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2020-03-30-accounts

Registered number: 3395389 Charity number: 1064230

NIAB

Trustees' Report and Financial Statements

For the Year Ended 31 March 2020

NIAB

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1 ‐ 2
Trustees' report 3 ‐ 11
Independent auditors' report on the financial statements 12 ‐ 14
Consolidated statement of financial activities 15
Consolidated balance sheet 16
Charity balance sheet 17
Consolidated statement of cash flows 18
Notes to the financial statements 19 ‐ 58

NIAB

Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2020

Trustees J E Godfrey,Chairman
Dr T L BarsbyOBE,Chief Executive
S J Ellwood
K E Fidgeon
J R Harle
Dr N KerbyMBE
Dr C A Lang
R C Lowson
I J Puddephat
R A Macdonald CBE,DeputyChairman
Professor Dr A G Smith
Company registered
number
3395389
Charity registered number
1064230
Registered office
93 Lawrence Weaver Road
Cambridge
CB3 0LE
Company secretary
S C Masson
Chief executive officer
Dr T L Barsby OBE
Independent auditors
Crowe U.K. LLP
Statutory Auditor
55 Ludgate Hill
London
EC4M 7JW
Bankers
Barclays Bank PLC
1 Churchill Place
Canary Wharf
London
E14 5HP

Page 1

NIAB

Reference and Administrative Details of the Charity, its Trustees and Advisers (continued) For the Year Ended 31 March 2020

Solicitors

Birketts LLP 22 Station Road Cambridge CB1 2JD Gowling WLG (UK) LLP 4 More, London Riverside London SE1 2AU

Page 2

NIAB | Annual Report and Accounts | March 2020

TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT

STRATEGIC REPORT

Background

NIAB is at the centre of innovation in agricultural and horticultural crop sciences.

The National Institute of Agricultural Botany was founded by Deed of Trust in 1919. It was regulated by a scheme made by the Secretary of State for Education and Science until 1998, when a new structure was agreed which saw the formation of two charities which would operate in tandem. NIAB was formed to conduct the charitable operations. The National Institute of Agricultural Botany Trust provide land, facilities and financial support to NIAB, which the Trust determine is the preferred vehicle to deliver its charitable activities. NIAB controls two other charities: The Arable Group Limited and NIAB EMR.

Building on a longstanding international reputation for expertise in plant varieties and seeds, NIAB’s scientific capabilities span the crop improvement pipeline; from underpinning research required to develop higher yielding more climate resilient crops, through to the extensive trials data, agronomy expertise and advice needed to ensure these advances are transferred effectively to the wider industry.

The integration of the latest advances in data science alongside expertise in crop pre-breeding, agronomy and farming systems is key to unlocking a step-change improvement in UK crop production and product quality. NIAB’s intention is to be at the forefront of crop innovation and to lead a step change in crop productivity, whether through the increased application of bioinformatics in bringing new genetics to the market place, or through the combination of data science and agronomy to target onfarm production directly.

NIAB’s research activities are increasingly part of global partnerships as the science relevant to UK agriculture finds equal application in other countries and is particularly relevant to developing economies.

Public Benefit

The need for innovation in plant breeding and agronomy has never been greater. With climate change and a growing population, food security issues are a global concern. Crop science and technology have a vital role to play in boosting productivity, conserving resources and coping with climate change.

NIAB seeks to:

Mission and Vision

Our mission is to conduct high-quality strategic and applied research in agricultural, horticultural and environmental sciences, and to deliver knowledge, products and services that benefit public and private customers.

Our vision is to connect the science base and industry by providing an integrated research and knowledge transfer hub for the entire crop improvement pipeline, with a clear focus on improving the productivity, quality and resource use efficiency of crop production.

Strategy

A central objective of NIAB’s research activity is to bridge the gap between the basic understanding of plant science and the ability to apply that knowledge in practice.

NIAB has the specialist knowledge, skills and facilities required to support improved crop production, to evaluate variety performance and quality in the field, to conduct agronomy research and to ensure the benefits of new knowledge and genetic potential are transferred on to farm and into the food industry which depends on productive agriculture.

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 NIAB to be charitable in nature.

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NIAB | Annual Report and Accounts | March 2020

Performance

Our performance against the 2019/20 objectives is highlighted in the table below:-

Objectives Performance
Completion of the current phase of development at
Cambridge, occupy and utilise the facilities to increase the
scientific output of the organisation. Work with the East
Malling Trust to secure the development of new facilities at
East Malling.		 The Park Farm development was completed in June 2019 and
activities transferred into that facility. The new HQ site at
Lawrence Weaver Road was also completed, the old HQ
building cleared and all staff and activities moved into new
facilities by the end of February 2020.
With the support of the East Malling Trust who pledged
matched financial support, NIAB submitted a successful bid to
the UK government’s ‘Strength in Places’ fund. As well as
providing updated facilities at East Malling, it will bring
together local businesses and Universities in growth projects
based on horticultural science under the leadership of NIAB
EMR.
Review the strategy for NIAB and develop a five year plan for
2020 to 2025.		 Each business area has developed a five year plan, and these
have been consolidated into an overall five year strategy for
final approval by Trustees.
With Cambridge University, establish the new Crop Science
Centre. In collaboration with the Professor of Crop Science,
develop the science and funding strategy, secure first funds
and commence recruiting leadership positions.		 The Crop Science Building, leased to the University by the
NIAB Trust and located adjacent to NIAB’s HQ, was completed
during this year.
The science strategy has been set, focussing on three pillars:
nutrition, pests and disease, and photosynthesis (carbon
capture). Recruitment and bids for funds will commence in
21/22.
Protect and release 2 new fruit varieties. Plant variety rights applications were filed for a new early plum
variety and an everbearer strawberry.
Develop our collaborations with agritech SMEs, to the benefit
of our wider stakeholder base.		 The ‘Meeting of Minds’ programme to link NIAB scientists with
SMEs has continued. NIAB has participated in early stage
funding of SMEs through its participation in the syndicate
Cambridge Agritech. NIAB completed an application for
funding to the Cambridge and Peterborough Combined
Authority which resulted in the award of funds to the NIAB
Trust to build an incubator (labs and offices) to house agitech
SMEs.
In the context of changes to existing arrangements as a result
of Brexit, to work with others to retain a UK system for the
evaluation of Plant Breeders Rights.		 For the time being, it appears that the UK will remain aligned
with the European system and retain similar Plant Breeders
Rights arrangements.

4

NIAB | Annual Report and Accounts | March 2020

Objectives for 2020/21

NIAB is addressing the following objectives for the year to 31 March 2021:-

5

NIAB | Annual Report and Accounts | March 2020

FINANCIAL REVIEW

Income

The total incoming resources for the group were £26,894k (2019: £27,916k). A total of £10,308k related to Agricultural Services (2019: £10,144k); £7,490k relating to Laboratory and Research (2019: £8,172k). The income relating to commercial trading operations totalled £7,124k (2019: £7,546k). The group does not carry out fundraising activities.

Expenditure

The total outgoing expenditure was £28,152k (2019: £27,874k).

Capital Expenditure

The charity funded the capital purchases from both restricted (grants) and unrestricted income. The total group spend was £2,142k (2019 £1,464k).

Business Review and key performance indicators

NIAB continues to review the most appropriate Key Performance Indicators by which the development, performance or position of the various elements of its operations can be effectively measured.

The following Key Performance Indicators (KPIs) have been reviewed for the group: -

eviewed for the group: -
2020 2019
Charitable Income £18,867k £18,352k
Staff Costs £15,182k £15,187k
Average Staff Numbers 351 355
Turnover per head £76.63k £78.6k

The Charitable Income is a measure of the charity’s ability to secure sufficient income to maintain a sustainable research facility. The staff costs and average staff numbers are also an important measure.

Going Concern

The trustees have acknowledged the guidance on going concern and financial reporting published by the Financial Reporting Council in 2016.

The Group’s operating activities are diverse. Research and development in Crop Genetics, Computational Biology, Plant Breeding and Plant Characterisation are supported by longterm contracts and competitively won research grants which, historically, have been largely unaffected by changes in the general economy. Crop Agronomy, Membership, Training and Seed Certification activities are generally contracted on an annual basis, and are supported by a diverse customer base. Income has been stable over a number of years.

The Group balance sheet shows a deficit position of £10,766k. Taking out the Restricted and Endowment funds leaves an Unrestricted deficit of £11,824k. Stripping out the

pension scheme deficit £13,987k (discussed in more detail below), the long term debt to the NIAB TRUST of £1,500k and Fixed Assets (Tangible plus Intangible) plus Trade investments in total within Unrestricted funds of £5,644 leaves a negative underlying unrestricted reserve of £1,981k as described in the Reserves policy in this report.

One of the key objectives as noted above for the year is a review of the 5 year plan incorporating the effects of the Covid-19 pandemic, with a focus on financial stability. This is in process of being achieved through a mix of increased efforts on income generation alongside cost cutting including staff costs in a redundancy exercise carried out in July 2020.

NIAB has undertaken an exercise of reviewing income and planned expenditure including financial and cashflow projections to forecast how various outcomes might affect NIAB’s operations in 2021, taking into account the risk of decreased income from various sources. The results of the scenario planning have been used as a basis from which to formulate a model for strategic planning.

A key component of the revised 5 year plan is to create surpluses through growth, cost savings and improved margins on services and products. At the time of writing this report, the forecasts for 2020/21 is for a modest surplus based on the actual results to September 2020 and new income secured for the remainder of 2020/21. Similarly there is a surplus projected for 2021/22.

A component of the financial risk to NIAB is the pension scheme. The NIAB (1996) Pension Scheme (‘Scheme’) was established in 1996 following NIAB’s separation from government and establishment as a not-for-profit. The Board have taken steps to manage the Scheme deficit, closing the Scheme to new members in 2001 and to future accrual in 2007.

The National Institute of Agricultural Botany Trust (‘TRUST’ Charity No. 1144528) was established at the same time as NIAB, and holds the property assets of the previously government-owned institution.

The TRUST was established with similar charitable objects to NIAB and fulfils its charitable objects through the provision of support to NIAB.

The Trust is a participating employer in the Scheme with NIAB. This means that the entire deficit liability of the pension scheme is shared with the TRUST, and the assets of the TRUST support NIAB’s balance sheet in providing the employer covenant, and the recovery payments agreed under the recovery plan.

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NIAB | Annual Report and Accounts | March 2020

A key component of the review of going concern, given other uncertainties, is the support from the NIAB TRUST.

The TRUST has a balance sheet value of in excess of £40m. It has confirmed that it will continue to support NIAB and provide funding and lending sufficient to ensure NIAB remains a going concern. The funding includes ongoing funding for research and facilities and contributions to the pension scheme recovery payments. The lending is in the form of an ‘overdraft’ facility which can be used by NIAB to manage working capital fluctuations in year of up to £2m.

The trustees have considered the following in arriving at their conclusions on going concern: -

  1. The cash flow forecast and latest management accounts, which give confidence that NIAB can continue to pay its debts as they fall due.

  2. The TRUST’s continued support to NIAB through the provision of facilities and funding and borrowing support.

  3. The Trust being a participating employer alongside NIAB in the Pension Scheme.

After making enquiries and considering the uncertainties described above, the trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future being at least twelve months from the date of approval of these financial statements. For this reason, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Subsidiaries and related parties

NIAB has two wholly owned subsidiaries, NIAB Trading Ltd and TAG Consulting Ltd, both of which gift aid their profit to NIAB. NIAB EMR and The Arable Group Limited are both charitable companies limited by guarantee. In both cases NIAB, as the sole voting member, has the power to appoint the Trustee Board of NIAB EMR and The Arable Group Limited and they are therefore considered to be subsidiary undertakings by virtue of control. NIAB EMR also has a wholly owned subsidiary, East Malling Services Limited.

NIAB has an important relationship with the National Institute of Agricultural Botany Trust, which has an object to support NIAB in pursuit of its objects. This includes the provision of land and facilities.

Reserves Policy

The Trustees have reviewed the reserves of the group. The review encompassed the nature and reliability of the income and nature and level of commitment of expenditure streams. They have also considered the financial risks, the need to match variable income with fixed commitments, and the nature of the current reserves.

On a risk based analysis the Trustees have concluded that their aim is to achieve a general reserve equivalent to between two and four and a half month’s worth of unrestricted fund expenditure. At the current annual spend, the reserves target is therefore between £4m and £9m.

At 31 March 2020 group unrestricted reserves excluding fixed assets and pensions liability and the long term loan from the NIAB Trust, were negative £1,981k (2019: positive £443k). The Trustees are in the process of reviewing a 5 year plan, a key component of which will be to create surpluses through growth, cost savings and improved margins on services and products, thereby increasing the general reserves position to bring it back to positive and then moving towards the target range. At the time of writing this report, the forecast for 2020/21 was for a modest surplus.

In the meantime the Trustees continue to monitor closely the financial position of the group, including forecasts and cash flow projections, to ensure they can demonstrate the ongoing ability of the group to be able to pay its debts as they fall due.

Accounting Period

The financial year end is 28 March 2020, however the financial statements continue to be drawn up to 31 March 2020 as permitted by section 390(3) of the Companies Act 2006.

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NIAB | Annual Report and Accounts | March 2020

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 to manage the major risks to which the Charity is exposed. The Board reviews the risk register at each meeting.

Principal Risks and Uncertainties

Risk Area Risk Management
Covid-19 On site infection of staff or visitors
Loss of income
Access to property to carry out activities
Loss of key staff		 The Trustees adopted a policy covering hygiene and
social distancing
Monitoring
of
government
guidelines
and
implementation of local rules regarding hygiene and
social distancing
Use of government furlough scheme
Early and ongoing discussion with key funders
Regular and frequent Executive meetings and staff
communications
Risk assessments for utilisation of buildings and
carrying out of activities and for return to work by
employees
Change in delivery of activities e.g. in the field,
running online seminars and events
Buildings remaining open but with flexibility (opening
times, one-way system, provision of PPE, cleaning
facilities, risk assessments)
Support of remote working
Strategy /
Process		 Failure to deliver the business plan The CEO and Executive team remain focused on the
actions required to deliver the Business Strategy and
Annual Business Plan, whilst ensuring the short-term
focus on the Business Continuity plan.
Strategy /
Process		 Pressure on organisational structure during
management of capital programmes and move to
new facilities at Cambridge.		 Completion of the move to the new facilities at
Cambridge through the implementation of a
structured plan was implemented without distraction
of the Executive team from the business strategy.
Financial Pension Scheme deficit Discussions with the Pension Scheme trustees at
Board level.
NIAB TRUST as participating employer in the scheme,
improving the employers covenant.

8

NIAB | Annual Report and Accounts | March 2020

Financial Loss of work as a result of Brexit Seek to mitigate the income loss (circa £700K) for
statutory work as a result of Brexit, by re-deploying
expertise on new activities, and working with other
stakeholders to safeguard the UK system of Plant
Breeders Rights. It is impossible to quantify the full
impact until Brexit negotiations have concluded.
Seek opportunities for new statutory work for the UK
outside of Europe.

9

NIAB | Annual Report and Accounts | March 2020

STRUCTURE, GOVERNANCE and MANAGEMENT

Members and Board of Trustees

The Board of Trustees comprises the Chair and up to eleven additional trustee directors. The trustees are also the members of the organisation.

The following Trustees have served during the period:

J E Godfrey, OBE 1 Chairman
T L Barsby, OBE, BSc, PhD
S J Ellwood, BSc 1
K E Fidgeon, FCA 1
J R Harle
N Kerby, MBE, BSc, PhD 1
C A Lang, BA, PhD 2
R A Macdonald, CBE, BSc 2 Deputy Chairman
R C Lowson
Professor I J Puddephat, BSc PhD
Professor A G Smith BSc, MPhil, PhD 2

Recruitment, induction and training of Trustees

NIAB recruits trustees with the relevant skillset to support the charity’s activities. An induction programme has been put in place for newly appointed trustees and is kept under review and updated where appropriate. In addition, trustees are in regular contact with the Chief Executive and executive team, and receive updates on key areas of activity.

Organisation and governance

The trustees have used the UK Charity Governance Code to measure the performance of the board and its structure. The Trustees through the its Nominations Committee regularly review the skills matrix of the board and make annual recommendations to the full board prior to the AGM in respect of membership and performance of the board. Improving governance is an ongoing work and the Trustees will continue to develop the group’s governance structure.

NIAB is incorporated in England and Wales and is a company limited by guarantee (registered number 03395389) and a registered charity (number 1064230). It is governed by its Memorandum and Articles of Association which were last amended 20 May 2020.

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 (FRS102) (effective 1 January 2015).

Trustee Remuneration

NIAB provides an honorarium for the Chairman of the Board, the Deputy Chairman and the Chairman of the Finance Committee. In addition to this, a per diem fee is payable to qualifying trustees.

Decision making and key management

The Board of Directors (Trustees) administer the company, and meet quarterly. A Chief Executive Officer is appointed by the Trustees to manage the day to day operations of the company. To facilitate effective operations the Chief Executive and Executive Team have delegated authority, within the terms of delegation approved by the Board, for all operational matters.

The key management personnel are appointed by NIAB’s Chief Executive; they have authority and responsibility for planning, directing and controlling the activities of the NIAB Group. The nominations and remunerations committee consider the pay for key management personnel in the context of the overall company pay review, and the benchmarking of similar roles within BBSRC institutes and industry.

Employees

The average number of employees for the period was 351 (2019: 355). A policy of equal opportunity is pursued throughout, including the treatment of applications for employment from people who may be disabled, taking account only of the qualifications and abilities of each individual. Should any employee become disabled during the course of employment every effort would be made to retain that person's services and to provide necessary retraining.

NIAB and its trustees engage with its employees through regular meetings and consultations with the representatives from the Prospect and Unite unions.

Continuing education and training is regarded as vital for the continuance of the charity's work, and assistance to this end is provided to a significant number of employees.

Liability Insurance

The trustees have effected liability insurance as permitted by the company’s Articles. This insurance does not provide cover in the event that a trustee is proved to have acted fraudulently or dishonestly.

10

NIAB | Annual Report and Accounts | March 2020

STATEMENT OF TRUSTEES RESPONSIBILITES IN RESPECT OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS

The trustees (who are also directors of NIAB for the purposes of company law) are responsible for preparing the Trustees Report, incorporating the Strategic 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 the trustees have elected to prepare the financial statements in accordance with United Kingdom General Accepted Accounting Practise (United Kingdom accounting standards and applicable law), including FRS102, the financial reporting standard applicable in the UK and Republic of Ireland. Under company law the trustees must not approve the financial statements unless that they are satisfied that they give a true and fair view of the state of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees confirm that:

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

Independent Auditors

A resolution to reappoint Crowe UK LLP, Chartered Accountants, will be put to the members at a General Meeting, in accordance with section 485 of the Companies Act 2006.

The trustees approve the Trustees Report, incorporating the Strategic Report, and financial statements which are signed on behalf of the Board of Trustees of NIAB.

J E Godfrey, Chairman Date: 8 December 2020

11

NIAB

Independent Auditors' Report to the Members of NIAB

Opinion

We have audited the financial statements of NIAB (the "parent charitable company") and its subsidiaries (the "group") for the year ended 31 March 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity balance sheets, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Page 12

NIAB

Independent Auditors' Report to the Members of NIAB (continued)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Page 13

NIAB

Independent Auditors' Report to the Members of NIAB (continued)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement set out on page 11, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Naziar Hashemi (Senior statutory auditor) for and on behalf of Crowe U.K. LLP Statutory Auditor 55 Ludgate Hill

London EC4M 7JW

Date: 18 December 2020

Page 14

NIAB

Consolidated Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2020

Note
Income and
endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income and
endowments
Expenditure on:
Trading activities
Charitable activities:
7
Pension ‐ past service
cost
Total expenditure
Net income
Transfers between funds
22
Net movement in funds
before other recognised
gains/(losses)
Other recognised
gains/(losses):
Actuarial losses on
defined benefit pension
schemes
Net movement in funds
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward		 Unrestricted
funds
2020
£000
828
12,949
7,124
74
20,975
7,730
15,261
(4,803)
18,188
2,787
817
3,604
(355)
3,249
(15,075)
(11,824)		 Restricted
funds
2020
£000
‐
5,918
‐
‐
5,918
‐
5,161
‐
5,161
757
(817)
(60)
‐
(60)
368
308		 Endowment
funds
2020
£000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
750
750		 Total
funds
2020
£000
828
18,867
7,124
74
26,893
7,730
20,422
(4,803)
23,349
3,544
‐
3,544
(355)
3,189
(13,957)
(10,766)		 Total
funds
2019
£000
1,950
18,352
7,546
68
27,916
7,226
‐
20,648
27,874
42
‐
42
(1,265)
(1,223)
(12,734)
(13,957)

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

The notes on pages 19 to 58 form part of these financial statements.

Page 15

NIAB Registered number: 3395389

Consolidated Balance Sheet As at 31 March 2020

Note
Fixed assets
Intangible assets
13
Tangible assets
14
Investments
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one year
19
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
20
Net assets excluding pension liability
Defined benefit pension scheme liability
27
Total net (liabilities)
Charity funds
Endowment funds
22
Restricted funds
22
Unrestricted funds
22
Total funds		 2020
£000
308
7,254
705
8,267
(9,160)		 2020
£000
819
4,992
141
5,952
(893)
5,059
(1,838)
3,221
(13,987)
(10,766)
750
308
(11,824)
(10,766)		 2019
£000
304
7,565
2,607
10,476
(8,858)		 2019
£000
923
4,084
116
5,123
1,618
6,741
(1,925)
4,816
(18,773)
(13,957)
750
368
(15,075)
(13,957)

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

J E Godfrey

Dr T L Barsby OBE

Date: 8 December 2020

The notes on pages 19 to 58 form part of these financial statements.

Page 16

NIAB Registered number: 3395389

CHARITY BALANCE SHEET As at 31 March 2020

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one year
19
Net current liabilities / assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
20
Net assets excluding pension liability
Defined benefit pension scheme liability
27
Total net assets
Charity funds
Endowment funds
22
Restricted funds
22
Unrestricted funds
22
Total funds		 2020
£000
208
6,145
606
6,959
(7,698)		 2020
£000
3,912
141
4,053
(739)
3,314
(261)
3,053
(13,987)
(10,934)
750
308
(11,992)
(10,934)		 2019
£000
217
7,467
1,538
9,222
(7,968)		 2019
£000
3,083
116
3,199
1,254
4,453
(295)
4,158
(18,773)
(14,615)
750
368
(15,733)
(14,615)

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

J E Godfrey

Dr T L Barsby OBE

Date: 8 December 2020

The notes on pages 19 to 58 form part of these financial statements.

Page 17

NIAB

Consolidated Statement of Cash Flows For the Year Ended 31 March 2020

Note
Cash flows from operating activities
Net cash used in operating activities
24
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Purchase of investments
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Interest paid
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
25		 2020
£000
7
73
(2,142)
(25)
(2,094)
429
(174)
(70)
185
(1,902)
2,607
705		 2019
£000
2,829
28
(1,464)
(5)
(1,441)
392
(263)
(56)
73
1,461
1,146
2,607

The notes on pages 19 to 58 form part of these financial statements

Page 18

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

1. General information

NIAB is a company limited by guarantee incorporated in England and Wales and a registered charity. The registered office of the charity is Huntingdon Road, Cambridge, CB3 0LE.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) ‐ Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

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

2.2 Fund accounting

General unrestricted funds represent income which is expendable at the discretion of the Board in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for a particular purpose.

Endowment funds relate to gifts to NIAB, the terms of which stiplulate that the capital may not be spent, and the income is to be utilised towards a specific restriction imoposed by the donor.

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

Page 19

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

2. Accounting policies (continued)

2.3 Incoming resources

Income has been analysed in accordance with the service provided.

Income from charitable activities:

Incoming resources from charitable activities are accounted for in the year in which the service is provided.

Trading activities:

Commercial trading operations represent the income from the charitable company’s trading subsidiaries – TAG Consulting Limited, NIAB Trading Ltd and East Malling Services Limited – and is included in incoming resources when the group becomes entitled to receipt.

Investment income:

Interest is included when receivable by the group.

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

2.4 Accrued and deferred income

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions and is recognised as earned (as the related services are provided). This may mean accruing for invoices not yet raised, and deferring payments received in advance of work done

2.5 Expenditure

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the group to the expenditure. Expenditure is allocated as follows:

Charitable Activities:

Expenditure incurred directly in the fulfilment of the objects of the charity including allocated overheads.

Support costs:

Support costs which include central office functions such as general management, finance, information technology and human resources are allocated across categories of expenditure. The basis of the cost allocation has been explained in note 8 to the accounts.

Governance costs:

Expenditure incurred in running and administering the charity which is not directly attributable to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

Page 20

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

2. Accounting policies (continued)

2.6 Intangible assets and amortisation

IT platform

IT platforms are recognised at cost, which is then amortised evenly over a three year period once the platform has been released for use.

Purchased goodwill

Goodwill representing the excess of the purchase price compared with the fair value of net assets acquired is capitalised and amortised evenly over a period of between 5 and 10 years as in the opinion of the trustees this represents the period over which the goodwill is expected to give rise to economic benefit. Goodwill is reviewed for impairment at the end of the first financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Plant variety rights

Plant variety rights are recognised at their fair value at acquisition and are amortised evenly in the period over which the rights expire as, in the opinion of the trustees, this represents the period over which the rights are expected to give rise to economic benefit. Plant variety rights are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable.

2.7 Tangible fixed assets and depreciation

All tangible fixed assets are stated at historical cost.

Depreciation is provided on cost over the estimated lives of the assets which are considered to be: .

Leasehold improvements ‐ over the term of the lease
Apparatus and equipment ‐ 3 ‐10 years straight line
Agricultural and Motor vehicles ‐ 3 ‐10 years straight line
Transfer from TAG: ‐
Apparatus and equipment ‐ 33% reducing balance
Computer equipment ‐ 25% reducing balance
Vehicles ‐ 10% reducing balance

Assets in the course of construction are stated at cost and are not depreciated until brought into use.

2.8 Financial instruments

The Group has financial assets and financial liabilities which qualify as both basic and non‐basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Non‐basic financial instruments comprise foreign currency contracts measured at fair value. These are not traded in active markets, and have been fair valued using observable forward exchange rates corresponding to the maturity of the contract. Fair value movements are accounted for through the Statement of Financial Activities.

Page 21

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

2. Accounting policies (continued)

2.9 Stocks

The financial statements include stocks of chemicals, fertilisers and sprays held by the group, together with a valuation of growing crops for resale. These stocks are stated at the lower of cost and net realisable value. Cost is calculated as follows:

Net realisable value is based on estimated selling price less further costs expected to be incurred for completion and disposal. Provision is made for slow moving items.

2.10 Finance leases and hire purchase

Where assets are financed by leasing agreements that give rights approximating to ownership (“finance leases”), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term.

The corresponding leasing commitments are shown as obligations to the lessor. Lease payments are treated as consisting of capital and interest elements, and the interest is charged to the Statement of Financial Activities in proportion to the remaining balance outstanding.

All other leases are “operating leases” and the annual rentals are charged to Statement of Financial Activities on a straight line basis over the lease term.

2.11 Termination and redundancy payments

Termination and redundancy payments are recognised as a liability and an expense only when the event is demonstrably committed to by either:

2.12 Foreign currencies

Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities.

The Charity’s functional and presentational currency is GBP.

2.13 Research and development

All research and development costs are written off as incurred.

Page 22

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

2. Accounting policies (continued)

2.14 Investments

Investments in subsidiaries are stated at cost. To the extent that the carrying value exceeds the recoverable amount, an impairment loss is recognised. The performance of NIAB Trading, TAG Consulting and East Malling Services are reviewed on a regular basis to monitor the financial performance of the commercial activities.

NIAB holds investments in two commercial companies which it is working with to further its charitable objects.

2.15 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

2.16 Creditors

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

2.17 Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition or the balance sheet date and that are readily convertible to known amounts of cash with insignificant risk of change of value.

Page 23

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

2. Accounting policies (continued)

2.18 Pensions

NIAB Defined Benefit Pension Scheme

For the defined benefit retirement plan, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each balance sheet date.

Actuarial gains and losses arising are recognised immediately in the Statement of Financial Activities.

Past service costs are recognised as an expense on a straight‐line basis over the average period until the benefits become vested. To the extent that the benefits have already vested, the cost is recognised immediately in the Statement of Financial Activities.

The amount recognised in the balance sheet represents the present value of the defined benefit obligation, adjusted for unrecognised past service costs and reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the lower of the asset, and any unrecognised past service cost plus the present value of available refunds or reductions in future contributions to the plan.

The rate used to discount the benefit obligations is based on market yields for high quality corporate bonds with terms and currencies consistent with those of the benefit obligations.

Gains and losses on curtailments/settlements are recognised when the curtailment/settlement occurs.

Universities Superannuation Scheme

The Arable Group Limited participates in the Universities Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension (S2P). The liabilities are valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustee on the advice of the actuary. In the intervening years, the actuary reviews the progress of the scheme. Pension costs are assessed in accordance with the advice of the actuary, based on the latest actuarial valuation of the scheme.

The assets of the scheme are held in a separate trustee‐administered fund. The company is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis.

Under FRS102, the company has accounted for the present value of the contributions payable as identified in the most recent funding agreement.

NIAB, NIAB EMR, East Malling Services Limited and The Arable Group Limited also operate group money purchase schemes. For these, the pension costs charged in the financial statements represent the contributions payable by the companies during the year.

Page 24

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

2. Accounting policies (continued)

2.19 Going concern

The trustees have acknowledged the guidance on going concern and financial reporting published by the Financial Reporting Council in 2016.

The Group’s operating activities are diverse. Research and development in Crop Genetics, Computational Biology, Plant Breeding and Plant Characterisation are supported by long‐term contracts and competitively won research grants which, historically, have been largely unaffected by changes in the general economy. Crop Agronomy, Membership, Training and Seed Certification activities are generally contracted on an annual basis, and are supported by a diverse customer base. Income has been stable over a number of years.

The Group balance sheet shows a deficit position of £10,766k. Taking out the Restricted and Endowment funds leaves an Unrestricted deficit of £11,824k. Stripping out the pension scheme deficit £13,987k (discussed in more detail below), the long term debt to the NIAB TRUST of £1,500k and Fixed Assets (Tangible plus Intangible) plus trade investments in total within Unrestricted funds of £5,644 leaves a negative underlying unrestricted reserve of £1,981k as described in the Reserves policy in this report.

One of the key objectives as noted above for the year is a review of the 5 year plan incorporating the effects of the Covid‐19 pandemic, with a focus on financial stability. This is in process of being achieved through a mix of increased efforts on income generation alongside cost cutting including staff costs in a redundancy exercise carried out in July 2020.

NIAB has undertaken an exercise of reviewing income and planned expenditure including financial and cashflow projections to forecast how various outcomes might affect NIAB’s operations in 2021, taking into account the risk of decreased income from various sources. The results of the scenario planning have been used as a basis from which to formulate a model for strategic planning.

A key component of the revised 5 year plan is to create surpluses through growth, cost savings and improved margins on services and products. At the time of writing this report, the forecasts for 2020/21 is for a modest surplus based on the actual results to September 2020 and new income secured for the remainder of 2020/21. Similarly there is a surplus projected for 2021/22.

A component of the financial risk to NIAB is the pension scheme. The NIAB (1996) Pension Scheme (‘Scheme’) was established in 1996 following NIAB’s separation from government and establishment as a not‐for‐profit. The Board have taken steps to manage the Scheme deficit, closing the Scheme to new members in 2001 and to future accrual in 2007.

The National Institute of Agricultural Botany Trust (‘TRUST’ Charity No. 1144528) was established at the same time as NIAB, and holds the property assets of the previously government‐owned institution.

The TRUST was established with similar charitable objects to NIAB and fulfils its charitable objects through the provision of support to NIAB.

The Trust is a participating employer in the Scheme with NIAB. This means that the entire deficit liability of the pension scheme is shared with the TRUST, and the assets of the TRUST support NIAB’s balance sheet in providing the employer covenant, and the recovery payments agreed under the recovery plan.

A key component of the review of going concern, given other uncertainties, is the support from the NIAB TRUST.

Page 25

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

2. Accounting policies (continued)

2.19 Going concern (continued)

The TRUST has a balance sheet value of in excess of £40m. It has confirmed that it will continue to support NIAB and provide funding and lending sufficient to ensure NIAB remains a going concern. The funding includes ongoing funding for research and facilities and contributions to the pension scheme recovery payments. The lending is in the form of an ‘overdraft’ facility which can be used by NIAB to manage working capital fluctuations in year of up to £2m.

The trustees have considered the following in arriving at their conclusions on going concern: ‐

  1. The cash flow forecast and latest management accounts, which give confidence that NIAB can continue to pay its debts as they fall due.

  2. The TRUST’s continued support to NIAB through the provision of facilities and funding and borrowing support.

  3. The Trust being a participating employer alongside NIAB in the Pension Scheme.

After making enquiries and considering the uncertainties described above, the trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future being at least twelve months from the date of approval of these financial statements. For this reason, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2.20 Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Page 26

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

3. Income from donations and legacies

Donations from National Institute of Agricultural Botany Trust
Gift of permanent endowment
Donations from National Institute of Agricultural Botany Trust
Gift of permanent endowment		 Unrestricted
funds
2020
£000
828
‐
828
Unrestricted
funds
2019
£000
1,200
‐
1,200		 Endowment
funds
2020
£000
‐
‐
‐
Endowment
funds
2019
£000
‐
750
750		 Total
funds
2020
£000
828
‐
828
Total
funds
2019
£000
1,200
750
1,950

Page 27

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

4. Income from charitable activities

Agricultural services
Laboratory and research
Other activities
Total 2020 (including Government grants of £5.9m)
Agricultural services
Laboratory and research
Other activities
Total 2019 (including Government grants of £5.4m)		 Unrestricted
funds
2020
£000
7,979
4,901
69
12,949
Unrestricted
funds
2019
£000
7,791
4,564
36
12,391		 Restricted
funds
2020
£000
2,329
3,589
‐
5,918
Restricted
funds
2019
£000
2,353
3,608
‐
5,961		 Total
funds
2020
£000
10,308
8,490
69
18,867
Total
funds
2019
£000
10,144
8,172
36
18,352

Page 28

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

5. Income from subsidiary trading activities

Agricultural services
Agronomy consultancy
Agricultural services
Agronomy consultancy
Investment income
Rental income
Rental income		 Unrestricted
funds
2020
£000
5,874
1,250
7,124
Unrestricted
funds
2019
£000
6,165
1,381
7,546
Unrestricted
funds
2020
£000
74
Unrestricted
funds
2019
£000
68		 Total
funds
2020
£000
5,874
1,250
7,124
Total
funds
2019
£000
6,165
1,381
7,546
Total
funds
2020
£000
74
Total
funds
2019
£000
68

6. Investment income

Page 29

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

7. Analysis of expenditure on charitable activities

Summary by fund type

Agricultural services
Laboratory and research
Pension ‐ past service cost
Agricultural services
Laboratory and research		 Unrestricted
funds
2020
£000
8,370
6,912
(4,824)
10,458
Unrestricted
funds
2019
£000
10,024
4,603
14,627		 Restricted
funds
2020
£000
5,066
95
‐
5,161
Restricted
funds
2019
£000
3,614
2,407
6,021		 Total
funds
2020
£000
13,436
7,007
(4,824)
15,619
Total
funds
2019
£000
13,638
7,010
20,648

The trustees consider that all expenditure is classified as Research and Development expenditure.

Page 30

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

8. Analysis of expenditure by activities

Agricultural services
Laboratory and research
Pension - past service
cost
Agricultural services
Laboratory and research		 Activities
undertaken
directly
2020
£000
10,547
4,257
(4,824)
9,980
Activities
undertaken
directly
2019
£000
10,207
4,161
14,368		 Support costs
2020
£000
2,889
2,750
‐
5,639
Support costs
2019
£000
3,431
2,849
6,280		 Total
funds
2020
£000
13,436
7,007
(4,824)
15,619
Total
funds
2019
£000
13,638
7,010
20,648

Analysis of support costs

Management
Finance
Information Technology
Human resources
Governance		 Agricultural
services
2020
£000
470
1,129
682
393
215
2,889		 Laboratory
and research
2020
£000
865
918
493
267
207
2,750		 Total
funds
2020
£000
1,335
2,047
1,175
660
422
5,639

Page 31

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

8. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Management
Finance
Information Technology
Human resources
Governance		 Agricultural
services
2019
£000
863
1,191
624
348
405
3,431		 Laboratory
and research
2019
£000
991
899
416
252
291
2,849		 Total
funds
2019
£000
1,854
2,090
1,040
600
696
6,280

Support costs have been allocated to activity cost categories on a basis consistent with the use of resources.

9. Auditors' remuneration

2020 2019
£000 £000
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 23 23
Fees payable to the Charity's auditor in respect of:
The auditing of accounts of subsidiaries of the Charity 17 16
Aditional fees in respect of audit previous year 18 11
Taxation compliance services 8 10

Page 32

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes
Operating costs of defined benefit pension
schemes		 Group
2020
£000
12,777
1,135
929
(4,462)
10,379		 Group
2019
£000
12,403
1,081
912
791
15,187		 Charity
2020
£000
8,996
798
636
(4,477)
5,953		 Charity
2019
£000
8,614
752
605
778
10,749

During the year a total of £34,908 (2019: £76,167) was paid to an employee (2019: 3 employees) as ex gratia payments. In addition £13,475 in total (2019: £4,549) was paid to 2 employees (2019: 2 employees) by way of redundancy payments.

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

Technical and Scientific
Support staff
Agricultural staff and casuals		 Group
2020
No.
205
65
81
351		 Group
2019
No.
212
61
82
355

Page 33

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

10. Staff costs (continued)

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

Group Group
2020 2019
No. No.
In the band £60,001 ‐ £70,000 11 9
In the band £70,001 ‐ £80,000 4 3
In the band £80,001 ‐ £90,000 1 1
In the band £90,001 ‐ £100,000 2 ‐
In the band £100,001 ‐ £110,000 ‐ 2
In the band £110,001 ‐ £120,000 1 1
In the band £120,001 ‐ £130,000 2 1
In the band £130,001 ‐ £140,000 1 1
In the band £140,001 ‐ £150,000 ‐ 1

The key management personnel are:

Dr T L Barsby S M Knight S C Masson Professor M Caccamo M Leaman W Clark N Watson Dr J McKee R Harrison (appointed May 2019)

The total costs relating to key management personnel (including wages and salaries, employees’ national insurance, pension costs and fees) during the year was £865k (2019: £684k).

Page 34

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

11. Trustees' remuneration and expenses

The Chairman and Deputy Chairman of the Board of Trustees and the Chairman of the Board’s Finance Committee received honoraria, totalling £13,200 (2019: £13,200). Meeting fees totalling £5,800 were paid to five trustees (2019: £5,800 for five Trustees). Charity Commission approval has been obtained prior to these payments.

As provided for in the charity’s Articles of Association, the Chief Executive of the charity is also a member of the board (from November 2017). The payments to the Chief Executive (as an employee) for the year were as follows:

2020 2019
£000 £000
Dr T L Barsby OBE Remuneration 125 92
Pension contributions paid 11 70
Other benefits 11 10

During the year ended 31 March 2020, expenses totalling £ 6,484 were reimbursed or paid directly to 6 Trustees (2019 ‐ £7,431 to 7 Trustees) .

Other than the above there are no other related party transactions to be reported in respect of the Trustees.

12. Taxation

NIAB is a registered charity and is exempt from tax on income and capital gains falling within section 505 of the Income and Corporation Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives. No tax charges have arisen in the Charitable Company. Any charges arising in the subsidiary companies are disclosed in Note 16.

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.

Page 35

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

13. Intangible assets

Group

Cost
At 1 April 2019
At 31 March 2020
Amortisation
At 1 April 2019
Charge for the year
At 31 March 2020
Net book value
At 31 March 2020
At 31 March 2019		 Plant Variety
Rights
£000
1,101
1,101
216
84
300
801
885		 IT Platform
£000
93
93
93
‐
93
‐
‐		 Purchased
Goodwill
£000
418
418
380
20
400
18
38		 Total
£000
1,612
1,612
689
104
793
819
923

Page 36

NIAB

Notes to the Financial Statements
For the Year Ended 31 March 2020
13.
Intangible assets (continued)
Charity
Cost
At 1 April 2019
At 31 March 2020
Amortisation
At 1 April 2019
At 31 March 2020
Net book value
At 31 March 2020
At 31 March 2019		 IT Platform
£000
93
93
93
93
‐
‐

Included in intangible assets are Plant Variety Rights, Purchased Goodwill arising from the acquisition of the business of ADAS by TAG Consulting Limited, the acquisition of East Malling Research and the development of IT platforms.

Page 37

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

14. Tangible fixed assets

Group

Cost or valuation
At 1 April 2019
Additions
Disposals
At 31 March 2020
Depreciation
At 1 April 2019
Charge for the year
On disposals
At 31 March 2020
Net book value
At 31 March 2020
At 31 March 2019		 Short‐term
leasehold
property
£000
606
‐
‐
606
222
64
‐
286
320
384		 Plant,
machinery &
vehicles
£000
7,649
1,130
(254)
8,525
5,271
603
(237)
5,637
2,888
2,378		 Office &
Computer
equipment
£000
2,006
743
(1)
2,748
1,726
250
(1)
1,975
773
280		 Scientific
equipment
£000
2,876
218
‐
3,094
1,834
300
‐
2,134
960
1,042		 Assets under
construction
£000
‐
51
‐
51
‐
‐
‐
‐
51
‐		 Total
£000
13,137
2,142
(255)
15,024
9,053
1,217
(238)
10,032
4,992
4,084

Page 38

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

14. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 April 2019
Additions
Disposals
At 31 March 2020
Depreciation
At 1 April 2019
Charge for the year
On disposals
At 31 March 2020
Net book value
At 31 March 2020
At 31 March 2019		 Short‐term
leasehold
property
£000
606
‐
‐
606
222
64
‐
286
320
384		 Plant,
machinery &
vehicles
£000
7,027
884
(252)
7,659
5,133
538
(236)
5,435
2,224
1,894		 Office &
Computer
equipment
£000
1,775
738
(1)
2,512
1,621
199
(1)
1,819
693
154		 Scientific
equipment
£000
2,215
134
‐
2,349
1,564
161
‐
1,725
624
651		 Assets under
construction
£000
‐
51
‐
51
‐
‐
‐
‐
51
‐		 Total
£000
11,623
1,807
(253)
13,177
8,540
962
(237)
9,265
3,912
3,083

The net book value of the group’s and charity's assets includes £996,529 (2019: £749,442) in respect of assets held under finance leases and hire purchase contracts. Depreciation charged in the year on those assets totalled £207,945 (2019: £124,005).

Page 39

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

15.
Fixed asset investments
Group and Charity
Cost or valuation
At 1 April 2019
Additions
At 31 March 2020
Net book value
At 31 March 2020
At 31 March 2019		 Trade
investments
£000
116
25
141
141
116

During the course of the year the charity made investments totaling £25k (2019: £5k) in agritech companies.

Page 40

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

16. Principal subsidiaries

The following were subsidiary undertakings of the Charity:

Names Company Charity Principal activity Principal activity Class of
number registration shares
number
The Arable Group Limited 00192460 212059 Agriculture
TAG Consulting Ltd 05110993 Agriculture Ordinary
NIAB Trading Ltd 07390289 Agriculture Ordinary
NIAB EMR 09894859 1165055 Horticulture
East Malling Services Limited 02335037 Horticulture Ordinary
The financial results of the subsidiaries for the year were:
Names Income Expenditure Profit/(Loss)/ Net assets
£000 £000 Surplus/ £000
(Deficit) for
the year
£000
The Arable Group Limited 370 545 (175) 23
TAG Consulting Ltd 1,261 1,314 (53) (79)
NIAB Trading Ltd 4,296 4,338 (42) (126)
NIAB EMR 5,761 5,421 340 (151)
East Malling Services Limited 2,987 2,648 339 588

The financial results of the subsidiaries for the year were:

The Arable Group Limited and NIAB EMR are charitable companies limited by guarantee, considered to be subsidiary undertakings by virtue of control, as NIAB is the sole voting member with the power to appoint the board. TAG Consulting Limited and NIAB Trading Ltd are wholly owned by NIAB. East Malling Services Limited is wholly owned by NIAB EMR.

All of the subsidiaries carry out activities in furtherance of NIAB's charitable objectives

Page 41

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

17. Stocks

Raw materials and consumables
Finished goods and goods for resale		 Group
2020
£000
222
86
308		 Group
2019
£000
209
95
304		 Charity
2020
£000
122
86
208		 Charity
2019
£000
122
95
217

18. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
National Institute of Agricultural Botany Trust
Prepayments
Accrued income		 Group
2020
£000
3,020
‐
166
284
831
2,953
7,254		 Group
2019
£000
1,930
‐
156
1,194
846
3,439
7,565		 Charity
2020
£000
1,291
2,311
161
284
617
1,481
6,145		 Charity
2019
£000
370
3,130
107
1,194
624
2,042
7,467

Page 42

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

19. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Obligations under finance lease and hire purchase
contracts
Other creditors
Accruals and deferred income
Deferred income at 1 April 2019
Resources deferred during the year
Amounts released from previous periods		 Group
2020
£000
1,486
‐
501
481
928
5,764
9,160
Group
2020
£000
4,859
3,824
(4,859)
3,824		 Group
2019
£000
782
‐
541
194
1,001
6,340
8,858
Group
2019
£000
3,967
4,859
(3,967)
4,859		 Charity
2020
£000
1,145
817
422
481
666
4,167
7,698
Charity
2020
£000
4,205
2,916
(4,205)
2,916		 Charity
2019
£000
587
1,361
204
194
361
5,261
7,968
Charity
2019
£000
2,991
4,205
(2,991)
4,205

Deferred income for the group relates to annual membership subscriptions paid in advance, key renewal dates being 30 September and 31 December, together with pre‐financing payments for EU Contracts and payments received in advance for contracted services.

Page 43

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

20. Creditors: Amounts falling due after more than one year

Other loans
Net obligations under finance lease and hire
purchase contracts
Other creditors
Obligations under finance leases and hire
purchase contracts
Within one year
Within two to five years		 Group
2020
£000
1,500
238
100		 Group
2019
£000
1,500
271
154		 Charity
2020
£000
‐
238
23		 Charity
2019
£000
‐
271
24
1,838 1,925 261 295
Group
2020
£000
481
238
719		 Group
2019
£000
194
271
465		 Company
2020
£000
481
238
719		 Company
2019
£000
194
271
465

The obligations under finance leases and hire purchase contracts are secured by a charge over the assets financed.

The loan of £1,500,000 is from the related party, National Institute of Agricultural Botany Trust. Further details of this loan are disclosed in note 30.

Page 44

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

21. Financial instruments

Group Group Charity Charity
2020 2019 2020 2019
£000 £000 £000 £000
Financial assets
Financial assets measured at fair value through
income and expenditure 705 2,607 606 1,538

Financial assets measured at fair value through income and expenditure comprise foreign currency forward contracts. These are not traded in active markets and have been fair valued using observable forward exchange rates corresponding to the maturity of the contract.

Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by NIAB Trust and other debtors.

Page 45

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

22. Statement of funds

Statement of funds ‐ current year

Unrestricted
funds
General funds
Pension fund
Endowment
funds
John Oldacre
Foundation
Restricted funds
Hasse Fen Capital
Fund
Other revenue
grants
Restricted Grant
income
Total of funds		 Balance at 1
April 2019
£000
3,698
(18,773)
(15,075)
750
362
6
‐		 Income
£000
20,976
‐
20,976
‐
‐
‐
5,918		 Expenditure
£000
(23,328)
5,141
(18,187)
‐
(60)
‐
(5,101)
(5,161)
(23,348)		 Transfers
in/out
£000
817
‐
817
‐
‐
‐
(817)
(817)
‐		 Gains/
(Losses)
£000
‐
(355)
(355)
‐
‐
‐
‐
‐
(355)		 Balance at 31
March 2020
£000
2,163
(13,987)
(11,824)
750
302
6
‐
308
(10,766)
368 5,918
(13,957) 26,894

Page 46

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

22. Statement of funds (continued)

Statement of funds ‐ prior year

Unrestricted funds
General funds
Pension fund
Endowment funds
John Oldacre Foundation
Restricted funds
Hasse Fen Capital Fund
Other revenue grants
Restricted Grant income
Total of funds		 Balance at
1 April 2018
£000
3,478
(16,640)
(13,162)
‐
422
6
‐
428
(12,734)		 Income
£000
21,205
‐
21,205
750
‐
‐
5,961
5,961		 Expenditure
£000
(20,985)
(868)
(21,853)
‐
(60)
‐
(5,961)
(6,021)		 Gains/
(Losses)
£000
‐
(1,265)
(1,265)
‐
‐
‐
‐
‐
(1,265)		 Balance at
31 March
2019
£000
3,698
(18,773)
(15,075)
750
362
6
‐
368
(13,957)
27,916 (27,874)

The John Oldacre Foundation fund is an amount held as capital where only income can be spent. The expenditure is restricted to funding post‐graduate studentships of young innovators.

The Hasse Fen capital fund was a grant received to build at NIAB's Hasse Fen site. The expenditure represents annual depreciation of the asset.

Page 47

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

23. Analysis of net assets between funds

Analysis of net assets between funds ‐ current period

Tangible fixed assets
Intangible fixed assets
Trade investments
Current assets
Creditors due within one year
Creditors due in more than one year
Defined benefit pension scheme liability
Total		 Unrestricted
funds
2020
£000
4,684
819
141
7,517
(9,160)
(1,838)
(13,987)
(11,824)		 Restricted
funds
2020
£000
308
‐
‐
‐
‐
‐
‐
308		 Endowment
funds
2020
£000
‐
‐
‐
750
‐
‐
‐
750		 Total
funds
2020
£000
4,992
819
141
8,267
(9,160)
(1,838)
(13,987)
(10,766)

Analysis of net assets between funds ‐ prior period

Tangible fixed assets
Intangible fixed assets
Trade investments
Current assets
Creditors due within one year
Creditors due in more than one year
Defined benefit pension scheme liability
Total		 Unrestricted
funds
2019
£000
3,716
923
116
9,726
(8,858)
(1,925)
(18,773)		 Restricted
funds
2019
£000
368
‐
‐
‐
‐
‐
‐		 Endowment
funds
2019
£000
‐
‐
‐
750
‐
‐
‐
750		 Total
funds
2019
£000
4,084
923
116
10,476
(8,858)
(1,925)
(18,773)
(13,957)
(15,075) 368

Page 48

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

24. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Profit on the sale of fixed assets
Increase in stocks
Decrease in debtors
Increase/(decrease) in creditors
Interest payable
Pension contributions
Pension ‐ past service cost
Net cash provided by operating activities
25.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2020
£000
3,545
1,217
104
(56)
(4)
311
(39)
70
(317)
(4,824)
7
Group
2020
£000
705
705		 Group
2019
£000
42
962
119
(17)
(24)
641
182
56
868
‐
2,829
Group
2019
£000
2,607
2,607

Page 49

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

26. Analysis of changes in net debt

Cash at bank and in hand
Debt due after 1 year
Finance leases		 At 1 April
2019
£000
2,607
(1,500)
(465)
642		 Cash flows
£000
(1,902)
‐
175
(1,727)		 New finance
leases
£000
‐
‐
(429)
(429)		 At 31 March
2020
£000
705
(1,500)
(719)
(1,514)

Page 50

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

27. Pension commitments: Defined Benefit schemes

(A) NIAB Defined Benefit Pension Scheme

NIAB operates a defined benefit pension scheme which was established on 1 April 1996. The assets of this scheme are held in a separate fund controlled by trustees. The scheme was closed to future benefit accrual on 31 July 2007.

The most recent actuarial valuation of the Scheme was carried out as at 31 March 2015. The valuation has been updated to 31 March 2018 by a qualified independent actuary.

NIAB expects to contribute £700,000 to its defined benefit pension scheme in 2020/21 (2019/20: £700,000).

The amounts recognised in the balance sheet are as follows:

Present value of funded obligations
Fair value of plan assets
Deficit		 2020
£000
(43,939)
29,952
(13,987)		 2019
£000
(48,637)
29,864
(18,773)

Included in the deficit is £Nil (2019‐ £50k) which is a provision for Guaranteed Minimum Pension equalisation.

As part of the recent funding negotiations the Pension Fund Trustees and the charity agreed that, from 1 April 2020 onwards, pensions in payment will now increase in line with CPI rather than RPI. Increases will continue to be capped at 5% pa for pensions accrued pre 1 April 2006 and 2.5% pa for pensions accrued thereafter. That change has resulted in a reduction in the present value of the defined benefit obligation. The amounts recognised in the net income and expenditure are as follows:

Administration costs incurred during the period
Net interest cost
Past service cost
Total pension expense		 2020
£000
376
400
(4,824)
(4,048)		 2019
£000
727
438
50
1,215

Page 51

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

27. Pension commitments: Defined Benefit schemes (continued)

The amounts in the statement of other movements in funds are:

Actuarial (loss)/gain on plan assets
Actuarial (loss) on defined benefit obligation
of which due to experience
of which due to demographic assumptions
of which due to financial assumptions
Total (loss) in other movements in funds		 2020
£000
(116)
(239)
422
(63)
(598)
(355)		 2019
£000
852
(2,117)
408
(965)
(1,560)
(1,265)

Changes in the present value of the defined benefit obligations are:

Liabilities at the start of the period
Interest cost
Actuarial gain
Benefits paid
Past service cost
Liabilities at the end of the period
Changes in the fair value of plan assets are:
Fair value of plan assets at start of the period
Interest income
Actuarial (loss)/gain
Contributions by the employer
Benefits paid
Non‐investment expenses
Fair value of plan assets at end of the period
Interest income
Actuarial (loss)/gain on plan assets
Return on plan assets		 2020
£000
48,637
1,140
239
(1,253)
(4,824)
43,939
2020
£000
29,864
740
(116)
1,093
(1,253)
(376)
29,952
2020
£000
740
(116)
624		 2019
£000
46,402
1,192
2,117
(1,124)
50
48,637
2019
£000
29,762
754
852
347
(1,124)
(727)
29,864
2019
£000
754
852
1,606

Page 52

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

27. Pension commitments: Defined Benefit schemes (continued)

Major categories of plan assets as a percentage of total assets

Equities
Diversified Growth Fund
Bonds
Cash
Total		 2020
£000
4,854
9,209
8,949
6,940
29,952		 2020
%
16.2
30.7
29.9
23.2
100.0		 2019
£000
5,849
10,518
9,445
4,052
29,864		 2019
%
19.6
35.2
31.6
13.6
100.0

Principal assumptions at the balance sheet date (expressed as weighted averages)

2020 2019
Discount rate 2.2% 2.5%
Rate of increase in salaries 2.0% 2.7%
Rate of increase in pensions 2.1% 3.1%
Rate of inflation RPI 2.8% 3.3%
Rate of inflation CPI 2.0% 2.3%
Life expectancy for mortality tables used to determine benefit obligations at
end of period:
member age 65 (current life expectancy) ‐ male 21.8 21.7
member age 65 (current life expectancy) ‐ female 24.1 23.7
member age 45 (life expectancy at age 65) ‐ male 22.8 22.8
member age 45 (life expectancy at age 65) ‐ female 25.2 24.9

Experience of gains and losses

Liabilities at the end of the year
Assets at the end of the year
Deficit at the end of the year
Asset (loss)/gain
% of scheme assets
Liability gain/(loss)
% of scheme assets		 2020
£000
(43,939)
29,952
(13,987)
(116)
‐.04%
239
0.5%		 2019
£000
(48,637)
29,864
(18,773)
852
2.9%
(2,117)
‐4.4%

Page 53

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

27. Pension commitments: Defined Benefit schemes (continued)

(B) Universities Superannuation Scheme

Liability less than 1 year
Liability more than 1 year
Total		 2020
£'000
2
36
38		 2019
£'000
1
46
47

The USS pension scheme is only avilable to certain of the employees of The Arable Group Limited. Since that charity cannot identify its share of the assets and liabilities of the USS scheme, the following disclosures have been provided by the respective pension schemes to reflect those relevant for the schemes as a whole.

Universities Superannuation Scheme (USS )

Following changes to the USS, this scheme now comprises two parts, USS Retirement Income Builder which is a defined benefit arrangement and USS Investment Builder which is a defined contribution arrangement. The latest formal actuarial valuation of the USS defined benefit liabilities has been carried out as at 31 March 2018 to meet the requirements of the Pensions Act 2004 and was published in September 2019. This actuarial valuation shows a shortfall of £3.6bn in the USS with the scheme assets being sufficient to cover 95% of its ‘technical provisions’ liabilities.

Based on this valuation the actuary has determined that USS funding rates will increase from the current total of 26% of salaries (employer 18%, employee 8%) to 34.7% of salaries (employer 23.7%, employee 11.0%) in stages up to 1 October 2021. These contribution rates include:

The past service deficit contributions are expected to correct the deficit by 30 June 2028 if experience is borne out in line with the assumptions made for the recovery plan. To reflect the liability for these contributions the Institute has used a financial modeller to calculate the provision it needs to recognise in the financial statements. The calculated amount is recognised in the balance sheet and any changes in the value of the deficit liability each year are shown on the Statement of Financial Activities. The assumptions used as part of this modelled for the year ended 31 March 2019 are shown below.

Further details on, and a copy of, the 2018 Actuarial Valuation of the USS can be found on the USS website.

Page 54

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

27. Pension commitments: Defined Benefit schemes (continued)

Further information on the 2018 actuarial valuation of the USS Scheme is included below.

Of The Arable Group Limited's 5 employees at 31 March 2020 (2019: 5), 2 were members of USS (2019: 3).

The Arable Group Limited’s calculated share of the USS defined benefit pension liability amounts to £38k (2019: £47k) and the total cost charged to the Statement of Financial Activities in respect of USS amounts to £16k (2019: £15k).

The liability has been re‐calculated using the USS model provided with reference to the remaining deficit recovery period of 10 years from 2018 to 2028. Since the group cannot identify its share of the assets and liabilities of the USS scheme, the following disclosures have been provided by the respective pension schemes to reflect those relevant for the schemes as a whole.

The following assumptions were used to calculate the group’s share of the USS liability:

2020 2019
Discount rate 2.3% 2.5%
Projected salary inflation 2.7% 2.7%

Salary inflation assumptions take into account the level of annual pay increases set in the April before the relevant year‐end, prevailing CPI rates, and the Bank of England long‐term inflation target of 2%. The calculation reflects an assumption that there would be some reduction in member numbers in the forward years. The assumptions underpinning the calculation reflect a prudent assessment of the available information and options but represents a key area of estimation uncertainty in the financial statements.

Analysis of the charge to the income and expenditure statement is set out below:

Employer contributions
Contributions allocated to deficit provision
Change in contributions from past expectations
Contribution costs total
Interest payable
Pension costs total		 2020
£'000
22
1
(9)
14
2
16		 2019
£'000
21
3
(11)
13
2
15

Defined benefit liability numbers for the scheme have been produced using the following assumptions:

2020 2019
Discount rate 2.3% 2.5%
Pensionable salary growth n/a n/a
Pension increases (CPI) 2.7% 2.7%

Page 55

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

27. Pension commitments: Defined Benefit schemes (continued)

The main demographic assumption used relates to the mortality assumptions. These assumptions have been updated for the 31 March 2018 position, based on updated analysis of the Scheme’s experience carried out as part of the 2017 actuarial valuation. The mortality assumptions are based on the following mortality tables:

2018 Pre‐retirement Post‐retirement
Male members mortality 71% of AMC00 97.6% of SAPS
(duration 0) S1NMA "light"
Female members mortality 112% of AMFG00 102.7% of RFV00
(duration 0)
2017
Male members mortality 98% of S1NA
("light" YoB tables
‐ No age rating
Female members mortality 99% of S1NA
("light" YoB tables
‐ rated down 1
year No age rating

Future improvements to mortality are based on the Continuous Mortality Investigation’s (CMI) 2017 projections with smoothing parameter of 8.5 and a long‐term improvement rate of 1.8% for males and 1.6% for females.

The current life expectancies on retirement at age 65 are:

2018 2017
Males currently aged 65 years 24.4 24.4
Females currently aged 65 years 26.3 26.6
Males currently aged 45 years 25.9 26.5
Females currently aged 45 years 27.7 29.0

Summary of the Scheme position as at 31 March is set out below:

2020 2019 2018
Scheme assets £66.5bn £67.4bn £63.7bn
Total scheme liabilities £79.4bn £72.8bn £67.3bn
FRS102 Total scheme deficit £12.9bn £5.4bn £3.6bn
FRS102 Total funding level 84% 93% 95%

Page 56

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

28. Operating lease commitments

At 31 March 2020 the Group and the Charity had commitments to make future minimum lease payments under non‐cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2020
£000
818
710
1,528		 Group
2019
£000
1,231
1,042
2,273		 Charity
2020
£000
393
429
822		 Charity
2019
£000
787
441
1,228

The following lease payments have been recognised as an expense in the Statement of financial activities:

Land and Buildings
Motor vehicles		 Group
2020
£000
760
220
980		 Group
2019
£000
996
223
1,219		 Charity
2020
£000
272
173
445		 Charity
2019
£000
507
176
683

29. Members' liability

The charitable company is incorporated as a company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 March 2020 there were eleven members, comprising the Trustees.

Page 57

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2020

30. Related party transactions

In the ordinary course of business the company entered into transactions with National Institute of Agricultural Botany Trust. The company has a close relationship with National Institute of Agricultural Botany Trust, which has an object to support NIAB.

During the course of the year NIAB is charged a facilities charge for the occupation of the land and buildings owned by the Trust, and the Trust receives a charge from NIAB relating to the Research Funding Agreement between the two parties. These transactions will be represented by both cash and non‐cash, due to accruals made for activities at the end of the financial year.

These transactions are summarised below:

2020 2019
Closing debtor 284 1,194
Annual support 1,125 1,125
Additional support towards legal and pension costs 700 1,200
Contribution towards rent and other 128 359
Expenditure (500) (500)

In 2017 NIAB EMR, a subsidiary company, obtained a loan of £1,500,000 from National Institute of Agricultural Botany Trust. This loan is secured by a first fixed and floating charge on the assets of NIAB EMR and, while there is is no fixed repayment timetable, the loan is repayable in full by 8 February 2026. Interest is charged at 2% above the Bank of England base rate, which is considered to be a market value.

The charitable company has taken advantage of the exemptions contained within FRS102, section 33, not to disclose intra‐group transactions on the basis that the subsidiaries are wholly owned and the accounts are publicly available.

31. Parent charity result

The parent charity result for the year before other recognised gains and losses and the credit to the pension fund for past service cost was a loss of £788k (2019: loss £266k).

Page 58