**REGISTERED COMPANY NUMBER: CE008950 (England and Wales) REGISTERED CHARITY NUMBER: 1171373** 

Report of the Trustees and 

Audited Financial Statements 

for the Year Ended 31 December 2023 

for 

British Skin Foundation 


Nichols & Co ( Accountancy ) Limited Chartered Accountants and Statutory Auditors Unit 7 Mulberry Place Pinnell Road Eltham London SE9 6AR 



British Skin Foundation 

Contents of the Financial Statements for the Year Ended 31 December 2023 

|||Page||
|---|---|---|---|
|Reference and Administrative Details||1||
|Report of the Trustees|2|to|4|
|Report of the Independent Auditors|5|to|6|
|Statement of Financial Activities||7||
|Balance Sheet||8||
|Cash Flow Statement||9||
|Notes to the Financial Statements|10|to|20|





British Skin Foundation 

Reference and Administrative Details for the Year Ended 31 December 2023 

## **TRUSTEES** 

Mrs E Erkal-Paler Chair Person Professor C B Bunker Honorary Secretary Professor D J Gawkrodger Honorary Treasurer Mr H Drayton Professor R Sarkany Dr S Mayou Professor E Healy Mr R Balson Dr B Shergill Dr T Griffiths (resigned 9.5.24) Mrs Y Burne Dr N Rajan Professor M Ardern-Jones (appointed 9.5.24) 

## **REGISTERED OFFICE** 

4 Fitzroy Square London W1T 5HQ 

**REGISTERED COMPANY NUMBER** 

CE008950 (England and Wales) 

**REGISTERED CHARITY** 1171373 **NUMBER** 

**AUDITORS** Nichols & Co ( Accountancy ) Limited Chartered Accountants and Statutory Auditors Unit 7 Mulberry Place Pinnell Road Eltham London SE9 6AR 

Page 1 



British Skin Foundation 

Report of the Trustees for the Year Ended 31 December 2023 

The trustees present their report and the audited financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity. 

## **OBJECTIVES AND ACTIVITIES** 

The Trust was set up in order to raise funds and provide funds, either directly or by way of grants, to others for the purpose of research into dermatology and the causes of skin diseases and the possibilities of prevention, alleviation, and cure. 

## **ACHIEVEMENTS AND PERFORMANCE** 

2023 was the most financially successful year the British Skin Foundation (BSF) ever had with income approaching £2 million for the first time ever. Increases were seen in almost all of the BSF’s charitable income streams. These financial successes were matched by similar growth in BSF’s public and media profile as more people turned to the charity as a trusted source of skin information and opinion. 

The BSF’s strong financial stability enabled it to deliver an extensive research grants programme throughout 2023, culminating in a very successful large grants distribution in late November. General overheads remained within budget and salary expenditure represented a respectable 16% of the BSF’s overall revenue. This percentage is well below the expectation for a charity of the BSF’s size and illustrates efficiency. 

BSF’s income was up an impressive 40% on 2022’s figures, with corporate donations, its largest income source, peaking at an impressive £568,773. In addition, several pharmaceutical donors sought to support the BSF with various educational initiatives, further securing the BSF’s public profile in the field of skin health and disease. Well-known names such Boots also chose to donate to the BSF’s work after recognizing its place in educating the public around skin health. 

Public and events fundraising remained sluggish during 2023. This was mainly due to the cost of living crisis and the public’s reticence to get involved in fundraising when it's a tough financial climate. This position is not unique to the BSF with many across the 3rd sector experiencing similar difficulties. Events income of £42,414 was lower than 2022, but in line with expectations. There are plans to build on these figures in 2024 through some big initiatives such as spaces in the London Marathon and by attracting corporate supporters to consider making the BSF the charity of choice for their employees. 

Legacy income for the year was an impressive £55,775, illustrating that the BSF’s awareness efforts in this area over recent decades are now delivering regular gifts. The BSF is hoping to build on these successes by committing resources to this potentially important source of funding and hopefully seeing increases in the years to come. 

Support from the dermatology specialty continued in 2023, especially donations from the British Association of Dermatologists (BAD). Financially BAD donated a further £256,000 towards the BSF’s work, on top of its small and specific grants support. BAD’s support is wider than financial, it gives the BSF a powerful platform and voice to the dermatological community. Together both organisations will be supporting Professor Sinead Langan in 2024’s London Marathon so collectively it is hoped the whole dermatology community will get behind her efforts and raise as much money as possible for skin disease research. 

Another important stakeholder, the Skin Health Alliance, donated a further £200,900 to the BSF in 2023. Reflecting the needs and wishes of its own stakeholders and funders it asked that £100,000 of this donation be earmarked for a specific research project into the psychological impact of skin disease in 2024. 

The BSF delivered a broad and generous grants programme in 2023 totalling over £1.1 million. An impressive £100,000 of small grants were awarded in the summer with a further £1 million being spent on large grants in November. Research projects supporting many skin conditions and skin cancer at many universities and medical schools were funded. 

In communications, media and PR, BSF’s messages continued to be amplified throughout 2023. BSF Communications team has become the first point of contact for the media for opinion and comment on all skin issues. Staffing and resources were increased in this area to meet this growing demand for trustworthy and expert information. Many corporate supporters also see the BSF’s impartiality as an asset when communicating to the public or their consumers. The BSF created a variety of patient and consumer focused educational projects across many platforms. 

Page 2 



British Skin Foundation 

## Report of the Trustees 

## for the Year Ended 31 December 2023 

2023 saw the BSF deliver on many of the initiatives set out in the first year of its 3-year business plan, one that seeks to amplify its efforts in communications, fundraising and grant giving. The BSF’s voice remains loud and relevant in what is becoming a very crowded skin health space. More people than ever are hearing its name and associate it with trustworthy advice and information. They are then choosing to support the BSF’s charitable objectives allowing it to fund even more dermatologist-led skin disease and skin cancer research in the future. 

## **FUNDRAISING STANDARD INFORMATION** 

As a registered charity funding skin disease and skin cancer research, British Skin Foundation actively fundraises by canvassing support from the public, industry, and philanthropic trusts. Its fundraising activities are undertaken by employed staff without the use of external third party fundraisers. These staff work within the guidelines set out by the Charity Commission and within the parameters of the charity's own fundraising policy. During this accounting period, the charity has received no complaints pertaining to its fundraising practices or its staff. The charity does not cold call or place pressure on donors to give and it does use third parties or professional fundraising companies to attract support. 

## **PUBLIC BENEFIT** 

The trustees have referred to the guidance contained in the Charity Commission's guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set. 

## **STRATEGIC REPORT** 

## **FINANCIAL REVIEW** 

The charity's principal sources of funding are donations and legacies. The assets of the charity are mainly held in norisk investment accounts at four unrelated British financial institutions. The assets are held in cash because the charity needs ready access to funds to meet grant commitments. The charity has also invested £150,000 (2022: £150,000) in a listed investment fund and are monitoring its performance. 

## **RESERVES POLICY** 

The British Skin Foundation will maintain sufficient reserves to ensure financial stability. Each year monies which are not already committed to reserves or grants, or required for running the organisation, will be made available for new awards. As there is always a delay between the granting of awards and the call for funds, a substantial positive balance will remain in the bank. If there are insufficient suitable applications for grants, the monies will be carried over to the next year. 

Unrestricted funds invested in tangible fixed assets, listed investments and cash increased from £2,693,087 to £3,039,057 during the year. Restricted funds invested in cash increased from £255,664 to £617,855 during the year. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

The charitable incorporated organisation ("CIO") was registered with the Charity Commissioners by Trust Deed on 30th January 2017 under the name "British Skin Foundation". The CIO has taken over the activities of the charity "The British Skin Foundation" (registered charity number 313865) on the 5th June 2020, as part of a restructuring of the charity. 

New trustees may be appointed at any time either by way of replacement or addition. Appointments are made by a resolution of a meeting of the trustees provided that a memorandum declaring such appointment or discharge shall be signed as a deed either at a meeting by the person presiding or in some other manner directed by the meeting and attested by two persons present at the meeting. 

Trustees are recruited either on personal recommendation or, where appropriate, through advertising. Care is taken to maintain a balance between the business and medical experience and skills contributed by the trustees. References are taken up on potential trustees and they are required to attend a briefing on the charity's activities given by the administrator, where they are provided with background information, copies of the latest audited accounts, and the latest Charity Commission guidance. 

Page 3 



British Skin Foundation 

Report of the Trustees for the Year Ended 31 December 2023 

The trustees oversee the pay and remuneration of the CEO Matthew Patey which is benchmarked against industry standards and based upon performance and an annual review. 

The trustees have reviewed the major risks facing the charity and taken action to manage those risks. The major risks are a fall in income due to difficulties in the corporate and financial markets and possible employee fraud. The possibility of fraud is minimised by only the trustees being signatories on the bank accounts, and robust bank account security. In addition, the Trustee Indemnity Insurance Policy includes cover against possible employee fraud. 

## **Key management remuneration** 

The total amount of employee benefits (including employer pension contributions) received by key management personnel for their services to the Charity was £71,711 (2022: £76,305). 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England & 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 of the incoming resources and application of resources 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; 

- observe the methods and principles in the Charities SORP 2019 (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

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

The trustees are responsible for keeping proper 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 Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed.  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. 

Report of the trustees approved by order of the board of trustees on ............................................. and signed on the board's behalf by: 

........................................................................ Professor C B Bunker - Trustee 

Page 4 



Report of the Independent Auditors to the Trustees of British Skin Foundation 

## **Opinion** 

We have audited the financial statements of British Skin Foundation (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

- In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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 Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- the charitable company has not kept adequate accounting records; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

Page 5 



Report of the Independent Auditors to the Trustees of British Skin Foundation 

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Our responsibilities for the audit of the financial statements** 

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

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 a Report of the Independent Auditors 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 specific procedure for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: 

- enquiry of staff, those charged with governance and the charity’s legal advisers (where deemed necessary); 

- obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience. 

- reviewing minutes of meetings of those charged with governance. 

- reviewing accounts disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. 

- performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. 

## **Use of our report** 

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

Nichols & Co ( Accountancy ) Limited Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Unit 7 Mulberry Place Pinnell Road, Eltham London SE9 6AR 

Date: ............................................. 

Page 6 



British Skin Foundation 

## Statement of Financial Activities 

## for the Year Ended 31 December 2023 

|Unrestricted<br>fund<br>Notes<br>£<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>2<br>1,240,401<br>Other trading activities<br>3<br>54,914<br>Investment income<br>4<br>17,713<br>**Total**<br>1,313,028<br>**EXPENDITURE ON**<br>Raising funds<br>5<br>15,485<br>**Charitable activities**<br>6<br>Charitable Activities<br>871,548<br>Support Costs<br>85,518<br>**Total**<br>972,551<br>**NET INCOME**<br>340,477<br>**Other recognised gains/(losses)**<br>Gains/(losses) on revaluation of fixed assets<br>5,493<br>**Net movement in funds**<br>345,970<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>2,693,087<br>**TOTAL FUNDS CARRIED FORWARD**<br>3,039,057|Restricted<br>fund<br>£<br>543,472<br>-<br>-<br>543,472<br>-<br>181,281<br>-<br>181,281<br>362,191<br>-<br>362,191<br>255,664<br>617,855|31.12.23<br>Total<br>funds<br>£<br>1,783,873<br>54,914<br>17,713<br>1,856,500<br>15,485<br>1,052,829<br>85,518<br>1,153,832<br>702,668<br>5,493<br>708,161<br>2,948,751<br>3,656,912|31.12.22<br>Total<br>funds<br>£<br>1,268,978<br>53,499<br>6,701<br>1,329,178<br>6,993<br>962,612<br>81,786<br>1,051,391<br>277,787<br>(15,031)<br>262,756<br>2,685,995<br>2,948,751|
|---|---|---|---|



## **CONTINUING OPERATIONS** 

All income and expenditure has arisen from continuing activities. 

The notes form part of these financial statements 

Page 7 



British Skin Foundation 

## Balance Sheet 

## 31 December 2023 

|Unrestricted<br>fund<br>Notes<br>£<br>**FIXED ASSETS**<br>Tangible assets<br>14<br>7,994<br>Investments<br>15<br>151,632<br>159,626<br>**CURRENT ASSETS**<br>Debtors<br>16<br>147,177<br>Cash at bank and in hand<br>2,916,802<br>3,063,979<br>**CREDITORS**<br>Amounts falling due within one year<br>17<br>(184,548)<br>**NET CURRENT ASSETS**<br>2,879,431<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>3,039,057<br>**NET ASSETS**<br>3,039,057<br>**FUNDS**<br>18<br>Unrestricted funds<br>Restricted funds<br>**TOTAL FUNDS**|Restricted<br>fund<br>£<br>-<br>-<br>-<br>-<br>662,431<br>662,431<br>(44,576)<br>617,855<br>617,855<br>617,855|31.12.23<br>Total<br>funds<br>£<br>7,994<br>151,632<br>159,626<br>147,177<br>3,579,233<br>3,726,410<br>(229,124)<br>3,497,286<br>3,656,912<br>3,656,912<br>3,039,057<br>617,855<br>3,656,912|31.12.22<br>Total<br>funds<br>£<br>8,301<br>146,139<br>154,440<br>451,558<br>2,664,282<br>3,115,840<br>(321,529)<br>2,794,311<br>2,948,751<br>2,948,751<br>2,693,087<br>255,664<br>2,948,751|
|---|---|---|---|



The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 

............................................. Professor D J Gawkrodger - Trustee 

The notes form part of these financial statements 

Page 8 



British Skin Foundation 

Cash Flow Statement for the Year Ended 31 December 2023 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>22<br>Net cash provided by operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>Purchase of fixed asset investments<br>Interest received<br>Dividends received<br>Net cash provided by/(used in) investing activities<br>**Change in cash and cash equivalents in**<br>**the reporting period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the end of**<br>**the reporting period**|31.12.23<br>£<br>901,680<br>901,680<br>(1,412)<br>-<br>9,999<br>4,684<br>13,271<br>914,951<br>2,664,282<br>3,579,233|31.12.22<br>£<br>298,235<br>298,235<br>(1,457)<br>(49,999)<br>2,090<br>2,085<br>(47,281)<br>250,954<br>2,413,328<br>2,664,282|
|---|---|---|



The notes form part of these financial statements 

Page 9 



British Skin Foundation 

Notes to the Financial Statements for the Year Ended 31 December 2023 

## **1. ACCOUNTING POLICIES** 

## **BASIS OF PREPARING THE FINANCIAL STATEMENTS** 

British Skin Foundation is a charitable incorporated organisation registered in England. The address of the registered office is given in the report of the trustees, together with details of the charity's operations and principal activities. 

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. 

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.  The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 

## **INCOME** 

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income and the amount can be measured reliably and it is probable that the income will be received. 

## **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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. 

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. 

## **FUNDS** 

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.  The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

## **DEBTORS AND CREDITORS RECEIVABLE/PAYABLE WITHIN ONE YEAR** 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 

## **TANGIBLE FIXED ASSETS** 

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. 

continued... 

Page 10 



British Skin Foundation 

Notes to the Financial Statements - continued for the Year Ended 31 December 2023 

## **1. ACCOUNTING POLICIES - continued** 

## **TANGIBLE FIXED ASSETS** 

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: 

Fixtures and fittings - 10% on cost Computer equipment - 20% on cost 

## **TAXATION** 

As a registered charity, the organisation is exempt from income and capital gains tax to the extent that its income and gains are applicable to charitable purposes only.  Value Added Tax is not recoverable by the charity, and is therefore included within the relevant costs in the Statement of Financial Activities. 

## **EMPLOYEE BENEFITS** 

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.  The charity operates a defined contribution plan for the benefit of its employees.  Contributions are expensed as they become payable. 

## **GOING CONCERN** 

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist.  The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements.  The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. 

## **INVESTMENTS** 

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in 'net gains/(losses) on investments' in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. 

## **2. DONATIONS AND LEGACIES** 

|Gift aid<br>Legacies<br>Donations from individuals<br>Company donations<br>Trust donations<br>BAD Donations<br>Donations from other charities<br>Grant donations<br>SHA donations|31.12.23<br>£<br>5,620<br>55,775<br>16,145<br>568,773<br>419,944<br>256,000<br>-<br>260,716<br>200,900<br>1,783,873|31.12.22<br>£<br>4,188<br>98,150<br>16,624<br>576,148<br>499<br>341,769<br>30,000<br>-<br>201,600|
|---|---|---|
|||1,268,978|



## **3. OTHER TRADING ACTIVITIES** 

|**OTHER TRADING ACTIVITIES**|||
|---|---|---|
||31.12.23|31.12.22|
||£|£|
|Fundraising events|42,414|53,499|
|Sponsorships|12,500|-|
||54,914|53,499|



continued... 

Page 11 



British Skin Foundation 

Notes to the Financial Statements - continued for the Year Ended 31 December 2023 

## **4. INVESTMENT INCOME** 

|**INVESTMENT INCOME**|||
|---|---|---|
||31.12.23|31.12.22|
||£|£|
|Deposit account interest|12,729|2,505|
|Dividend income|4,984|4,196|
||17,713|6,701|
|**RAISING FUNDS**|||
|**OTHER TRADING ACTIVITIES**|||
||31.12.23|31.12.22|
||£|£|
|Advertising|12,358|4,594|
|Events|3,127|1,953|
|Sponsorships|-|446|
||15,485|6,993|



## **5. RAISING FUNDS** 

## **OTHER TRADING ACTIVITIES** 

## **6. CHARITABLE ACTIVITIES COSTS** 

|Direct<br>Costs (see<br>note 7)<br>£<br>Charitable Activities<br>399,018<br>Support Costs<br>-<br>399,018<br>**DIRECT COSTS OF CHARITABLE ACTIVITIES**<br>Staff costs<br>Postage and stationery<br>Travel expenses<br>Computer expenses<br>Staff training|Grant<br>funding of<br>activities<br>(see note<br>8)<br>£<br>653,811<br>-<br>653,811|Support<br>costs (see<br>note 9)<br>£<br>-<br>85,518<br>85,518<br>31.12.23<br>£<br>351,544<br>748<br>1,596<br>44,752<br>378<br>399,018|Totals<br>£<br>1,052,829<br>85,518<br>1,138,347<br>31.12.22<br>£<br>300,018<br>5,801<br>965<br>40,292<br>877<br>347,953|
|---|---|---|---|
|||||
|||||



## **7. DIRECT COSTS OF CHARITABLE ACTIVITIES** 

continued... 

Page 12 



British Skin Foundation 

Notes to the Financial Statements - continued for the Year Ended 31 December 2023 

## **8. GRANTS PAYABLE** 

Charitable Activities 

|31.12.23<br>£<br>653,811|31.12.22<br>£<br>614,659|
|---|---|



The grants paid to Institutions are detailed below: 

|Ref<br>7013s<br>MRC-06<br>016/s/16<br>MRC-07<br>002/yi/17<br>007/yi/17<br>016/s/17<br>025/s/17<br>026/s/17<br>MRC-08<br>011/s/18<br>024/s/18<br> <br>030/s/18<br>032/s/18<br>036/s/18<br>037/r/18<br>043/s/18<br>MRC-09<br>099/r/19<br>002/BSFBAD/19<br>004/s/19<br>005/s/19<br>024/f/19<br> <br>042/yi/19<br>044/r/19<br>045/r/19<br>022/BSFBAD/20<br>027/BSFBPG/20<br>003/s/20<br>007/s/20<br>008/r/20<br>009/r/20<br>016/s/20<br>017/s/20<br>037/r/20<br>041/s/20<br>010/BSFSG/21<br>013/BSFSG/21<br>014/BSFSG/21<br>016/BSFSG/21<br>017/BSFSG/21<br>004/BSFBPG/21<br>001/r/21<br>001/k/21<br>MRC-10<br>001/BSFSTART/22<br>001/LFRSMF/22<br>002/BSPAD/22|Institution<br>2023<br>2022<br>Trinity College Dublin<br>-<br>9,780<br>Medical Research Council<br>-<br>3,548<br>Queen Mary University of London<br>26,563<br>8,854<br>Medical Research Council<br>4,762<br>-<br>Queen Mary University London<br>22,500<br>7,500<br>University of Bristol<br>-<br>(282)<br>University of Manchester<br>-<br>7,087<br>University of Dundee<br>3,314<br>-<br>University of Edinburgh<br>-<br>7,084<br>Medical Research Council<br>-<br>17,841<br>Queen Mary University London<br>-<br>19,917<br>London School of Hygiene and Tropical<br>Medicine<br>-<br>13,374<br>Huddersfield University<br>-<br>21,109<br>University College London<br>6,614<br>18,763<br>University of Bath<br>-<br>21,250<br>University of Dundee<br>180<br>3,229<br>Imperial College<br>28,334<br>14,167<br>Medical Research Council<br>-<br>5,340<br>George Kravvas<br>8,676<br>71,969<br>Newcastle University<br>-<br>9,960<br>Beatson Institute for Cancer Research<br>29,421<br>31,331<br>University of Glasgow<br>21,250<br>28,333<br>Guy's and St Thomas' NHS Foundation<br>Trust<br>(30,911)<br>-<br>King's College London<br>-<br>51,205<br>University of Leeds<br>30,375<br>40,500<br>University College London<br>-<br>2,918<br>Queen Mary University<br>-<br>9,900<br>Guys and St Thomas' NHS Foundation Trust<br>9,960<br>-<br>University of Hull<br>25,184<br>16,207<br>Newcastle University<br>25,972<br>13,576<br>Newcastle University<br>30,375<br>20,250<br>Newcastle University<br>37,949<br>17,087<br>University of Bath<br>28,333<br>14,167<br>University of Birmingham<br>42,500<br>-<br>University of Manchester<br>40,500<br>10,125<br>University of Nottingham<br>28,333<br>14,167<br>Trinity College Dublin<br>-<br>10,000<br>University of Manchester<br>-<br>10,000<br>Cardiff University<br>-<br>10,000<br>South Warwick University<br>-<br>10,000<br>St George's Hospital<br>9,876<br>-<br>St Vincent's Foundation<br>-<br>8,188<br>University of Southampton<br>40,129<br>-<br>University of Dundee<br>46,065<br>-<br>Medical Research Council<br>27,083<br>-<br>University College London<br>2,640<br>6,215<br>King's College London<br>-<br>30,000<br>Oxford University<br>10,000<br>-|
|---|---|



continued... 

Page 13 



British Skin Foundation 

Notes to the Financial Statements - continued 

for the Year Ended 31 December 2023 

## **8. GRANTS PAYABLE - continued** 

|004/SG/22<br>University of Bradford<br>9,993<br>011/SG/22<br>University of Bath<br>9,500<br>014/SG/22<br>University of Birmingham<br>9,945<br>016/SG/22<br>Anglia Ruskin University<br>9,984<br>018/SG/22<br>University of Leeds<br>10,000<br>023/yi/22<br>University of Manchester<br>10,041<br>028/s/22<br>University of Cambridge<br>5,386<br>034/yi/22<br>University of Oxford<br>12,988<br>011/BSFBAD/23<br>Newcastle University<br>9,997<br>002/BSFBSPAD/23<br>Royal Marsden NHS Foundation Trust<br>10,000<br>£  653,811|-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>£ 614,659|
|---|---|



## **9. SUPPORT COSTS** 

|Management<br>£<br>Support Costs<br>68,026<br>Support costs, included in the above, are as follows:<br>Trustees' remuneration etc<br>Insurance<br>Exchange rate<br>Sundries<br>Office accommodation charges<br>Subscriptions<br>Depreciation of tangible and heritage assets<br>Bank charges<br>HMRC interest<br>Payroll costs<br>Auditors' remuneration<br>Auditors' remuneration for non audit work<br>Legal fees|Governance<br>Finance<br>costs<br>Totals<br>£<br>£<br>£<br>3,404<br>14,088<br>85,518<br>31.12.23<br>31.12.22<br>Support<br>Total<br>Costs<br>activities<br>£<br>£<br>575<br>170<br>3,099<br>1,528<br>3,109<br>-<br>1,129<br>1,220<br>56,000<br>56,000<br>2,396<br>3,386<br>1,718<br>1,534<br>1,845<br>2,288<br>-<br>5<br>1,559<br>1,219<br>7,506<br>6,054<br>6,582<br>6,618<br>-<br>1,764<br>85,518<br>81,786|
|---|---|



continued... 

Page 14 



British Skin Foundation 

Notes to the Financial Statements - continued for the Year Ended 31 December 2023 

## **10. NET INCOME/(EXPENDITURE)** 

Net income/(expenditure) is stated after charging/(crediting): 

||31.12.23|31.12.22|
|---|---|---|
||£|£|
|Auditors' remuneration|7,506|6,054|
|Auditors' remuneration for non audit work|6,582|6,618|
|Depreciation - owned assets|1,719|1,533|
|(Profit)/loss on fair value movement of investments|(5,493)|15,301|



## **11. TRUSTEES' REMUNERATION AND BENEFITS** 

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. 

## **TRUSTEES' EXPENSES** 

During the year ended 31 December 2023, expenses totalling £575 (2022: £170) were reimbursed to 1 Trustees (2022: 1) for travel costs. 

## **12. STAFF COSTS** 

|Wages and salaries<br>Social security costs<br>Other pension costs<br>The average monthly number of employees during the year was as follows:<br>Administration and management|31.12.23<br>£<br>308,220<br>27,937<br>15,387<br>351,544|31.12.22<br>£<br>261,030<br>25,146<br>13,842|
|---|---|---|
|||300,018|
||31.12.23<br>8|31.12.22<br>7|



The average monthly number of employees during the year was as follows: 

Administration and management 

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 

|||31.12.23|31.12.22|
|---|---|---|---|
|£60,001|- £70,000|1|-|
|£70,001|- £80,000|1|2|
|||2|2|



continued... 

Page 15 



British Skin Foundation 

## Notes to the Financial Statements - continued 

for the Year Ended 31 December 2023 

## **13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** 

|Unrestricted<br>Restricted<br>fund<br>fund<br>£<br>£<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>1,202,295<br>66,683<br>Other trading activities<br>53,499<br>-<br>Investment income<br>6,701<br>-<br>**Total**<br>1,262,495<br>66,683<br>**EXPENDITURE ON**<br>Raising funds<br>6,993<br>-<br>**Charitable activities**<br>Charitable Activities<br>793,752<br>168,860<br>Support Costs<br>81,786<br>-<br>**Total**<br>882,531<br>168,860<br>**NET INCOME/(EXPENDITURE)**<br>379,964<br>(102,177)<br>**Other recognised gains/(losses)**<br>Gains/(losses) on revaluation of fixed assets<br>(15,031)<br>-<br>**Net movement in funds**<br>364,933<br>(102,177)<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>2,328,154<br>357,841<br>**TOTAL FUNDS CARRIED FORWARD**<br>2,693,087<br>255,664<br>**14.**<br>**TANGIBLE FIXED ASSETS**<br>Fixtures<br>and<br>Computer<br>fittings<br>equipment<br>£<br>£<br>**COST**<br>At 1 January 2023<br>7,109<br>4,113<br>Additions<br>978<br>434<br>At 31 December 2023<br>8,087<br>4,547<br>**DEPRECIATION**<br>At 1 January 2023<br>1,276<br>1,645<br>Charge for year<br>809<br>910<br>At 31 December 2023<br>2,085<br>2,555<br>**NET BOOK VALUE**<br>At 31 December 2023<br>6,002<br>1,992<br>At 31 December 2022<br>5,833<br>2,468|Total<br>funds<br>£<br>1,268,978<br>53,499<br>6,701<br>1,329,178<br>6,993<br>962,612<br>81,786<br>1,051,391<br>277,787<br>(15,031)<br>262,756<br>2,685,995<br>2,948,751<br>Totals<br>£<br>11,222<br>1,412<br>12,634<br>2,921<br>1,719<br>4,640<br>7,994<br>8,301|
|---|---|
|||



continued... 

Page 16 



British Skin Foundation 

Notes to the Financial Statements - continued for the Year Ended 31 December 2023 

## **15. FIXED ASSET INVESTMENTS** 

|**FIXED ASSET INVESTMENTS**||
|---|---|
||Listed|
||investments|
||£|
|**MARKET VALUE**||
|At 1 January 2023|146,139|
|Revaluations|5,493|
|At 31 December 2023|151,632|
|**NET BOOK VALUE**||
|At 31 December 2023|151,632|
|At 31 December 2022|146,139|



There were no investment assets outside the UK. 

The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the balance sheet date. 

## **16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||
|---|---|---|
|Accrued interest<br>Other donations<br>Accrued dividend<br>Accrued income<br>Accrued gift aid<br>Prepayments<br>Gift aid recoverable|31.12.23<br>£<br>1,849<br>74,118<br>3,259<br>-<br>5,589<br>44,362<br>18,000<br>147,177|31.12.22<br>£<br>484<br>338,000<br>3,109<br>54,000<br>-<br>37,965<br>18,000|
|||451,558|



## **17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Grant payables<br>Trade creditors<br>Other creditors<br>Credit card<br>Accruals<br>Accrued expenses<br>Deferred income|31.12.23<br>£<br>120,244<br>22,963<br>2,188<br>352<br>13,200<br>677<br>69,500<br>229,124|31.12.22<br>£<br>119,000<br>17,672<br>-<br>208<br>11,352<br>297<br>173,000|
|---|---|---|
|||321,529|



continued... 

Page 17 



British Skin Foundation 

Notes to the Financial Statements - continued for the Year Ended 31 December 2023 

## **18. MOVEMENT IN FUNDS** 

|Unrestricted<br>Restricted<br>Unrestricted<br>Restricted|Balance at 1st<br>January 2023<br>£<br>2,693,087<br>255,664<br>2,948,751<br>Balance at 1st<br>January 2022<br>£<br>2,328,154<br>357,841<br>2,685,995|Income<br>£<br>1,313,028<br>543,472<br>1,856,500<br>Income<br>£<br>1,262,495<br>66,682<br>1,329,178|Expenditure<br>£<br>(972,551)<br>(181,281)<br>(1,153,832)<br>Expenditure<br>£<br>(882,531)<br>(168,860)<br>(1,051,391)|Transfers<br>£<br>-<br>-<br>-<br>Transfer s<br>£<br>-<br>-<br>-|Gains/(losses)<br>£<br>5,493<br>-<br>5,493<br>Gains/(losses)<br>£<br>(15,031)<br>-<br>(15,031)|Balance at 31st<br>December 2023<br>£<br>3,039,057<br>617,855<br>3,656,912<br>Balance at 31st<br>December 2022<br>£<br>2,693,087<br>255,664<br>2,948,751|
|---|---|---|---|---|---|---|



## **Fund description** 

a) Unrestricted funds 

Unrestricted funds are available to spend on activities that further any purpose of the charity. 

b) Restricted funds 

Donations received to be used to fund specific skin disease research projects. 

## **19. PENSIONS AND OTHER POST RETIREMENT BENEFITS** 

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £15,387 (2022 - £13,842). 

The defined contribution liability is allocated to unrestricted funds and is a direct cost within charitable activities. 

## **20. FINANCIAL COMMITMENTS** 

£2,539,209 of grant funding commitments have not been accrued in the balance sheet as performance related conditions have not been met. The charity holds sufficient cash deposits to fund these grant commitments. There is uncertainty as to when these commitments will be settled, as they depend on the progress of each medical research project. 

Grant commitments as at 31st December 2023: 

||Ref|Total value|Outstanding|
|---|---|---|---|
|2016|MRC-06|55,000|1,100|
|2017|025/s/17|85,000|38,879|
|2018|MRC-08|58,028|1,879|
||024/s/18|85,000|13,363|
||032/s/18|85,000|3,531|
||037/r/18|75,197|34,899|
||043/s/18|85,000|7,083|



continued... 

Page 18 



British Skin Foundation 

## Notes to the Financial Statements - continued 

for the Year Ended 31 December 2023 

## **20. FINANCIAL COMMITMENTS - continued** 

|2019|MRC-09|63,435||5,340|
|---|---|---|---|---|
||099/r/19|170,000||21,766|
||009/BSFBPG/19|10,000||10,000|
||004/s/19|85,000||208|
||042/yi/19|79,902||23,617|
|2020|021/BSFSG/20|10,000||10,000|
||003/s/20|85,000||43,609|
||007/s/20|85,000||45,451|
||008/r/20|81,000||30,375|
||009/r/20|80,200||25,163|
||011/yi/20|89,978||89,978|
||016/s/20|85,000||37,700|
||017/s/20|85,000||42,500|
||025/s/20|85,000||85,000|
||037/r/20|81,000||30,375|
||041/s/20|85,000||42,500|
|2021|019/BSFBAD/21|10,000||10,000|
||001/r/21|40,500||371|
|2022|MRC-10|65,000||37,917|
||001/BSFSTART/22|50,000||38,458|
||021/BSMD/22|9,994||9,994|
||006/r/22|80,406||80,406|
||008/s/22|85,000||85,000|
||009/s/22|85,000||85,000|
||012/r/22|39,766||39,766|
||014/s/22|85,000||85,000|
||021/s/22|85,000||85,000|
||023/yi/22|80,325||70,284|
||028/s/22|85,000||79,614|
||034/yi/22|89,862||76,873|
||037/r/22|80,839||80,839|
|2023|002/BSFSG/23|9,900||9,900|
||007/BSFSG/23|9,997||9,997|
||009/BSFSG/23|10,000||10,000|
||010/BSFSG/23|10,000||10,000|
||014/BSFSG/23|10,000||10,000|
||019/BSFSG/23|9,939||9,939|
||002/BSFBAD/23|10,000||10,000|
||003/BSFBAD/23|9,991||9,991|
||001/f/23|62,000||62,000|
||002/f/23|62,000||62,000|
||002/s/23|95,000||95,000|
||003/r/23|80,544||80,544|
||003/s/23|95,000||95,000|
||004/r/23|81,000||81,000|
||004/s/23|95,000||95,000|
||005/s/23|95,000||95,000|
||008/s/23|95,000||95,000|
||009/s/23|95,000||95,000|
||011/s/23|95,000||95,000|
|Total|||£|2,539,209|



continued... 

Page 19 



British Skin Foundation 

Notes to the Financial Statements - continued for the Year Ended 31 December 2023 

## **21. RELATED PARTIES** 

The British Skin Foundation Chief Executive is the sole owner and Managing Director of the Skin Health Alliance (Company Registration No. 07445820). The Skin Health Alliance donated £200,900 to the British Skin Foundation in 2023 (2022: £201,600). 

Dr Tamara Griffiths was a trustee of the British Association of Dermatology ("BAD") and the British Skin Foundation during 2023.  The charity received donations totalling £256,000 from British Association of Dermatology ("BAD") in 2023 (2022: £341,769). 

## **22. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|**Net income for the reporting period (as per the Statement of Financial**<br>**Activities)**<br>**Adjustments for:**<br>Depreciation charges<br>(Gains)/losses on investments<br>Interest received<br>Dividends received<br>Decrease/(increase) in debtors<br>(Decrease)/increase in creditors<br>**Net cash provided by operations**|31.12.23<br>£<br>708,161<br>1,719<br>(5,493)<br>(11,364)<br>(4,834)<br>305,896<br>(92,405)<br>901,680|31.12.22<br>£<br>262,756<br>1,533<br>15,031<br>(2,505)<br>(4,196)<br>(52,014)<br>77,630|
|---|---|---|
|||298,235|



## **23. ANALYSIS OF CHANGES IN NET FUNDS** 

|**Net cash**<br>Cash at bank and in hand<br>**Total**|At 1.1.23<br>£<br>2,664,282<br>2,664,282<br>2,664,282|Cash flow<br>£<br>914,951<br>914,951<br>914,951|At 31.12.23<br>£<br>3,579,233<br>3,579,233<br>3,579,233|
|---|---|---|---|



Page 20