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← The Morley Agricultural Foundation

2021-08-31-accounts

Registered number: 04712419 Charity number: 1097174

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 8
Independent auditors' report on the financial statements 9 - 13
Consolidated statement of financial activities 14
Consolidated balance sheet 15 - 16
Company balance sheet 17 - 18
Consolidated statement of cash flows 19
Notes to the financial statements 20 - 47

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Trustees J S Wallace, Chair
S Rawsthorne
C E A P Hill
P E Richardson
R J Salmon
R Wilbourn
N J Steed
T S Evans
B W R Hadingham
S E Lord
Company registered
number
04712419
Charity registered
number
1097174
Registered office
Morley Business Centre
Deopham Road
Morley St Botolph
Norfolk
NR18 9DF
Company secretary
M Canham
Independent auditors
Larking Gowen LLP
Chartered Accountants
King Street House
15 Upper King Street
Norwich
NR3 1RB
Solicitors
Birketts LLP
Kingfisher House
1 Gilders Way
Off Barrack Street
Norwich
NR3 1UB
Investment Managers
Barratt & Cooke
5 Opie Street
Norwich
Norfolk
NR1 3DW

Page 1

THE MORLEY AGRICULTURAL FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of the Group and the Company The Morley Agricultural Foundation for the year 1 September 2020 to 31 August 2021.

The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) 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 2019).

Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The Foundation exists to promote for public benefit the study and knowledge of agricultural science and the application of modern techniques to agriculture and husbandry in all their branches, including the breeding, feeding and management of livestock and poultry, horticulture and silviculture.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Page 2

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives and activities (continued)

b. Activities undertaken to achieve objectives

Grant commitments were made during the course of the year to:

Page 3

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives and activities (continued)

c. Grant-making policies

The Foundation accepts applications for funding from both individuals and institutions. Applications are reviewed to ensure compliance with the charity’s objectives and for suitability by the trustees before any grants are made. Total grant commitments are determined in line with the projected investment income for the period.

d. Volunteers

The Foundation relies on the professional expertise of it's trustees, all of whom provide their services on a voluntary basis, in order to fulfil the charity's objectives. The Foundation is grateful for the unstinting efforts of it's volunteers.

Achievements and performance

a. Review of activities

The Foundation's policy contributes to the funding of independent research and education in all aspects of farming and husbandry, preferably within East Anglia.

To that end:

a) Funding for the two proposals from NIAB, one for five years and one for three years.

b) The Foundation continues to make funds available for relevant research by PhD students.

c) Providing funding to Morley Farms Ltd in support of the ancillary research and educational activities it conduct.

b. Fundraising activities

Neither the Charity, nor anyone acting on its behalf, undertakes conventional charitable fundraising activities.

c. Investment policy and performance

The trustees continue to believe the current mix of property assets and investment portfolio provide the best long term strategy for the creation of income to support its grants programme. Together with portfolio managers, the trustees review investment performance against objectives set.

Morley Farms Limited continues to pay a commercial rent to the Foundation.

The foundation is in a consortium of landowners seeking a planning permission in order to sell a parcel of land in its ownership.

Page 4

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Financial review

a. Going concern

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

b. Reserves policy

The trustees regard the charity’s property & investment assets as permanent funds. The trustees' policy is that these funds should be maintained in real terms, in order to generate income to finance current and future grant giving in accordance with the Foundation’s objectives to:

Promote the study & knowledge of agricultural science & the application of modern scientific techniques to agriculture & husbandry in all their branches.

As part of these objectives, the trustees remain committed to funding significant agricultural research projects. Funding commitments for such projects routinely extend to a period of between 3 - 5 years. The trustees therefore take account of these longer term commitments when considering the level of reserves to be retained by the Foundation.

General funds of the charity at 31 August 2021 amounted to £30,001,140 (2020: £28,651,190). In determining the level of resources the board is mindful of the need to maintain a contingency fund in order to meet any unexpected repair costs in relation to the charity's property assets. Similarly reserves are required to fund ongoing working capital requirements of Morley Farms Limited. After taking account of these issues and retaining a suitable level of funds to cover these aspects, the trustees’ policy is to use substantially all of the charity’s surplus investment income over a 3 5 year time frame in order to fund the Foundation’s grant making activity over the same period.

At 31 August 2021 the group's free reserves amounted to £511,640 (2020: £704,670).

c. Financial review

Income from the portfolio, rent from properties and farming profit from Morley Farms Limited enable the Foundation to maintain its grants' programme and cover its overheads.

The Foundation's net incoming resources amounted to £287,059 (2020: £295,920) as shown in the Consolidated Statement of Financial Activities on page 13. This includes net profit from the subsidiary company of £130,369 (2020: £165,398) prior to the elimination of inter group transactions and gains on investments.

There was a net increase in funds of £1,349,950 (2020: decrease in funds £479,824).

The charity’s investment portfolio increased in value from £8,012,041 at the beginning of the year to £9,312,744 as at 31 August 2021. This is a reflection of the general market conditions.

In order to help the trustees to consider funding projects beyond its current financial period, a budget process that extends four years beyond the current one is in operation.

Page 5

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management

a. Constitution

The Morley Agricultural Foundation is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 23 April 2003 and is a registered charity number 1097174.

b. Methods of appointment or election of Trustees

The charity is controlled by its trustees. Under the company's Articles of Association, the trustees are elected at the AGM. At each AGM, one third of the elected trustees will retire. If a vacancy is not filled, a retiring trustee, if willing, is deemed to be re elected. All trustees except an elected trustee retiring by rotation, must be nominated in writing to the chairman by at least three members, two of which must already be trustees. The trustees may appoint a person who is willing to act to be an elected trustee either to fill a vacancy or as an additional trustee but he shall hold office only until the next AGM where he may be reappointed.

Members of the Council, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1.

Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31 August 2021 was 509.

Annually, prior to the AGM, the chairman writes to all members seeking proposals to be considered at the AGM to fill any trustee or Council vacancies.

The trustees each contribute their professional expertise in different specific areas and as such no additional training is deemed necessary in those areas. However, the trustees consider and attend any relevant training opportunities which enhance their knowledge of the generic role and responsibilities of a trustee.

c. Organisational structure and decision-making policies

The day to day management of The Foundation has been delegated to the company secretary, M Canham, who is contracted by The Foundation on an annual basis. Decisions relating to the acquisition or disposal of assets are made by the trustees at one of their regular meetings.

The Foundation’s subsidiary trading company carries out commercial farming activities, historically with a view to profits generated being paid by gift aid to The Foundation. Morley Farms Ltd continues to carry out and support various ancillary research and educational activities for the benefit of the Foundation. The farm management works closely with a regional agricultural educational organisation to develop training schemes for its students.

The capital base of Morley Farms will need to expand to finance these activities. This is likely to be through programme related loan funding from The Foundation but also from the retention of some future commercial farming profits. Where profits are retained in future this may give rise to a liability to corporation tax within Morley Farms Limited.

d. Pay policy for key management personnel

There are no such arrangements for setting pay and remuneration as key management consists of the trustees, all of whom are unpaid.

Page 6

THE MORLEY AGRICULTURAL FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

e. Risk management

The Trustees have assessed the major risks to which the parent company and the group is exposed, in particular those related to the operations and finances of the parent company and the group, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The trustees keep under review the major risks to which the Charity is exposed.

A management committee, under the chairmanship of a Foundation trustee, has been established for Morley Farms Limited and meets regularly to review performance as well as communicating relevant matters to the foundation board. An independent consultant has been employed to assist the farm manager in preparing budgets and reviewing procedures and controls against industry benchmarks.

The major risks to the income of the Foundations are the level of the dividend stream from its portfolio currently managed by Barratt and Cooke, and the volatility of farm income.

Plans for future periods

The Morley Agricultural Foundation will continue to fund research conducted by NIAB, providing grants for the New Farming Systems programme (now in its 12th year) and for the Morley Long Term Trial Series (LoTS) programme which includes, a) continuing long term field experiments, b) collaborating with education providers, c) providing and evaluating new technologies with stakeholders and d) providing NIAB and TMAF research at events at Morley and elsewhere. We also continue to host NIAB trials with other funders and we have become a demonstration farm and trials site for The British Beet Research Organisation (BBRO).

A further portion of available funds will be used to support PhD students researching topics relevant to TMAF’s aims; informing the public about the techniques and science used in modern agriculture; supporting the communication between young farmers and young scientists and providing bursaries to students who need monetary assistance with their courses.

A final portion will be devoted specifically to the study of soil. Funding is being provided for 1) a Harper Adams PhD examining controlled traffic farming and soil compaction issues and 2) a University of East Anglia project investigating the impacts of cover crops and reduced tillage regimes on water, soil and crop yields. BBRO has started research entitled “Interpreting and managing the spatial performance of crops”. NIAB is also carrying out the Morley Soil and Agronomic Monitoring Study (SAMS). And finally a partnership has been struck up between Cambridge University, NIAB and The Morley Agricultural Foundation to fund a PhD student on a topic chosen by the Foundation (Morley PhD).

Information on fundraising practices

The Charity does not undertake conventional charitable fundraising activities such as soliciting of donations or the conducting of direct mailings, telephone or street-based campaigns.

Page 7

THE MORLEY AGRICULTURAL FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Larking Gowen LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

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

................................................ J S Wallace, Chair allace, Chai (Chair of Trustees) (Shair of Trustees)

Date: 2 December 2021

Page 8

THE MORLEY AGRICULTURAL FOUNDATION (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORLEY AGRICULTURAL FOUNDATION

Opinion

We have audited the financial statements of The Morley Agricultural Foundation (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 9

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORLEY AGRICULTURAL FOUNDATION (CONTINUED)

Other information

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Page 10

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORLEY AGRICULTURAL FOUNDATION (CONTINUED)

Responsibilities of trustees

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

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

Page 11

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORLEY AGRICULTURAL FOUNDATION (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

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

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

Due to the field in which the Charity operates, we identified the following areas as those most likely to have a material impact on the financial statements: healthy and safety; employment laws; GDPR, serious incident reporting and compliance with the UK Companies Act.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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.

Page 12

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MORLEY AGRICULTURAL FOUNDATION (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Julie Grimmer FCA DChA (Senior statutory auditor)

for and on behalf of Larking Gowen LLP

Chartered Accountants Statutory Auditors

King Street House

15 Upper King Street

Norwich

NR3 1RB

28 January 2022

Page 13

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income from:
Other trading activities
3
Investments
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
8
Total expenditure
Net income before net gains/(losses) on
investments
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
985,252
355,051
72,169
1,412,472
774,380
351,033
1,125,413
287,059
1,062,891
1,349,950
28,651,190
1,349,950
30,001,140		 Total
funds
2021
£
985,252
355,051
72,169
1,412,472
774,380
351,033
1,125,413
287,059
1,062,891
1,349,950
28,651,190
1,349,950
30,001,140		 Total
funds
2020
£
1,061,395
369,725
50,791
1,481,911
805,456
376,087
1,181,543
300,368
(780,192)
(479,824)
29,131,014
(479,824)
28,651,190

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

The notes on pages 20 to 47 form part of these financial statements.

Page 14

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST 2021

Note
Fixed assets
Tangible assets
13
Investments
15
Investment property
14
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets
Charity funds
Unrestricted funds
21
Total funds		 321,573
290,814
1,344,494
1,956,881
(668,065)		 2021
£
845,006
9,312,744
19,331,750
29,489,500
1,288,816
30,778,316
(777,176)
30,001,140
30,001,140
30,001,140		 351,906
272,415
1,424,231
2,048,552
(613,861)		 2020
£
602,729
8,012,041
19,331,750
27,946,520
1,434,691
29,381,211
(730,021)
28,651,190
28,651,190
28,651,190

Page 15

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

CONSOLIDATED BALANCE SHEET (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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

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

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

................................................ J J S Wallace, Chair SWallace, Chair (Chair of Trustees) (Chair of Trustees)

Date: 2 December 2021

The notes on pages 20 to 47 form part of these financial statements.

Page 16

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

COMPANY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 AUGUST 2021

Note
Fixed assets
Tangible assets
13
Investments
15
Investment property
14
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets
Charity funds
Unrestricted funds
21
Total funds		 212,222
1,169,513
1,381,735
(508,665)		 2021
£
3,319
9,700,081
19,331,750
29,035,150
873,070
29,908,220
(662,060)
29,246,160
29,246,160
29,246,160		 138,857
1,301,577
1,440,434
(532,891)		 2020
£
4,044
8,399,378
19,331,750
27,735,172
907,543
28,642,715
(698,143)
27,944,572
27,944,572
27,944,572

The Company's net movement in funds for the year was £ 1,301,588 (2020 - £(469,380)) .

Page 17

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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

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

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

................................................ J J S Wallace, Chair SWallace, Chair (Chair (Chair of Trustees) of Trustees)

Date: 2 December 2021

The notes on pages 20 to 47 form part of these financial statements.

Page 18

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Repayments of finance leases
Net cash provided by/(used in) 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
The notes on pages 20 to 47 form part of these financial statements		 2021
£
293,564
110
79,200
(355,595)
976,302
(1,214,114)
(514,097)
140,796
140,796
(79,737)
1,424,231
1,344,494		 2020
£
398,814
2,794
42,745
(138,115)
1,532,662
(1,389,778)
50,308
(23,000)
(23,000)
426,122
998,109
1,424,231

Page 19

THE MORLEY AGRICULTURAL FOUNDATION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Morley Agricultural Foundation 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 Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company 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.

The financial statements are presented in Sterling (£), which is the functional currency of the Company, and rounded to the nearest £.

1.2 Going concern

The directors have considered the Company’s position at the time of signing the financial statements and in particular the continued operational and financial challenges caused by Covid-19. The directors have considered the Company’s financial strength, together with an assessment of the potential impact on its operations and its finances and the measures available to mitigate ongoing costs.

Based on this, the directors have concluded that they have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of signing these financial statements. They continue to adopt the going concern basis of accounting in preparing these financial statements.

1.3 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 20

THE MORLEY AGRICULTURAL FOUNDATION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. Accounting policies (continued)

1.4 Expenditure

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

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

1.5 Interest receivable

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

1.6 Intangible assets and amortisation

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Intangible assets relate to the Basic Payment Scheme entitlements held by the company. The entitlements have been recognised at their fair value at the date of transition to FRS 102.

The entitlements are being amortised on a straight line basis over the shorter of the remaining term of the contract or to the end of 2020 when the scheme ends.

Page 21

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. Accounting policies (continued)

1.7 Tangible fixed assets and depreciation

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

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Plant and machinery - 10% straight line
Motor vehicles - 10/20% straight line
Fixtures and fittings - 15% reducing balance/20% straight line
Office equipment - 20% straight line

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are bought into use.

1.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.9 Investment properties

Investment properties for which fair value can be measured reliably without undue cost or effort on an ongoing basis are measured at fair value annually with any charge recognised in the Statement of Financial Activities. Fair value is derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided.

Investment properties are subject to annual valuations by the directors with a professional valuation considered on a 5 yearly basis. The properties are stated at their open market value based on such valuations.

Page 22

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. Accounting policies (continued)

1.10 Stocks and work in progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Cost is based on the cost of purchase on a first in, first out bais.

1.11 Debtors

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

1.12 Cash at bank and in hand

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

1.13 Liabilities and provisions

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

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

Page 23

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. Accounting policies (continued)

1.14 Financial instruments

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured:

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

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.

1.15 Finance leases and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 24

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. Accounting policies (continued)

1.16 Pensions

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

1.17 Fund accounting

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The annual depreciation for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the asset.

Investment property valuations have been based upon professional valuations and Trustees' assessment of recent market trends.

Fixed asset investment valuations are based on the stock market rates as at the year end. These rates are subject to constant fluctuation, based on a number of factors.

Page 25

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3. Income from other trading activities

Income from fundraising events

Unrestricted
funds
2021
£
Farming income
985,252
Unrestricted
funds
2020
£
Farming income
1,061,395		 Total
funds
2021
£
985,252
Total
funds
2020
£
1,061,395

4. Investment income

Unrestricted
funds
2021
£
Rent received
114,260
Investment income
240,681
Interest receivable
82
Bank interest and other interest receivable
28
355,051		 Total
funds
2021
£
114,260
240,681
82
28
355,051

Page 26

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

4. Investment income (continued)

Rent received
Investment income
Interest receivable
Bank interest and other interest receivable		 Unrestricted
funds
2020
£
118,564
248,367
1,769
1,025
369,725		 Total
funds
2020
£
118,564
248,367
1,769
1,025
369,725

5. Other incoming resources

Profit/(loss) on disposal of fixed assets
Other incoming resources		 Unrestricted
funds
2021
£
68,448
3,721
72,169		 Total
funds
2021
£
68,448
3,721
72,169
Profit/(loss) on disposal of fixed assets
Small Business Grant
Coronavirus Job Retention Scheme income		 Unrestricted
funds
2020
£
36,343
10,000
-
46,343		 Restricted
funds
2020
£
-
-
4,448
4,448		 Total
funds
2020
£
36,343
10,000
4,448
50,791

Page 27

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

6. Investment management costs

Unrestricted
funds
2021
£
Property Maintenance
29,167
Investment management fees
14,932
44,099
Unrestricted
funds
2020
£
Property Maintenance
26,297
Investment management fees
19,484
45,781		 Total
funds
2021
£
29,167
14,932
44,099
Total
funds
2020
£
26,297
19,484
45,781

Page 28

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

7. Analysis of arable research projects - other grants

NIAB - New Farming System
Essex Schools Farming Day
Nathan Morris Soil Project
AHDB/AFCP - Cabbage Stem Flea Beetle
Clear Water Project
Morley PhD
J Nunns MRES
C Mumford Msc
UOHerts
YEN-ZERO
YIF 2021-24
NFS 1yr Extension
NIAB CTP
Minion Sequencing
PhD Vining Pea
Molecular Studies
UEA
Movement in the discounting of grants to present value (As
per accounting policy 1.13)		 Grants to
individuals
2021
£
-
-
-
-
-
110,713
1,907
1,396
-
-
-
-
-
-
-
8,600
-
-
122,616		 Grants to
Institutions
2021
£
9,885
3,000
(8,250)
250
1,510
-
-
-
5,000
5,000
39,000
48,485
42,000
10,000
6,163
-
(4,071)
4,042
162,014		 Total
funds
2021
£
9,885
3,000
(8,250)
250
1,510
110,713
1,907
1,396
5,000
5,000
39,000
48,485
42,000
10,000
6,163
8,600
(4,071)
4,042
284,630

The recognition of these amounts reflects the unconditional obligation by The Morley Agricultural Foundation for this funding and is in accordance with the treatment required by the Statement of Recommended Practice (FRS 102).

Expenditure on charitable activities was £418,398 (2020: £394,615) all of which was unrestricted.

Page 29

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

Essex Schools Farming Day
AgriFood Charities Partnership
AHDB/AFCP Award
Soil Health Project - SAMS
Clear Water Project
YEN Paper
Outreach Project
Morley PhD
IAgrM Course Ollie Scott
Remember what we forgot about weeds
JET Management Course
BCPC Project
Movement in the discounting of grants to present value (As
per accounting policy 1.14)		 Grants to
individuals
2020
£
-
-
-
-
-
-
-
221,426
2,000
-
13,200
-
-
236,626		 Grants to
Institutions
2020
£
3,000
13,000
1,000
20,000
2,492
10,000
3,000
-
-
2,500
-
2,000
15,771
72,763		 Total
funds
2020
£
3,000
13,000
1,000
20,000
2,492
10,000
3,000
221,426
2,000
2,500
13,200
2,000
15,771
309,389

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£
Grants payable - Arable research projects
284,630
Morley Business Centre
66,403
351,033		 Total
funds
2021
£
284,630
66,403
351,033

Page 30

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

8. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Grants payable - Arable research projects
Morley Business Centre		 Unrestricted
funds
2020
£
309,389
66,698
376,087		 Total
funds
2020
£
309,389
66,698
376,087

Summary by expenditure type

Depreciation
2021
£
Grants payable - Arable research projects
-
Morley Business Centre
725
725
Depreciation
2020
£
Grants payable - Arable research projects
-
Morley Business Centre
887
887		 Other costs
2021
£
284,630
65,678
350,308
Other costs
2020
£
309,389
65,811
375,200		 Total
funds
2021
£
284,630
66,403
351,033
Total
funds
2020
£
309,389
66,698
376,087

Page 31

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. Analysis of expenditure by direct and support costs

Grants payable - Arable research projects
Morley Business Centre
Grants payable - Arable research projects
Morley Business Centre		 Activities
undertaken
directly
2021
£
284,630
21,558
306,188
Activities
undertaken
directly
2020
£
309,389
13,837
323,226		 Support
costs
2021
£
-
44,845
44,845
Support
costs
2020
£
-
52,861
52,861		 Total
funds
2021
£
284,630
66,403
351,033
Total
funds
2020
£
309,389
66,698
376,087

Analysis of direct costs

Depreciation
Grants payable
Travel
Office administration
General insurance
Sundry expenses
Bank charges		 Grants
payable
2021
£
-
284,630
-
-
-
-
-
284,630		 Morley
Business
Centre
2021
£
725
-
70
2,298
3,799
14,131
535
21,558		 Total
funds
2021
£
725
284,630
70
2,298
3,799
14,131
535
306,188

Page 32

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. Analysis of expenditure by direct and support costs (continued)

Analysis of direct costs (continued)

Depreciation
Grants payable
Travel
Office administration
General insurance
Sundry expenses
Bank charges
Analysis of support costs
Software maintenance
Audit fees
Admin & accounting
Legal fees
Bank charges
Partial exemption adjustment		 Grants
payable
2020
£
-
309,389
-
-
-
-
-
309,389		 Morley
Business
Centre
2020
£
887
-
180
2,809
2,483
6,970
508
13,837
Governance
& other
2021
£
9,163
6,750
17,484
2,104
156
9,188
44,845		 Total
funds
2020
£
887
309,389
180
2,809
2,483
6,970
508
323,226
Total
funds
2021
£
9,163
6,750
17,484
2,104
156
9,188
44,845

Page 33

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. Analysis of expenditure by direct and support costs (continued)

Analysis of support costs (continued)

Software maintenance
Audit fees
Admin & accounting
Legal fees
Bank charges
Partial exemption adjustment
Property management fees		 Governance
& other
2020
£
12,325
7,360
18,455
3,307
248
8,762
2,404
52,861		 Total
funds
2020
£
12,325
7,360
18,455
3,307
248
8,762
2,404
52,861

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 Group
2021
£
117,502
8,531
5,303
131,336		 Group
2020
£
134,502
10,185
7,242
151,929

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

Group Group
2021 2020
No. No.
Employees 4 4

No employee received remuneration amounting to more than £60,000 in either year.

The charity's key management personnel are the trustees, all of whom are unpaid. Key management compensation is therefore £nil (2020: £nil)

Page 34

THE MORLEY AGRICULTURAL FOUNDATION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

11. Taxation

The charitable company is exempt from corporation tax on its charitable activities under section 466 to 493 Corporation Tax Act 2010.

Following a review by the Financial Reporting Council corporate gift aid payments are now regarded as a distribution and it is no longer permissible to accrue for a future gift aid payment unless there is is a binding legal obligation to make the payment at the year end.

In preparing the accounts of the 100% owned subsidiary, Morley Farms Limited, the directors have adopted provisions allowing no tax to be provided on the distributed profit where there is unlikely to be a tax liability as a result of an expected gift aid payment within nine months of the year end.

There were no factors that may affect future tax charges.

12. Intangible assets

Group
Cost
At 1 September 2020
At 31 August 2021
Amortisation
At 1 September 2020
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Basic
Payment
Scheme
Entitlements
£
134,872
134,872
134,872
134,872
-
-

Page 35

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

13. Tangible fixed assets

Group

Cost or valuation
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Plant and
machinery
£
504,000
15,595
(17,749)
501,846
351,462
27,592
(6,998)
372,056
129,790
152,538		 Motor
vehicles
£
859,410
340,000
(211,699)
987,711
413,483
74,128
(211,699)
275,912
711,799
445,927		 Fixtures and
fittings
£
17,331
-
-
17,331
13,287
725
-
14,012
3,319
4,044		 Office
equipment
£
10,283
-
-
10,283
10,063
122
-
10,185
98
220		 Total
£
1,391,024
355,595
(229,448)
1,517,171
788,295
102,567
(218,697)
672,165
845,006
602,729

Page 36

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

13.
Tangible fixed assets (continued)
Company
Cost or valuation
At 1 September 2020
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Fixtures and
fittings
£
17,331
17,331
13,287
725
14,012
3,319
4,044

Page 37

THE MORLEY AGRICULTURAL FOUNDATION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14.
Investment property
Group
Valuation
At 1 September 2020
At 31 August 2021
Company
Valuation
At 1 September 2020
At 31 August 2021		 Freehold
investment
property
£
19,331,750
19,331,750
Freehold
investment
property
£
19,331,750
19,331,750

The investment properties were valued in 2020 by T W Corfield and T S Evans, both RICS registered valuers from Arnolds Keys LLP. The valuations were performed on an open market value basis.

The directors with reference to the professional valuation undertaken by T W Corfield and T S Evans from Arnold Keys LLP in 2020 have determined that valuation as at 31 August 2021 to remain appropriate.

Page 38

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Fixed asset investments

Group
Cost or valuation
At 1 September 2020
Additions
Disposals
Revaluations
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
Company
Cost or valuation
At 1 September 2020
Additions
Disposals
Revaluations
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Listed
investments
£
8,011,991
1,214,114
(976,302)
1,062,891
9,312,694
9,312,694
8,011,991
Investments
in
subsidiary
companies
£
387,387
-
-
-
387,387
387,387
387,387		 Unlisted
investments
£
50
-
-
-
50
50
50
Listed
investments
£
8,011,991
1,214,114
(976,302)
1,062,891
9,312,694
9,312,694
8,011,991		 Total
£
8,012,041
1,214,114
(976,302)
1,062,891
9,312,744
9,312,744
8,012,041
Total
£
8,399,378
1,214,114
(976,302)
1,062,891
9,700,081
9,700,081
8,399,378

Page 39

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Fixed asset investments (continued)

Principal subsidiaries

The following was a subsidiary undertaking of the Company:

Name Company Registered office or principal Principal activity
number place of business
Morely Farms Limited 04873909 Morley Business Centre, Arable farming
Deopham Road, Morley St
Botolph, Wymondham, NR18
9DF

The financial results of the subsidiary for the year were:

Name
Income
£
Expenditure
£
Profit/(Loss)
/ Surplus/
(Deficit) for
the year
£
Morely Farms Limited
1,035,393
(905,024)
130,369
Stocks
Group
2021
£
Consumables
41,158
Growing crops
139,240
Goods in store
141,175
321,573		 Net assets
£
1,142,367
Group
2020
£
35,967
100,438
215,501
351,906

16. Stocks

Page 40

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2021
£
61,063
-
63,608
166,143
290,814		 Group
2020
£
58,891
-
31,283
182,241
272,415		 Company
2021
£
9,710
181,675
644
20,193
212,222		 Company
2020
£
3,773
131,346
3,738
-
138,857

18. 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		 Group
2021
£
157,689
-
5,008
89,437
391,826
24,105
668,065		 Group
2020
£
137,188
-
-
31,879
411,445
33,349
613,861		 Company
2021
£
93,226
-
5,008
-
391,826
18,605
508,665		 Company
2020
£
70,926
25,114
-
-
411,445
25,406
532,891

Page 41

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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

Net obligations under finance lease and hire
purchase contracts
Grants payable
Financial instruments
Financial assets
Financial assets measured at fair value
through income and expenditure		 Group
2021
£
115,116
662,060
777,176
Group
2021
£
9,312,694		 Group
2020
£
31,878
698,143
730,021
Group
2020
£
8,011,991		 Company
2021
£
-
662,060
662,060
Company
2021
£
9,312,694		 Company
2020
£
-
698,143
698,143
Company
2020
£
8,011,991

20. Financial instruments

Financial assets measured at fair value through income and expenditure comprise listed investments valued at the stock market price at year end.

Page 42

(A company limited by guarantee)

THE MORLEY AGRICULTURAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

21. Statement of funds

Statement of funds - current year

Balance at 1 Balance at
September Transfers Gains/ 31 August
2020 Income Expenditure in/out (Losses) 2021
£ £ £ £ £ £
Unrestricted
funds
General Funds 14,652,392 657,649 (418,952) 605,563 76,762 15,573,414
Revaluation
reserve 10,717,056 - - (605,563) 986,129 11,097,622
Funds retained
in subsidiary 3,281,742 754,823 (706,461) - - 3,330,104
28,651,190 1,412,472 (1,125,413) - 1,062,891 30,001,140
Statement of funds - prior year
Balance at Balance at
1 September Transfers Gains/ 31 August
2019 Income Expenditure in/out (Losses) 2020
£ £ £ £ £ £
Unrestricted
funds
General Funds 14,225,621 752,984 (446,620) 291,199 (170,792) 14,652,392
Revaluation
reserve 11,613,207 - - (286,751) (609,400) 10,717,056
Funds retained
in subsidiary 3,292,186 724,479 (734,923) - - 3,281,742
29,131,014 1,477,463 (1,181,543) 4,448 (780,192) 28,651,190

Page 43

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
845,006
Fixed asset investments
9,312,744
Investment property
19,331,750
Current assets
1,956,881
Creditors due within one year
(668,065)
Creditors due in more than one year
(777,176)
Total
30,001,140		 Total
funds
2021
£
845,006
9,312,744
19,331,750
1,956,881
(668,065)
(777,176)
30,001,140

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2020
£
602,729
8,012,041
19,331,750
2,048,552
(613,861)
(730,021)
28,651,190		 Total
funds
2020
£
602,729
8,012,041
19,331,750
2,048,552
(613,861)
(730,021)
28,651,190

Page 44

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Amortisation charges
(Gains)/losses on investments
Dividends, interests and rents from investments
Profit on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Decrease in creditors
Loss on revaluation of investment property
Net cash provided by operating activities
24.
Analysis of cash and cash equivalents
Cash in hand
Cash held by investment broker
Total cash and cash equivalents		 Group
2021
£
1,349,950
102,567
-
(1,062,891)
(110)
(68,449)
30,333
(18,399)
(39,437)
-
293,564
Group
2021
£
1,181,485
163,009
1,344,494		 Group
2020
£
(479,824)
84,171
8,993
183,223
(2,794)
(36,343)
(7,684)
89,954
(37,851)
596,969
398,814
Group
2020
£
1,008,622
415,609
1,424,231

Page 45

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

25. Analysis of changes in net debt

Cash at bank and in hand
Finance leases		 At 1
September
2020
£
1,424,231
(63,757)
1,360,474		 Cash flows
New finance
leases
At 31
August 2021
£
£
£
(79,737)
-
1,344,494
(31,879)
(108,917)
(204,553)
(111,616)
(108,917)
1,139,941		 Cash flows
New finance
leases
At 31
August 2021
£
£
£
(79,737)
-
1,344,494
(31,879)
(108,917)
(204,553)
(111,616)
(108,917)
1,139,941
1,139,941

26. Operating lease commitments

At 31 August 2021 the Group and the Company 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
2021
£
96,115
122,249
218,364		 Group
2020
£
98,012
154,772
252,784		 Company
2020
£
-
-
-

27. Related party transactions

During the year ended 31 August 2021, rent was charged to Morley Farms Limited (a wholly owned subsidiary) of £237,000 (2020: £239,000) and a grant was paid to the company of £25,000 (2020: £25,000).

The following directors were trustees of a charity with which the Group had transactions in the year:

PE Richardson is a director of Agrifood Charities Partnership. At the year end the grant payment outstanding to Agrifood Charities Partnership amounted to £1,500 (2020: £1,500). During the year subscription fees and other purchases paid to Agrifood Charities Partnership were £3,250 (2020: £330).

TS Evans is a partner at Arnolds Keys LLP, Chartered Surveyors. During the year, professional fees payable to Arnolds Keys LLP by The Morley Agricultural Foundation were £4,581 (2020: £6,904). £Nil remained payable at the year end (2020: £5,057).

During the year, no directors received any remuneration or other benefits (2020: £Nil). No expenses were reimbured to directors during the year (2020: £Nil).

Page 46

THE MORLEY AGRICULTURAL FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

28. Controlling party

The company is controlled by the trustees who are listed on page 1.

Page 47