**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## QUADRAM INSTITUTE BIOSCIENCE
Annual Report and Accounts for the year ended 31 March 2022
Quadram Institute Bioscience is a company limited by guarantee and a registered charity: registered company number: 03009972; registered charity number: 1058499.
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **ANNUAL REPORT CONTENTS**
TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT ................................................................ 3 INDEPENDENT AUDITOR’S REPORT .............................................................................................................. 13 FINANCIAL STATEMENTS .................................................................................................................................. 15 NOTES TO THE ACCOUNTS............................................................................................................................... 18 REFERENCE AND ADMINISTRATIVE DETAILS ................................................................................................. 33
## **THE QUADRAM INSTITUTE**
Quadram Institute Bioscience (QIB) is one of four founding partners in the establishment of the Quadram Institute – a multi-million-pound food and health research centre that was completed in autumn 2018.
The Quadram Institute is at the forefront of the interface between food science, gut biology and health, developing solutions to worldwide challenges in food-related disease and human health. It brings together the Quadram Institute Bioscience research teams, the Norfolk and Norwich University Hospitals NHS Foundation Trust (NNUH) and the University of East Anglia (UEA), as well as NNUH’s regional gastrointestinal endoscopy unit and a clinical research facility.
The centre has been funded by the partners and the Biotechnology and Biological Sciences Research Council (BBSRC), part of UK Research and Innovation. The Quadram Institute has capacity for 300 research staff with a further 100 staff supporting one of Europe’s largest endoscopy facilities. It is engaged in fundamental and translational food and health research, alongside clinical studies, endoscopy and industry, working together to become a leading international hub for food and health research. It combines scientific excellence and clinical expertise, delivering patient care and accelerating innovation.
The Quadram Institute maximises the unique world-class bioscience cluster based at the Norwich Research Park, including excellent plant and microbial science at the John Innes Centre and The Sainsbury Laboratory and computational science and sequencing expertise at the Earlham Institute.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **INTRODUCTION TO THE ANNUAL REPORT**
The Quadram Institute Bioscience trustees (who are also directors in company law) are pleased to present their Annual Report together with the consolidated financial statements of the charity and its subsidiaries for the year ending 31 March 2022, which are also prepared to meet the requirements for a directors’ report (incorporating a strategic report) and accounts for Companies Act purposes.
The Annual Report and Accounts have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP), Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), together with the reporting requirements of the Companies Act 2006 and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS102.
## **TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT**
## **QUADRAM INSTITUTE BIOSCIENCE**
QIB is focussed on the relationship between food and health with an emphasis on the gut microbiota and the potentially pathogenic microorganisms that can be present in the food chain. QIB is delivering its vision of excellence, with an ambitious programme to increase the number of Research Leaders in the institute to 40 by 2024, attracting the best minds from around the world, funded by a combination of the Quadram Institute partners, other funding bodies and industry. QIB will leverage BBSRC strategic funding to attract investment from other research councils, funding organisations and industry to become a world leading institute for food and health research. Moreover, it is forging links with other world-class academics to
become a hub for national and international networks of related research organisations that promotes collaboration and training necessary to accelerate innovation and deliver solutions to UK and global food and health challenges.
## **Charitable objective**
The Charity’s object is the worldwide advancement of education in food sciences for the public benefit by:
- undertaking research and disseminating the useful results of such research; and
- training research scientists.
## **REVIEW OF THE YEAR**
QIB has continued to bounce back from the 2020-21 COVID-19 pandemic delays. The laboratories have returned to full occupancy and in-person working in the offices has resumed along with in-person meetings. Preparation for the next round of BBSRC strategic funding was well underway by end of year with strong new programmes of research proposed.
Key milestones achieved in the year include:
- As part of the COVID-19 Genomics UK Consortium QIB scientists completed sequencing of over 87,000 SARS-CoV-2 genomes;
- The Food Standards Agency invested £1.6m into the UK Food Safety Research Network, hosted by Quadram Institute Bioscience.
- Professor Martin Warren was appointed as QIB’s Chief Scientific Officer with responsibility for development of the Institute’s scientific strategy and the scientific leadership of QIB.
- Alison Mather, Mark Webber and Lindsay Hall all received promotion by the University of East Anglia to Professor _._
- QIB received Bronze Athena SWAN accreditation in acknowledgement of its work towards supporting gender equality;
- QIB’s Business Development Team expanded under the leadership of Dr Graeme Brown, This has facilitated a powerful integration of translation activities within QIB’s strategic science programmes.
- QIB’s international collaborations have received a funding boost with BBSRC partnership funding that will support research interactions with Canadian, New Zealand and Dutch scientists.
- Nathalie Juge at QIB led development of a new £1.1m “Integrated Models of the Human Gut” technology hub, funded by BBSRC. The hub includes organ-on-chip technology and the SHIME® simulator model of the human digestion system.
- International opportunities were given a boost in 2021 when Norfolk and Suffolk were selected for inclusion in the Department for International Trade’s (DIT) prestigious High Potential Opportunities programme. QIB was a partner in preparation of the document that proposed a DIT showcase of the region’s globally renowned plant science expertise in developing nutritious food products. We look forward to discussing investment opportunities.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **Scientific achievements during the year include:**
- A QIB study has uncovered a new link between bowel cancer progression and the microbiome. Research in Nathalie Juge’s group has shown how the bacterium _Fusobacterium nucleatum,_ which is enriched in bowel cancer tissue, interacts with specific proteins on immune cells and promotes inflammation. Bowel cancer is one of the most common cancers and is second only to lung cancer in the number of fatalities it causes each year in the UK. This collaboration with Professor Kristian Bowles from the Norfolk and Norwich University Hospital and Norwich Medical School at the University of East Anglia provides new fundamental insights into how _F. nucleatum_ interacts with human cells, but also provides exciting new routes to alleviate the issues associated with the presence of _F. nucleatum_ in colorectal tumours
- QIB researcher Fred Warren is developing healthier foods based on the slower release of energy. Using the latest scientific knowledge about how different types of starch are digested, the project hopes to introduce consumer-focused products that can contribute to consumers' health and reduce the risk of developing diet-related disease. 10-25% of the adult population of the European Union is obese, and 10% has Type II diabetes, so there has been a lot of focus on supporting consumers to eat more nutritious foods. The calorific value of foods is not the only thing that defines their impact on health, the rate at which they are digested is also extremely important. In an EU-funded project with collaborators at Pepsico and KU leuven, QIB is selecting starches from different botanical origins and then optimising processing conditions to produce a range of products with slow starch digestion properties. They have produced oatbased cookie prototypes that deliver a high level of slowly digestible starch. The team is now developing oat-based drinkable and spoonable products, creating opportunities for a new class of breakfast products with the added benefits of sustained energy release.
- In a second EU-funded project, called PERNUG, Paul Kroon is aiming to bring sustainable vertical farming and personalised nutrition into the home and workplace by developing kitchen gardens that grow produce to match individual dietary needs. Vertical farming is one of the solutions to making agriculture more sustainable, whilst still supplying produce year-round to satisfy consumer demand. Crops are cultivated without soil in a controlled, optimised environment in which they efficiently reuse resources, reducing wastage. Vertical farms have been shown to use 90% less water and
deliver much higher yields per square metre of land. QIB has teamed up with KU Leuven and Studio Kapp to develop ways of biofortifying crops with bioactive forms of iron and B12 through the PERNUG kitchen garden then provide these directly to consumers who most need them, reducing the need for expensive supplements.
- Simon Carding (QIB) and Tamás Korcsmáros (QIB and Earlham Institute) have developed a new computational biology method to better understand how communication between the gut microbiome and the immune system affects Inflammatory Bowel Disease (IBD) to help deliver targeted clinical treatments. By analysing specific differences in gut cell types, the study deciphers cellular crosstalk to identify how beneficial bacteria communicate with our immune system to treat IBD and reduce gut inflammation. Around 500,000 people in the UK live with IBD (including Crohn’s Disease and Ulcerative Colitis), a lifelong, chronic condition characterised by sporadic bouts of gut inflammation causing debilitating symptoms. The insights gained from studies such as this will be invaluable in developing new interventions aimed at maintaining health by promoting beneficial interactions with gut microbes and preventing harmful ones that can lead to diseases such as IBD.
- QIB has entered into a strategic agreement with Eagle Genomics, a Deep Tech software business pioneering the application of network science to biology, that will promote the understanding of microbiome science. will involve the sharing of datasets, innovation pipelines and tools to facilitate the understanding of complex microbiome data through Eagle Genomics’ e[datascientist]™ platform. By applying advances in genetic sequencing technology, laboratories across the world can now identify which species of microbes are present in different microbiome ecosystems, and also comprehend, from reading the sequence of individual genes, which functions those microbes might have. In addition, analysis of ‘multi-omic’ data from humans, as well as that of soil, plants, animals, and their interactions with their diverse hosts, could help scientists develop new innovations to meet the rapidly increasing nutritional requirements of a growing global population. Such an approach would also help in reducing the carbon footprint of sectors such as food processing and agriculture.
- Martin Warren, QIB’s Chief Scientific Officer, joined leading international researchers in warning of the dangers of a quiet epidemic of vitamin B12 deficiency in people who follow increasingly popular plant-based diets. Plant-
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
based diets (vegetarian or vegan) are becoming significantly more popular as people adopt a diet that is seen to be better for the environment, animal welfare, and/or personal health. Sales of plant-based foods have seen a 49 per cent increase in Western Europe since 2018. Martin joined scientists from around the world with expertise in food, nutrition, medicine, and health in forming a vitamin B12 research discussion group called cluB-12 to raise awareness of B12 deficiency and how it can be addressed. Vitamin B12 is an essential micronutrient which plays a role in supporting red blood cell production, energy, metabolism, and nerve function, but it is not found in plants. cluB-12 aims to make public and policymakers aware of the public health implications and measures needed to mitigate vitamin B12 deficiency.
- Researchers from QIB, University of East Anglia and Technische Universität Braunschweig have undertaken research to unravel the role of a key molecule in cholestatic liver disease. They showed that, in mice, a key metabolic regulator, SIRT 1, triggers cells in the immune system to attack liver cells, progressing the disease. Cholestatic liver disease is a spectrum of conditions characterised by an accumulation of bile acids in the liver, leading to liver damage. Naiara Beraza at QIB and others have previously shown that SIRT1 is involved in liver disease and in impairing liver regeneration. This new research showed how SIRT 1 activates macrophages (key immune cells) and promote inflammation, damaging the liver. This suggests that fine-tuning SIRT 1 levels could help to maintain liver health.
- Mark Webber and Ian Charles at QIB have identified genes that are essential for bacteria to survive in the environment. Many bacteria, such as _E. coli_ , live in complex communities called biofilms. Communities of microbes form biofilms by exuding a sticky slime to hold them together and also to adhere to surfaces. This helps protect the community from environmental stresses, like drying out, as well as the actions of disinfectants or antibiotics. Biofilms can be a significant source of infections in hospital environments and foodstuffs, but they can also be beneficial, and we use bacterial biofilms to make products including some medicines like insulin. This research used a genetic sequencing platform developed by QIB researchers called TraDIS-Xpress. This can simultaneously analyse all of an organism’s genes to find those that are essential, as well as those which when turned on or off help the organism survive and grow under specific conditions. The team used the model bacterium _E. coli_ and identified the genes that are important at each
stage of the bacterium’s biofilm creation. Understanding the importance of these genes could lead to new ways of stopping bacterial biofilms forming, helping prevent infections.
- QIB’s COVID-19 activities continued into the second year of the pandemic. The QIB Head of Informatics, Andrew Page, was an attendee at the SAGE social care working group, providing expert advice on genomics to inform pandemic management in care settings. QIB researchers also provided outbreak management and genomic sequencing support for Ireland, Germany, Nepal, Tunisia, Palestine, Lebanon, The Gambia, Zimbabwe, Mexico, Bangladesh and Pakistan. Simon Carding provided expert guidance to the World Health Organisation (WHO) in relation to standardising international vaccine guidelines and Mark Pallen worked in a group led by the Virus Evolution Working Group of the WHO to devise a new, virus nomenclature for SARS-CoV-2 new variants (the Greek alphabet system). QIB was also involved in the production of recombinant viral proteins that were used to help develop and evaluate vaccines. The QIB Communications team and counterparts at the NNUH formed an efficient partnership to recruit 500 volunteers to the Novavax COVID-19 vaccine trial. The QI CRF was one of 33 UK sites where the Novavax COVID-19 vaccine was trialled ahead of its approval in early 2022 by the Medicines and Healthcare products Regulatory Agency (MHRA).
- Rob Kingsley has used genome sequencing to reveal how Salmonella carves out a niche in pork production. With collaborators at Roslin and Earlham Institutes he showed that Salmonella variants, despite being extremely closely related, can have very different effects on the health of pig and also on the risks they pose to food safety. Salmonella Typhimurium is a major cause of human gastroenteritis. It can also affect the health, productivity and welfare of pigs. Bacterial pathogens continually evolve to exploit new ecological niches and to evade antibiotics. Understanding exactly how this happens is crucial to countering the consequences of new variants on human and animal health. Using whole genome sequencing the research team found that two types of S. Typhimurium, have been circulating in UK pigs since 2003 but they infected pigs differently. Inspection of changes in the genome sequence of one variant suggested that it emerged by a unique set of changes that occurred within a short period of time and the researchers believe that these changes hold the key to understanding how this variant interacts differently with pigs during infections, in the lab, and potentially the food chain.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **Public engagement**
The QIB Communications Team was keen to keep engaging with the public during the pandemic. It produced an online storyboard called “This Unrelenting Pandemic”, for which it won Silver for Best Content at the 2021 Chartered Institute of Public Relations Pride 2021 awards. The QIB science team was back out and about this year and undertaking a series of in-person public engagement activities. The Norwich Science Festival had nearly 50 QIB researchers taking part at talks or other public activities.
Postdocs Aimée Parker and Stefano Romano took to the airwaves during a World Microbiome Day Radio Marathon. They spent a morning being interviewed by different radio stations to talk about the gut-brain axis, and how the microbiota could be contributing to diseases such as dementia, Parkinson’s Disease and Alzheimer’s Disease Fred Warren was interviewed on the BBC World Service about starch.
In collaboration with the National Biofilm Innovation Centre QIB microbiologists created the Biofilm Brainhub website to provide a public resource centre about biofilms and impact they have in different areas of our lives.
## **PLANS FOR 2022/23**
## **Key priorities**
- Delivery of academic excellence.
- Submit proposals to the BBSRC Institute Assessment Exercise 2022 in request of strategic funding renewal.
- Review the QIB Science Strategy to incorporate the research proposed strategic grant submissions.
- Further development of clinical and science interactions within Quadram Institute.
QIB will continue to develop new research projects with our clinical colleagues at the Norfolk and Norwich
University Hospital (NNUH). This will be achieved using the clinical seedcorn fund, launched in 2021, through which NNUH clinical colleagues can take time out to engage with QIB research.
QIB will also be continuing the important work it undertakes in collaboration with the John Innes Centre, Earlham Institute, The Sainsbury Laboratory and University of East Anglia to engage with policy makers on such points as food safety and precision breeding of crops.
## **GOING CONCERN**
The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons:
The Trustees have prepared cash flow forecasts for the period to March 2028 which indicate that, taking account of reasonable possible downsides and the potential impact of inflation and COVID-19 on the operations and its financial resources, the Institute will have sufficient funds to meet is liabilities as they fall due for that period.
The Institute is reliant on its strategic programme funding from BBSRC, which was £8.2m in the year (2021: £11.5m). BBSRC has confirmed continued
strategic funding of £8.2m for the year to March 2023. BBSRC has provided the Institute with a provisional strategic programme funding allocation for 5 years to March 2028 of £10.9m per annum. The funding is expected to be confirmed in late 2022, once BBSRC has received confirmation of its Spending Review Allocation.
Consequently, the Trustees are confident that the Institute will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have been prepared the financial statements on a going concern basis.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **FINANCIAL REVIEW**
## **Key performance indicators**
QIB’s key financial performance indicators during the year were as follows:
|year were as follows:|||
|---|---|---|
|_Consolidated_|**2022**|2021|
||**£m**|£m|
|Income excluding capital grants|**18.0**|16.7|
|Unrestricted general & designated|**14.4**|10.5|
|strategic reserves|||
|Cash|**22.5**|19.5|
|Value of grant submissions|**18.6**|18.3|
|Value of grant awards|**5.7**|5.1|
The main indicator of non-financial performance is Institute publications in relevant scientific journals, as described in ‘scientific achievements’ above.
## **Income**
Total incoming resources for the year were £18.8m (2021: £22.7m), including £0.7m of capital funding (2021: £6.1m). Income excluding capital grants was £18.0m (2021: £16.7m).
QIB’s principal sponsor is the BBSRC, which contributed 57% of total incoming resources (2021: 81%). Other major sources of funding were the European Union, UK government agencies and charities. An analysis of grant income by principal sponsor is included in the notes to the financial statements.
## **Expenditure**
Total resources expended for the year amounted to £18.1m (2021: £20.0m). Staff costs accounted for £8.0m (44%) (2021: £8.1m; 41%) of expenditure.
## **Fundraising**
QIB does not carry out any significant fundraising activities.
## **Subsidiaries**
QIB’s trading subsidiary – QIB Extra Limited - contributed an operating profit of £544,000 (2021: £32,000).
## **Net Movement in Reserves**
QIB recorded a net increase in unrestricted reserves of £1.2m (2021: decrease of £2.6m).
Restricted reserves decreased by £0.6m (2021: increased by £5.4m).
## **Cash**
Group cash at March 2021 was £22.5m (2021: £19.5m).
QIB deposits its cash with UK registered financial institutions that meet its credit rating policy and are subject to agreed counter-party limits. Investment income from cash deposits in the year was £67,000 (2021: £86,000).
## **Reserves position**
Total group reserves increased by £0.6m in the year to £38.7m (2021: increased by £2.7m to £38.1m).
Restricted reserves decreased by £0.6m to £8.9m (2021: increased by £5.4m), of which £1.8m relates to capital grant funding from BBSRC that may only be utilised on completion of performance conditions.
Unrestricted reserves increased by £1.2m in the year to £29.7m (2021: £28.5m). Unrestricted reserves include the following:
- A building reserve of £1.25m has been designated to cover the outstanding loan advances to QI Partners (£1.25m) and energy cost increases;
- Strategic reserves of £10.4m have been designated to cover planned strategic programme and capital investment to support the development of the Quadram Institute. This reserve is anticipated to be mainly used between 2022 and 2023; and
- A general reserve of £4.0m (2021: £4.0m).
## **Reserves policy**
QIB’s reserves are held to support financial solvency, manage uncertainty and fund future activities. The level of reserves required by QIB is therefore determined by reference to:
- Future operational and capital expenditure requirements in the Business Plan to March 2028;
- Potential financial risks identified in the Business Plan and Risk Register;
- Potential funding required for strategic investments not included in the Business Plan;
- Working capital / liquidity requirements.
As noted above, £1.25m has been designated in connection with QIB’s loan commitments. A further £10.4m has been designated in connection with planned investment in science programmes.
The general reserve of £4.0m (2021: £4.0m) is above the minimum general reserves target of £3.0m set by the Trustees.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **RISK ASSESSMENT AND MANAGEMENT**
The Board of Trustees is responsible for ensuring there are effective and adequate risk management and internal control systems in place, and confirm that the major risks to which the Institute is exposed have been reviewed and procedures established to manage those risks. The Audit and Risk Committee agrees an annual risk-based internal audit plan which covers major risks identified by management and Trustees. It receives reports from internal auditors on the effectiveness of internal controls, progress against the internal audit plan and progress on recommendations made in reports. The Board reviews a full risk report annually, including a ‘heat map’ tracking major risks.
The principal risks and uncertainties facing the Institute are considered to be:
|**Risk area**|**Description of Risk**|**Management of Risk**|
|---|---|---|
|**Future BBSRC**|BBSRC strategic funding for institutes is|Regular monitoring of scientific|
|**research funding**|reduced due to budgetary pressures.
BBSRC strategic funding is reduced due to
scientific performance.|performance against strategic
programme objectives.
Regular communication with BBSRC to|
|||report performance and ensure strategic
alignment of research programmes.|
|**Research income**|QIB is unable to generate sufficient grant and|
Investment in new research leader|
|**and sponsor**
**diversification**|commercial research income to support the
costs of its research activities and|positions in progress.
Communication Strategy being|
||infrastructure|developed to increase sponsor|
|||awareness of the Quadram Institute.|
|**Staff retention**|QIB is unable to retain or attract suitably|Strategy and action plans in place,|
|**and recruitment**|skilled staff to enable it to deliver its science
strategy.|aligned to development of Quadram
Institute.|
||In addition to scientific impact, this risk area|Career development programmes in|
||could also have an impact on the level of|place to support high potential staff.|
||funding the Institute is able to attract.|Performance Management processes in|
|||place.|
|**Quadram Institute**|
Strategy for the Quadram Institute is not|Governance arrangements in place.|
||agreed between the partners.|Strategy agreed and communicated.|
||The Quadram Institute is not able to attract|Recruitment plans in progress.|
||suitably skilled staff to enable it to deliver its|Project plan in place, with identified work|
||strategy.|streams, terms of reference and|
||Benefits from the project are not delivered.|appropriate partner representation.|
|||Project assurance framework in place.|
|**QI Building**|QI facilities management arrangements are
poor value for money.|Building Services Committee established
to monitor facilities management|
||Inadequate investment leads to facilities that|arrangements and tenant coordination.|
||are not fit for purpose.|Building operating costs regularly|
||QI building is not used by partners in line with|
reviewed and remedial actions agreed.|
||QI mission.|Lifecycle maintenance plan agreed by|
|||the partners.|
|**Technology**
**investment**|QIB is unable to keep pace with
developments in technology underpinning its|Technology strategy has been updated
alongside strategy for the Quadram|
||science.|Institute.|
||Funding is inadequate to sustain and improve|
Capital funding awarded for the period to|
||technology facilities necessary to deliver|March 2023 as part of institute strategic|
||scientific objectives.|grant award.|
|**Compliance with**
**sponsor funding**
**requirements**|QIB fails to comply with sponsor grant
requirements resulting in a material financial
impact.|QIB is subject to regular reviews of its
grant compliance processes from
sponsors and the internal auditors.|
|**Impact of leaving**
**EU**|QIB is not able to access EU programme
funding or participate in EU research|Regular dialogue with staff, BBSRC, EU
partners and other key stakeholders on|
||collaborations.|risks and emerging issues with respect|
||QIB is not able to recruit or retain|to potential changes in arrangements.|
||researchers from EU member countries.||
|**Cost pressures**|Increased energy prices divert resources
from science to infrastructure costs, resulting
in a reduction in research activity and impact.|
Energy costs are hedged in the short-
term and specialist advisers support the
institute with energy procurement.|
||High inflation rates increase research and|Energy-saving opportunities are actively|
||support costs, resulting in a reduction in|sought and investment cases developed.|
||research activity and impact.|The impact of cost inflation is regularly|
|||discussed with funders with a view to|
|||mitigating the impact on research.|
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## TRUSTEES’ REPORT
## **GOVERNANCE AND MANAGEMENT**
## **Organisation and governance**
Quadram Institute Bioscience (referred to as “QIB”, the “Institute”, the “Charity” or the “Company”) is a company limited by guarantee (registered number 03009972) and a registered charity (number 1058499). During the year, QIB was governed by its Memorandum and Articles of Association adopted on 31 July 2018.
The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
## **Members**
The Members are all guarantors of QIB, a company limited by guarantee and a registered charity, of an amount not exceeding £1.
The Members of QIB during the year were:
- UK Research and Innovation - Biotechnology and Biological Sciences Research Council (“BBSRC”);
- the University of East Anglia (“UEA”); and
- the Norfolk and Norwich University Hospitals NHS Foundation Trust (“NNUH”).
UEA is entitled to appoint a majority of the members of the Board of Trustees and accordingly is deemed to be the company’s parent undertaking and controlling party. BBSRC, UEA and NNUH each have the right to nominate an “observer” to attend Board meetings. Observers are not entitled to vote and do not hold any authorities.
## **Board of Trustees**
The Board of Trustees comprises an independent Chair, up to seven independent members and up to nine UEAappointed members. The Trustees who served during the year and up to the date of signing these financial statements were:
|statements were:|||
|---|---|---|
|**Trustees**|**Sub-committees**|**Changes during theperiod**|
|_At date of Report:_|||
|Dr C Caulcott (Chair)|Remuneration & Nomination Committee|-|
|Dr E Blair|Audit & Risk Committee; Remuneration &|-|
||Nomination Committee||
|Prof F Lettice|Science Innovation & Advisory Committee (Chair)|-|
|Prof P Morgan|Remuneration & Nomination Committee (Chair)|-|
|Mr G Potter|Audit & Risk Committee|-|
|Dr E Robertson|Science Innovation & Advisory Committee|-|
|Mrs J Waterfield|Audit & Risk Committee (Chair)|-|
The Board has established sub-committees to assist in exercising their company and charity stewardship responsibilities. The Audit and Risk Committee oversees internal controls, risk management and audit. The Remuneration and Nominations Committee considers remuneration, nominations, talent and succession.
The Science Innovation and Advisory Committee assists the development and maintenance of QIB’s science in relation to direction, balance, strategy and quality.
## **Recruitment, induction and training of Trustees**
The Remuneration and Nominations Committee leads the process for Board appointments and makes recommendations to the Board for the appointment of the Chair and Board Trustees. The appointment to Chair is made in agreement with the Members. The Committee makes recommendations to the Board on
the Board’s composition ensuring that the Board has an appropriate balance of skills, capabilities, expertise, experience and diversity to allow it to meet its strategic and organisational objectives.
The Institute advertises nationally for prospective Trustees to ensure appropriate expertise on the Board is maintained. The Institute will also approach individuals thought to have the right skills.
New Board Trustees are invited to spend time with members of the executive team. This is a chance to learn about the Institute and get more involved with the institute’s work. In addition to the five formal meetings, all Trustees receive regular presentations from QIB’s scientists and briefings on key issues.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **Trustee remuneration**
QIB remunerates Trustees where the Board considers payment is necessary to attract Trustees with specialist skills and experience. The power to remunerate Trustees is included in QIB’s Articles of Association and has been approved by the Charities Commission.
During the year, Dr Celia Caulcott received £11,177 remuneration in connection with her role as Chair of QIB Board of Directors (2021: £10,000).
Three members of the Board of Trustees were reimbursed for travel expenses incurred during the year (2021: one). The total amount reimbursed was £576 (2021: £1,514).
## **Key Management Personnel**
The Trustees delegate management of the day-to-day activities of the charitable company to the Institute Director and Executive Board, who are considered to be the key management personnel for the institute. The Executive Board (EB) works to support the Institute Director in developing scientific, financial, business and administrative policy and strategy. EB will monitor policy implementation and ensure that such policy is embedded in the day-to-day working of the Institute. EB is supported by the executive Science Strategy Board and the Management Forum.
EB membership during the year was as follows:
- Institute Director (EB Chair)
- Director of Operations
- Chief Business Officer
- Finance Director
- Chief Scientific Officer / Leader Food and Health ISP
- Leader Gut Health & Food Safety ISP
- Leader Microbes in the Food Chain ISP
- Head of HR
## **Employees**
QIB staff that joined before 1 October 2011 were employed by BBSRC up to 1 October 2017, when they transferred employment to the Institute under TUPE. Transferred employees retain their membership of the Research Councils Pension Scheme (RCPS), where applicable, with QIB becoming an admitted employer in the scheme. The RCPS is a defined benefit
scheme funded from annual grant-in-aid on a pay-asyou-go basis. The RCPS Pension Scheme is a multiemployer scheme and QIB is unable to identify its share of the underlying assets and liabilities. QIB therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. Liabilities for the payment of future benefits are the responsibility of the RCPS and accordingly are not included in these Financial Statements.
QIB has recruited all new staff from October 2011 on its own terms and conditions, covering basic pay and allowances, contractual payments, tax, Nl, and liabilities for pension contributions and redundancy. Such staff are eligible to join a defined contribution scheme.
QIB employs a number of group leaders jointly with UEA. Staff are employed under QIB terms & conditions, but are eligible to join The University Superannuation Scheme (USS). QIB is obliged to pay the prevailing employer contribution rate for staff in the USS, however it has no liability for scheme funding deficits.
## _Communication_
QIB provides all staff with relevant information and seeks their views on matters of common concern through their representatives and through line managers. Priority is given to ensuring that employees are aware of all significant matters affecting QIB’s position and any significant organisational changes
## _Equality and Diversity_
It is the Institute’s policy to provide equal opportunities to job applicants and employees of any race, nationality, ethnic origin, marital status, religion or belief, gender, disability, sexual orientation, age or employment status. The Institute does not condone or tolerate any form of discrimination in its recruitment or employment practices. All employees and applicants are treated on merit, fairly, with respect and dignity, recognised as individuals and valued for the contribution they make, provided fair and equal access to training, development, reward and progression opportunities and are accountable for the impact of their own behaviour and actions. All the Institute’s policies follow these principles.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **RELATED PARTIES**
## **Subsidiaries**
QIB’s subsidiaries in the year were as follows:
- QIB Extra Limited (contract research);
- IFR Enterprises Limited (dormant);
- IFR NRP Capital Limited (dormant).
## **NBI Partnership**
QIB has a 25% interest in NBI Partnership Limited (“NBIP”). NBIP supplies support and administrative services to QIB and the other Norwich Institutes (John Innes Centre, Earlham Institute and The Sainsbury Laboratory) on a not-for-profit basis. NBIP fully recharges its costs to the four research organisations and accordingly it generates no profit or loss.
## **QI Partners**
QIB is a member of QI Partners along with BBSRC, UEA and NNUH. QI Partners has been established for the purposes of constructing and managing the Quadram Institute building and providing such facilities for charitable use. QIB does not have any significant influence on QI Partners’ financial and operating policies.
On 29 March 2019, QIB entered into a lease agreement for accommodation in the Quadram Institute building from QI Partners.
QIB has agreed to provide QI Partners with a loan facility of £5.4m, which is repayable between November 2018 and October 2024. As at 31 March 2022, £1.25m of the facility was drawn down by QI Partners (2021: £2.8m). The loan has been provided on an arm’s length basis and interest is payable on the loan at a rate of 3.0% pa.
## **University of East Anglia (UEA)**
University of East Anglia is a member of the charitable company. UEA is entitled to appoint a majority of the members of the Board of Trustees and accordingly is deemed to be the company’s parent undertaking and controlling party. The majority of QIB PhD students are registered with the UEA.
food, health, plant, microbial and environmental research, innovation and enterprise. QIB is entitled to receive a share of certain profits generated by AIP LLP, however it has no liability for losses or in the event of insolvency. AIP LLP has not yet generated any profits.
## **BBSRC**
BBSRC is a member of the charitable company. BBSRC is entitled to appoint an observer to attend, speak and provide information to meetings of the Board of Trustees, however such observers have no right to vote at any such meeting.
QIB is strategically funded, along with seven other institutes, by BBSRC. BBSRC supports QIB via strategic programme funding programmes, competitively won project grants and capital funding for infrastructure and technology investments. The principal terms and conditions under which BBSRC provides its funding are set out in the Institute Grant Agreement. Key conditions include:
- BBSRC and the Institute shall meet at least annually to review and discuss the implementation and progress of the Institute's business, including strategic and financial plans.
- The Institute shall submit a draft Business Plan, covering a period of at least five years, for discussion.
- The Institute will demonstrate appropriate plans for the maintenance, renewal and development of the estate through a rolling 10-year Institute Estates Strategy covering capital projects, long term and routine maintenance.
BBSRC is part of UK Research and Innovation (UKRI), an organisation that brings together the UK’s seven research councils, Innovate UK and Research England.
## **Norfolk and Norwich University Hospitals NHS Foundation Trust (NNUH)**
NNUH is a member of the charitable company. NNUH is entitled to appoint an observer to attend, speak and provide information to meetings of the Board of Trustees, however such observers have no right to vote at any such meeting.
## **Anglia Innovation Partnership LLP (AIP LLP)**
QIB is a member of Anglia Innovation Partnership LLP through its 100% subsidiary, IFR NRP Capital Limited. The objective of AIP LLP is to develop and sustain the Norwich Research Park as an international centre for
11
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES OF QUADRAM INSTITUTE BIOSCIENCE IN RESPECT OF THE TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under that law they have are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charitable company and of the group’s excess of income over expenditure for that period. In preparing each of the group and charitable company financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- assess the group’s and the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
- use the going concern basis of accounting unless they either intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do so.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Public benefit**
The Trustees are satisfied they have complied with their duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. Based on this guidance, and as described in this Trustees’ report, the Trustees believe the activities of Quadram Institute Bioscience to be charitable in nature.
## **Insurance Disclosure**
The Institute maintains liability insurance for its trustees, with an annual aggregate cover limit for all claims against them in that capacity. The trustees have also been granted a qualifying third party provision under section 233 of Companies Act 2006. Neither the Institute's indemnity nor insurance provides cover in the event that a trustee is proved to have acted fraudulently or dishonestly.
## **Disclosure of information to auditor**
The trustees confirm that:
- so far as each trustee is aware, there is no relevant audit information of which the Company's auditor is unaware, and
- the trustees have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
## **Independent auditors**
Larking Gowen LLP have been appointed as auditors and a resolution has been passed by the Board, concerning their appointment as auditors.
On behalf of the Board of Trustees
## **Dr C Caulcott, Trustee Chair**
28 September 2022
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF QUADRAM INSTITUTE BIOSCIENCE
## **Opinion**
We have audited the financial statements of Quadram Institute Bioscience (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated and Charitable Company Balances Sheets, Consolidated Statement of Cash Flows and Notes to the Accounts, including 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:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2022, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or 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.
## **Other information**
The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by**
## **exception**
In the light of the knowledge and understanding of the group and parent charitable company and its
environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees (who are also the directors of the parent 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 groups and 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial**
## **statements**
We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of noncompliance 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.
Due to the field in which the group operates, we identified the areas most likely to have a direct material impact on the financial statements as compliance with UK tax legislation, UK accounting standards, UK charity law and the Companies Act 2006. In addition, we considered the provisions of other laws and regulations which whilst not having a direct impact on the financial statements, are fundamental to the group’s ability to operate including health and safety; employment law, and compliance with various other regulations relevant to the conduct of the group’s operations.
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:
- Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, potential litigation or claims and fraud;
- Reviewing legal and professional fees to confirm matters where the group engaged lawyers during the year;
- Reviewing financial statement disclosures and tax matters, and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Reviewing board minutes and any relevant correspondence with external authorities;
- Challenging assumptions and judgements made by management in their significant accounting estimates, particularly in relation to the recognition of grant income; and
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of any significant transactions outside the normal course of business.
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-andassurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors-responsibilities-foraudit.aspx. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Anders Rasmussen FCA (Senior Statutory Auditor) for and on behalf of
## **Larking Gowen LLP**
Chartered Accountants & Statutory Auditors Norwich
30 September 2022
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## FINANCIAL STATEMENTS
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
FOR THE YEAR ENDED 31 MARCH 2022
(Incorporating an income and expenditure account)
||||Restricted|Restricted|||
|---|---|---|---|---|---|---|
|||Unrestricted|general|capital|**Total**|Total|
|||funds|funds|funds|**2022**|2021|
||Note|£000|£000|£000|**£000**|£000|
|**Incoming resources**|||||||
|_Income from Charitable activities_|||||||
|Grant income||-|
15,921|-|**15,921**|14,820|
|Capital and maintenance grants||-|
183|561|**744**|6,069|
|Other charitable income||549|133|-|**682**|1,005|
|_Income from other trading activities_|||||||
|Trading income||1,276|-|-|**1,276**|642|
|_Investment income_||131|-|-|**131**|195|
|**Total income**|2|1,956|16,237|561|**18,754**|22,731|
|**Expenditure**|||||||
|Charitable activities||(2,387)|(13,731)|(1,151)|**(17,269)**|(19,200)|
|Raising funds||(166)|-|-|**(166)**|(184)|
|Trading expenditure||(729)|-|-|**(729)**|(614)|
|**Total expenditure**|3|(3,282)|(13,731)|(1,151)|**(18,164)**|(19,998)|
||||||||
|**Net income/(expenditure)**||(1,326)|2,506|(590)|**590**|2,733|
|_Transfers_|||||||
|Capital transfers|18|(633)|-|
633
|**-**|-|
|Other transfers|18|3,191|(3,191)|-|**-**|-|
|**Net movement in funds for the year**||1,232|(685)|43|**590**|2,733|
|Funds brought forward|18|28,521|2,914|6,639|**38,074**|35,341|
|**Funds carried forward**|18|29,753|2,229|6,682|**38,664**|38,074|
The Consolidated Statement of Financial Activities (“SoFA”) includes all gains and losses recognised in the year. All incoming resources and expenditure relates to continuing activities.
The accompanying notes form part of these financial statements.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **CONSOLIDATED AND CHARITABLE COMPANY BALANCE SHEETS**
AS AT 31 MARCH 2022
|||**Group**|Group|**Company**|Company|
|---|---|---|---|---|---|
|||**2022**|2021|**2022**|2021|
||Note|**£000**|£000|**£000**|£000|
|_Fixed assets_||||||
|Tangible assets|9|**18,914**|19,078|**18,914**|19,078|
|Intangible assets|10
|**-**|-|**-**|-|
|**Total fixed assets**||**18,914**|19,078|**18,914**|19,078|
|_Current assets_||||||
|Debtors|12|**5,313**|9,632|**5,043**|9,584|
|Cash at bank and in hand|13|**22,455**|19,457|**22,033**|19,183|
|||**27,768**|29,089|**27,076**|28,767|
|_Current liabilities_||||||
|Creditors: amounts falling due within one year|14|**(8,018)**|(10,093)|**(7,865)**|(9,796)|
|**Total net current assets**||**19,750**|18,996|**19,211**|18,971|
|**Total assets less current liabilities**||**38,664**|38,074|**38,125**|38,049|
|Provisions for liabilities and charges|16
|**-**|-|**-**|-|
|**Total net assets**|17|**38,664**|38,074|**38,125**|38,049|
|**Funds of the charity**||||||
|_Unrestricted funds_||||||
|Fixed assets reserve|18|**14,069**|14,972|**14,069**|14,972|
|Designated strategic reserves|18|**10,423**|6,486|**10,423**|6,486|
|Designated building reserves|18|**1,250**|3,050|**1,250**|3,050|
|General reserve|18|**4,011**|4,013|**3,472**|3,988|
|Total unrestriced funds||**29,753**|28,521|**29,214**|28,496|
|_Restricted funds_||||||
|Fixed assets reserve|18|**4,845**|4,106|**4,845**|4,106|
|Restricted general|18|**2,229**|2,914|**2,229**|2,914|
|Capital reserve|18|**1,837**|2,533|**1,837**|2,533|
|Total restricted funds||**8,911**|9,553|**8,911**|9,553|
|**Total charity funds**|18|**38,664**|38,074|**38,125**|38,049|
A separate income and expenditure account has not been presented for QIB as this is exempted by Section 408 of the Companies Act 2006. The profit after tax of QIB was £76,000 (2021: £2,795,000).
The financial statements on pages 15 to 32 were approved by the Board of Trustees on 28 September 2022 and were signed on its behalf by:
## **Dr C Caulcott, Trustee Chair**
The accompanying notes form part of these financial statements.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## Company registration number: 03009972
## **CONSOLIDATED STATEMENT OF CASH FLOWS**
FOR THE YEAR ENDED 31 MARCH 2022
|||**Total**|
Total|
|---|---|---|---|
|||**2022**|2021|
|||**£000**|£000|
|**Cash flow from operating activities**||||
|Operating surplus||**590**|2,733|
|Interest receivable||**(131)**|(195)|
|Depreciation and amortisation||**1,151**|981|
|Capital grants received||**(744)**|(6,069)|
|Loss on disposal of tangible assets||**67**|2|
|Decrease/(Increase) in debtors||**2,769**|(4,099)|
|(Decrease)/Increase in creditors||**(2,075)**|3,991|
|Decrease in provisions||**-**|
(36)|
|**Net cash provided by/(used in) operating activities**||**1,627**|(2,692)|
|**Cash flow from investing activities**||||
|Interest received||**131**|195|
|Repayment of loan||**1,550**|975|
|Purchase of tangible assets
Disposal Proceeds
Capital grants received||**(1,054)**
**-**
**744**|(1,693)
8
6,069|
|**Net cash provided by/(used in) investing activities**||**1,371**|5,554|
|**Change in cash and cash equivalents in the reporting period**
Cash and cash equivalents at the beginning of the reporting period|13|**2,998**
**19,457**|2,862
16,595|
|**Cash and cash equivalents at the end of the reporting period**|13|**22,455**|19,457|
The movement in net debt for the current and prior year is identical to the movements in cash flow set out above.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **1. ACCOUNTING POLICIES**
**a. Basis of preparation**
The group financial statements have been prepared under the historical cost convention and applicable accounting standards. They have also been prepared in accordance with Accounting and Reporting by Charities; Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.
The principal accounting policies adopted in these financial statements, which have been consistently applied, are: **b. Basis of consolidation**
The consolidated financial statements incorporate the financial statements of Quadram Institute Bioscience (“QIB”) and all its subsidiary undertakings in accordance with Financial Reporting Standard (“FRS”) 102 “Accounting for Subsidiary Undertakings”.
The financial statements of all group undertakings and associates are made up to 31 March 2022.
QIB is one of four members of QI Partners (“QIP”). QIP is accounted for as an investment rather than an associate and has not been consolidated in the QIB financial statements on the basis that QIB does not have significant influence over QIP financial and operating policies.
QIB is one of four members of NBIP Partnership Limited (“NBIP”). The group accounts for NBIP as an associate, although in practice the company makes no profit or loss and has net assets of NIL, therefore has no impact on the Group financial statements.
**c. Going concern**
The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons:
The Trustees have prepared cash flow forecasts for the period to March 2028 which indicate, taking account of reasonable possible downsides and that the anticipated impact of COVID-19 on the operations and its financial resources, the Institute will have sufficient funds to meet is liabilities as they fall due for that period.
The Institute is reliant on its strategic programme funding from BBSRC, which was £8.2m in the year (2021: £11.5m). BBSRC has confirmed continued strategic funding of £8.2m for the year to March 2023. BBSRC has provided the Institute with a provisional strategic programme funding allocation for 5 years to March 2028 of £10.9m per annum. The funding is expected to be confirmed in late 2022, once BBSRC has received confirmation of its Spending Review Allocation.
Like most research organisations, the Institute’s activities have been impacted by Covid-19 measures over the last 2 years. During this period, the Institute has been able to successfully maintain its research programmes and projects with minimal financial impact. The Institute has considered the potential financial impact of any restrictions for the next 12 months, including the potential for a further lockdown. Taking into account experience to date, business continuity
arrangements and financial projections, the Institute considers the risk of a significant financial impact from Covid19 to be low. The Institute has considered the potential financial impact of continued restrictions for the next 12 months, including the potential for a further lockdown. Taking into account experience to date, business continuity arrangements and financial projections, the Institute considers the risk of a significant financial impact from COVID-19 to be low.
Consequently, the Trustees are confident that the Institute will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have been prepared the financial statements on a going concern basis.
**d. Judgements in applying accounting policies and key sources of estimation**
Preparation of the financial statements require management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
- Depreciation, which has been charged in line with the accounting policy below. The amount of depreciation charged and net book value of the assets is included in Note 9.
**e. Income**
Charitable grant income represents grants received and receivable in the year from outside granting bodies and other miscellaneous income. Grants that provide core funding are recognised in the year in which entitlement passes. Grant funding received to undertake research is recognised in the year in which the obligation is fulfilled. Grant funding is released to match expenditure incurred during the year together with any related contributions towards overhead costs.
Trading income relates to the non-charitable services undertaken by QIB Extra Limited (“QIBX”) and is recognised in accordance with the terms of the contracts entered into, reflecting the point at which the obligations of the company have been satisfied.
Investment income relates to interest receivable from treasury deposits and related party loans. The interest is recognised in the year in which it is earnt.
Capital grants are recognised in the Consolidated Statement of Financial Activities (“SoFA”) when entitlement passes, which is typically on receipt. Where capital funding includes terms and conditions that must be met before there is unconditional entitlement, the grant income is recognised as those conditions are met, which usually results in capital funding being recognised to match the capital costs incurred.
Where income has been received in advance of conditions being met, the income is deferred until those conditions have been fully satisfied.
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **1. ACCOUNTING POLICIES (CONTINUED)**
**f. Expenditure**
Expenditure on charitable activities represents the full cost of the research performed. It includes the cost of direct staff, consumable stocks and indirect costs apportioned on the basis of use.
Costs of generating funds represent the cost of obtaining funds for research, preparing grant applications and raising the profile of QIB. Costs incurred in preparing grant applications, which primarily comprise staff costs, have been approximated based upon a sample review of time taken to prepare the detailed applications.
Governance costs represent the necessary cost of compliance with statutory and constitutional requirements and any other costs which are not direct charitable expenditure.
Support costs have been wholly allocated to charitable activity expenditure based upon activity as indicated in note 4 to the financial statements.
**g. Restricted funds**
Where research at QIB is funded by grants with conditions attached to them, these are shown as restricted. Capital grants received and receivable together with other restricted funds received and receivable and used to purchase tangible assets are included within restricted funds.
A restricted fixed assets reserve has been established representing the net book value of fixed assets purchased from capital grants. The reserve is shown as restricted due to continuing conditions in connection with the capital grants and assets purchased.
Restricted reserves include a designated capital reserve of £1.8m (2021: £2.5m) in connection with funding received from BBSRC, which may only be utilised in line with grant conditions.
**h. Unrestricted funds**
These include the strategic programme grants from the Biotechnology and Biological Sciences Research Council (“BBSRC”) and any other grants which do not have specific conditions attached to them.
A fixed assets reserve has been established within unrestricted reserves representing the net book value of fixed assets funded from unrestricted reserves.
Unrestricted reserves that have been designated by the Board for specific purposes are shown in separate designated reserves. As at March 2022, £11.7m (2021: £9.5m) of unrestricted reserves have been designated in relation to planned capital and science investment associated with the development of the Quadram Institute.
**i. Capital Transfers**
A transfer from unrestricted to restricted reserves equal to the depreciation charge for assets purchased from unrestricted reserves is made as a capital transfer.
A transfer from restricted to unrestricted reserves is made following the completion of performance conditions in connection with restricted capital grant activity.
## **j. Other Transfers**
A transfer from restricted to unrestricted reserves is made following the completion of performance conditions in connection with restricted non-capital grant activity.
**k. Tangible fixed assets and depreciation**
Tangible assets are shown at cost or valuation less accumulated depreciation. The cost of tangible assets is their purchase cost, together with any incidental costs of acquisition.
Depreciation is calculated to write off the cost or valuation less the estimated residual value of tangible assets by equal instalments over their estimated useful economic lives as follows:
|follows:||
|---|---|
|Leasehold land and buildings|over lease term or|
||useful life, if shorter;|
|Plant and machinery|5 years|
|Scientific apparatus and equipment|5 to 10 years|
|Motor vehicles|4 years|
|Other apparatus and equipment|3 to 5 years|
The leasehold improvements have been depreciated over the shorter of their estimated economic life and the remainder of the lease period.
Tangible assets under construction are not depreciated until the asset is in full use.
**l. Intangible fixed assets and amortisation**
Computer Software development costs are recognised as intangible fixed assets at cost less amortisation and any provision for impairment. Intangible assets are amortised over the estimated life of the asset acquired less any residual value.
Amortisation is calculated to write off the cost or valuation less the estimated residual value of intangible assets by equal instalments over their estimated useful economic lives as follows: Computer Software 3 to 5 years
Intangible assets under construction are not amortised until the asset is in full use.
**m. Cash balances held as grant co-ordinator**
Cash balances held on behalf of the European Union in the charitable company’s capacity as grant co-ordinator are included within cash on the charitable company’s balance sheet, and details are disclosed in note 22 to the financial statements.
**n. Debtors**
Debtors are non-interest bearing (excluding loan balances) and are stated at their nominal value, as reduced by appropriate allowances for estimated irrecoverable amounts.
Included in debtors is a loan (£1.25m) provided to QI Partners, which is repayable between November 2018 and October 2024. The loan has been provided on an arm’s length basis and interest is payable on the loan at a rate of 3.0% pa.
19
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **1. ACCOUNTING POLICIES (CONTINUED)**
**o. Trade creditors**
Trade creditors are non-interest bearing and are stated at their nominal value.
**p. Provisions**
A provision is recognised in the financial statements where there is a legal or constructive obligation to transfer economic benefit to a third party.
**q. Staff and Pensions**
All staff employed by QIB (formerly Institute of Food Research) on 30 September 2011 became BBSRC employees on 1 March 2012 and were deployed back to the Institute under conditions set out in the Deployment Agreement (the “Deployed Employees”). The Deployed Employees remained with the Institute on an exclusive and full-time basis and dayto-day direction and line management of the Deployed Employees was delegated to QIB, subject to the terms of the BBSRC Employment Contract. QIB retained responsibility for paying employment costs in relation to the Deployed Employees, including basic pay and allowances, contractual payments, tax, Nl and pension contributions.
On 1 October 2017, Deployed Employees transferred employment to the Institute under TUPE.
Deployed Employees retain their membership of the Research Councils Pension Scheme (RCPS), where applicable, with QIB becoming an admitted employer in the scheme. The RCPS is a defined benefit scheme funded from annual grant-in-aid on a pay-as-you-go basis. The RCPS Pension Scheme is a multiemployer scheme and QIB is unable to identify its share of the underlying assets and liabilities. QIB therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. Liabilities for the payment of future benefits are the responsibility of the RCPS and accordingly are not included in these Financial Statements.
QIB staff that joined after 30 September 2011 are eligible to join a defined contribution scheme.
The Company employs some staff jointly with the University of East Anglia. Staff are employed under QIB terms & conditions, but are eligible to join The University Superannuation Scheme (USS). QIB is obliged to pay the prevailing employer contribution rate for staff in the USS, however it has no liability for scheme funding deficits. Accordingly, these arrangements have been accounted for as defined contribution scheme.
r. Termination benefits
Redundancy payments are recognised as a liability and an expense only when the event is demonstrably committed to by either: a. termination of the employment of an employee or group of employees before the normal retirement date, or b. provision of termination benefits as a result of an offer made in order to encourage voluntary redundancy.
## **Operating Leases**
**s.**
Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.
**t. Foreign currency transactions** The functional and reporting currency of the charity is pounds sterling.
Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Assets and liabilities denominated in foreign currencies are translated at year end exchange rates.
All gains and losses are taken to the Statement of Financial Activities in the year to which they relate.
## **Financial instruments**
**u.**
Financial assets and financial liabilities are recognised upon becoming a party to the contractual provisions of the instrument.
The group only enters into basic financial instrument transactions that result in financial assets and liabilities like trade and other accounts receivable and payable.
20
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **2. ANALYSIS OF INCOMING RESOURCES**
||Research|Other|**Total**|Research|Other|**Total**|
|---|---|---|---|---|---|---|
||activities|activities|**2022**|activities|activities|**2021**|
||£000|£000|**£000**|£000|£000|**£000**|
|**Grant income**|||||||
|BBSRC|10,031|-|**10,031**|12,402|-|**12,402**|
|Other government departments|4,299|-|**4,299**|1,011|-|**1,011**|
|European Union|754|-|**754**|488|-|**488**|
|Other grants|837|-|**837**|919|-|**919**|
|**Total grant income**|15,921|-|**15,921**|14,820|-|**14,820**|
|**Capital and maintenance grants**|||||||
|BBSRC|||||||
|Capital expenditure|744|-|**744**|6,069|-|**6,069**|
|**Total capital grants**|744|-|**744**|6,069|-|**6,069**|
|**Other charitable income**|||||||
|Miscellaneous income|-|682|**682**|-|1,005|**1,005**|
|**Total other charitable income**|-|682|**682**|-|1,005|**1,005**|
|**Trading income**|||||||
|QIB Extra|-|1,276|**1,276**|-|642|**642**|
|**Total trading income**|-|1,276|**1,276**|-|642|**642**|
|**Investment income**|||||||
|Interest receivable on cash deposits|-|67|**67**|-|86|**86**|
|Other interest receivable|-|64|**64**|-|109|**109**|
|**Total investment income**|-|131|**131**|-|195|**195**|
||||||||
|**Total incoming resources**|16,665|2,089|**18,754**|20,889|1,842|**22,731**|
QIB’s activities consist principally of scientific research in the United Kingdom.
- Grant income of £15,921k (2021: £14,820k) is all restricted general funds.
- Capital grants of £744k (2021: £6,069k), £183k (2021: £3,243k) is restricted general funds and £561k (2021: £2,826k) is restricted capital funds
- Other charitable income of £682k (2021: £1,005k), £549k (2021: £775k) is unrestricted funds and £133k (2021: £230k) is restricted general funds
- In both periods all trading and investment income is unrestricted.
21
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **3. ANALYSIS OF EXPENDITURE**
|||Research|Student|Other|**Total**|Research|Student|Other|**Total**|
|---|---|---|---|---|---|---|---|---|---|
|||activities|activities|activities|**2022**|activities|activities|activities|**2021**|
||Note|£000|£000|£000|**£000**|£000|£000|£000|**£000**|
|Direct charitable expenditure||||||||||
|Staff costs||7,304
|-|-|**7,304**|7,146|-|-|**7,146**|
|Direct costs||2,875|441|-|**3,316**|5,130|546|-|**5,676**|
|Depreciation||1,151
|-|-|**1,151**|981|-|-|**981**|
|Buildings maintenace||351
|-|-|**351**|348|-|-|**348**|
|Governance costs||-|-|50|**50**|-|-|36|**36**|
|Support costs|4|4,864|233|-|**5,097**|4,759|254
|-|**5,013**|
|**Expenditure on charitable activities**||**16,545**|**674**|**50**|**17,269**|18,364|800|36|**19,200**|
|Raising funds||-|-|166|**166**|-|-|184|**184**|
|Trading expenditure||-|-|729|**729**|-|-|614|**614**|
|**Total expenditure**||**16,545**|**674**|**945**|**18,164**|18,364|800|834|**19,998**|
Included within expenditure on charitable activities is restricted general expenditure of £13,731k (2021: £17,557k), and restricted capital expenditure (depreciation) of £1,151k (2021: £981k). All other expenditure is unrestricted.
Staff costs are allocated based on time spent by staff. Depreciation is allocated based on the usage of assets. Other costs are allocated on the basis of their nature.
||Total|Total|
|---|---|---|
|**Analysis of governance costs**|2022|2021|
||**£000**|£000|
|Staff costs|**26**|16|
|Other costs|**24**|20|
|**Total governance costs**|**50**|36|
## **4. ALLOCATION OF SUPPORT COSTS**
||Research|Student|**Total**|Research|Student|**Total**|Basis of|
|---|---|---|---|---|---|---|---|
||activities|activities|**2022**|activities|activities|**2021**|Allocation|
||£000|£000|**£000**|£000|£000|**£000**||
|Lab management|151|8|**159**|141|8|**149**|Headcount|
|Institute management|638|32|**670**|589|33|**622**|Headcount|
|Scientific services|247|12|**259**|251|14|**265**|Headcount|
|Facilities management and utilities*|1,996|100|**2,096**|1,780|100|**1,880**|Headcount|
|Finance and Purchasing*|388|19|**407**|639|36|**675**|Headcount|
|Computing and Library*|460|23|**483**|498|28|**526**|Headcount|
|Human Resources*|168|8|**176**|159|9|**168**|Headcount|
|Public engagement|355|18|**373**|346|19|**365**|Headcount|
|Health and Safety*|115|6|**121**|109|6|**115**|Headcount|
|Other support services*|346|7|**353**|247|1|**248**|Headcount|
|**Total support costs**|**4,864**|**233**|**5,097**|4,759|254|**5,013**||
*Includes services supplied by NBI Partnership Limited (see note 21).
22
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **5. TAXATION**
QIB is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
The trading activities of the subsidiary companies are subject to corporation tax; however profits in the year are gifted to the charitable company resulting in a £nil (2021: £nil) tax charge payable.
There is no provision for deferred tax on fair value adjustments because any chargeable gains are applied to charitable objectives so no tax liability arises.
## **6. OPERATING SURPLUS/(DEFICIT)**
Operating surplus/(deficit) is stated after charging/(crediting):
||**Total**|Total|
|---|---|---|
||**2022**|2021|
||**£000**|£000|
|Audit services:|||
|Fees payable for the audit of the charitable company and consolidated financial statements|19|18|
|Fees payable for the audit of the charitable company’s subsidiaries pursuant to legislation|2|2|
|Depreciation|1,151|981|
|Hire of plant and equipment|22|18|
|Loss on disposal of tangible assets|67|2|
|Loss on foreign exchange translations|8|59|
## **7. REMUNERATION OF THE BOARD OF TRUSTEES**
QIB has been given approval by the Charities Commission to remunerate Trustees where the Board considers that payment is necessary to attract Trustees with specialist skills and experience. The power to remunerate Trustees is included in the QIB’s Articles of Association.
One member of the Board of Trustees, Dr Celica Caulcott, received remuneration from the group during the year for duties as a trustee (2021: none). Total trustee remuneration in the year was £11,177 (2021: £10,000).
Three members of the Board of Trustees were reimbursed for expenses incurred during the year (2021: one). The total amount reimbursed was £576 (2021: £1,514).
23
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **8. EMPLOYEE INFORMATION**
The average monthly number of persons employed by or deployed to the group during the year, analysed by category, was as follows:
**----- Start of picture text -----**
Group 2022 2021
Number Number
Scientific 163 162
Office management and services 19 20
Total 182 182
**----- End of picture text -----**
The aggregate payroll costs of these persons were:
**----- Start of picture text -----**
2022 2021
Note £000 £000
Wages and salaries 6,450 6,480
Redundancy payments 3 56
Social security costs 663 683
Other pension costs 20 917 889
Total 8,033 8,108
**----- End of picture text -----**
As required by the Statement of Recommended Practice applicable to charities, an analysis has been provided below of the number of staff who fall within staff cost bands (excluding pension cost) from £60,000 upwards:
**----- Start of picture text -----**
Group and charitable company 2022 2021
Number Number
£60,000 - £69,999 7 7
£70,000 - £79,999 4 7
£80,000 - £89,999 4 4
£90,000 - £99,999 2 1
£100,000 - £109,999 1 1
£110,000 - £119,999 1 1
£120,000 - £129,999 1 1
£130,000 - £139,999 2 1
Total 22 23
**----- End of picture text -----**
The number of staff with emoluments greater than £60,000 who are also members of the Research Councils’ Pension Schemes was six (2021: seven). Seven staff with emoluments greater than £60,000 are members of a Defined Contribution Pension Scheme (2021: seven).
All staff employed by QIB on 30 September 2011 became BBSRC employees on 1 March 2012 and were deployed back to the Institute under conditions set out in the Deployment Agreement (the “Deployed Employees”). On 1 October 2017, Deployed Employees transferred employment to the Institute under TUPE. Transferring employees retain their membership of the Research Councils Pension Scheme, where applicable, with QIB becoming an admitted employer in the scheme.
QIB staff that joined after 30 September 2011 are employed under QIB terms & conditions.
The key management personnel of the parent charity, Quadram Institute Bioscience, comprise of the trustees and the members of the Executive Board. The total employee benefits of the key management personnel of the charity were £776,414 (2021: £734,001).
The key management personnel of the group comprise those of the charity and the key management personnel of the wholly owned subsidiary, QIB Extra Ltd. The key management personnel of QIB Extra Ltd are the Director of Operations and the Head of QIB Extra Operations. The costs of the key management personnel to QIB Extra was £54,223 (2021: £44,985).
The employee benefits of the key management personnel for the group was £830,637 (2021: £778,986).
24
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **9. TANGIBLE ASSETS**
|**9. TANGIBLE ASSETS**||
|---|---|
|**Group**|Plant,
Leasehold
machinery
Apparatus
Assets
land and
and
and
under
buildings
equipment
equipment construction
**Total**|
||£000
£000
£000
£000
**£000**|
|**_Cost/Valuation_**
At 1 April 2021|14,609
22
11,918
1,536
**28,085**|
|Transfer|-
217
1,252
(1,469)
**-**|
|Additions|61
39
652
302
**1,054**|
|Disposals|- -
(71)
(67)
**(138)**|
|**At 31 March 2022**|**14,670**
**278**
**13,751**
**302**
**29,001**|
|**_Accumulated Depreciation_**
At 1 April 2021|485
2
8,520 -
**9,007**|
|Charge for the year|246
25
880 -
**1,151**|
|Disposals|- -
(71)
-
**(71)**|
|**At 31 March 2022**|**731**
**27**
**9,329**
**-**
**10,087**|
|||
|**Net book value at 31 March 2022**|**13,939**
**251**
**4,422**
**302**
**18,914**|
|Net book value at 31 March 2021|14,124
20
3,398
1,536
19,078|
|**Charitable company**|Plant,
Leasehold
machinery
Apparatus
Assets
land and
and
and
under
buildings
equipment
equipment construction
**Total**|
|---|---|
||£000
£000
£000
£000
**£000**|
|**_Cost/Valuation_**
At 1 April 2021|14,609
22
11,821
1,536
**27,988**|
|Transfer|-
217
1,252
(1,469)
**-**|
|Additions|61
39
652
302
**1,054**|
|Disposals|- -
(71)
(67)
**(138)**|
|**At 31 March 2022**|**14,670**
**278**
**13,654**
**302**
**28,904**|
|**_Accumulated Depreciation_**
At 1 April 2021|485
2
8,423 -
**8,910**|
|Charge for the year|246
25
880 -
**1,151**|
|Disposals|- -
(71)
-
**(71)**|
|**At 31 March 2022**|**731**
**27**
**9,232**
**-**
**9,990**|
|||
|**Net book value at 31 March 2022**|**13,939**
**251**
**4,422**
**302**
**18,914**|
|Net book value at 31 March 2021|14,124
20
3,398
1,536
19,078|
All of the tangible assets of the charitable company are used for charitable purposes.
Assets under construction represent capital items which are not yet in full economic use.
25
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **10. INTANGIBLE ASSETS**
**----- Start of picture text -----**
Software
Group and charitable company development Total
£000 £000
Cost/Valuation
At 1 April 2021 147 147
Additions - -
Disposals - -
At 31 March 2022 147 147
Accumulated Depreciation
At 1 April 2021 147 147
Charge for the year - -
Disposals - -
At 31 March 2022 147 147
Net book value at 31 March 2022 - -
Net book value at 31 March 2021 - -
**----- End of picture text -----**
The intangible asset relates to internally generated research software.
## **11. INVESTMENT IN SUBSIDIARIES AND ASSOCIATES**
## **Subsidiaries**
The following are the operating subsidiary undertakings in which the charitable company has an interest:
||**Registration**|**Country of**||**Class and percentage of**|
|---|---|---|---|---|
|**Subsidiary Undertaking**|**number**|**registration**|**Principal activity**|**shares held**|
|QIB Extra Limited|06500711|England|Contract research|100% ordinary shares|
|IFR Enterprises Limited|03398534|England|Dormant|100% ordinary shares|
|IFR NRP Capital Limited|08132483|England|Dormant|100% ordinary shares|
The charitable company owns 100% of the ordinary share capital of IFR Enterprises Limited (cost: £3), QIB Extra Limited (cost: £100) and IFR NRP Capital Limited (cost: £1), all of which are incorporated in England. The subsidiaries are used for trading activities.
The companies’ results for the year were as follows:
||IFR|QIB|IFR NRP|||
|---|---|---|---|---|---|
||Enterprises|Extra|Capital|**Total**|Total|
|**Profit and loss account**|Limited|Limited|Limited|**2022**|2021|
||£000|£000|£000|**£000**|£000|
|Turnover|-|1,276
|-|**1,276**|646|
|Cost of sales|-|(537)
|-|**(537)**|(346)|
|**Gross profit**|-|739
|-|**739**|300|
|Administrative expenses|-|(195)
|-|**(195)**|(268)|
|**Operating profit retained in subsidiary**|-|544
|-|**544**|32|
|**Net assets at 31 March 2022**|-|541
|-|**541**|27|
In addition to the above, £29,827 (2021: £93,852) in Gift Aid was paid to the charitable company in the year.
The charitable company has committed to provide financial support to QIB Extra Limited (“QIBX”), and not demand repayment of amounts due to it, in order to enable QIBX to meet its liabilities as they fall due – but only to the extent that money is not otherwise available to the company to meet such liabilities – for a period of at least 12 months from the signing of the financial statements of QIBX for the year ended 31 March 2022.
IFR NRP Capital Limited is a member of Anglia Innovation Partnership LLP, which is responsible for the management and development of the Norwich Research Park (NRP) estate and for the furtherance of the NRP Enterprise Vision. IFR NRP Capital Limited did not trade during the year.
26
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **12. DEBTORS**
**----- Start of picture text -----**
Group Group Company Company
2022 2021 2022 2021
Note £000 £000 £000 £000
Grants receivable:
from government bodies 743 3,477 743 3,477
from other sources 1,657 1,521 1,657 1,521
Trade debtors 223 322 26 211
Amounts owed by subsidiary undertakings - - 72 75
Amounts owed by other related parties 21 1,452 3,524 1,452 3,524
Other debtors 98 83 97 83
Prepayments and accrued income 1,140 705 996 693
Total amounts falling due within one year 5,313 9,632 5,043 9,584
**----- End of picture text -----**
Included in the above amounts is £1,250k (2021: £2,800k) unsecured loan to QI Partners, of which £350k is repayable in over one year. Interest is payable on the loan at a rate of 3.0% per annum.
## **13. CASH AT BANK AND IN HAND**
**----- Start of picture text -----**
Group Group Company Company
2022 2021 2022 2021
£000 £000 £000 £000
Cash at bank 22,452 19,454 22,031 19,180
Cash in hand 3 3 2 3
Total 22,455 19,457 22,033 19,183
**----- End of picture text -----**
## **14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**----- Start of picture text -----**
Group Group Company Company
2022 2021 2022 2021
Note £000 £000 £000 £000
Grants received in advance:
from government bodies 892 951 892 951
from other sources 2,590 2,332 2,572 2,179
Amounts owed to subsidiary undertakings - - - -
Amounts owed to other related parties 21 788 3,467 788 3,467
Trade creditors 849 425 842 419
Other creditors 1,470 1,415 1,430 1,415
Accruals and deferred income 1,265 1,342 1,186 1,204
Taxation and social security 164 161 155 161
Total amounts falling due within one year 8,018 10,093 7,865 9,796
**----- End of picture text -----**
27
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **15. RECONCILIATION OF MOVEMENT IN GRANTS RECEIVABLE**
**----- Start of picture text -----**
Total Total
Group 2022 2021
Note £000 £000
Grants receivable 12 2,400 4,998
Grants received in advance 14 (3,482) (3,283)
Net grants received in advance (1,082) 1,715
Net grants received in advance at beginning of year 1,715 (767)
Grant monies received during the year (19,400) (13,343)
Grant money released to SOFA during the year 16,603 15,825
Net grants received in advance at end of year (1,082) 1,715
**----- End of picture text -----**
## **16. PROVISIONS FOR LIABILITIES AND CHARGES**
||Dilapidations|**Total**|Total|
|---|---|---|---|
|**Group and charitable company**|provision|**2022**|2021|
||£000|**£000**|£000|
|Provision at beginning of year|-|**-**|36|
|Charge in the year|-|**-**|(36)|
|Utilised|-|**- **|-|
|**Provision at end of year**|-|**- **|-|
The dilapidations provision related to remedial costs to be incurred by QIB when it relocated to the Quadram Institute in 2019.
## **17. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|||Net||
|---|---|---|---|
||Fixed|current|**Total**|
||assets|assets|**2022**|
||£000|£000|**£000**|
|**Group**||||
|_Unrestricted:_||||
|Fixed assets reserve|14,069|-|**14,069**|
|Designated strategic reserve|-|10,423|**10,423**|
|Designated building reserve|-|1,250|**1,250**|
|General|-|4,011|**4,011**|
|_Restricted:_||||
|Fixed assets reserve|4,845
|-|**4,845**|
|Capital reserve|-|1,837|**1,837**|
|General|-|2,229|**2,229**|
|**Net assets**|**18,914**|**19,750**
|**38,664**|
|**Charitable company**||||
|_Unrestricted:_||||
|Fixed assets reserve|14,069
|-|**14,069**|
|Designated strategic reserves|-|10,423|**10,423**|
|Designated building reserves|-|1,250|**1,250**|
|General|-|3,472|**3,472**|
|_Restricted:_||||
|Fixed assets reserve|4,845
|-|**4,845**|
|Capital reserve|-|1,837|**1,837**|
|General|-|2,229|**2,229**|
|**Net assets**|**18,914**|**19,211**|**38,125**|
28
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **17. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)**
|||Net||
|---|---|---|---|
||Fixed|current|**Total**|
||assets|assets|**2021**|
||£000|£000|**£000**|
|**Group**||||
|_Unrestricted:_||||
|Fixed assets reserve|14,972|-|**14,972**|
|Designated strategic reserve|-|6,486|**6,486**|
|Designated building reserve|-|3,050|**3,050**|
|General|-|4,013|**4,013**|
|_Restricted:_||||
|Fixed assets reserve|4,106|-|**4,106**|
|Capital reserve|-|2,533|**2,533**|
|General|-|2,914|**2,914**|
|**Net assets**|**19,078**|**18,996**
|**38,074**|
|**Charitable company**||||
|_Unrestricted:_||||
|Fixed assets reserve|14,972|-|**14,972**|
|Designated strategic reserves|-|6,486|**6,486**|
|Designated building reserves|-|3,050|**3,050**|
|General|-|3,988|**3,988**|
|_Restricted:_||||
|Fixed assets reserve|4,106|-|**4,106**|
|Capital reserve|-|2,533|**2,533**|
|General|-|2,914|**2,914**|
|**Net assets**|**19,078**|**18,971**|**38,049**|
The unrestricted fixed assets reserve relates to the net book value of fixed assets purchased from unrestricted funds. The restricted fixed assets reserve relates to the net book value of fixed assets purchased from capital grants.
The unrestricted designated strategic reserve relates to funds designated by the Board for use in relation to planned science investment associated with the Quadram Institute. The designated building reserve represents the loan advances to QI Partners (£1.25m).
The restricted capital reserve is not an endowment fund, but represents capital funding received, from BBSRC, that may only be utilised on fulfilment of certain grant conditions.
The unrestricted general reserve is held to manage income fluctuations, cover unexpected liabilities including restructuring costs.
## **18. ANALYSIS OF FUNDS MOVEMENTS**
**----- Start of picture text -----**
Unrestricted Unrestricted Unrestricted Restricted
fixed designated designated Unrestricted fixed Restricted Restricted Total
assets strategic building general assets general capital 2022
£000 £000 £000 £000 £000 £000 £000 £000
Group
At 1 April 2021 14,972 6,486 3,050 4,013 4,106 2,914 2,533 38,074
Surplus for the year - - - (1,326) (590) 2,506 - 590
Designated reserve transfers - 3,937 (1,800) 1,054 - (3,191) - -
Depreciation transfer (903) - - - 903 - - -
Capital transfers - - - 270 426 - (696) -
At 31 March 2022 14,069 10,423 1,250 4,011 4,845 2,229 1,837 38,664
Charitable company
At 1 April 2021 14,972 6,486 3,050 3,988 4,106 2,914 2,533 38,049
Surplus for the year - - - (1,840) (590) 2,506 - 76
Designated reserve transfers - 3,937 (1,800) 1,054 - (3,191) - -
Depreciation transfer (903) - - - 903 - - -
Capital transfers - - - 270 426 - (696) -
At 31 March 2022 14,069 10,423 1,250 3,472 4,845 2,229 1,837 38,125
**----- End of picture text -----**
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **18. ANALYSIS OF FUNDS MOVEMENTS (CONTINUED)**
||Unrestricted|Unrestricted|Unrestricted||Restricted||||
|---|---|---|---|---|---|---|---|---|
||fixed|designated|designated|Unrestricted|fixed|Restricted|Restricted|**Total**|
||assets|strategic|building|general|assets|general|capital|**2021**|
||£000|£000|£000|£000|£000|£000|£000|**£000**|
|**Group**|||||||||
|**At 1 April 2020**|15,746|6,921|4,375|4,108|2,630|-|1,561|**35,341**|
|Surplus for the year
Designated reserve transfers|-
-|
-
(807)|
-
(1,325)|152
2,132|1,845
-|736
-|-
-|**2,733**
**-**|
|Depreciation transfer
Capital transfers|(824)
50|-
-|
-
-|-
171|824
(1,193)|-
-|-
972|**-**
**-**|
|Other transfers|-|372|-|(2,550)|-|2,178|-|**-**|
|**At 31 March 2021**|**14,972**|**6,486**|**3,050**|**4,013**|**4,106**|**2,914**|**2,533**|**38,074**|
|**Charitable company**|||||||||
|**At 1 April 2020**|15,739|6,921|4,375|4,022|2,636|-|1,561|**35,254**|
|Surplus for the year|-|
-|
-|214|1,845|736|-|**2,795**|
|Designated reserve transfers|-|
(807)|(1,325)|2,132|-|-|-|**-**|
|Depreciation transfer|(818)|-|
-|-|818|-|-|**-**|
|Capital transfers|51|-|
-|170|(1,193)|-|972|**-**|
|Other transfers|-|372|-|(2,550)|-|2,178|-|**-**|
|**At 31 March 2021**|**14,972**|**6,486**|**3,050**|**3,988**|**4,106**|**2,914**|**2,533**|**38,049**|
The designated reserve transfers relates to costs incurred in the year that have been set against the designated strategic reserves, or changes to designations approved by the trustees.
The depreciation transfer is the reallocation of the depreciation charge for assets purchased from unrestricted reserves.
Capital transfers include a transfer from restricted to unrestricted reserves following the completion of performance conditions in connection with restricted capital grant activity, and the reallocation of funds to reflect the capital funding restrictions.
Other transfers include a transfer from restricted to unrestricted funds following the completion of performance conditions in connection with restricted non-capital grant activity, and the reallocation of funds to reflect funding restrictions.
## **19. COMMITMENTS**
|**19. COMMITMENTS**|||
|---|---|---|
||**Total**|Total|
|**Group and charitable company**|**2022**|2021|
||**£000**|£000|
|Capital commitments at the end of the financial year for which no provision has been made:|||
|Contracted|**963**|391|
|Amounts due under other operating leases for plant and machinery:|||
|Within one year|**2**|1|
|Between one and two years|**2**|1|
|Between two and five years|**2**|3|
||**6**|5|
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **20. PENSION SCHEMES**
All staff employed by QIB on 30 September 2011 became BBSRC employees on 1 March 2012 and were deployed back to the Institute under conditions set out in the Deployment Agreement (the “Deployed Employees”). On 1 October 2017, Deployed Employees transferred employment to the Institute under TUPE.
Deployed Employees retain their membership of the Research Councils Pension Scheme (RCPS), where applicable, with QIB becoming an admitted employer in the scheme. The RCPS is a defined benefit scheme funded from annual grant-in-aid on a pay-as-you-go basis. The RCPS Pension Scheme is a multi-employer scheme and QIB is unable to identify its share of the underlying assets and liabilities. QIB therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. Liabilities for the payment of future benefits are the responsibility of the RCPS and accordingly are not included in these Financial Statements. The employer contribution rate during the year was 26% (2021: 26%).
QIB employees that joined after 30 September 2011 are eligible to join a defined contribution scheme.
The Company employs some staff jointly with the University of East Anglia. Staff are employed under QIB terms & conditions but are eligible to join The University Superannuation Scheme (USS). QIB is obliged to pay the prevailing employer contribution rate for staff in the USS, however it has no liability for scheme funding deficits. Accordingly, these arrangements have been accounted for as defined contribution scheme.
The total pension charge for the year was £916,995 (2021: £889,644), with outstanding contributions at the year-end of £50,079 (2021: £47,236).
## **21. RELATED PARTY TRANSACTIONS**
## **Biotechnology and Biological Science Research Council (Member)**
The charitable company is strategically funded by BBSRC along with seven other Institutes.
Grants received from BBSRC are detailed in note 2.
As at 31 March 2022, BBSRC owed £358,502 (2021: £78,905) to QIB, and QIB owed BBSRC £nil (2021: £37,498).
BBSRC is part of UK Research and Innovation (UKRI), an organisation that brings together the UK’s seven research councils, Innovate UK and Research England.
## **University of East Anglia (Member)**
University of East Anglia (“UEA”) is a member of the charitable company. UEA is entitled to appoint a majority of the members of the Board of Trustees and accordingly is deemed to be the company’s parent undertaking and controlling party.
UEA invoiced QIB £4,320,482 (2021: £4,559,763) for salaries and other charges and QIB invoiced UEA £162,221 (2021: £753,880) for services.
As at 31 March 2022, the UEA owed QIB £82,355 (2021: £580,375) and QIB owed UEA £241,093 (2021: £2,989,655).
## **Norfolk and Norwich University Hospitals NHS Foundation Trust (Member)**
Norfolk and Norwich University Hospitals NHS Foundation Trust (NNUH) is a member of the charitable company.
During the year NNUH invoiced QIB £407,681 for services and capital costs (2021: £428,734) and QIB invoiced £28,802 (2021: £42,287) for grant related costs. As at 31 March 2022, NNUH owed QIB £3,028 (2021: £10,689) and QIB owed NNUH £160,796 (2021: £146,028).
## **NBI Partnership Limited (Associate)**
The charitable company is one of four members and guarantors of NBI Partnership Limited (“NBIP”), a company limited by guarantee. QIB has provided short-term loans to NBIP to enable NBIP to manage its cash requirements. At 31 March 2022, QIB had a loan balance with NBIP of £105,000 (2021: £105,000).
During the year, QIB received services totalling £1,399,627 (2021: £1,395,255), received interest from NBIP of £2,100 (2021: £2,100) and invoiced NBIP £nil (2021: £2,160) for other services. As at 31 March 2022, QIB owed NBIP £117,109 (2021: £177,468) and NBIP owed QIB £nil (2021: £2,100).
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**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## **NOTES TO THE ACCOUNTS**
## **21. RELATED PARTY TRANSACTIONS (CONTINUED)**
## **QI Partners (Associate)**
The charitable company is one of four members and guarantors of QI Partners, a charitable company limited by guarantee.
QIB has agreed to provide QI Partners with a loan facility of £5,400,000, which is repayable between November 2018 and October 2024. As at 31 March 2022, £1,250,000 of the facility has been drawn down by QI Partners (2021: £2,800,000). Interest is payable on the loan at a rate of 3.0% pa.
During the year, QIB invoiced QI Partners £61,705 (2021: £106,741) for interest on its loan. As at 31 March 2022, QI Partners owed QIB £11,178 (2021: £25,045).
QI Partners has invoiced QIB for service charges totalling £1,809,666 (2021: £1,826,465) in relation to the building running costs. As at 31 March 2022, QIB owed QI Partners £268,547 (2021: £92,197).
QIB does not have any significant influence on QI Partners’ financial and operating policies.
## **Anglia Innovation Partnership LLP**
QIB is a member of Anglia Innovation Partnership LLP (“AIP LLP”) through its 100% subsidiary, IFR NRP Capital Limited. AIP LLP is responsible for the management and development of the Norwich Research Park (NRP) estate and for the furtherance of the NRP Enterprise Vision. During the year, QIB was charged £24,854 (2021: £32,117) for estate costs and services and QIB charged AIP £nil for utility costs (2021: £nil). As at 31 March 2022, QIB owed AIP LLP £nil (2021: £23,783).
## **QIB Extra Ltd**
QIB Extra Ltd is the wholly owned trading subsidiary of QIB. QIB Extra undertakes contract research for the food industry.
During the year, QIB invoiced QIBX for services and other costs totalling £258,148 (2021: £394,796). QIBX invoiced QIB for services totalling £817 (2021: £3,759). In addition, QIBX made a gift aid payment to QIB of £29,827 (2021: £93,852). As at 31 March 2022, QIBX owed QIB £71,955 (2021: £75,099).
## **22. CASH HELD AS EUROPEAN GRANT CO-ORDINATOR**
The charitable company holds cash on behalf of the European Union in its capacity as project co-ordinator on a number of projects. It acts as an intermediary only and does not control the risks and rewards associated with the cash balances. Cash balances of £1,088,439 (2021: £1,178,812) in relation to this are included within the balance sheet.
## **23. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY**
The trustees consider that the ultimate parent undertaking and controlling party is the University of East Anglia, by virtue of its right under the Articles of Association to appoint a majority of the company’s directors.
QIB is the parent undertaking of the smallest group of undertakings to consolidate these financial statements, and the University of East Anglia is the parent undertaking of the largest group of undertakings to consolidate these financial statements.
32
**Quadram Institute Bioscience** | Annual Report and Accounts | March 2022
## REFERENCE AND ADMINISTRATIVE DETAILS
## **Directors and Trustees**
Dr C Caulcott Dr E Blair Prof F Lettice Prof P Morgan Mr G Potter Dr E Robertson Mrs J Waterfield **Director of the Institute**
Chair – Board
Chair – Science Innovation and Advisory Committee Chair – Remuneration and Nomination Committee
Chair – Audit and Risk Committee
Professor I Charles
**Company Secretary**
Mr D Foreman
**Key Management Personnel** Prof I Charles Dr G Brown Prof S Carding Mr D Foreman Ms A O’Halleron Dr A Mather Prof M Warren Dr R Wilson
**Registered charity number** 1058499 **Registered company number** 03009972
**Registered office and principal office of the charity**
Norwich Research Park Norwich NR4 7UQ
## **Independent auditors**
Larking Gowen LLP Chartered Accountants and Statutory Auditors King Street House 15 Upper King Street Norwich NR3 1RB
**Bankers**
Barclays Bank Plc 54 Lombard Street London EC3V 9EX
33