cla55ification- Internal THE NFU MUTUAL CHIUUTABLE TRUST TRUSTEES, ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEILR ENDED 31 DECEMBER 202 Company Registered Number: 03618736 Registered Charity Number: 1073064
Cla55ification= Internal PAGE Trustees, Report Statement of Trustees, Responsibilities Independent Auditor's Report Statement of Financial activities (including Income & Expenditure account) 14 Balance Sheet 15 Cashllow Statement 16 Notes to the Financial Statements 17
cla55ification- Internal THE NFU m[AL CHARrrABLE TRUST RT R THE YEAR ENDED I DECEMBER 20 The Trustees, who are also the directors of the Company. submit their annual report and the audited financial statements ofThe NFU Mutual Charitable Tnt for the year ended 31 December 2023. The Financial Statements have been prepared in accordance and compliance with current statutory requirements, the requirements of the Charity's governing document, The Companies Act 2006. The Statement of Recommended Practice applicable to charities (the Charities SORP) in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and The Charities Act 2011. The full name of the Trust is The NFU Mutual Charitable Trust and it is incorporated in the United Kingdom and registered in England and Wales. Its governing document is its Articles of Association. The Trust is a company limited by guarantee and, as a registered charity, is exempt from using the word limited" in its name. The Tnt'S charity registration number is 1073064 and its company registration number is 03618736. The registered office and operation address is Tiddington Road, Stratfordwupon-Avon. Warwickshire, CV37 7BJ. The Secretary to the Trustees is Mrs S.E. Johns. The names and addresses of the Trust's adrAsers are: Bankers Barclays Bank plc, Market Cross, StratfoTd-upon-Avon, CV37 6AP licitor Addleshaw Goddard LLP, 3 Sovereign Square. Sovereign Street, Leeds, ISI 4ER Inde endent Auditor Deloitte LLP Four Brinclley Place, BI 2HZ EM The Trustees of the Trust, who are also directors of the company were in office during the year and up to the date of si1ng the financial Statements, these were: J.C. McLaren (Chairman) Dr H. C. Kennedy M. D. Raymond N.J. Turner M.C. Kennedy A. Jones D. Brown resign1 26th June M. B. Batters resigned 26th June W. Irvine appointed 26th June T. W. Bradshaw appointed 26th June The above Trnstees were appointed bytheTrust for three year tern which are individually reviewed at the end of each period for a new term of three years. When appointing new Trustees, the Trustees look for individuals within the agricultural andinsurance industries and related charities to ensure that the Trustees as a whole provide a mix of experience and knowledge including business skills. agricultural and insurance industry experience. It is believed that the mix of skills and experience is appropriate for the needs of the Foundation.
cla55ification- Internal THE NFU m[AL CHARABLE TRUST TEE ' REPORT ntinue R THE YEAR ENDED I DECEMBER 202 STRUCTURE AND WJTAGEMENT Continued Four Trustees are appointed by The National Farmers Union Mutual Insurance Society Limited ("NFU Mutual"). Two Trustees are appointed by The National Farmers Union of England and Wales, one is appointed by NFU Scotland and one is appointed by Ulster Farmers, Union. The day to day management of the Trust is delegated to NFU MutuaL New Trustees are provided with guidance on the role and duties of a Trustee, details of the Charitable Trust's airns and objectives and guidance to Lssist with the grant making process. Trustees are provided with regular updates and guidance on their role as a TThtee of the Charitable Trust. The Articles contain no specific restrictions on the way in which the Trust can operate. The investment powers derived from the Articles include power to: invest in any manner after taking appropriate advice and having regard to the suitability of investments and the need for diversification; to delegate the management of investments to an organisation authorised under the Financial serCes Act; and to arrange for title to investments to be held by a suitable custodian. NFU Mutual has put in place deeds of indemnity for the benefit of the Directors and Company Secretary of NFU Mutual and of its associated companies, including The NFU Mutual Charitable Trnst. The deeds of indernnity are qualifying third paty indemnity provisions in accordance with the Companies Act 2006. These deeds of indemnity were in place throughout the year and coniinue to be in place at the date of ihis report. The Trustees are responsible for management of risk within the Trust. The Trustees have made an assessment of the principal risks to which the Trust is exposed, including operational and financial risks and have put in place a risk management tramework, which documents controls that manage and reduce identified risks. This framework is regularly reviewed by the Tntstees. The Trustees are satisfied that the Company's reserves are sufficient to allow it to absorb any short-term falls in revenue caused by a reduction in investment value as seen in recent years. Further details ofprincipal risks can be found on page 6 and 7 of the Trustees report. GOING CONCEPN The Trustees have reviewed the Trust's activilies, financial position, principal risks and financial commentary as set out in the Trustees Report on pages 2 to 7 and its liquith'ty and operational resilience. As a result of this review the Trustees consider that the Trust has adequate resources and cash flow based upon its available fimds, including receiving additional fLmding in January 2024 of £ 1,000,000 to continue in operational existence for at least 12 months from the date that the financial statements are approved. For this reason they continue lo adopt the going concern basis in pieparing the financial statements.
cla55ification- Internal E NFU M[UAL CHARABLE TRU TEE ' REPORT ntinue R THE YEAR ENDED I DECEMBER 20 OB cEs The objectives. as set out in the Articles of Association, are the promotion and support of charitable purposes in the areas of agriculture, rural development and insurance in the United Kingdom - including education, the relief of poverty. social welfare and research - and any other charitable purposes. The Trustees have decided that to provide the best value for the support it gives to organisations, the Trust will focus on initiatives which fall within the objectives and will have a significant impact on the rural community. As a result, the Trustees focus their support on initiatives with a wide reaching impact rather than local initiatives. The Trust will aim wherever possible to encourage organisations to work together in a cohesive manner to ensure that the rural community as a whole is supported. The Trust is overseen by a Board of eight Trustees, who meet at least tiNice a year. Each request for funding is considered on its merits and a majority decision is reached. Every donation made must meet the objectives of the Trust. The Trust is supported by admitrative staff employed by a subsidiary of NFU Mutual who carry oul work for the Trust alongside their regular duties. No charge is made by NFU Mutual for these services (see accounting policy Ic), and no Trustee receives any remuneration or expenses from the Trust. PUBLIC BENEFrr The Trust refers to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing its objeciives and in planning its future activities. tn particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set within the rural community. Further details of how some of the Trusi's donations are being used for the public benefit and how they fit in with the Trust's objectives can be found below in the Operational Review. The Trustees have taken into account the Charity Commission gwdance on Pubknc Benefit. FtNANCIAL REVIEW During the year the Trust made grants totalling £1,000,500 (2022: £1,021,849) to a total of 26 (22. 25) oiganisations. Many of the recipients were directly connected with agriculture, but a number of other organisations were included. These also included the bursaries awarded from the Centenary fund. In 2023 the Trust received fL]nding of £1,000,000 (2022: £1,000.000) trom NFU Mutual. At the year end, the cash balance of £32.320 (2022: £445.302) was held in deposit accounts. Funds of £203.156 (2CY22: £204.846) have been invested on a short-term basis to maximise the future funds available for fulfilling the charity's objectives. Suth"cient funds remain available on deposit or readily realisable trom our unquoted unit trust investment to deal with current donations and commitments. The Trust's investment policy. adopted in 2006. was reviewed by the Trustees during the year and considered to remain fit for puOSe. To ensure that the operational needs of the Trust can be met when required. the Current Account and Deposit account are reviewed on a regular basis. sU]us fLmds are generally held in either the ChitIeS Official Investment Fund (COIF) Deposit Fund or the COIF Investment Fund.
cla55ification- Internal THE NFU m[AL CHARrrABLE TRUST TEE ' REPORT ntinue R THE YEAR ENDED I DECEMBER 20 Continued Under the policy the aim is that between So % and 80 % of the Trust's total reserves should be held in the COIF tnvestment Fund to gain maximum benefit trom the Investment Fund's aims ofproviding long term capital and income growth. Holding the majority of the reserves in this Fund allows the Trust efficient access to a wide range of investments at a low admItratIve cost. The Fund, portfolio is invested mainly in equities but also includes fLxed interest securities, property and other assets. These funds are revalued on a yearly basis to reflect market value. The gain or loss on revaluation is allocated between restricted and unrestricted reserves, the total revaluation reserve currently stands at £146,290 (2022: £139,012). Jn 2023 the fund had an unrealised gain of 11.4% (21Y22 loss: 8.9% ). The Trustees consider that the investment policy remains appropriate with regard to the prevailing stock market conditions but this will be kept under review. The Trustees believe that the Trust should generally maintain minimum unrestricted reserves of around £IOO,000. It is felt that this is an appropriate level of reserves to fund any unanticipated events and to give the Trustees the flexibility to support initiatives at short notice. The level of reserves set is less than the current annual income but would help the Charitable Trust to maintain a reasonable level of coramitments if its income were to reduce suddenly. Reserves relating to the unrestricted fund at the year end amounted to £109,168 (2022: £101,881) and the reserves relating to the restricted fund at the year end amounted to £1(,060 (2022: £119,589). The reserves policy allow8 the Trustees to use its reserves to fund unanticipated events which have a significant impact on the agricultural industry or farming community. Compliance with the reserve policy is monitored twice a year by the Trustees. The policy itself is renewed annually. The Trustees consider the Trust's financial position in relation to its future plans and commitments to be satisfactory. The Trust has no connected charities or subsidiary companies. OPERATIONAL REVIEW During the year the Trusiees have continued io make donations in accordance with the Trust's objectives to promote and support in particular the eaS of education and relief of poverty in agriculture, and rural development. The Trustees assess the Trust's perforniance by considering the range of organisations supported and the potential impact of those organisations and any specific initiatives supported. The Trustees are satisfied that the donations made in the year support the Trust's objectives and strategy to target organisations and initiatives with a silfIcant impact on the rural community. A list of the organisations to whom donations were made by the Trustees can be found in note 5 to the financial statements on pages 19 and 20. The donations cover a variety of organisations and types of requests for fLmding. Further details of some of the charities supported by the Trust during the year are given below. The Trust provided a donation of £19,000 to Farmstrong Scotland which is an initiative to help farmers, crofters and their families to cope with the ups and downs of farniing and crofting. It is a peer to peer led programme aiming to provide tools and skllls to take control and care of their own wellbeing and build Mental resilience.
cla55ification- Internal E NFU m[AL CHARABLE TRUST TEE ' REPORT ntinue R THE YEAR ENDED I DECEMBER 202 OPERATIONAL REVIEW Continued The Trustees remain conunitted to supporting education and the relief of poverty within agriculture and the rural community and therefore a donation of £50,000 was provided to NFU Education who aim to connect both students and teachers with the farniing industry through curriculum-based projects and activities. They work with a number of schools across England and Wales to convey the importance around food, farming and nutrition. In addition, the Trustees continue to support the national Young Fanners, Clubs with donations during the year to the National Federation of Young Fanners Clubs, YFC Ulster and Wales YFC. These donations contributed towards education. training and mentoring programmes within Young Farniers Clubs across the country. The Trustees will continue to encourage charities to work together in a cohesive manner to ensure that the rural community as a whole is supported. The Trnstees will continue to focus their support on initiatives which will have a significant impact on the rural community, and therefore will predominantly support organisations with a national or very large regional remit. Donations will continue to be made which, in the opinion of the Trustees, meet the objectives of the Trust. Al all times the Trustees will bear in rnind the level of reserves available to the Trust and the likely future demand for donations. In 2023, the Charitable Trust continued to support The NFU Mutual Charitable Trust Centenary Award. The Centenary Award gives annual bursaries of up to 75°/0 of the Course fees for selected postgraduate students in agriculture. Tluee bursaries were awarded in 2023 (2022: three). The award focuses on students studying one of following themes: The application of science and innovative technologies to enhance productivity, efficiency, and profitability for UK farming businesses, Building resilience and safeguarding the physical and menta] wellbeing of those living and working in the UK agricultural industry, Tackling the risks of climate change, whilst maintaining food security, to improve the sustainability of UK agriculture, Identifying opportunities for supporting nature and biodiversity in the development of farming and land management practices in the UK. The Trustees intend to coniinue to make donations to other charitable organisations and initiatives in line with the Trust's objectives and strategy with particular focus on education and relief of poverty in agriculture and rural areas. It will also continue to award postgraduate bursaries through the Centenary Award for agriculture students.
cla55ification- Internal E fqFU m[AL CHARABLE TRUST TEE ' REPORT ntinue R THE YEAR ENDED I DECEMBER 202 FANc The Trust is exposed to financial risk through its financial assets and financial liabilities. In particular, the key risks relate to cashllow risk, market risk and interest rate risk. The risk is that current assets are insufficient to pay grants as they are approved. This position is managed by ensuring that sufficient funds are available from short-tenn notice deposit accounts to pay the antS as they are appioved. Market Risk The Trust invests in an unquoted unit trust. There is a risk that the value of this investment can go down. The risk is managed by ensuring that surplus funds are spread beeen such investments and deposit accounts. The Trust*s are satisfied that the Company'5 reserves are sufficient to allow it to absorb any short4enn falls in revenue caused by a reduction in investment value as seen in recent years. Interest Rate Risk The Trust holds funds in a COIF deposit account. There is a risk that the rate of interest earned on the level of the Trust's deposits will reduce. The risk is managed by ensuring that surplus fLmds are spread between this and the Barclays Bank deposit accounts. RELATED PARTIE The Trust received a £l.000,000 donation from NFU Mutual which it has used for charitable purpose8 (21rd2: £1,000,000). This amount has been paid in full to the Charitable Trust by NFU Mutual. Four Trustees are appointed by NFU Mutual Insurance Society Limited. Mr Raymond is a director of the Royal Countryside Fund. grants totalling £60,000 (2022: £70,000) were approved to this organisation during the year, of which £nil were outstandmg at the end of the year (21Y22: £nll). EPENDE A The auditors Deloitte LLP, have indicated their willingness to continue in office. A resolution that they be reappointed will be proposed at the Annual General Meeting. In preparing this report, the directors have taken advantage of the srnall companies exemptions provided by Part IS of the Cornpanies Act 2006 to not prepare a Strategic Report. By order of the Board N.J. Turner 26 June 2024
cla55ification- Internal THE NFU m[AL CHARABLE TRUST sTATEMEr OF TRUSTEES, RESPONSIBIL FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees (who are also directors of the NFU Mutual Charitable Trust for the purposes of company law) are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements. the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the ChitIeS SORP; make judgments and estimates that are reasonable and prudent: state whether applicable UK Accounting Standards have been followed . and prepare the fmancial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsthle for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trnstees are aware: there is no relevant audit information of which the charitable company's auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit inforniation and to establish that the auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corpoiate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. By order of the Board N.J. Turner 26 June 2024
cla55ification- Internal THE NFU m[AL CHARABLE TRU INDEPENDENf AUDrroR'S REPORT TO THE MEMBERS OF THE NFU MtThAL CHARABLE TRUST R THE YEAR ENDED I DECEMBER 2 Report on the audit of the fmancial statements Opinion In our opinion the financial statements of NFU Mutual Clwitable Trust (the 'charitable company,): give a true and fair view of the state of the Charitable Company's affairs as of 31 December 2023 and of its income and 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, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": and have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements which comprise: the statement of fmancial activities. the balance sheet. The cash flow. the related notes I to 14. 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). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UIQ (1&4s (UK)) and applicable law. responsthilities under those standards are further descrthed in the auditor'8 responsibilities for the audit of the financial statements section of our report. We are independent of the charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (the 'FRC's') Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirernents. 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 perfonned, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable Company's ability to continue as a going concern for a period of at least twelve months trom 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.
cla55ification- Internal INDEPENDEiif AUDOR's REPORT TO THE MEMBERS OF THE NFU m[AL CHARITABLE TRUST continued R THE YEAR ENDED I DECEMBER 2 Other infonnation The other information comprises the infonnation included in the annual report. other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infonnation 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 infonnation and, in doing so, consider whether the other information is materially inconsistent with the fmancia] 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 perfornied, we conclude that there is a material misstatement of thi's other information, we are required to report that fact. We have nothing to report in this regard. Responslbllltles of trnstees As explained more fully in the trustees, responsthilities statement, the trusiees (who are also the directors of the charilable company for the purpose of company law) are responsthle for the preparation of the financial statements and for being satisfied that they give a true and fa view, and for such internal conirol as the trustees detennine is necessary to enable the preparation of linancial statements that are tree from material misstatement, whether due to traud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's abllity to continue as a going concern, th'sclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liqwdate the charitable company or to cease operations. or have no rea'StIC alternative but to do so. Auditor's 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 rnisstatement, whether due to fraud or e0[, 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 tSAs (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 staternents. A further description of our responsibilities for the audit of the financial statements is located on the FIIC'S website at: wMv.trc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 10
cla55ification- Internal THE NFU m[AL CHARABLE TRU INDEPENDEiif AUDOR's REPORT TO THE MEMBERS OF THE NFU M[UAL CHARITABLE TRUST continued R THE YEAR ENDED I DECEMBER 2 23 Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including traud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below. We considered the nature of the charitable Company's industry and its control environment and reviewed the Charitable Company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management, internal audit and the trustees about their own identification and assessment of the risks of irregularities, including those that are specific to the Company's business sector. We obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, and identified the key laws and regulations that: had a direct effect on the deterniination of material amounts and disclosures in the linancial statements. These included UK Charities Act, UK Companies Act, and tax legislation; and do not have a direct effect on the financial statements but comphance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty. These included the Charity Commission for England and Wales regulations, Fundraising regulations. and environmental regulations. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. As a result ofperfonning the above, we identified the greatest potential for fraud or non<ompliance with laws and regulations in the following area, and our specth'c procedures performed to address it are descrthed below: We presume a risk of material misstatement due to fraud in revenue reCOlt10n which is related to the completeness of donation income. To address this risk, we reviewed the Trustees, meeting minutes, all bank statements in the period, and post year end records up to the date of this report to test whether the donation incorne had been appropriately included in the financial statements. In common with all audits under ISAS (UK), we are also required to perforni specific procedures to respond to the risk of rnanagement ovenide. In addressing the risk of fraud through management oveIde of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant Iransactions that are unusual or outside the nornial course of business. In addition to the above, our procedures to respond to the risks identified included the following: reviewing finamcial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements. 11
cla55ification- Internal THE NFU m[AL CHARABLE TRU INDEPENDEiif AUDOR's REPORT TO THE MEMBERS OF THE NFU m[AL CHARITABLE TRUST continued R THE YEAR ENDED I DECEMBER 2 perforniing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and reading minutes of meetings of those charged with governance. Report on other legal and regulatory requlrements 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 infonnation given in the tntee$, repott which includes the strategic report and the directors, report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consisient with the financial siatements; and the trustees, report has been prepared in accordance with applicable legal requirements. In the light of the knowledge and undersiandmg of the charitable company and its environment obtained in the course of ihe audit, we have not identified any material misstatements in the trustees, report. Mattezs on which we are required to report by exception Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the charitable company financial staternents are not in agreement with the accounting records and returns; or certain disclosures of trustees, rernuneration specified by law are not made; or we have not received all the inforniation and explanations we require for our audit. We have nothing to report in respect of these rnatters. 12
cla55ification- Internal THE NFU m[AL CHARABLE TRU INDEPENDEiif AUDOR's REPORT TO THE MEMBERS OF THE NFU m[AL CHARITABLE TRUST continued R THE YEAR ENDED I DECEMBER 2 23 Use of our repozt 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 puryose. To the fullest extent perniitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's mernbers as a body. for our audit work, for this report, or for the opinions we have formed. Andy Fern (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor Birmingham. United Kingdom 26 June 2024 13
cla55ification- Internal THE NFU m[AL CHARABLE TRU sTATEmETr OF F[NANCIIILACTivriS CLUDING INCOME & EXPENDrruRE ACCO R THE YEAR ENDED I DECEMBER 2 Unrestricted Restricled Funds Funds 2023 2CY23 Total Funds 2023 Total Funds 2022 Note Donations 1.010.369 1.010.369 1.011,338 Income from investments 2,336 172 2,508 603 Total income 1012 705 172 1012,877 1011,941 Expenditure on Charitable activities (1,016,611) (22.819) (1.039.430) (1.054.433) Net Expenditure 3,906 Net gain/Ooss) on investments 11.193 12.118 23,311 (21,376) Net movement in funds 13 7,287 10,529 3,242 63,868 Fund balances brought fonvard at l January restated 101,881 119,589 221,470 285,338 Fund balances carried fonvard at 31 December 109,168 109,060 218,228 221,470 The prior year comparatives for each individual fund are stated in Note 13 of the Notes to the Financial Statements on page 24. All of the above transactions relate to continuing operations. All gains and losses recognised in the year are included in the Statement of Financial Activities The notes on pages 17 to 25 forni an integral part of these financial statements. 14
cla55ification- Internal THE NFU m[AL CHARABLE TRU BALANCE SHE AT I DECEMBER 2023 2022 Investments 203.156 204,845 Cash at bank and in hand Debtors Creditors: Amounts falling due within one year 32,320 1,768 445,302 19.016 428,677 Net current assets 15.072 16,625 NET ASSEIE 218,228 221,470 THE FUNDS OF THE CHARriY Revaluation reserve: Unrestricted Unrestricted Income Funds Total Unrestricted 78.47S 67,282 109,168 101,881 Revaluation reserye: Restricted Restricted Income fund Total Restricted 67,81S 71,730 109,060 119,589 TOTAL cHARy FUNDS 218,228 221,470 The financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. Prior year unrestricted and restricted reserves have been restated following a reallocation between revaluation reserve and incorne funds, overall charity funds remain unchanged, see note The notes on pages 17 to 25 forni an integral part of these financial statements. The financial statements on pages 14 to 25 were approved by the Board ofTrustees on 26 June 2024 and signed on its behalf by: N Turner The NFU Mutual chitable Trust Company Number: 03618736 26 June 2024 15
cla55ification- Internal THE NFU m[AL CHARABLE TRU CASHFLOW STATEMEF R THE YEAR ENDED I DECEMBER 2 23 Unrestricted Restricted Funds Funds 2023 2023 Total Funds 2023 Total Funds 2022 Note NET CASH FROM OPERATING ACTIVITIES 14 (411.242) (29.248) (440,490) 378,111 CASHFLOW FROM INVESTING ACTIVITIES Interest from investments Proceeds from sale of investrnenis 2,336 172 25.000 2,508 25,000 603 15,000 NET CASH FROM INVESTING ACTIVThS 2,336 25,172 27,508 NET (DECREASE) / INCREASE IN CASH & CASH EQUIVALENryE (408,906) (4,076) (412,982) 393,714 Cash & cash equivalents at the beginning of the year 433,256 12,046 445,302 51,588 CASH & CASH EQUtVALEEIIE AT THE END OF THE YL4R 24,350 32,320 445,302 Cash & cash equivalents consist of: Cash at bank and in hand 24,350 7,970 32,320 445,302 CASH & CASH EQUIVALEfllE 24,350 7,970 32,320 445,302 16
cla55ification- Internal THE NFU CHARABLE TRU NOTES TO THE FINANCIAL ATEME5 FOR THE YEAR ENDED 31 DECEMBER 2023 IE The financial statements have been prepared on a historical cost basis as modified by the revaluation of certain investments. The financial statements have been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in compliance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011. the Charity's governance doci]ment and the Companies Act 2006. The accounting policies have been consistently applied in the financial statements, the main policies have been oullined below: a) Donations Income received by way of donations and gths is included in full in the Statement of Financial Activities when receivable. enditure on charitable activities Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trusi and are accounted for in fl as liabilities of the charitable company when approved by the TteeS and conveyed to the recipient. The expenditure is recognised in the period incurred and includes any attributable VAT which cannot be recovered. Support costs include expenditure on the admUtratIon of the Trust to comply with constitutional and statutory requirements. Included with this category are costs associated with the strategic, as opposed to the day-to4ay management of the Trust's activities. In accordance with the Charities SORP ffRS 102) costs are attributed to services donated by the Group Company based on time spent. These are shown within both incoming resources (see noie 2) and resources expended (see note 5) for disclosure purposes only. d) Investments Investments are held in the UK and included at market value at the balance Sheet date. Gains and losses on investment are recolsed in the Statement of Financial Activities. Unrealised gains and losses are attributed to the revaluation reserve on recognition and transferred to income funds when the gain or loss is realised. e) Income from tnvestments Income from investments is included in the year in which it is earned. Unrestricted funds are fLmds which are available for the use at the discretion of the Trustees in furtherance with the general objectives of the Trust. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donois or which have been raised by the charitable company for particular purposes. The charity only has financial assets and financial liabilities of a kind that quality as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlenient value. 17
cla55ification- Internal THE NFU m[AL CHARABLE TRUST NOTES TO THE FINANCIAL ATEME5 Continued AS AT 31 DECEMBER 2023 ACcOuNTG POLICIES Continued h) Taxation The Trust is a registered charity and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity's primary objectives. if these profits and surpluses are applied solely for charitable purposes. The Trust is not registered for VAT and accordingly, all the expenditure is recorded inclusive of any VAT incurred. i) Cash at bank and in hand Cash at bank and cash in hand includes cash and short tenn highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. j) Debtors Debtors are amounts due from related parties and other receivables arising from trading and services perfomed in the ordinary course of business. If collection is expected in one year or less, they are clasSed as curreni assets. If not, they are presented as non-current assets. Debtors are recognised initially at fair value and subsequently measured at amortised cost less provision for impairment. reditors Creth'tors are obligations to pay for goods or services that have been acquired in the ordinary course of business from supphers or commitments made in relation to charitable donations. Trade creditors are classthed as current habikn'ties if payment is due within one year or less. If not, they are presented as non4urrent liabilities. Creditors are recognised initially at fair value and subsequently measured at amortised cost. i) The preparation of the fmancial statements does not require the Trustee's io rnake any judgements, estimates or assumptions in the process of applying the Company's accounting policies due to the simplistic nature of its operations. Concern The Charity's activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees, Report on Page 2 to 7. As a result of tlu's review the Trustees consider that the Trust has adequate resources and cash flow based upon its available fLmds, including receiving additional funding in January 2024, 10 continue in operational existence for at least 12 months from the date that the financial statements are approved. The Trustees. believe that given the simple nature of the Trust it is appropriate to continue to adopt the going concern basis in Prep]ng the financial statements. 18
cla55ification- Internal THE NFU m[AL CHARABLE TRUST NOTES TO THE FINANCIAL ATEME5 Continued AS AT 31 DECEMBER 2023 DONATIO 2023 2022 Donations from NFU Mutual Value of administration serrices prowlded by NFU Mutual Private Donations 1,000,000 10.259 110 1,000.000 11.227 111 1.010.369 1.011,338 INCOME FROM IWESTMENryS Investment income represents interest earned on funds held on deposit 2,S08 603 TrUSTEES AND EMPLOYEES There are no employees of the Company (2022: nil). No Trustees received remuneralion or expenses during the year in respect of their services to the company (2022: nil). The grants included within Expenditure on Charitable Activities are all paid to institutions with no grants paid to individuals. All grants paid to institutions trom each of the Unrestricted and Restricted fLmds are listed below. 2023 2022 Unrestricted Funds- Grants Royal Agricultural Benevolent knstitution Farniing Community Network Royal Scottish A]cultural Benevolent Institution QISABD Rural Support Addington Fund The Royal Countryside Fund Linking Environment and Farniing NFU Education Fareshare Oxford Farniing Conference Samaritans The National Federation of Young Farniers Clubs Young Farmers Clubs of Ulster Air Anthulances UK Tir Dewi 80,000 80,000 80,000 80,000 80,000 80,000 50,000 50,000 50,000 50,000 40,000 38,000 30,000 30,000 30,000 70,000 70,000 70,000 65,000 70,000 40,000 30,000 100,000 15,000 25,000 30,000 30,000 20,000 19
cla55ification- Internal THE NFU m[AL CHARABLE TRUST NOTES TO THE FINANCIAL ATEME5 Continued AS AT 31 DECEMBER 2023 EXPENDrruRE ON CHARITABLE ACTIVrnS Continued tri t d Funds- Grants The Henry Plumb Foundation Wales Federation of Young Farmers Clubs Farmstrong Scotland Farnis for City Children Nuffield Farniing Scholarships Trust Royal Highland Educational Trust Open Farm Weekend, Northern Ireland Wales Young Fanners Club The Smallpiece Tnt Access to Farms Gareth Raw Rees Memorial Scholarship Disasters Emergency Committee Uknaine Appeal UK Sepsis Fund Mental Health Innovations Scottish Association of Young Farmers, Clubs Farming and Forestry First Aid Continued 20,000 19,000 19,000 17,000 15,000 15,000 15,000 11,000 11,500 8,000 2,000 11,000 50,000 10,974 13,000 25,000 10,000 2,000 150,000 70,000 25,000 13,875 6,000 1,021,849 I,000,soo st Administrative services provided by NFU Mutual 2022 Audit Fees (gross of VAT) 10,259 5,852 16,111 11,227 17,079 Tota] expenditure on charitable activities - Unrestricted funds l 016 611 1038 928 estricted Funds - Grants: Darwin College. University of Cambridge Aberwystwyth University Harper Adams University Hartpury University University of London University of Nottingham Royal Agricultural University University of Reading 9,677 5,681 5,119 1,767 575 6,825 1,724 104 (86) 6,938 Total expenditure on charitable activities - Restricted Funds 22,819 15,505 Total expenditure on charitable activities 1,039,430 1,054,433
cla55ification- Internal THE NFU m[AL CHARABLE TRUST NOTES TO THE FINANCIAL ATEME5 Continued AS AT 31 DECEMBER 2023 Valuation at l January Net gains / Ooss) Sale proceeds from disposals of investments Valuation 31 December 204,845 23,311 25,000 203,156 241,221 (21,376) Is,000 204,845 Investments are stated at market value at 31 December 2023. The historical cost of the investment at 31 Decernber 2023 was £56,867 (2022: £&fj,834). The investments balance relates entirely to a COIF investment which is an unquoted unit trnst and an accumulation fund. DEBTORS 2023 2022 Trade debtors 1,768 1,768 CREDITORS-AMouFifs FALLtNG DUE WITHIN ONE YEAR 2023 2022 Grants Payable Accruals 13,164 422,825 19,016 428,677 Audit fees for the financial year net of VAT were £4,877 (2022: £4,877) and are included within Accruals. 21
cla55ification- Internal THE NFU m[AL CHARABLE TRUST NOTES TO THE FINANCIAL ATEME5 Continued AS AT 31 DECEMBER 2023 RESERVES enin enditure on ReaLed losin balance 31 December 2023 restated endowments activities Investments Unrestricted fund 34,599 1.012,705 (1.016.611) 30,693 Revaluation funcb unrestricted 67.282 11,193 78,475 Sub total- unrestricted funds 101.881 1.012,70S (1,016,611) 11,193 109.168 Restricted fund 47,859 172 (22,819) 16,033 41,245 Revaluation fund- restricted 71,730 (16,033) 12,118 67,815 Sub total- restricted funds 119,589 172 (22,819) 12,118 109,060 Total 221,470 1,012,877 (1.039,430) 23,311 218,228 Opening revaluation reserves have been restated= Revaluation fund-unrestricted has decreased by £794 and the Revaluation fund-restricted has increased by £794. Opening restricted reserves have been restated: Restricted fund has increased by £22,697 and Revaluation fund-restricted has decreased by £22.697, representing prior year realised gains. The unrestricted fund reserve represents the free funds of the charitable company which are not designated for particular purposes. The restricted fund reserve represents the funds available under The Tr4FU Mutual Charitable Trust Centenary Award scheme. The aim of the Centenary fund is to help generate a legacy for the future of alcUlture by utilising these funds to provide a 75 % bursary of course fees for PoStadUate agricultural students. 22
cla55ification- Internal THE NFU m[AL CHARABLE TRUST NOTES TO THE FINANCIAL ATEME5 Continued AS AT 31 DECEMBER 2023 10 RELATED PARTY DISCLOSURES NFU Mutual appoints trustees to the tnt and is therefore a related paty. Four Trustees are appointed by NFU Mutual (2022: four). The Tnt received a £l.000.OCX) donation trom NFU Mutual which it has used for charitable purposes (2022: £1.000.000). This amount has been paid in full to the Charitable Trust by NFU Mutual. Mr Raymond is a Trustee of Forage Aid: grants totalling £nil (2022: £nil) were approved to this organisation during the year, of which £nil were outstanding at the end of the year (2022: nil). Mr Raymond is also a director of the Prince's Countryside Fund; grants totalling £70,000 (2022: £70,000) were approved to this organisation during the year, of which £nil were outstanding at the end of the year (2022: nil). 11 The net assets are held for the funds as follows: Fixed and nt Current iliti Restricted fund Unrestricted fund Total 111,224 126,020 237,244 (2,164) ICB.060 109,168 218,228 19,016 The charity is a company Imiited by guarantee. Each member has undertaken to contribute £ I to the assets of the Company to meet its liabilities if called on to do so. The members consist of the 8 Trustees and the Company Secretary. The total amount guaranteed by the members at 31 December 223 is £9 (2022: £9)-
cla55ification- Internal THE NFU m[AL CHARABLE TRUST NOTES TO THE FINANCIAL ATEME5 Continued AS AT 31 DECEMBER 2023 13 Unrestricted Restricted Total Funds Funds Funds Unrestricted Restricted Total Funds Funds Funds Total income from Donations Investment income 1,010.369 2,336 1,010.369 2,508 1,011,338 565 1,011,338 603 172 38 Total incoming resources 1,012,705 172 1,012877 1,011,903 38 1,011,941 Total expenditure on Charitable activities (1.016,611) (22,819) (1,039,430) (1.038.928) (15.505) (1,054.433) Total resources expended 1.016,611 .819 1,0&9,430 1.038.928 IS.505 I,OS4.433 Net expenditure 3,906 .64 26,SS 27,025 IS,467 42,492 Gains/(loss) on investment assets 11,193 12,118 23,311 (8,947) (12,429) (21,376) Net movement in funds 7,287 (10,S29) (3,242) (3S,972) (27.898) (63,868) Fund balances bought forward at l January 101,881 119,589 221,470 137,853 147,485 288,338 Fund balances carried forward at 31 December 109,168 109.060 218,228 101,881 119,589 221,470
cla55ification- Internal THE NFU m[AL CHARABLE TRUST NOTES TO THE FINANCIAL ATEME5 Continued AS AT 31 DECEMBER 2023 14 RECONCILIA ACTIVITIE Unrestricted Restricted Funds Funds 2023 2023 Total Funds 2023 Total Funds 2022 NET MOVEMETrif IN FUNDS FOR TrtE YL4R 7.287 (10,S29) (3,242) (63,868) Adjusted for: Interest trom investments (2,336) (172) (2,508) (603) OPERATING FUNDS FOR THE YEAR 4.951 5,750 64,471 (Decrease)/increase in creditors & accruals Increase in debtors Investment (gain)noss (405,000) (4,661) (1,768) (12,118) (4Ce,661) (1,768) (23,311) 421,206 (11,193) 21,376 NET CASH (OThOW)/ IfLow FROM OPERATtNG AcVEs 411,242 9,248 440,490 378,111