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2023-03-31-accounts

Charity registration number 1197319

THE GUARANTORS OF BRAIN

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Registered Charitable Incorporated Organisation Number 1197319 (Formerly Charity Registration Number 264139)

THE GUARANTORS OF BRAIN

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Professor M Husain (Editor and Board of Management)
Professor A E Rosser (Chair and Board of Management)
Professor D J Sharp (Secretary and Treasurer, Board of Management)
Professor T L Spires-Jones (Editor and Board of Management)
Professor James Rowe
Professor Elizabeth Fisher
Professor Kevin Talbot
Charity number 1197319
Auditor Azets Audit Services
5 Yeomans Court
Ware Road
Hertford
Hertfordshire
United Kingdom
SG13 7HJ

THE GUARANTORS OF BRAIN

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 26

THE GUARANTORS OF BRAIN

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Charity's activities include:

  1. Contributing to the cost for neuroscientists, whether clinical or preclinical, to travel to scientific conferences or meetings, to visit other laboratories and departments, in the UK or abroad. Awards are made to individuals at an early stage of their career, in support of work undertaken in the UK.

  2. Scholarships for trainee neurologists for one year's salary support, enabling them to bridge between clinical and research training, either (i) immediately before a higher research degree; or (ii) after a higher research degree but before a permanent faculty appointment. Trainees on the cusp of their CCT will be considered, but the posts are not intended for established consultants.

  3. Clinical research training fellowships for UK registered neurology trainees in neurology (or closely related specialities such as paediatric neurology) for three years' salary and modest research expenses, in order for them to undertake a PhD in an academic centre of excellence in the UK.

  4. Non-clinical post-doctoral research fellowships in neurological science in an academic centre of excellence in the UK, where their expertise is required to prosecute a clinical or translational research program led by a Neurologist. Up to three years, salary costs.

  5. Financial support for meetings in the UK, especially those of interest to neurological, psychiatric or neuroscience scientists and trainees.

  6. Support for internationally distinguished academic clinical scientists to visit the UK, for special lectures or short tours. 7. Support for UK neurologists to travel to low-income countries for teaching and research, and for Newsom-Davis Fellows to visit the UK from low and middle-income countries.

Developments, Activities and Achievements of the Charity in the Period Brain – Journal of Neurology:

The journal Brain is published by Oxford University Press (OUP). Brain Journal continues to be highly successful, both academically and financially. Profits for 2022 were £1,141K, an increase of £2K from 2021 £1,139K. Profit share for the Guarantors of Brain is 85% for the Brain Journal. The impact factor of Brain was 14.5 reflecting the high calibre and range of publications and citations under the Editorship of Masud Husain.

The Brain Journal editorial team consist of; one editorial manager and four editorial assistants, two deputy editors and associate editors. The associate editors are drawn from clinical and preclinical scientists to reflect the range of expertise and knowledge covered by the journal. Editorial expenses arise mainly from the staff salary costs, expenses for editors and editorial assistants, together with the office lease, miscellaneous expenses and insurance of office space.

Brain Communications:

Brain Communications was launched in 2019 by OUP with Tara Spires-Jones as the founding Editor. Brain Communications is an open access journal, and has exceeded OUPs projections for performance in terms of submissions and income. Submissions are growing. Citations of Brain Comms papers are also increasing. We have two programmes to benefit early career researchers, a Reviewer Academy to train people in best practice in peer review and an Observer Programme to give people insights into working in scientific publishing. Overall, there has been very positive feedback from authors and readers about their experience with Brain Comms. The profit share income for Brain Communications in the calendar year 2022 was £309K, an increase of £16K from the previous year 2021 of £293K. Guarantors of Brain has a 50% profit share with OUP for Brain Communications.

THE GUARANTORS OF BRAIN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Guarantors of Brain Board of Management

The current Board of Management consists of 7 Trustees who are considered to be key personnel of the charity. The Trustees include the Editors of Brain and Brain Communications, the Secretary & Treasurer of the Guarantors, the Chair of the Guarantors of Brain and three elected Trustees.

The Editor for Brain and Brain Comms and Secretary & Treasurer on the Board of Management are paid an annual stipend. The Deputy Editors are paid an annual stipend. The Board members and Editor and Associate editors are entitled to claim a travel expenses in addition to the stipends.

Charitable Activities

The portfolio of charitable activities is broad and includes the following:

(a) Travel awards:

In 2022/23, 196 travel grants awarded (28 in 2021/22) with an average value of £708 (total £139K). The awards include support for virtual conferences. The Carbon offset scheme is now active and a donation to a UK tree planting scheme with Carbon Footprint Ltd was made for 2022/2023.

(b) Fellowship awards 2022 (11):

ABN fellowships 3-years: funded by the Guarantors were awarded to: Dr Bryan Ceronie (Oxford), Dr Prem Jareonsettasin (UCL) and Dr Redwan Farooq (Oxford)

Entry clinical fellowship 1-year: Dr Dexter Penn (UCL), Dr Josh King-Robson (UCL) Dr Jonathan Cleaver (North Bristol NHS Trust), Dr Srisangeerthana Rajaopal (St Georges) Roberto Bellanti (Oxford)

Post-doctoral Clinical Fellowship, 1-year: Dr Kirsten Scott (Cambridge) Dr Richard Ibitoye (Imperial). Dr Angharad de Cates (Oxford)

Non-clinical post-doctoral fellowships, 3-years: Dr Nathanial Gould (Oxford).

(c) Conference & meeting Support:

Teaching courses and UK institutional meetings were supported as follows in 2022/2023

(d) Global Neurology Brain Initiative:

• Brain Global Neurology - Brain Clinical Research Training Fellowship - Stellenbosch S Africa & Universidade de Sao Paulo, Brazil (Jun 2019 to May 2024.)

(e) Newsom- Davis awards:

Dr Tamar Gachechiladeze (Georgia, Jan 2023)

(f) Other funding:

In2Science continued to be supported. This Charity supports from disadvantaged backgrounds through their applications for STEM subjects at University. Our support funds a number of ‘Guarantors of Brain scholars’ who apply to neuroscience subjects and medicine.

THE GUARANTORS OF BRAIN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

The objective of this annual report and accounts is to provide information about the Charity's financial performance and financial position so as to be useful to a wide range of stakeholders in assessing the Trustees' stewardship and management of charitable funds, and to assist the user of the accounts to make economic decisions in relation to the charity.

The Trustees' power to invest is governed by the Trustee Act 2000. The Charity Commission's Statement of Recommended Practice (SORP) applies to the Charity's activities, and the Charity's policy on the use of income and assets, and the reporting of the Charity's financial activity. For reporting purposes, our assets and small staff mean that the Guarantors of Brain Charity is a Smaller Entity. The Charity's funds are almost all unrestricted. The Newson-Davis fund for short term fellowships is restricted to clinicians from low-income countries.

In recent years, the investment objectives were to generate income to fund the charitable activities, reinvesting income where it is not required, and to maintain the capital value of the funds. The active management policy accepts moderate risk and aims for long term growth and income options.

The investment policy includes the avoidance of direct investment of companies with a significant interest in tobacco and armaments.

The investment policy is reviewed on behalf of the Trustees by the Board of Management, at intervals of no more than 15 months.

The latter requirements include the ability to meet short- and medium-term salary commitments and fellowships of the Charity, in the event of a sudden drop in income or sudden devaluation of investments.

The Secretary and Treasurer is authorized to act on behalf of the Trustees in connection with the investment funds, and for day-to-day financial administration of the Charity. As of 31 March 2023 the charity had an investment portfolio of £7,192,528 under management by HSBC of which £44,433 was held in cash investments. As of March 2023, the charity has unrestricted reserves of £7,137,827 (2022: unincorporated charity £8,409,576) and during the year, made a deficit of £1,271,749 (2022: unincorporated charity £1,052,843 Surplus).

Plans for the future

The charity will continue to consider new ways to support research and teaching in neurology and neuroscience, both clinical and basic science. We will seek to enhance our income, through the support of the journal Brain and Brain Comms, and through investment of the Charity's reserves. The Board of Management and the Guarantors will consider new ways to meet the aims of the Charity, including but not restricted to revisions of the Fellowships and Scholarships schemes.

Structure, governance and management

Governing Document and Governing Bodies

The transition to a Charitable Incorporated Organisation was completed at midnight at the end of 31 March 2022. The new registration number for Guarantors of Brain is 1197319.

The Charity was founded in 1955 and is governed according to the Trust deed. The charity has a body of Guarantors, the number of Guarantors will increase to a maximum of 50 under the new CIO structure. Current Guarantors serve for a renewable five years' term and are required to attend at least two out of five Annual General Meetings and be primarily resident and professionally active in the UK. New Guarantors are invited following an election by the Guarantors (transferable vote system).

THE GUARANTORS OF BRAIN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The Charity is managed by a Board of Management that consists of 7 Trustees elected from the current Guarantors; the Chairman, Editor of Brain, Editor of Brain Comms, Secretary/Treasurer and 3 other members. The Board of Management meet three times a year. Under the new Charity Incorporated Organisation, the Board of Management was increased to 7 members, 3 renumerated and 4 nonremunerated Trustees.

Reserve policy and risk management

The Charity has established reserves that would enable continuity of current and planned activities even in the event of a significant loss of income. Potential risks to income are reviewed by the Board of Management and the Trustees. No significant change in risk was identified in the current financial year.

HSBC Private Bank is engaged to provide long term active asset management with medium risk exposure and longterm growth aims. The assets minimise the risk to the activities of the Charity in the event of a substantial loss of income. Capital appreciation and re-investment of income has led to a substantial increase in the Charities financial security, despite the challenging economic climate of recent years. Income from the journal Brain has been the major source of funds to support individuals with short, intermediate and long-term awards and fellowships and provide new ways to support teaching and research across the disciplines of neurology, psychiatry and related preclinical neuroscience.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity Number

1197319

Principal address

The Guarantors of Brain c/o Department of Clinical Neurosciences, University of Cambridge Herchel Smith Building, Robinson Way CAMBRIDGE CB2 OSZ

THE GUARANTORS OF BRAIN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Auditor

Azets Audit Services Statutory Auditor Chartered Accountants 5 Yeomans Court Ware Road Hertford Hertfordshire SG13 7HJ

Bankers

HSBC Bank PLC 431 Oxford Street London W1C 2DA

Secretary and Treasurer

Professor David Sharp Secretary and Treasurer to the Guarantors of Brain Department of Clinical Neurosciences Herchel Smith Building, Forvie Site Cambridge Biomedical Campus Cambridge CB2 0SZ

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

.............................. Professor D Sharp

14 Dec 2023 Dated: .........................

THE GUARANTORS OF BRAIN

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

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

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 of the incoming resources and application of resources of the charity for that year.

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

The trustees are responsible for keeping sufficient 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 Charity (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 GUARANTORS OF BRAIN

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE GUARANTORS OF BRAIN

Opinion

We have audited the financial statements of The Guarantors Of Brain (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Going Concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

THE GUARANTORS OF BRAIN

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE GUARANTORS OF BRAIN

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

THE GUARANTORS OF BRAIN

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE GUARANTORS OF BRAIN

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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 (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’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 charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Azets Audit Services

.........................

Chartered Accountants Statutory Auditor

5 Yeomans Court Ware Road Hertford Hertfordshire United Kingdom SG13 7HJ

THE GUARANTORS OF BRAIN

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
Pro-forma
2023 2022
Notes £ £
Income and endowments from:
Charitable activities 3 1,659,079 1,882,258
Investments 4 155,752 159,953
Other income 7 12,264 22,580
Total income 1,827,095 2,064,791
Expenditure on:
Raising funds 6 55,149 57,322
Charitable activities 8 2,760,853 1,357,611
Total expenditure 2,816,002 1,414,933
Net gains/(losses) on investments 14 (282,842) 402,985
Net movement in funds (1,271,749) 1,052,843
Funds transferred as at 1 April 2022 upon conversion to CIO 8,409,576 7,356,733
Fund balances at 31 March 2023 7,137,827 8,409,576

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The Charity commenced trading on 1 April 2022 and comparatives represent pro-forma results of the unincorporated entity prior to conversion to a Charitable Incorporated Organisation for information purposes only.

THE GUARANTORS OF BRAIN

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Intangible assets
16
Tangible assets
17
Investments
18
Current assets
Debtors
21
Cash at bank and in hand
Creditors: amounts falling due within
one year
22
Net current (liabilities)/assets
Total assets less current liabilities
Income funds
Unrestricted funds - general		 2023
£
£
-
-
7,148,095
7,148,095
576,189
180,871
757,060
(767,328)
(10,268)
7,137,827
7,137,827
7,137,827		 2022
Pro-forma
£
£
389
1,432
7,550,152
7,551,973
568,706
771,528
1,340,234
(482,631)
857,603
8,409,576
8,409,576
8,409,576		 2022
Pro-forma
£
£
389
1,432
7,550,152
7,551,973
568,706
771,528
1,340,234
(482,631)
857,603
8,409,576
8,409,576
8,409,576
7,551,973
857,603
8,409,576
8,409,576
8,409,576

The Charity commenced trading on 1 April 2022 and comparatives represent pro-forma results of the original unincorporated entity for information purposes only.

14 Dec 2023 The financial statements were approved by the Trustees on .........................

.............................. Professor D Sharp Trustee

THE GUARANTORS OF BRAIN

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £ £ £ £
Cash flows from operating activities
Cash absorbed by operations 28 (865,624) (107,842)
Investing activities
Purchase of investments (3,357,089) (7,399,323)
Proceeds from disposal of investments 3,476,304 7,155,424
Dividends and interest from investments 155,752 159,953
Net cash generated from/(used in)
investing activities 274,967 (83,946)
Net cash used in financing activities - -
Net decrease in cash and cash equivalents (590,657) (191,788)
Cash and cash equivalents at beginning of year 771,528 963,316
Cash and cash equivalents at end of year 180,871 771,528

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's SORP (FRS 102), the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The charity was registered on 1st April 2022 with the transfer of assets from the unincorperated entity (Charity number 264139). The comparatives represent pro-forma results of the original unincorporated entity for information purposes only.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the charity's ability to continue as a going concern.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when recieved as part of a profit share binding agreement, it is probable that income will be recieved through sale of the OUP journals.

1.5 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.

Governance costs comprise the cost of running the charity, including external audit and all costs complying with constitutional and statutory requirements, such as costs of Board and Committee meetings and the preparation of statutory financial statements.

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.

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.6 Intangible fixed assets other than goodwill

Website costs are amortised through the profit and loss account over its estimated useful life which is assessed by the Trustees.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website development costs

33% on cost

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers

15 % on reducing balalance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

Realised gains and losses

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 opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

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

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.12 Taxation

The charity is exempt from tax on its charitable activities.

1.13 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15 Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

1.16 Allocation of overhead and support costs

Overhead and support costs have been allocated first between charitable activity and governance. Overhead and support costs relating to Charitable Activities have been apportioned based on the number of individual grant awards made in recognition that the administrative costs of awarding, monitoring and assessing fellowships are broadly equivalent. The allocation of overhead and support costs is analysed in note 8.

1.17 Costs of generating funds

The costs of generating funds consist of investment management and certain legal fees.

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The only significant estimate included within the financial statements is:

Deferred and accrued income

Deferred and accrued journal income is calculated based on the Oxford University Press (OUP) budgeted profit for the year ended 31 December 2022. The quarterly payments are made based on the budgeted profit. The amount is recalculated based on the OUP actual final profit and loss accounts and paid in the next financial year.

With the exception of the estimate described above, the trustees consider that there are no other significant judgements or estimates in the preparation of these financial statements.

3 Charitable activities

2023 2022
Pro-forma
£ £
Income from Oxford University Press 1,659,079 1,882,258

4 Investments

Unrestricted Unrestricted
funds funds
general general
Pro-forma
2023 2022
£ £
Income from listed investments 109,256 124,952
Interest receivable 46,496 35,001
155,752 159,953

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Transfer from Guarantors of Brain Charity

On 1 April 2022 all activities of Guarantors of Brain, charity registration number 264139 were transferred to Guarantors of Brain, CIO registration number 1197319 including funds amounting to £8,409,576. The amount transferred comprises of unrestricted funds.

6 Raising funds

Unrestricted Unrestricted
funds funds
general general
2023 2022
Pro-forma
£ £
Investment management 55,149 57,322
55,149 57,322

7 Other income

Unrestricted Unrestricted
funds funds
general general
2023 2022
Pro-forma
£ £
Elsevier 4,744 5,832
Brain conference 7,520 16,748
12,264 22,580

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8 Charitable activities

Charitable
expenditure
2023
£
Staff costs and editorial
expenses
-
Editorial board expenses
(including stipends)
82,452
Brain Journal staff costs
217,042
Brain Comms staff costs
42,268
Depreciation and loss on
disposal of fixed assets
1,433
Administration and office
expenses
91,024
434,219
Grant funding of activities
(see note 9)
-
Share of support costs (see
note 10)
19,979
Share of governance costs
(see note 10)
26,998
481,196		 Grants
2023
£
-
-
-
-
-
-
-
2,279,657
-
-
2,279,657		 Total
Charitable
expenditure
2023
2022
£
£
-
218,383
82,452
-
217,042
-
42,268
-
1,433
3,065
91,024
106,888
434,219
328,336
2,279,657
-
19,979
20,301
26,998
21,482
2,760,853
370,119		 Grants
Total
2022
2022
Pro-forma
£
£
-
218,383
-
-
-
-
-
-
-
3,065
-
106,888
-
328,336
987,492
987,492
-
20,301
-
21,482
987,492
1,357,611		 Grants
Total
2022
2022
Pro-forma
£
£
-
218,383
-
-
-
-
-
-
-
3,065
-
106,888
-
328,336
987,492
987,492
-
20,301
-
21,482
987,492
1,357,611
328,336
987,492
20,301
21,482
1,357,611

9 Grants payable

Charity grants:
Fellowships
Travel grants
Conference & other sponsorship
Brain conference hosting		 Grants
Grants
2023
2022
Pro-forma
£
£
1,841,184
885,728
226,510
25,932
161,052
21,339
50,911
54,493
2,279,657
987,492		 Grants
Grants
2023
2022
Pro-forma
£
£
1,841,184
885,728
226,510
25,932
161,052
21,339
50,911
54,493
2,279,657
987,492
987,492

Refer to Trustees Report for details of grants made to Institutions.

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

10 Support costs
Support Governance 2023 Support
Governance		 2022
costs costs costs costs
£ £ £ £ £ £
Annual dinner 19,979 - 19,979 20,301 - 20,301
Audit fees - 18,500 18,500 - 12,810 12,810
Accountancy - 8,073 8,073 - 8,257 8,257
Bank charges - 425 425 - 415 415
19,979 26,998 46,977 20,301 21,482 41,783
Analysed between
Charitable activities 19,979 26,998 46,977 20,301 21,482 41,783
11 Net movement in funds 2023 2022
Pro-forma
£ £
Net movement in funds is stated after charging/(crediting)
Fees payable to the auditor for the audit of the financial statements 18,500 12,810
Depreciation of owned tangible fixed assets 313 253
Loss on disposal of tangible fixed assets 1,120 -
Amortisation of intangible assets 389 2,812

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year (2022: £Nil). However, five trustees have been reimbursed a total of £56,477 for stipend, travel, subsistence and accommodation expenses (2022 - five reimbursed £40,382).

13 Employees

The average monthly number of employees during the year was:

2023 2022
Pro-forma
Number Number
Managing Editor 1 1
Scientific Editor 2 2
Commissioning Editor 1 1
Submissions Editor 1 -
Total 5 4

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2023
2022
£
£
192,033
149,638
15,403
11,768
9,606
8,965
217,042
170,371		 (Continued)
2023
2022
£
£
192,033
149,638
15,403
11,768
9,606
8,965
217,042
170,371
170,371

There were no employees whose annual remuneration was £60,000 or more.

14 Net gains/(losses) on investments

**Unrestricted ** Unrestricted
funds funds
general general
2023 2022
Pro-forma
£ £
Revaluation of investments 64,112 (365,153)
Gain/(loss) on sale of investments (346,954) 768,138
(282,842) 402,985

15 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Intangible fixed assets
Website development costs
£
Cost
At 1 April 2022 and 31 March 2023 48,665
Amortisation and impairment
At 1 April 2022 48,276
Amortisation charged for the year 389
At 31 March 2023 48,665
Carrying amount
At 31 March 2023 -
At 31 March 2022 389
Transferred from unincorporated charity
17 Tangible fixed assets
Computers
£
Cost
At 1 April 2022 3,671
Disposals (3,047)
At 31 March 2023 624
Depreciation and impairment
At 1 April 2022 2,238
Depreciation charged in the year 313
Eliminated in respect of disposals (1,927)
At 31 March 2023 624
Carrying amount
At 31 March 2023 -
At 31 March 2022 1,432
Transferred from unincorporated charity

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

18 Fixed asset investments

Cost or valuation
At 1 April 2022
Additions
Valuation changes
Disposals
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
Transferred from unincorporated charity
Investments at fair value comprise:
Equities
Fixed interest securitites
Alternative investments
Hedge funds
Money Market		 Listed
investments
£
7,550,152
3,357,089
(282,842)
(3,476,304)
7,148,095
7,148,095
7,550,152
2023
2022
Pro-forma
£
£
5,506,703
5,569,846
1,067,459
1,018,064
380,637
810,946
163,213
151,296
30,083
-
7,148,095
7,550,152

All investments are carried at their fair value.

All comparatives are in realtion to the investments transferred on 1 April 2022 from the unincorporated charity.

The total market value of these investments as at 31 March 2023 amounted to £7,148,095 (2022: unincorporated charity £7,550,152).

The total cost of investment held outside the UK as at 31 March 2023 amounted to £5,487.027 (2022: unincorporated charity £5,497,105). The market value of these investments as at 31 March 2023 amounted to £5,367,029 (2022: unincorporated charity £5,405,332).

The total market value of the Hedge funds as at 31 March 2023 amounted to £163,215 (2022: unincorporated charity £151,296) and the cost of the Hedge funds as at 31 March 2023 amounted to £153,137 (2022: unincorporated charity £144,781). The amount of change in fair value hedging instrument has been recognised in the statement of financial activities for the period.

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Fixed asset investments

(Continued)

The charitable funds committee set 5% of market value as at 31 March 2023 as the threshold for reporting material investments. As at 31 March 2023 the following investments were considered material:

The significance of financial instruments to the ongoing financial sustainability of the Guarantors of Brain is considered in the risk analysis section of the annual report.

19
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
20
Analysis of cash and cash equivalents
Cash in hand
Editorial Current Account
Cash within investment portfolio
Current accounts
21
Debtors
Amounts falling due within one year:
Prepayments and accrued income
22
Creditors: amounts falling due within one year
Notes
Deferred income
23
Other creditors
Accruals		 2023
2022
Pro-forma
£
£
7,148,095
7,550,152
2023
2022
Pro-forma
£
£
-
13
3,463
1,965
44,433
324,079
132,975
445,469
180,871
771,526
2023
2022
Pro-forma
£
£
576,189
568,706
2023
2022
Pro-forma
£
£
-
235,320
11,658
5,207
755,670
242,104
767,328
482,631		 2023
2022
Pro-forma
£
£
7,148,095
7,550,152
2023
2022
Pro-forma
£
£
-
13
3,463
1,965
44,433
324,079
132,975
445,469
180,871
771,526
2023
2022
Pro-forma
£
£
576,189
568,706
2023
2022
Pro-forma
£
£
-
235,320
11,658
5,207
755,670
242,104
767,328
482,631
482,631

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

23 Deferred income
2023 2022
Pro-forma
£ £
Arising from Oxford University Press - 235,320

Deferred income consists of payments made in advance by the Oxford University Press regarding journal and contribution income.

24 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £9,606 (2022: unincorporated charity- £8,965).

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

25 Movement in funds

These are unrestricted funds which are material to the charity's activities made up as follows:

Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Revaluations, Balance at Incoming Resources Revaluations, Balance at
1 April 2021 resources expended gains and 1 April 2022 resources expended gains and
31		 March 2023
Pro-forma losses Pro-forma losses
£ £ £ £ £ £ £ £ £
Unrestricted funds transferred as at 1 April
2022 7,356,733 2,064,791 (1,414,933) 402,985 8,409,576 1,827,095 (2,816,002) (282,842) 7,137,827

THE GUARANTORS OF BRAIN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

26 Analysis of net assets between funds
Unrestricted Unrestricted
funds funds
2023 2022
Pro-forma
£ £
Fund balances at 31 March 2023 are represented by:
Intangible fixed assets - 389
Tangible assets - 1,432
Investments 7,148,095 7,550,152
Current assets/(liabilities) (10,268) 857,603
7,137,827 8,409,576
27 Related party transactions
There were no related party transactions for the year ended 31 March 2023.
28 Cash generated from operations 2023 2022
Pro-forma
£ £
(Deficit)/surpus for the year (1,271,749) 1,052,843
Adjustments for:
Investment income recognised in statement of financial activities (155,752) (159,953)
Loss on disposal of tangible fixed assets 1,119 -
Loss/(gain) on disposal of investments 346,954 (402,985)
Fair value gains and losses on investments (64,112) -
Depreciation and amortisation 702 3,065
Movements in working capital:
(Increase) in debtors (7,483) (279,277)
Increase/(decrease) in creditors 520,017 (63,482)
(Decrease) in deferred income (235,320) (258,053)
Cash absorbed by operations (865,624) (107,842)
29 Analysis of changes in net funds
The charity had no debt during the year.