaking processes, the business plan and recent financial performance of the charity. During the induction period they meet key employees and

This work has identified that overseas work and travel to conflict and disaster areas is an area of major risk. Key mitigants to these risks are security assessments, security procedures, security training and insurance.

----- Start of picture text -----
16
----- End of picture text -----

LEGAL AND ADMINISTRATIVE DETAILS

REGISTERED CHARITY NAME

The David Nott Foundation

CHARITY REGISTRATION NUMBER

INDEPENDENT EXAMINERS

Shipleys LLP Chartered Accountants & Statutory Auditor 10 Orange Street, Haymarket London, WC2H 7DQ

1162537

BANKERS

PRINCIPAL OFFICE

1 Lyric Square Hammersmith London W6 0NB

TRUSTEES

Mr G J Hodgkin Ms C Hughes Mr R R Hoare Mr S J Armitage Ms K E L Kingstone

The Co-operative Bank Business Direct PO Box 250 Skelmersdale WN8 6WT

INVESTMENT MANAGERS

CCLA Investment Management Limited Senator House 85 Queen Victoria Street London, EC4V 4ET

17

TRUSTEES’ RESPONSIBILITIES STATEMENT

THE TRUSTEES ARE RESPONSIBLE FOR PREPARING THE TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS IN ACCORDANCE WITH 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).

The law applicable to charities in England and Wales 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 the income and expenditure of the charity for that period.

In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;

The trustees are responsible for maintaining proper accounting records which 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed/constitution. 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.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The trustees’ annual report was approved on 20/12/2022 and signed on behalf of the trustees by:

MS C HUGHES TRUSTEE

observe the methods and principles in the Charities SORP;

make judgments and accounting 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; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

----- Start of picture text -----
18
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

----- Start of picture text -----
19
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

20

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

I report to the trustees on my examination of the accounts of the David Nott Foundation for the year ended 31 March 2022 which are set out on pages 21 to 42.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

RESPONSIBILITIES AND BASIS FOR REPORT

  1. Accounting records were not kept in respect of the charity as required by section 130 of the Act; or

As the charity trustees of the charity you are responsible for the preparation of accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the Trustees’ accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

  1. The accounts do not accord with those records; or

  2. The accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

INDEPENDENT EXAMINER’S STATEMENT

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

SIMON ROBINSON FCA

Shipleys LLP Independent Examiner 10 Orange Street Haymarket London WC2H 7DQ

20 December 2022

21

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
Unrestricted Restricted
funds funds Total funds Total funds
Notes £ £ £ £
Income and endowments
Donations and legacies 5 983,460 15,362 998,822 830,804
Investment income 6 172 – 172 478
Total income 983,632 15,362 998,994 831,282
Expenditure on:
Raising funds 7 (52,988) – (52,988) (74,714)
Charitable activities 8 (521,245) (79,647) (600,892) (255,295)
Total expenditure (574,233) (79,647) (653,880) (330,009)
Net income before net
gains on investments 409,399 (64,285) 345,114 501,273
Net gains on investments 12 81,026 – 81,026 136,210
Net income / (expenditure ) and
net movement in funds 490,425 (64,285) 426,140 637,483
Reconciliation of funds
Total funds brought forward 1,881,438 155,160 2,036,598 1,399,115
Total funds carried forward 2,371,863 90,875 2,462,738 2,036,598

The notes form part of these financial statements

22

BALANCE SHEET

----- Start of picture text -----
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
Notes £ £ £ £
Fixed assets
Tangible fxed assets 16 192,368 192,496
Investments 17 776,403 695,377
968,771 887,873
Current assets
Debtors 18 83,126 10,681
Cash at bank and in hand 1,477,640 1,157,289
1,560,766 1,167,970
Creditors: amounts falling
due within one year 19 (66,799) (19,245)
Net current assets 1,493,967 1,148,725
Total assets less current liabilities 2,462,738 2,036,598
Net assets 2,462,738 2,036,598
Funds of the charity
Unrestricted funds 22 2,371,863 1,881,438
Restricted funds 23 90,875 155,160
Total charity funds 2,462,738 2,036,598

These financial statements were approved by the board of trustees on 20/12/2022, and are signed on behalf of the board by

MS C HUGHES TRUSTEE

The notes form part of these financial statements

23

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
Notes £ £
Cash fows from operating activities
Net income 426,140 637,483
Adjustments for:
Depreciation of tangible fxed assets 53,966 45,820
Net gains on investments (81,026) (136,210)
Dividends and interest from investments (172) (478)
Changes in:
Trade and other debtors (72,445) (9,434)
Trade and other creditors 47,554 (6,220)
Cash generated from operations 374,017 530,961
Net cash from operating activities 374,017 530,961
Cash fows from investing activities
Dividends and interest from investments 172 478
Purchase of tangible assets (53,838) (95,100)
Net cash used in investing activities (53,666) (94,622)
Net increase in cash and cash equivalents 26 320,351 436,339
Cash and cash equivalents at beginning of year 1,157,289 720,950
Cash and cash equivalents at end of year 1,477,640 1,157,289

The notes form part of these financial statements

24

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1. General information

The charity is a Charitable Incorporation Organisation, registered in England and Wales. The address of the principal office is 1 Lyric Square, Hammersmith, London, W6 ONB. The objectives of the charity are set out on page 6.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The David Nott Foundation meets the definition of a public benefit entity under FRS 102.

The functional currency of the charity is considered to be pounds sterling because that is the currency of the primary economic environment in which the charity operates. The financial statements are also presented in pounds sterling.

The amounts in the financial statements are prepared to the nearest £, unless otherwise stated.

GOING CONCERN

The financial statements of the charity have been prepared on the going concern basis.

The charity’s ability to deliver overseas training was significantly restricted by the impact of the Covid-19 pandemic, with most physical training courses deferred or cancelled until Q3 2021. We maintained contact with our beneficiaries through online webinars, and ran a UK based ‘Train the Trainers’ workshop in summer 2021 to expand the potential DNF teaching faculty readying us for the recommencement of overseas courses in November 2021. Three HEST courses were run between November 2021 and March 2022. The charity has sufficient funds in place to resource all anticipated programmes in the foreseeable future. There are no material uncertainties about the charity’s ability to continue as a going concern.

3. Accounting policies

BASIS OF PREPARATION

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through income or expenditure.

JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

There are no judgements or key sources of estimation uncertainty that would have a significant effect on the carrying amounts of assets and liabilities recognised in the financial statements.

25

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FUND ACCOUNTING

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity’s purposes.

Restricted funds are funds that can only be used for particular restricted purposes within the objects of the charity. They are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal.

INCOME

All income is included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured.

Interest on funds held on deposits is included when receivable and the amount can be reliably measured by the charity. This is normally upon notification of the interest paid or payable by the bank.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is recognised on an accruals basis and is classified under headings of the statement of financial activities to which it relates:

expenditure on raising funds includes the costs of all fundraising activities, events and non-charitable trading activities

Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. In accordance with the Charities SORP (FRS 102), the contribution of volunteers is not recognised in the accounts.

expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include staff, premises, finance and governance costs. These costs have been allocated between expenditure on raising funds and expenditure on charitable activities on the basis of an estimate of the proportion of time spent by staff on those activities.

26

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant. Grants awarded that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to the grant is outside of the control of the charity. Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

TANGIBLE ASSETS

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

INVESTMENTS

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year-end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

FINANCIAL INSTRUMENTS

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value unless otherwise stated in the accounting policies.

DEBTORS

DEPRECIATION

Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset as follows:

Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Teaching equipment – 25% reducing balance Computer equipment – 25% reducing balance Office equipment – 25% reducing balance

CASH AT BANK AND IN HAND

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

27

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

CREDITORS AND PROVISION

DEFINED CONTRIBUTION PLANS

Creditors and provision are recognised where the charity has a present obligation resulting in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Differences between contributions payable in the year and the contributions actually paid are shown either in accruals or prepayments on the balance sheet.

OPERATING LEASE COMMITMENTS

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

4. Taxation

The charity is exempt from tax on income and gains to the extent that these are applied to its charitable objectives.

5. Donations and legacies

Unrestricted
Funds Restricted Funds Total Funds 2022
£ £ £
Donations 983,460 15,362 998,822
Unrestricted
Funds Restricted Funds Total Funds 2021
£ £ £
Donations 830,804 – 830,804

28

NOTES TO THE FINANCIAL STATEMENTS

----- Start of picture text -----
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

FOR THE YEAR ENDED 31 MARCH 2022

6. Investment income

6. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Deposit account interest 172 172 478 478

7. Costs of raising donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Cost of raising funds 41,194 41,194 57,163 57,163
Support costs 11,794 11,794 17,551 17,551
52,988 52,988 74,714 74,714

8. Expenditure on charitable activities

Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Hostile Environment Surgical Training (HEST) 331,190 53,918 385,108
Surgical Training for Austere Environments (STAE) 71,097 10,367 81,464
Other training projects 118,958 15,362 134,320
521,245 79,647 600,892

29

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Expenditure on charitable activities (continued)

Restricted Total Funds
Unrestricted Funds Funds 2021
£ £ £
Hostile Environment Surgical Training (HEST) 160,113 32,192 192,305
Surgical Training for Austere Environments (STAE) 10,404 – 10,404
Other training projects 52,586 – 52,586
223,103 32,192 255,295

Analysis of expenditure on charitable activities

Grant funding Support Total funds
of activities Direct costs costs 2022
£ £ £ £
Hostile Environment Surgical Training (HEST) – 344,034 41,074 385,108
Surgical Training for Austere Environments (STAE) 28,896 39,351 13,217 81,464
Other training projects – 100,769 33,551 134,320
28,896 484,154 87,842 600,892
Grant funding Support Total Funds
of activities Direct costs costs 2021
£ £ £ £
Hostile Environment Surgical Training (HEST) – 160,249 32,056 192,305
Surgical Training for Austere Environments (STAE) (28,000) 27,185 11,219 10,404
Other training projects – 35,502 17,084 52,586
(28,000) 222,936 60,359 255,295

30

NOTES TO THE FINANCIAL STATEMENTS

----- Start of picture text -----
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

FOR THE YEAR ENDED 31 MARCH 2022

9. Analysis of support costs

9. Analysis of support costs
Other
Fundraising HEST STAE projects Total 2022
£ £ £ £ £
Premises costs 3,954 13,772 4,431 11,249 33,406
IT costs 560 1,949 627 1,592 4,728
Insurance 1,552 5,405 1,739 4,415 13,111
Depreciation 167 583 188 476 1,414
Bank charges 39 135 44 111 329
Governance costs 5,522 19,230 6,188 15,708 46,648
11,794 41,074 13,217 33,551 99,636

Support costs are allocated to the activities of the charity based on the estimated time spent on those activities by the charity’s employees.

Other
Fundraising HEST STAE projects Total 2021
£ £ £ £ £
Premises costs 3,569 6,518 2,281 3,474 15,842
IT costs 573 1,047 366 558 2,544
Insurance 3,491 6,377 2,232 3,399 15,499
Depreciation 295 538 189 287 1,309
Bank charges 28 51 18 26 123
Governance costs 9,595 17,525 6,133 9,340 42,593
17,551 32,056 11,219 17,084 77,910

31

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

10. Governance

10. Governance
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Accountancy 6,164 6,164 11,935 11,935
Independent examination 3,300 3,300 3,300 3,300
Staf costs 34,022 34,022 26,948 26,948
Legal fees 3,162 3,162 410 410
46,648 46,648 42,593 42,593

11. Analysis of grants

11. Analysis of grants
2022 2021
Grants to institutions £ £
Scholarships at Royal College of Surgeons 28,896 (28,000)
Total grants 28,896 (28,000)

----- Start of picture text -----
32
----- End of picture text -----

----- Start of picture text -----
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

12. Net (losses)/gains on investments

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Gains/(losses) on listed investments 81,026 81,026 136,210 136,210

13. Net income

Net income is stated after charging/(crediting):

Net income is stated after charging/(crediting):
2022 2021
£ £
Independent examiners fee:
– independent examination 3,300 3,300
– accountancy 3,584 8,250
– corporation tax 1,140 1,140
– payroll 1,440 1,440
Depreciation of tangible fxed assets 53,966 45,820
Operating lease expense – land and building 22,801 9,450

33

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

14. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2022 2021
£ £
Wages and salaries 133,090 170,531
Social security costs 10,175 13,682
Employer contributions to pension plans 2,759 3,242
Other employee benefts – 555
146,024 188,010

Pension costs are allocated to activities on the basis of time spent by each employee and are wholly allocated to unrestricted funds.

The average head count of employees during the year was 3 (2021: 4). The average number of full-time equivalent employees during the year is analysed as follows:

2022 2021
No. No.
Charitable activities 2.3 1.8
Fundraising 0.3 1.4
2.6 3.2

No employee received employee benefits of more than £60,000 during the year (2021: one employee received employee benefits of more than £60,000). Pension contributions of £nil (2021: £1,313) were paid on behalf of higher paid employees during the year. The number of higher paid employees accruing benefits under defined contribution pension schemes were nil (2021: 1).

34

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

15. Trustee remuneration and expenses

The trustees have not received any remuneration during the year (2021: £nil). No out of pocket expenses were reimbursed to trustees during the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

16. Tangible fixed assets

Teaching Computer Ofce
equipment equipment equipment Total
£ £ £ £
Cost
At 1 April 2021 416,362 9,750 1,044 427,156
Additions 48,164 4,908 766 53,838
At 31 March 2022 464,526 14,658 1,810 480,994
Depreciation
At 1 April 2021 228,346 6,191 123 234,660
Charge for the year 52,552 1,132 282 53,966
At 31 March 2022 280,898 7,323 405 288,626
Carrying amount
At 31 March 2022 183,628 7,335 1,405 192,368
At 31 March 2021 188,016 3,559 921 192,496

35

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

17. Investments

17. Investments
2022 2021
£ £
Fair value
At 1 April 2021 695,377 559,167
Net gain on revaluation 81,026 136,210
At 31 March 2022 776,403 695,377
Historical cost 570,000 570,000
Analysis of investments at 31 March 2022:
UK listed investments 776,403 695,377

All investments are carried at their fair value. Holdings in investment funds, unit trusts and open-ended investment companies are at the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The following investments were material in the context of the investment portfolio:

COIF Charities Investment Fund – £776,403 (2021: £695,377).

The main form of financial risk faced by the charity is the volatility in investment markets due to wider economic conditions and variability of investment returns. This risk is mitigated by obtaining advice from a financial expert on the charity’s investment portfolio.

36

NOTES TO THE FINANCIAL STATEMENTS

----- Start of picture text -----
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

FOR THE YEAR ENDED 31 MARCH 2022

18. Debtors
2022 2021
£ £
Trade debtors 11,277 –
Prepayments and accrued income 65,657 9,882
Other debtors 6,192 799
83,126 10,681

19. Creditors: amounts falling due within one year

2022 2021
£ £
Trade creditors 21,052 20
Accruals and deferred income 40,540 18,670
Social security and other taxes 4,486 –
Other creditors 721 555
66,799 19,245

37

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

20. Deferred income

20. Deferred income
2022 2021
£ £
Balance at 1 April 2021 10,280 10,210
Amount released to income (10,280) (210)
Amount deferred in the year – 280
Balance at 31 March 2022 – 10,280

Deferred income comprises income received in advance in respect of training courses and fundraising events.

21. Pensions and other post retirement benefits

DEFINED CONTRIBUTION PLANS

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £2,759 (2021: £3,242).

38

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

22. Unrestricted funds

Gains and At 31 March
At 1 April 2021 Income Expenditure losses 2022
£ £ £ £ £
General funds 1,756,061 983,632 (574,233) – 2,165,460
Unrealised gain
on investment 125,377 – – 81,026 206,403
1,881,438 983,632 (574,233) 81,026 2,371,863
At 1 April 2020 Income Expenditure Gains and losses At 31 March 2021
£ £ £ £ £
General funds 1,222,596 831,282 (297,817) – 1,756,061
Unrealised gain
on investment (10,833) – – 136,210 125,377
1,211,763 831,282 (297,817) 136,210 1,881,438

The unrealised gain on investment is the difference between the historical cost of the investment and the fair value recognised in these financial statements.

39

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

23. Restricted funds

At 1 April 2021 Income Expenditure Gains and losses At 31 March 2022
£ £ £ £ £
Simulator 115,671 – (28,918) – 86,753
Digital project 4,122 – – – 4,122
Surgeons in Syria 25,000 – (25,000) – –
Manikins 10,367 – (10,367) – –
Ukraine – 15,362 (15,362) – –
155,160 15,362 (79,647) – 90,875
At 1 April 2020 Income Expenditure Gains and losses At 31 March 2021
£ £ £ £ £
Simulator 147,863 – (32,192) – 115,671
Digital project 4,122 – – – 4,122
Surgeons in Syria 25,000 – – 25,000
Manikins 10,367 – – – 10,367
187,352 – (32,192) – 155,160

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

Simulator – Open Society Institute grant for teaching materials for war surgery training.

Digital project – Vodafone Foundation grant to support the costs used for the development and ongoing support of the charity’s learning platform for sharing videos and information related to the work of the charity.

Surgeons in Syria – CHK Foundation grant to support surgeons who are working in Syria to attend the specialist training course in the UK, or to attend a locally delivered HEST course.

Manikins – Festival Medical Services grant for the purchase of single use manikins.

Ukraine – Funds donated by a number of organisations and individuals to support work by the Foundation to train Ukrainian surgeons.

40

NOTES TO THE FINANCIAL STATEMENTS

----- Start of picture text -----
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

FOR THE YEAR ENDED 31 MARCH 2022

24. Analysis of net assets between funds

Unrestricted Funds Restricted Funds Total Funds 2022 Total Funds 2022
£ £ £
Tangible fxed assets 105,615 86,753 192,368
Investments 776,403 – 776,403
Current assets 1,556,644 4,122 1,560,766
Creditors less than 1 year (66,799) – (66,799)
Net assets 2,371,863 90,875 2,462,738
Unrestricted Funds Restricted Funds Total Funds 2021
£ £ £
Tangible fxed assets 76,825 115,671 192,496
Investments 695,377 – 695,377
Current assets 1,118,481 49,489 1,167,970
Creditors less than 1 year (9,245) (10,000) (19,245)
Net assets 1,881,438 155,160 2,036,598

25. Related Party Transactions

The key management personnel of the charity comprise the trustees, the chief executive, the operations director and the head of supporter & donor relations. The total employee benefits of the key management personnel of the charity was £96,257 (2021: £148,722).

There were no other related party transactions for the years ended 31 March 2022 or 31 March 2021.

41

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

26. Analysis of changes in net debt

At 1 April 2021 Cash fows At 31 March 2022
£ £ £
Net cash
Cash at bank and in hand 1,157,289 320,351 1,477,640
At 1 April 2020 Cash fows At 31 March 2021
£ £ £
Net cash
Cash at bank and in hand 720,950 436,339 1,157,289

----- Start of picture text -----
42
----- End of picture text -----

----- Start of picture text -----
2021/22
DAVID NOTT FOUNDATION ANNUAL REPORT
----- End of picture text -----

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

27. Comparatives for the Statement of Financial Activities

Unrestricted Restricted
Funds Funds Total Funds 2021
£ £ £
Income and endowments
Donations and legacies 830,804 – 830,804
Investment income 478 – 478
Total income 831,282 – 831,282
Expenditure on:
Raising funds (74,714) – (74,714)
Charitable activities (223,103) (32,192) (255,295)
Total expenditure (297,817) (32,192) (330,009)
Net income / (expenditure) before net losses on investments 533,465 (32,192) 501,273
Net losses on investments 136,210 – 136,210
Net income / (expenditure) and net movement in funds 669,675 (32,192) 637,483
Reconciliation of funds
Total funds brought forward 1,211,763 187,352 1,399,115
Total funds carried forward 1,881,438 155,160 2,036,598

43

001_1 DNF_Annual Report-2022_AW.indd 44

20/12/2022 17:46