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2023-03-31-accounts

Registered number: 03035047 Charity number: 1045781

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Bishop Fleming

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Chairman's Statement 1
Trustees' Repor 2-9
Independent Auditors' Repor on the Financial Statements 10 - 13
Consolidated Statement of Financial Activities 14
Consolidated Balance Sheet 15
Charity Balance Sheet 16
Consolidated Statement of Cash Flows 17
Notes to the Financial Statements 18 -40

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

The chairman presents his statement for the year.

LEAF reached an important milestone during this financial year as it celebrated its 30th anniversary. For over three decades, LEAF has led the way in developing and demonstrating more sustainable, regenerative farming, delivered through Integrated Farm Management.

Of course, it was with huge sadness that such a special year was marked by the untimely loss of LEAF's Chief Executive, Caroline Drummond MBE. She has been the driving force behind LEAF since its inception in 1991. All involved in the organisation and across the f d and farming industry are determined to continue her legacy. Our 10 year strategic plan, published at the end of 2021, reflects Caroline's passion and vision, with ambitious targets over the next decade to build on LEAF's long heritage, committing to innovating, engaging and scaling up our reach. We remain firmly focused in delivering on our targets.

This year has been one of unprecedented growth and transformation, with many of the major UK retailers adopting LEAF Marque certification across their global fresh produce sectors, to advance their sustainability ambitions. We have doubled our staff numbers and invested in the talent, resources and infrastructure necessary to meet the ever-increasing demand in our services.

We have an incredibly dynamic new senior leadership team and by investing in young talent across all our teams, we are now in a very strong position to engage and support more farmers both in the UK and overseas, build on our current partnerships, reach new markets and drive further growth in our globally recognised environmental assurance system.

LEAF Marque is now the environmental assurance system of choice, and we expect to see the remaining UK retailers and other major food brands to adopt it in the coming financial year. In addition, we are working closely with them to advance the implementation of LEAF Marque across other sectors including dairy and livestock.

Providing farmers with access to cutting edge insight, practical tools, and best practice training to help them implement more sustainable farming has been a key focus this year. We continued to build our LEAF Network of Demonstration Farmers and Innovation Centres, extend our online and in-person technical training provision, and increase our involvement with a range of industry partnerships and EU projects.

We have also seen a significant rise in the demand for our education and public engagement activities, delivered through LEAF Education. Our National Competition, Farming Fortnight, Demonstration Schools, the continuation of our important teenager engagement work and our flagship Open Farm Sunday event, have provided opportunities for thousands of young people and families to learn more about farming and get an insight into the career opportunities available in the agri-food sector.

Farmers face an incredibly challenging time with enormous volatility in markets and input costs giving rise to unprecedented levels of risk. LEAF is leading the way in driving more circular agriculture, with its complex focus on climate, nature, economy and f d security, through the sustainable farming principles of Integrated Farm Management.

Philip Wynn Chairman Date: 26/10/23

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their report and the financial statements for the year ended 31 March 2023. The charity is known as LEAF (Linking Environment And Farming).

REFERENCE AND ADMINISTRATIVE DETAIL

LEAF is a registered charity and a registered company limited by guarantee.

Charity number 1045781 Company number 03035047

The principal office is at National Agricultural Centre, Stoneleigh Park, Warwickshire, CVS 2LG.

"The Registered Office" means the office of the Charity at: National Agricultural Centre Stoneleigh Park Warwickshire CVS 2LG

Legal status

The charity is limited by guarantee. In the event of the charity being wound up, each member may be required to contribute a maximum of ten pounds.

Trustees

The Trustees of the charity, who are also its Directors, are as follows:

CW Porter (Vice Chairman)

S C Eppel I A Ash bridge (Vice Chairman)

I Pigott P G Wynn (Chairman) TM C Green A J Davison M F Young EK Penny Professor R J Rickson Ana Romero Salcedo (Appointed 1 st March 2022)

Executive Leadership Team

Chief Executive (Interim) Chief Operating Officer Director, Business Development Director, Education and Public Engagement Director, Technical

Philip Wynn (Chairman) Stephen Jones Clare Mike Carl Edwards Vicky Robinson

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

Bankers

National Westminster Bank Pie PO Box 137 59 The Parade Leamington Spa Warwickshire CV32 4BA

Solicitors

Ladders Solicitors LLP Number Ten Elm Court Arden Street Stratford Upon Avon Warwickshire CV37 6PA

Independent Auditor

Bishop Fleming LLP 1 - 3 College Yard Worcester WR1 2LB

STRUCTURE, GOVERNANCE AND MANAGEMENT

LEAF (Linking Environment And Farming) is a nonprofit making, membership-based charity. It was founded in 1991 and became a registered charity in 1995. LEAF develops and promotes Integrated Farm Management (IFM). IFM is a whole farm approach combining traditional farming with modern technology. LEAF works to develop and communicate best practice messages to farmers, the agricultural and f d industry and non­ farmers.

LEAF supports its members to adopt and promote more sustainable farming practices through the adoption of IFM. Specifically, through the provision of management tools, technical information, training and talks. LEAF Marque is an independent assurance scheme, developed by LEAF. LEAF Marque Limited is a wholly owned subsidiary company of LEAF the Charity, incorporated in 2002.

LEAF benefits from a significant voluntary contribution from a network of LEAF Demonstration Farmers, Innovation Centres and supporters, the many farmers and helpers involved in LEAF Open Farm Sunday and from representation on the main management committees of LEAF: the LEAF Board, Policy and Strategic Development Committee and Advisory Board as well as additional committees supporting LEAF Marque.

The governing documents are the Memorandum and Articles of Association and membership rules.

The Trustees are the Board of Directors of the Charity. They are principally responsible for the governance of the Charity. The Trustees are selected by the principal management committees and the Chairman is usually a farmer who serves three to six years in that position. The Chairman is elected by the Board of Trustees and presented to members at the annual LEAF conference.

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

Trustees' induction and training

Most newly appointed Trustees are already familiar with the practical work of the charity, additionally all Trustees, and subcommittee members are provided with a full briefing, terms of reference and supporting literature. The supporting literature has been prepared from information drawn from LEAF's publications, including details of the Memorandum and Articles of Association, membership rules and the latest financial statements.

LEAF has developed a guidance handbook for all Trustees, setting out their obligations as Trustees for the charity. This included their requirement to ensure the delivery of public good. This handbook is reviewed on an annual basis and updated when necessary.

Strategic development of the organisation is the responsibility of the Trustees with day to day management being the responsibility of the LEAF Chief Executive.

Pay policy for senior staff

The Trustees consider the Board of Trustees, who are also the Directors, and the Executive Leadership Team (as defined on page 2) comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. The Trustees give all of their time freely and no Trustee has received remuneration in the year. Details of Trustees' expenses and related party transactions are disclosed in note 12 to these financial statements.

The pay of the senior staff is reviewed annually by a remuneration committee comprised of a subgroup of Trustees and is normally increased in accordance with average earnings. Usually in October each year, the Trustees will determine whether the salary levels for all staff should be adjusted for the forthcoming financial year beginning 1st April, to reflect changes in the cost of living and or to reflect changes in responsibility or improvements in performance.

The Trustees' considerations will begin with an assumption that salaries should be adjusted to match inflation (specifically the Consumer Price Index) over the preceding 12 months. They will then determine whether this is appropriate in the context of:

Risk management

The Trustees recognise their responsibilities in terms of managing risk and have systems in place to ensure that the risks faced by the charity are identified, assessed, mitigated, and monitored. The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to control these risks. This is reviewed at least annually. A Risk and Audit Sub Committee comprised of a small group of Trustees was established to support this function.

We have carried out a full assessment of the risks associated with our activities and work and do not perceive there to be any detriment or harm arising from any of our activities.

The key controls used include:

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

Through the risk management process, the Trustees are satisfied that the risks have been identified and adequately mitigated. It is recognised that systems can only provide reasonable and not absolute assurance that major risks have been adequately managed.

Public benefit

When planning the charitable activities, reviewing our strategic aims and objectives and at Trustees meetings, LEAF's Trustees have paid attention to the Charity Commission's guidance with regards to our public benefit.

OBJECTIVES AND ACTIVITIES

LEAF's charity objectives

In 2012 LEAF revised its charitable objectives to reflect the global reach of the organisation. The charity's objects now read:

'The Charity's objects ("the objects'? are in the United Kingdom and throughout the World to promote and improve agriculture, horticulture and other types of farming and raise standards of practice in farm management for the public benefit, in particular by the promotion and advancement of the education of farmers and the general public concerning methods of farm management which conserve and enhance the fabric and wildlife of the countryside'.

A full breakdown of our main activities carried out throughout the year follows.

Our 10 year strategy (2021-2031) provides the backbone for LEAF to set performance targets, identify niches, collaborate with others and ensure the organisation runs effectively through an efficient management and committee structure as we endeavour to encourage the development of sustainable production.

Our vision

A global farming and f d system that delivers Climate Positive action, builds resilience and supports the health, diversity and enrichment of our food, farms, the environment and society.

Our mission

To inspire and enable more circular approaches to farming and food systems through integrated, regenerative, and vibrant nature-based solutions, that deliver productivity and prosperity among farmers, enriches the environment and positively engages young people and wider society.

As a charity we strive to deliver the best possible value for our members and partners in everything we do. We focus our resource on a range of priorities that deliver our key objectives, and we are heavily reliant on a dedicated staff and many volunteers. This current strategy sets out our strategic priorities, and reflects the changing global environment that we find ourselves in.

The LEAF strategic plan:

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

• Our strategy priorities

LEAF works with farmers, the food industry, scientists, environmentalists, teachers, young people and consumers to deliver productivity and prosperity among our farmers, enrich the environment and engage young people and society in a valuable and meaningful way. We deliver against 8 commitments, through 3 crosscutting themes (Health, Diversity, Enrichment) and 3 core work streams, namely:

KEY ACHIEVEMENTS AND PERFORMANCE

Facilitating knowledge generation and exchange

This workstream is focused on ensuring that the ongoing development of IFM is backed up by robust science which is translated to farm level; this is delivered through the LEAF Network. Cutting edge IFM research generated from our Innovation Centres is tested in practical farm settings on our Demonstration Farms and then promoted to the wider farming community through farm visits, talks and training events. It is this 'science into practice' approach which ensures IFM continues to develop to meet current and future sustainability challenges.

Key achievements include:

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

Developing market opportunities

LEAF Marque certification is a powerful catalyst for change. It offers a coherent framework for helping translate both national and global sustainability commitments into reality at farm level. It also enables farming businesses to profile their environmental commitments and achievements and, crucially, to gain recognition in the marketplace. It helps farms access other income streams such as through agri-environmental schemes and can often lead to significant cost savings through great efficiency.

Key achievements include:

Educating and Engaging Society

Inspiring people and future generations about farming and f d production is a key element of Integrated Farm Management. Building relationships and encouraging a genuine exchange and understanding between farmers and the public is a key driver in the delivery of more sustainable farming. It is a two-way interaction that encourages critical awareness not only of the environmental issues surrounding farming but of the wider personal, ethical, and cultural impacts of f d production. The focus of LEAF Education is engaging and inspiring young people and wider society, through experiential learning, outreach opportunities, teacher and farmer training, on-farm visits, and curriculum related resources.

Key achievements include:

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

Governance

LEAF's Board of Trustees is responsible for the overall Governance of the charity. 6 board meetings have been held, together with initially weekly and now fortnightly meetings with the Chairman acting as interim CEO.

LEAF's ten-year strategy (2021-2031) was launched in November 2020. Building on LEAF's core capabilities and strengths it is an advancement of our work in developing and demonstrating more sustainable agriculture through Integrated Farm Management and is based around the principles of Circular Agriculture.

The LEAF Sub Committees continue to inform LEAF policy and strategic thinking to ensure we are delivering on our objectives and retain robustness and transparency.

FINANCIAL REVIEW

As the Charity expected to see significant growth following the adoption of the LEAF Marque Assurance System by major retailers and brands, it took a decision based on the strength of its reserves to further invest in personnel and resources to ensure it was positioned to deliver for that growth whilst accepting a budget that could result in a deficit of £150,233 in the 2022/23 financial year. In the end, the Charity has experienced a marginal increase in its income this year (£2,072,555 versus £2,072,555 in 2022) and expenditure was well controlled resulting in a final deficit of £133,520 which was better than forecast by some £16,673. The final result being an overall decrease in net funds of -£133,520 (2022 increase of £253,932). The charity looks to use the budget as its main key performance indicator and any improvement in income or reduction in expenditure is looked upon favourably.

LEAF Marque Limited made a profit of £Nil (2021 £Nil) during the year, after a gift aid donation to LEAF of £59,582 (2022: £60,618), giving rise to net assets of £5,083 (2022: £5,083).

Insurance

Insurance has been taken out by the charity under Section 232(2) of the Companies Act 2006, costing £1,760 (2022: £1,660) for its trustees and officers against liabilities in relation to the charity.

Reserves

The Trustees have set a reserves policy which requires reserves to be maintained at a level which ensures LEAF's core activity could continue during a period of unforeseen difficulty (of not less than 4 months) and reserves be maintained in a readily realisable form. The calculation of the required level of reserves is an integral part of the organisation's planning, budget, and forecast cycle. It considers risks associated with each stream of income and expenditure being different from that budgeted, planned activity levels and the organisations commitments. The reserves levels are closely monitored as part of the management reporting and Trustee's will adjust policy dynamically by resolution in line with the associated risks. The current reserves policy aims for minimum free reserves of £525,000 (2022: £525,000). Actual free undesignated reserves at 31 March 2023 were £1,180,046 (2022: £1,297,916). Recognising the relative strength of reserves and the need to continue to maintain and wherever practicable increase its capacity and capability to meet future demands, the Trustees have approved a budget deficit of £63,736 for the 2023-24 financial year.

Investment policy

Any surplus funds are placed on short term deposit.

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies (Note 2.2).

PLANS FOR FUTURE ACTIVITIES

The demand in LEAF's services has grown significantly during this financial year and we expect this trend to continue. As retailers and f d brands recognise the urgent need to demonstrate their commitment to more sustainable farming and to meeting global net-zero targets, the value of LEAF Marque in supporting their ambitions is unquestionable. As retailer on-boarding continues, our response to providing growers with the resources and training they need to achieve certification remains steadfast.

LEAF Marque is not simply an environmental assurance system. It is backed up by our hugely respected technical and education capabilities. Underpinning our ten-year strategy are eight core workstreams - reflecting our determination to deliver positive action for climate, nature, economy, and society. Increasingly, our focus is on global farming and food systems. Continuing investment in our management tools, harmonisation of metrics, technology, training, research and demonstration, our sights are firmly set on supporting and contributing to the practical delivery of national and global sustainability commitments. These include the Sustainable Development Goals, the Paris Agreement and the Post 2020 Biodiversity Framework.

Building on our core capabilities and strengths we will continue to drive collective action among our LEAF Marque certified growers, our members, industry partners, global stakeholders, young people and wider society. Together, we will strive for a more sustainable farming future.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditors.

AUDITORS

The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. A resolution concerning the appointment of auditors for the ensuing year will be proposed at the September 2023 Board Meeting.

By order of the Board

Approved by order of the members of the board of Trustees and signed on their behalf by:

P GWynn Chair of Trustees

Date: 26/10/23

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINKING ENVIRONMENT AND FARMING

OPINION

We have audited the financial statements of Linking Environment And Farming (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINKING ENVIRONMENT AND FARMING (CONTINUED)

OTHER INFORMATION

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

We have nothing to report in this regard.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

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

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINKING ENVIRONMENT AND FARMING (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud, which included incorrect recognition of revenue and management override of controls using manual journal entries, and these were identified as the greatest potential area for fraud.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that Greenbridge Designs Limited operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included FRS 102, the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included relevant product safety standards, occupational health and safety regulations and employment legislation.

Our procedures to respond to risks identified included the following:

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINKING ENVIRONMENT AND FARMING (CONTINUED)

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.orq.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, 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 members 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Wood FCCA (Senior Statutory Auditor)

for and on behalf of Bishop Fleming LLP

Chartered Accountants Senior Statutory Auditors 1-3 College Yard Worcester WR1 2LB

Date: 27th October 2023

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

As restated
Unrestricted Restricted Total Total
funds funds funds funds
2023 2023 2023 2022
Note £ £ £ £
Income from:
Donations and legacies 3 146,707 146,707 137,822
Charitable activities 4 1,349,467 401,349 1,750,816 1,720,559
Other trading activities 5 175,009 175,009 137,651
Investments 6 23 23 70
Other income 7 25,515
Total income 1,671,206 401,349 2,072,555 2,021,617
Expenditure on:
Raising funds 56,182 56,182 102,548
Charitable activities 8 1,898,553 251,340 2,149,893 1,665,137
Total expenditure 1,954,735 251,340 2,206,075 1,767,685
Net movement in funds (283,529) 150,009 (133,520) 253,932
Reconciliation of funds:
Total funds brought forard 1,038,717 279,931 1,318,648 1,064,716
Net movement in funds (283,529) 150,009 (133,520) 253,932
Total funds carried forward 755,188 429,940 1,185,128 1,318,648

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 18 to 40 form part of these financial statements.

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:03035047

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023

LINKING ENVIRONMENT AND FARMING
(A COMPANY LIMITED BY GUARANTEE)
REGISTERED NUMBER:03035047
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2023
As restated
2023 2022
Note £ £
Fixed assets
Intangible assets 13 29,359 554
Tangible assets 14 60,400 70,189
Investments 15 322 322
90,081 71,065
Current assets
Debtors 16 616,408 589,255
Cash at bank and in hand 670,778 1,057,349
1,287,186 1,646,604
Creditors: amounts falling due within one
year 17 (192,139) (399,021)
Net current assets 1,095,047 1,247,583
Total net assets 1,185,128 1,318,648
Charity funds
Restricted funds 21 429,940 279,931
Unrestricted funds 21 755,188 1,038,717
Total funds 1,185,128 1,318,648

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

P GWynn Chair of Trustees

Date: 26/10/23

The notes on pages 18 to 40 form part of these financial statements.

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:03035047

CHARITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2023

2023 2023 2022 2022
Note £ £ £ £
Fixed assets
Intangible assets 13 29,359 554
Tangible assets 14 60,400 70,189
Investments 15 322 322
90,081 71,065
Current assets
Debtors 16 708,440 664,151
Cash at bank and in hand 567,109 959,834
1,275,549 1,623,985
Creditors: amounts falling due within one
year 17 (185,584) (381,484)
Net current assets 1,089,965 1,242,501
Total net assets 1,180,046 1,313,566
Charity funds
Restricted funds 21 405,180 270,821
Unrestricted funds 21 774,866 1,042,745
Total funds 1,180,046 1,313,566

The Charity's net movement in funds for the year was £(117,870) (2022 - £253,932).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

P GWynn Chair of Trustees

Date: 26/10/23

The notes on pages 18 to 40 form part of these financial statements.

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
£ £
Cash flows from operating activities
Net cash used in operating activities (338,757) (7,969)
Cash flows from investing activities
Investment income 23 70
Purchase of intangible assets (31,600)
Purchase of tangible fixed assets (16,190) (37,630)
Net cash used in investing activities (47,767) (37,560)
Cash flows from financing activities
Interest element of hire purchase contracts (47) (585)
Capital element of hire purchase contracts (7,688)
Net cash used in financing activities (47) (8,273)
Change in cash and cash equivalents in the year (386,571) (53,802)
Cash and cash equivalents at the beginning of the year 1,057,349 1,111,151
Cash and cash equivalents at the end of the year 670,778 1,057,349
The notes on pages 18 to 40 form part of these financial statements

Page 17

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

1. GENERAL INFORMATION

Linking Environment and Farming is a charitable company limited by guarantee incorporated in England & Wales and domiciled in England.

The registered office is National Agricultural Centre, Stoneleigh Park, Kenilworth, Warwickshire, CVS 2LG. The charitable company's registered number is 03035047.

In the event of the charity being wound up, each member has undertaken to contribute towards its liabilities a sum of not exceeding ten pounds.

The charity is registered as a charity, no 1045781, with the Charity Commission and is exempted from Corporation Tax on its income in the year.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Linking Environment And Farming meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The presentation currency for the group and the charitable company during the year was Sterling, and are rounded to the nearest £1.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking, LEAF Marque Limited, for the year. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

Page 18

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

2. ACCOUNTING POLICIES (continued)

2.2 GOING CONCERN

The Trustees have reviewed all information available to them and do not consider there to be any significant doubts about the charitable company's ability to continue as a going concern. These financial statements have therefore been prepared on this basis.

The Trustees have prepared budgets and cash flow forecasts to for a period of at least 12 months following the date of approval of the financial statements. The Group has a net asset value as at 31 March 2023 of £1,185,128 (2022: £1,302,998) and cash at bank and in hand of £670,788 (2022: £1,057,349). On this basis the financial statements have been prepared on a going concern basis.

The Trustees' assumptions and outlook consider the impact and uncertainty that the COVID-19 pandemic may have on the group. Updated projections have been put in place that consider a worst­ case scenario in order to make sure the charitable company continues during these unprecedented times. This is being monitored on a weekly basis. The Trustees have also taken advantage of the government assistance, mainly the Coronavirus Job Retention Scheme.

The financial statements do not reflect the adjustments that would be necessary should the ability of the Charitable Company to operate be jeopardised due to a material issue with the availability of its work force, the level of demand for its services or a material decrease in revenues or grant funding.

2.3 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs 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.

Investment income, gains and losses are allocated to the appropriate fund.

2.4 INCOME

Voluntary income including donations and grants that provide core funding or are of a general nature are recognised when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Income is only deferred when the donor specifies that the grant or donation can only be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

Investment income is accounted for when receivable.

Commission/membership income is accounted for, in full, when received.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 19

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

2. ACCOUNTING POLICIES (continued)

2.5 EXPENDITURE

Expenditure is recognised on an accruals basis when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied.

Support costs include central functions.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Page 20

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

2. ACCOUNTING POLICIES (continued)

2.6 INTANGIBLE ASSETS AND AMORTISATION

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets are amortised on a straight line basis over their estimated useful life. The carrying value of intangible assets is reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

The estimated useful lives are as follows:

2.7 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged by equal annual instalments commencing with the date of acquisition at rates estimated to write off their cost less any residual value over their expected useful lives which are as follows:

2.8 GOVERNMENT GRANTS

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.

2.9 INVESTMENTS

Fixed asset investments are a form of financial instrument and are recognised at mid-market value at the balance sheet date.

2.10 RETIREMENT BENEFITS

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

2.11 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 21

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

2. ACCOUNTING POLICIES (continued)

2.12 FOREIGN CURRENCIES

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Consolidated Statement of Financial Activities.

2.13 HIRE PURCHASE AGREEMENTS

Assets obtained under hire purchase contracts are capitalised as tangible fixed assets at their fair value. Assets acquired by hire purchase are depreciated over their useful lives. The capital element of the future payments is treated as a liability and the interest is charged to the Consolidated Statement of Financial Activities on a straight line basis.

2.14 OPERATING LEASES

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

2.15 DEBTORS

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

2.16 CASH AT BANK AND IN HAND

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

2.17 LIABILITIES

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt after allowing for any trade discounts due or the amount it has received as advanced payments for the goods or services it must provide.

2.18 FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Financial assets and liabilities that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activities.

Financial assets and liabilities that are measured at fair value are determined using active market rate.

Page 22

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

3. INCOME FROM DONATIONS AND LEGACIES

Unrestricted Restricted Total Total
funds funds funds funds
2023 2023 2023 2022
£ £ £ £
Donations 146,707 146,707 137,822
TOTAL 2022 132,833 4,989 137,822

4. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted Restricted Total Total
funds funds funds funds
2023 2023 2023 2022
£ £ £ £
Membership renewals 638,530 638,530 571,499
Sponsorship 340,023 70,235 410,258 603,632
Project funding, grants, research and talks 313,095 148,565 461,660 512,358
Other income and DBS 57,819 182,549 240,368 33,070
TOTAL 2023 1,349,467 401,349 1,750,816 1,720,559
TOTAL 2022 1,382,229 338,330 1,720,559

Page 23

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

5. INCOME FROM OTHER TRADING ACTIVITIES

Income from non charitable trading activities

As restated
Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Income from LEAF Marque Limited 175,009 175,009 137,651
TOTAL 2022 AS RESTATED 137,651 137,651

The wholly owned trading subsidiary LEAF Marque Limited is incorporated in England and Wales (company number 04454468) and pays all of its profits to the Charity under the Gift Aid scheme. During the year ended 31 March 2023 LEAF Marque Limited reported income of £175,009 (2022: £137,651) and expenditure of £115,427 (2022: £118,198). Gift Aid of £75,232 (2022: £44,968) was paid to the Charity in respect of LEAF Marque Limited's profit for the year.

6. INVESTMENT INCOME

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Dividends received 15 15 6
Interest receivable 8 8 64
TOTAL 2023 23 23 70
TOTAL 2022 70 70

7. OTHER INCOMING RESOURCES

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Other operating income 25,515
TOTAL 2022 25,515 25,515

Page 24

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted Restricted
funds funds Total Total
2023 2023 2023 2022
£ £ £ £
Integrated Farm Management 1,898,553 251,340 2,149,893 1,476,539
Education 188,598
TOTAL 2023 1,898,553 251,340 2,149,893 1,665,137
TOTAL 2022 1,476,540 188,597 1,665,137
ANALYSIS OF EXPENDITURE BY ACTIVITIES
Activities
underaken Suppor Total Total
directly costs funds funds
2023 2023 2023 2022
£ £ £ £
Integrated Farm Management 1,969,754 180,139 2,149,893 1,476,539
Education 188,598
TOTAL 2023 1,969,754 180,139 2,149,893 1,665,137
TOTAL 2022 1,474,098 191,039 1,665,137

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Page 25

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED) ANALYSIS OF DIRECT COSTS

Integrated
farm Total Total
management Education funds funds
2023 2023 2023 2022
£ £ £ £
Staf costs 1,304,636 1,304,636 875,376
Staf welfare and recruitment 73,629 73,629 24,338
Premises 22,921 22,921 29,178
Travel and subsistence 43,881 43,881 29,801
Hospitality and meeting costs 16,971 16,971 7,204
Training 9,421 9,421 2,418
Printing, postage, stationery and telephone 78,503 78,503 46,294
PR & marketing 85,217 85,217 70,714
Professional and consultancy fees 141,651 141,651 188,557
Website costs 72,422 72,422 87,902
Subscriptions 12,538 12,538 6,564
Repairs and maintenance 16,327 16,327 9,638
Field team 91,637 91,637 96,114
TOTAL 2023 1,969,754 1,969,754 1,474,098
TOTAL 2022 1,286,525 187,573 1,474,098

Page 26

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS

Integrated
farm Total Total
management Education funds funds
2023 2023 2023 2022
£ £ £ £
Depreciation and amortisation 28,773 28,773 32,303
Premises 9,823 9,823 12,552
Travel and subsistence 18,807 18,807 10,976
Hospitality and meeting costs 7,274 7,274 8,303
Audit and accountancy 28,773 28,773 28,022
Professional and consultancy fees 65,416 65,416 81,733
Subscriptions 5,374 5,374 2,812
Repairs and maintenance 6,997 6,997 4,130
General expenses 14,398 14,398 4,154
Bank charges 6,112 6,112 4,807
Hire purchase interest 47 47 585
Governance costs 244 244 662
Profit/Loss on Disposal on Fixed Asset (11,899) (11,899)
TOTAL 2023 180,139 180,139 191,039
TOTAL 2022 190,014 1,025 191,039

Relevant costs are split between direct and support in a ratio of 70:30 respectively.

10. AUDITORS' REMUNERATION

The auditors' remuneration amounts to an auditor fee of £14,050 (2022: £11,150), and accounts preparation and tax compliance services of £1,550 (2022: £3,650).

Page 27

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

11. STAFF COSTS

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Wages and salaries 1,030,539 684,806 972,877 684,806
Social security costs 112,703 72,319 112,703 72,319
Contribution to defined contribution pension
schemes 161,394 118,251 161,394 118,251
1,304,636 875,376 1,246,974 875,376

The average number of persons employed by the Charity during the year was as follows:

Group Group
2023 2022
No. No.
Employees 35 26

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

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 2
In the band £70,001 - £80,000 1

The key management personnel of the group comprises the Trustees and the Senior Management Team. The total employee benefits of the key management personnel were £242,300 (2022: £323,500).

12. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 March 2023, no expenses were reimbursed or paid directly to any Trustees. (2022: £NIL).

Page 28

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

13. INTANGIBLE ASSETS

GROUP AND CHARITY

Website
development
£
COST
At 1 April 2022 88,393
Additions 31,600
At 31 March 2023 119,993
AMORTISATION
At 1 April 2022 87,839
Charge for the year 2,795
At 31 March 2023 90,634
NET BOOK VALUE
At 31 March 2023 29,359
At 31 March 2022 554

Page 29

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

14. TANGIBLE FIXED ASSETS

GROUP AND CHARITY

Long-term
leasehold Furniture
propery Motor and
improvements vehicles equipment Total
£ £ £ £
COST OR VALUATION
At 1 April 2022 50,055 46,174 168,539 264,768
Additions 16,190 16,190
Disposals (46,174) (46,174)
At 31 March 2023 50,055 184,729 234,784
DEPRECIATION
At 1 April 2022 18,613 42,976 132,990 194,579
Charge for the year 3,858 3,198 18,923 25,979
On disposals (46,174) (46,174)
At 31 March 2023 22,471 151,913 174,384
NET BOOK VALUE
At 31 March 2023 27,584 32,816 60,400
At 31 March 2022 31,442 3,198 35,549 70,189

Assets held under finance leases and hire purchase agreements

Included within the net book value of £60,400 (2022: £70,189) is an amount of £Nil (2022: £3,198) relating to assets held under finance leases and hire purchase agreements.

Page 30

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

15. FIXED ASSET INVESTMENTS

Investments
CHARITY £
COST OR VALUATION
At 1 April 2022 322
AT 31 MARCH 2023 322
NET BOOK VALUE
AT 31 MARCH 2023 322
AT 31 MARCH 2022 322

Investments held by the Charity include a £1 (2022: £1) investment in the subsidiary company, LEAF Marque Limited. This represents the Trustees' estimate of the market value of this investment. The investment represents the entire share capital of LEAF Marque Limited, a company incorporated in England and Wales. The company was incorporated on 5 June 2002. The principal activity of LEAF Marque Limited is to promote Integrated Farm Management through the use of the LEAF Marque trademark. The activities and results of this company are summarised in Note 7.

16. DEBTORS

Group Charity
Group As restated Charity As restated
2023 2022 2023 2022
£ £ £ £
DUE WITHIN ONE YEAR
Trade debtors 234,880 369,859 220,806 357,065
Amounts owed by group undertakings 130,525 138,453
Other debtors 1,134 28,219 1,134 20,329
Prepayments and accrued income 380,394 191,177 355,975 148,304
616,408 589,255 708,440 664,151

Page 31

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Trade creditors 23,589 88,547 23,539 82,352
Other taxation and social security 50,012 105,593 50,007 97,251
Obligations under finance lease and hire
purchase contracts 2,711 2,711
Other creditors 17,101 13,153 17,101 13,153
Accruals and deferred income 101,437 189,017 94,937 186,017
192,139 399,021 185,584 381,484
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Defrred income at 1 April 2022 191,576 390,818 191,576 390,818
Resources deferred during the year 115,312 46,883 115,312 46,883
Amounts released from previous periods (17,507) (246,125) (17,507) (246,125)
289,381 191,576 289,381 191,576

Deferred income comprises grant and other income received in respect of various projects.

Secured debts:

Obligations under finance lease and hire purchase contracts of £Nil (2022: £2,711) are secured against the assets financed.

Page 32

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

18. FINANCIAL INSTRUMENTS

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
FINANCIAL ASSETS
Financial assets measured at fair value
through income and expenditure 670,779 1,057,349 567,109 959,834

Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand

19. CORPORATION TAX

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

20. PRIOR YEAR ADJUSTMENTS

A prior year adjustment has been made in the financial statements of Leaf Marque Limited for the year ended 31 March 2022, relating to the recognition of an additional £15,650 of royalty income. The impact of this adjustment has been an increase in the turnover, profits and distribution to Linking Environment and Farming in the year ended 31 March 2022. The prior year consolidated figures have been amended to reflect this adjustment.

Page 33

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

21. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

Balance at
Balance at 1 31 March
April 2022 Income Expenditure 2023
£ £ £ £
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Designated Funds - all funds 66,381 66,381
GENERAL FUNDS
General Funds - all funds 972,336 1,671,206 (1,954,735) 688,807
TOTAL UNRESTRICTED FUNDS 1,038,717 1,671,206 (1,954,735) 755,188
RESTRICTED FUNDS
EU Horizon 2020 51,050 140,553 (130,167) 61,436
Chef on the Farm 8,070 11,716 (7,017) 12,769
ATF/Cevas 25,042 38,908 (25,167) 38,783
FarmerTime 119,144 500 (61,955) 57,689
Countryside classroom 70,162 67,275 (27,034) 110,403
ISEAL 6,463 6,463
Beacons of Excellence 35,000 35,000
#FarmMyFood 8,000 8,000
Carbon Innovation Fund 99,397 99,397
279,931 401,349 (251,340) 429,940
TOTAL OF FUNDS 1,318,648 2,072,555 (2,206,075) 1,185,128

Page 34

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

21. STATEMENT OF FUNDS (CONTINUED)

Unrestricted funds are those which can be used in accordance with the charitable objectives at the discretion of the Trustees, as defined in the accounting policies.

The Trustees have designated funds which represent the unrestricted fixed assets of the Charity. The transfer relates to the movement on these unrestricted fixed assets.

Restricted funds are those held for specific purposes, as specified by the funder, as defined in the accounting policies.

FUND DESCRIPTIONS:

EU Horizon - This restricted fund relates to the grant funds projects under this scheme, which commenced in the 2016/17 and 2017/18 financial years.

Chef on the Farm - This restricted fund relates to the project under this scheme, which commenced post FACE merger.

ATF/Cevas - This restricted fund relates to the project under this scheme, which commenced post merger.

FarmerTime - This restricted fund relates to the project under this scheme, which commenced during 2019.

ISEAL - This restricted fund relates to the project under this scheme, which is carried out by LEAF Marque, and commenced during the 2020/21 financial year.

Page 35

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

21. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR

Balance at
Balance at As restated Transfers 31 March
1 April 2021 Income Expenditure in/out 2022
£ £ £ £ £
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Designated Funds - all funds 66,381 66,381
GENERAL FUNDS
General Funds - all funds 891,126 1,678,298 (1,579,088) (18,000) 972,336
TOTAL UNRESTRICTED
FUNDS 957,507 1,678,298 (1,579,088) (18,000) 1,038,717
RESTRICTED FUNDS
EU Horizon 2020 181,185 (130,135) 51,050
Chef on the Farm 3,377 8,890 (4,197) 8,070
ATF/Cevas 12,012 27,195 (14,165) 25,042
FarmerTime 50,840 64,289 (13,985) 18,000 119,144
Countryside classroom 34,517 61,760 (26,115) 70,162
ISEAL 6,463 6,463
107,209 343,319 (188,597) 18,000 279,931
TOTAL OF FUNDS 1,064,716 2,021,617 (1,767,685) 1,318,648

FUND DESCRIPTIONS:

EU Horizon - This restricted fund relates to the grant funds projects under this scheme, which commenced in the 2016/17 and 2017/18 financial years.

Chef on the Farm - This restricted fund relates to the project under this scheme, which commenced post FACE merger.

ATF/Cevas - This restricted fund relates to the project under this scheme, which commenced post merger.

FarmerTime - This restricted fund relates to the project under this scheme, which commenced during 2019.

Page 36

LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

22. SUMMARY OF FUNDS SUMMARY OF FUNDS - CURRENT YEAR

Balance at
Balance at 1 31 March
April 2022 Income Expenditure 2023
£ £ £ £
Designated funds 66,381 66,381
General funds 972,336 1,671,206 (1,954,735) 688,807
Restricted funds 279,931 401,349 (251,340) 429,940
1,318,648 2,072,555 (2,206,075) 1,185,128

SUMMARY OF FUNDS - PRIOR YEAR

SUMMARY OF FUNDS - PRIOR YEAR
Balance at
Balance at As restated Transfers 31 March
1 April 2021 Income Expenditure in/out 2022
£ £ £ £ £
Designated funds 66,381 66,381
General funds 891,126 1,678,298 (1,579,088) (18,000) 972,336
Restricted funds 107,209 343,319 (188,597) 18,000 279,931
1,064,716 2,021,617 (1,767,685) 1,318,648

23. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted Restricted Total
funds funds funds
2023 2023 2023
£ £ £
Tangible fixed assets 60,400 60,400
Intangible fixed assets 29,359 29,359
Fixed asset investments 321 321
Current assets 857,247 429,940 1,287,187
Creditors due within one year (192,139) (192,139)
TOTAL 755,188 429,940 1,185,128

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

23. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED) ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Un restricted Restricted Total
funds funds funds
2022 2022 2022
£ £ £
Tangible fixed assets 70,189 70,189
Intangible fixed assets 554 554
Fixed asset investments 322 322
Current assets 1,366,673 279,931 1,646,604
Creditors due within one year (399,021) (399,021)
TOTAL 1,038,717 279,931 1,318,648
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING
24. ACTIVITIES
Group Group
2023 2022
£ £
Net income/expenditure for the year (as per Statement of Financial
Activities) (133,520) 253,932
ADJUSTMENTS FOR:
Depreciation charges 25,979 22,088
Amortisation charges 2,795 11,325
Investment income (23) (70)
Interest paid 47 585
Increase in debtors (57,213) (106,103)
Decrease in creditors (175,529) (174,076)
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES (337,464) 7,681
25. ANALYSIS OF CASH AND CASH EQUIVALENTS
Group Group
2023 2022
£ £
Cash in hand 670,778 1,057,349

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

26. ANALYSIS OF CHANGES IN NET DEBT

At 1 April At 31 March
2022 Cash flows 2023
£ £ £
Cash at bank and in hand 1,057,349 (386,570) 670,779
Finance leases (2,711) 2,711
1,054,638 (383,859) 670,779

27. PENSION COMMITMENTS

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £161,394 (2022: £118,251). As at the year end, the Charity had outstanding pension contributions of £16,986 (2022: £11,561).

28. OPERATING LEASE COMMITMENTS

At 31 March 2023 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Not later than 1 year 26,035 18,126 26,035 18,126
Later than 1 year and not later than 5 years 44,504 47,437 44,504 47,437
70,539 65,563 70,539 65,563

29. FINANCE LEASE COMMITMENTS

Minimum lease payments under hire purchase and finance lease agreements fall due as follows:

2023 2022
£ £
Within 1 year 2,711
Between 2 - 5 years
2,711

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LINKING ENVIRONMENT AND FARMING (A COMPANY LIMITED BY GUARANTEE)

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

30. RELATED PARTY TRANSACTIONS

During the year the Charity traded with the John Innes Foundation, a charity in which K R Norman is a trustee. The Charity received income during the year of £NIL (2022: £7,250) in respect of project work undertaken during the financial year. At the year end a balance of £NIL (2022: £NIL) was due from John Innes Foundation.

During the year the Charity traded with Waldersley Farms Limited, a company in which C R Porter is a director. The Charity received membership income during the year of £NIL (2022: £530). At the year end a balance of £NIL (2022: £NIL) was due from Waldersley Farms Limited.

During the year the Charity traded with Dyson Farming Limited, a company in which P G Wynn is a director. During the year the Charity paid for services of £NIL (2022: £75). At the year end a balance of £NIL (2022: £NIL) was due from Beeswax Dyson Farming Limited.

During the year the Charity traded with Southfield Growers LLP, a partnership in which A J Davison is a member. During the year the Charity received income of £51,346 (2022: £NIL), and incurred expenditure of £201,201. At the year end, balances of £NIL (2022: £NIL) was due from, and £NIL (2022: £NIL) due to Southfield Growers LLP.

During the year the Charity traded with Eppel Sustainability Limited, a company in which S C Eppel is a director. During the year the Charity received income of £41,904 (2022: £NIL). At the year end a balance of £NIL (2022: £NIL) was due from Eppel Sustainability Limited.

The charity has taken advantage of the exemptions available under FRS 102 Section 33.1A and has not disclosed transactions with its subsidiary undertaking, LEAF Marque Limited.

Trustees made donations totalling £1,000 in the year to 31 March 2023 (2022: £NIL).

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