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← The Morley Agricultural Foundation

2023-08-31-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 2023

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details ofthe Charity, its Trustees and Advisers 1
Trustees’ Report 2-9
Independent Auditors’ Report on the Financial Statements 10-13
Consolidated Statement of Financial Activities 14
Consolidated Balance Sheet 15-16
Charity Balance Sheet 17-18
Consolidated Statement ofCash Flows 19
NotestotheFinancialStatements 20-41

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023

Trustees J S Wallace (resigned 2 February 2023)
S Rawsthorne
CEAP
Hill
P E Richardson (resigned 2 February 2023)
R Wilbourn
N J Steed
T S Evans
BW R Hadingham
S E Lord
P Mutimer (appointed 2 February 2023)
Company registered
number 04712419
Charity registered
number 1097174
Registered office Morley Business Centre
Deopham Road
Wymondham
Norfolk
NR18 9DF
Company secretary M Canham
Independent auditors MA Partners Audit LLP
Chartererd Accountants and Statutory Auditors
7 The Close
Norwich
Norfolk
NR1 4DJ
Solicitors Birketts LLP
Kingfisher House
1 GuildersWay
Off BaRrack Street
Norwich
NR3 1UB
Investment Managers Barratt
& Cooke
5 Opie Street
Norwich
Norfolk
NR13DW

Page 1

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Trustees present their annual report together with the audited financial statements of the The Morley Agricultural Foundation for the 1 September 2022 to 31 August 2023. 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 Charity comply with the current statutory requirements, the requirements of the Charity'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).

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)’.

b. Strategies for achieving objectives

The Trustees focus on making a positive impact on the promotion for public benefit the study and knowledge of agricultural science and the application of modern techniques to agriculture and husbandry in all their branches. They seek to do this by making optimum investment of the Foundation's funds and distributing income and work with local organisations and individuals that conform to the Memorandum of Articles.

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THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

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

* Morley Soil and Agronomic Monitoring Study (SAMS)

¢ MRes Agricultural Systems Management Course Nottingham University

¢ Agri Tech East’s Young Innovators Forum.

¢ PhD vining peas Nottingham University

¢ YEN Zero

d. Social investment policies

The Trustees continue to believe the current mix of property assets and investment portfolio provide the best long term stategy for the creation of income to support its grant programme. Together with portfolio managers, the Trustees review investment performance against objectives set. The social, environmental and ethical considerations of the Trustees are discussed with the portfolio manager on an annual basis to ensure it is in line with the beliefs of the Foundation.

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THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

Objectives and activities (continued)

e. 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.

f. 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.

Strategic report

Achievements and performance

a. Main achievements of the Charity

The Trustees have continued to provide substantial grants to individuals (to train agricultural students and to provide access to training for farmers, researchers and advisors to the agricultural industry). They have also been able to support a number of organisations to engage and conduct agricultural research, and for the purposes to plan and carry out experiments and field trials for the investigation and solution of farming problems and for the adaption of the results of scientific research generally to the needs and practise of agriculture.

The Trustees have purchased futher land at Wymondham Road which will generate further funds for the charitable purposes in the future.

b. 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 Limited in support of the ancillary research and educational activities it conducts.

c. Fundraising activities and income generation

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

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THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

Strategic report (continued)

Achievements and performance (continued)

d. 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.

Financial review

a. Going concern

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

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 2023 amounted to £29,256,881 (2022: £29,965,309). 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 to 5 year time frame in order to fund the Foundation’s grant making activity over the same period.

At 31 August 2023 the group's free reserves amounted to £61,032 (2022: £938,133).

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THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

c. Material investments policy

At each board meeting the Trustees receive a report from the portfolio manager (Barratt & Cooke) on the investment's performance over the last quarter. The portfolio manager attends the finance board meeting annually and is also available to provide advice to the Trustees when required. The Trustees look to maxmise the return on the investment whilst avoiding any unnecessary risk based on the advice given.

d. Principal risks and uncertainties

Principal risks are 1) a collapse in our portfolio leading to a loss of dividend income, 2) a very poor farming year leading to no profit and an inability for Morley Farms Limited to pay rent to the Foundation.

e. Principal funding

The Foundations income for the reporting period ending 31 August 2023 comprised largely of rental and dividend income. This enabled the Foundation to meet its objectives set out above. In addition, the Foundations subsidiary trading company carries out commercial farming activities, historically with a view to profits generated being paid by gift aid to the Foundation.

f. 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 expenditure amounted to £406,141 (2022: £309,844 incoming resources) as shown in the Consolidated Statement of Financial Activities on page 15. This includes net profit from the subsidiary company of £138,507 (2022: £115,157) prior to the elimination of inter group transactions and gains on investments.

There was a net decrease in funds of £708,428 (2022: £35,831).

The Charity’s investment portfolio decreased in value from £8,869,860 at the beginning of the year to £8,692,950 as at 31 August 2023. 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.

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.

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THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The Charity is controlled by its Trustees. Under the Charity'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 Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of such guarantees at 31 August 2023 was 509 (2022: 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 Limited 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.

e. Related party relationships

T S Evans is a Partner at Arnold Keys LLP, Chartered Surveyors.

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THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

Structure, governance and management (continued)

f. Financial risk management

The Trustees have assessed the major risks to which the Group and the Charity are exposed, in particular those related to the operations and finances of the Group and the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the maior 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).

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THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
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Statement of Trustees’ responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic 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 . 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 Charity 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 Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity 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 Charity 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, MA Partners Audit 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.

‘il order of the members of the board of Trustees on 8 February 2024 and signed on their behalf by:

R Wilbourn

Page 9

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 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 10

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

SEYE RE BNR SS BSS ER SR ER SE 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 including the Strategic Report.

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

Page 11

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.

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:

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the Charity.

Page 12

THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

Our approach was as follows:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the Charity'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 Charity'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 Charity and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Qe Alistair Fish FCA (Senior Statutory Auditor) for and on behalf of MA Partners Audit LLP

Chartererd Accountants and Statutory Auditors 7 The Close Norwich Norfolk NR1 4DJ

4 March 2024

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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 2023

Unrestricted Total Total
funds funds funds
2023 2023 2022
Note £ £ £
Income from:
Other trading activities 4 1,121,656 1,121,656 1,100,286
Investments 5 421,367 421,367 428,347
Other income 6 1,403 1,403 1,586
Total income 1,544,426 1,544,426 1,530,219
Expenditure on:
Raising funds 889,282 889,282 863,649
Charitable activities 9 1,061,285 1,061,285 356,726
Total expenditure 1,950,567 1,950,567 1,220,375
Net (expenditure)/income before net losses on
investments (406,141) (406,141) 309,844
Net losses on investments (302,287) (302,287) (345,675)
Netmovement in funds (708,428) (708,428) (35,831)
Reconciliation offunds:
Total funds brought forward 29,965,309 29,965,309 30,001,140
Net movement in funds (708,428) (708,428) (35,831)
Totalfundscarriedforward 29,256,881 29,256,881 29,965,309

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

The notes on pages 20 to 41 form part of these financial statements.

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THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 04712419

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2023

2023 2022
Note £ £
Fixed assets
Tangible assets 14 735,951 825,566
Investments 16 8,692,950 8,869,860
Investment property 15 19,766,948 19,331,750
29,195,849 29,027,176
Current assets
Stocks 17 456,310 397,462
Debtors 18 227,698 239,062
Cash at bank and in hand 1,177,190 1,634,213
1,861,198 2,270,737
Creditors: amounts falling due within one
year 19 (887,387) (705,507)
Net current assets 973,811 1,565,230
Total assets less current liabilities 30,169,660 30,592,406
Creditors: amounts falling due after more
than one year 20 (912,779) (627,097)
Total net assets 29,256,881 29,965,309
Charity funds
Restricted funds 22 - -
Unrestricted funds 22 29,256,881 29,965,309
Totalfunds 29,256,881 29,965,309

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THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee) REGISTERED NUMBER: 04712419

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2023

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 were approved and authorised for issue by the Trustees on 08 February 2024 and signed pn their behalf by:

R Wilbourn

The notes on pages 20 to 41 form part of these financial statements.

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THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 04712419

CHARITY BALANCE SHEET AS AT 31 AUGUST 2023

2023 2022
Note £ £
Fixed assets
Tangible assets 14 17,541 19,757
Investments 16 9,080,287 9,257,197
Investment property 15 19,766,948 19,331,750
28,864,776 28,608,704
Current assets
Debtors 18 53,240 278,482
Cash at bank and in hand 1,025,612 1,319,133
1,078,852 1,597,615
Creditors: amounts falling due within one
year 19 (777,865) (541,604)
Net current assets 300,987 1,056,011
Total assets less current liabilities 29,165,763 29,664,715
Creditors: amounts falling due after more
than one year 20 (912,779) (569,539)
Total net assets 28,252,984 29,095,176
Charity funds
Restricted funds 22 - -
Unrestricted funds 22 28,252,984 29,095,176
Totalfunds 28,252,984 29,095,176

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THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee) REGISTERED NUMBER: 04712419

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2023

The Charity's net movement in funds for the year was £(842,192) (2022 - £(150,985)).

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 were approved and authorised for issue by the Trustees on 08 February 2024 and signe their behalf by:

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The notes on pages 20 to 41 form part of these financial statements.

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THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2023|2022| |£|£| |Cash|flows|from|operating|activities| |Net|cash|used|in|operating|activities|176,577|407,195| |Cash|flows|from|investing|activities| |Dividends,|interests|and|rents|from|investments|6,479|630| |Proceeds|from|the|sale|of|tangible|fixed|assets|6,150|31,950| |Purchase|of tangible|fixed|assets|(51,888)|(130,723)| |Proceeds|from|sale|of|investments|1,325,028|2,095,603| |Purchase|of|investments|(1,430,086)|(2,025,498)| |Purchase|of|investment|property|(435,198)|-| |Net cash|used|in|investing|activities|(579,515)|(28,038)| |Cash|flows|from|financing|activities| |Repayments|of finance|leases|(57,558)|(89,437)| |Net cash|used|in|financing|activities|(57,558)|(89,437)| |Change|in|cash|and|cash|equivalents|in|the|year|(460,496)|289,720| |Cash|and|cash|equivalents|at the|beginning|of the|year|1,634,214|1,344,494| |Cash|and|cash|equivalents|at|the|end|of the|year|1,173,718|1,634,214| |The|notes|on|pages|20|to|41|form|part|of these|financial|statements|

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Page 19

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

1. General information

The Morley Agricultural Foundation is a private charitable company limited by guarantee and incorporated in England and Wales, registration number 04712419. The registered office is Morley Business Centre, Deopham Road, Morley St Botolph, Norfolk, NR18 9DF.

The Members of the Charity are the Trustees named on page 1. In the event of The Morley Agricultural Foundation being wound up, the liability in respect of the guarantee is limited to £1 per Member of The Morley Agricultural Foundation.

2. Accounting policies

2.1 Basis of preparation of financial statements

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

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 Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

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

2.2 Income

All income is recognised once the Charity 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.

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

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

THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

2. Accounting policies (continued)

2.3 Expenditure (continued)

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.

2.4 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.

2.5 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.

Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.

At each reporting date the Charity 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:

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

2.6 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.

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Page 21

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

2. Accounting policies (continued)

2.7 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.

2.8 Debtors

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

2.9 Cash at bank and in hand

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

2.10 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 Charity 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.

2.11 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 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 22

THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

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2. Accounting policies (continued)
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2.13 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.

2.14 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.

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

  1. 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 Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. 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 23

THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

4. Income from other trading activities

Income from fundraising events

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Farming income 1,121,656 1,121,656 1,100,286
Total 2022 1,100,286 1,100,286
Investment income
Unrestricted Total Total
funds funds funds
2023 2023 2022
; E £ £
Rent received 146,294 146,294 142,542
Investment income 265,121 265,121 285,175
Interest receivable 6,475 6,475 495
Bank interest and other interest receivable 3,477 3,477 135
Total 2023 421,367 421,367 428,347
Total2022 428,347 428,347
  1. Investment income

Page 24

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

6. Other incoming resources

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Other incoming resources 1,403 1,403 1,586
Total 2022 1,586 1,586

ts Investment management costs

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Investment property - maintenance 55,967 55,967 18,095
Investment property - professional fees 2,836 2,836 16,779
Investment property - rates 1,169 1,169 630
Investment management fees 612 612 520
Investment property - light and heat (1,613) (1,613) 5103
Total2022 41,127 41,127

Page 25

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

8. Analysis of arable research projects - other grants

Grants to Grants to
individuals Institutions Totalfunds Total funds
2023 2023 2023 2022
Agri Food Charity Partnership CTP - 12,000 12,000 -
BBRO Integrating the use ofendophyte
grasses with sugar beet for virus yellows and
aphid management - 28,000 28,000 -
Morley PhD 15,227 - 15,227 35,332
C Mumford Msc 531 - 531 1,322
ADAS YEN ZERO - - - 5,000
University of Lincoln - 6,485 6,485 -
Suffolk Agricultural Association Schools Farm
& Country Fair - 4,800 4,800 3,000
John ForrestAward Communication Course - 6,000 6,000 (408)
John EdgarTrust Management Course - 13,000 13,000 (2,843)
NIAB Morley SAMS Phase 2 - 273,616 273,616 -
Agri-TechE Early Careers Innovators’ Forum - 66,000 66,000 -
HarperAdams University - - - 45,000
D Purdy PhD - - - 5,077
The Aylsham ‘Show Food, Farming and the
Countryside Discovery Area - 9,050 9,050 5,000
RNAA Food & Farming Discovery Trust - 20,000 20,000 20,000
BBRO Optimising sugar beet management
practices to reduce greenhouse gas
emissions - 3,504 3,504 197,849
NIAB INSPIRE - - - (20,814)
Essex Food and Farmer Schools Day - 3,000 3,000 -
: Cranfield University - 15,000 15,000 -
NIAB Morley New Farming Systems soil
amendment & cover crop rotations - 161,810 161,810 -
NIAB Co-development ofnewwheat varieties
and regenerative agriculture - 293,289 293,289 -
Rothamsted Research - 61,760 61,760 -
Other grants and bursaries 1,575 4,250 5,825 3,635
Movement in the discounting ofgrants - (40,782) (40,782) 8,926
17,333 940,782 958,115 306,076

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 £1,133,748 (2022: £422,510), all of which was unrestricted.

Page 26

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

9. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds Total Total
2023 2023 2022
£ £ £
Grants payable - Arable research projects 958,115 958,115 306,076
Morley Business Centre 103,170 103,170 50,650
Total 2023 1,061,285 1,061,285 356,726
Total2022 356,726 356,726

10. Analysis of expenditure by activities

‘ Activities
undertaken Support Total Total
directly costs funds funds
2023 2023 2023 2022
£ £ £ £
Grants payable - Arable research projects 958,115 - 958,115 306,076
Morley Business Centre 22,498 80,672 103,170 50,650
Total 2023 980,613 80,672 1,061,285 356,726
Total2022 317,993 38,733 356,726

Page 27

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Morley
Grants
payable		 Business
Centre		 Total
funds		 Total
funds
2023 2023 2023 2022
£ £ £ £
Grants payable 958,115 - 958,115 306,076
Office expenses - 10,360 10,360 6,568
Depreciation - 2,217 2,217 881
Open day expenses - 4,437 4,437 (843)
Insurance - 4,192 4,192 5,183
Travel - 1,292 1,292 128
Total 2023 958,115 22,498 980,613 317,993
Total 2022 306,076 11,916 317,993
Analysis ofsupport costs
Morley
Business
Centre		 Total
funds		 Total
funds
2023 2023 2022
£ £ £
Partial exemption adjustment 39,069 39,069 4,457
Staff costs 18,236 18,236 17,809
Software maintenance 8,756 8,756 841
Accountancy 6,615 6,615 6,650
Subscriptions 4,434 4,434 6,249
Sundry expenses 2,308 2,308 1,304
Legal fees 177 177 573
Bank charges 665 665 653
Training 412 412 197
80,672 80,672 38,733
Total2022 38,733 38,733

Page 28

THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

11. Auditors’ remuneration

2023 2022
£ 7
Fees payable to the Charity's auditor forthe audit of the Charity's annual
accounts 7,300 7,000

12. Staff costs

. Group Group Charity Charity
2023 2022 2023 2022
£ E £ £
Wages and salaries 154,573 146,218 16,555 16,144
Social security costs 10,876 9,312 1,680 1,665
Contribution to defined contribution pension
schemes 6,599 6,236 - -
172,048 161,766 18,235 17,809

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

Group Group Charity Charity
2023 2022 2023 2022
No. No. No. No.
Employees 4 4 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 (2022: ENil).

13. Trustees' remuneration and expenses

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

During the year ended 31 August 2023, expenses totalling £404 were reimbursed or paid directly to 1 Trustee (2022 - £Ni/).

Page 29

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

14. Tangible fixed assets

Group

Plant and Motor Fixtures Office
machinery vehicles and fittings equipment Total
£ £ £ £ £
Cost or valuation
At 1 September 2022 609,420 969,154 17,331 10,283 1,606,188
Additions 50,506 - - 1,382 51,888
Disposals (6,750) - - (1,250) (8,000)
At 31 August 2023 653,176 969,154 17,331 10,415 1,650,076
Depreciation
At 1 September 2022 399,729 356,006 14,604 10,283 780,622
Charge for the year 40,185 100,818 484 16 141,503
On disposals (6,750) - - (1,250) (8,000)
At 31 August 2023 433,164 456,824 15,088 9,049 914,125
Net book value
At 31 August 2023 220,012 512,330 2,243 1,366 735,951
At31August2022 209,691 613,148 2,727 - 825,566

Page 30

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

14. Tangible fixed assets (continued)

Charity

Plant and Fixtures and
machinery fittings Total
£ £ £
Cost or valuation
At 1 September 2022 17,319 17,331 34,650
At 31 August 2023 17,319 17,331 34,650
Depreciation
At 1 September 2022 289 14,604 14,893
Charge forthe year 1,732 484 2,216
At 31 August 2023 2,021 15,088 17,109
Net book value
At 31 August 2023 15,298 2,243 17,541
At 31August2022 17,030 2,727 19,757

/

Page 31

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
15. Investment property
Group
Freehold
investment
property
£
Valuation
At 1 September 2022 19,331,750
Additions 435,198
At 31 August 2023 19,766,948
Charity
Freehold
investment
property
£
Valuation
At1September2022 19,331,750
Additions 435,198
At31August2023 19,766,948

The investment properties were valued in 2020 by T W Corfield and T S Evans, 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 2023 to remain appropriate.

Page 32

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

16. Fixed asset investments

Listed Unlisted
investments investments Total
Group £ £ £
Cost or valuation
At1 September 2022 8,869,810 50 8,869,860
Additions 1,430,086 - 1,430,086
Disposals (1,325,028) - (1,325,028)
Revaluations (281,968) - (281,968)
At 31 August 2023 8,692,900 50 8,692,950
Net book value
At 31 August 2023 8,692,900 50 8,692,950
At31 August2022 8,869,810 50 8,869,860
Investments
in
subsidiary Listed
companies investments Total
Charity £ £ £
Cost or valuation
At1September2022 387,387 8,869,810 9,257,197
Additions - 1,430,086 1,430,086
Disposals - (1,325,028) (1,325,028)
Revaluations - (281,968) (281,968)
At 31 August2023 387,387 8,692,900 9,080,287
Net book value
At 31 August 2023 387,387 8,692,900 9,080,287
At31August2022 387,387 8,869,810 9,257,197

Page 33

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THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

17. Stocks

Group Group
2023 2022
£ £
Crops in store 236,423 213,158
Growing crops 166,967 121,956
Consumables 52,920 62,348
456,310 397,462

18. Debtors

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Due within one year
Trade debtors 61,299 36,016 27,304 2,913
Amounts owed by group undertakings - - - 224,976
Other debtors 31,193 23,355 - 13,046
Prepayments and accrued income 135,206 179,691 25,936 37,547
227,698 239,062 53,240 278,482
Creditors: Amounts falling due within one year
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ B
Trade creditors 79,082 123,169 41,574 56,660
Amounts owed to group undertakings - - 15,712 -
Other taxation and social security 25,476 - 25,476 -
Obligations under finance lease and hire
purchase contracts 57,558 57,558 - -
Other creditors 674,115 468,644 674,115 468,644
Accruals and deferred income 51,156 56,136 20,988 16,300
887,387 705,507 777,865 541,604

19. Creditors: Amounts falling due within one year

THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

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

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Net obligations under finance lease and hire
purchase contracts - 57,558 - -
Other creditors 912,779 569,539 912,779 569,539
912,779 627,097 912,779 569,539
21. Financial instruments
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ Ee
Financial assets
Financial assets measured at fair value
throughincomeandexpenditure 1,177,190 1,634,263 1,025,612 1,319,133

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

==> picture [1 x 2] intentionally omitted <==

----- Start of picture text -----
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Page 36

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

22. Statement of funds

Statement of funds - current year

Balance at 1 Balance at
September Gains/ 31 August
2022 Income Expenditure (Losses) 2023
£ £ £ £ £
Unrestricted funds
General Funds 15,314,065 1,162,349 (1,706,995) 201,487 14,970,906
Funds retained in subsidiary 3,445,261 382,077 (243,572) - 3,583,766
Revaluation reserve 11,205,983 - - (503,774) 10,702,209
29,965,309 1,544,426 (1,950,567) (302,287) 29,256,881
Statement offunds - prior year
Balance at Balance at
1 September Transfers Gains/ 31 August
2021 Income Expenditure in/out (Losses) 2022
£ £ £ £ £ £
Unrestricted
funds
General Funds 15,573,414 616,839 (422,152) (614,157) 160,121 15,314,065
Funds retained
in subsidiary 3,330,104 913,380 (798, 223) - - 3,445,261
Revaluation
reserve 11,097,622 - - 614,157 (505,796) 11,205,983
30,001,140 1,530,219 (1,220,375) - (345,675) 29,965,309

Page 37

THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

23. Summary of funds

Summary of funds - current year

Balance at 1 Balance at
September Gains/ 31 August
2022 Income Expenditure (Losses) 2023
£ £ £ £ £
General funds 29,965,309 1,544,426 (1,950,567) (302,287) 29,256,881
Summary offunds- prioryear
Balance at Balance at
1 September
2021		 Income Expenditure Transfers
in/out		 Gains/
(Losses)		 31 August
2022
£ £ £ £ £ £
Generalfunds 30,001,140 1,530,219 (1,220,375) - (345,675) 29,965,309

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted Total
funds funds
2023 2023
£ £
Tangible fixed assets 735,951 735,951
Fixed asset investments 8,692,950 8,692,950
Investment property 19,766,948 19,766,948
Current assets 1,861,198 1,861,198
Creditors due within one year (887,387) (887,387)
Creditors due in more than one year (912,779) (912,779)
Total 29,256,881 29,256,881

Total

Page 38

THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

24. Analysis of net assets between funds (continued)

Analysis of net assets between funds- prior year

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|||||||||| |---|---|---|---|---|---|---|---|---| |Unrestricted|Total| |funds|funds| |2022|2022| |£|£| |Tangible|fixed|assets|825, 566|825, 566| |Fixed|asset|investments|8,869, 860|8,869, 860| |Investment|property|19,331,750|19,331,750| |Current|assets|2,270,737|2,270,737| |Creditors|due|within|one|year|(705,507)|(705,507)| |Creditors|due|in|more|than|one|year|(627,097)|(627,097)| |Total|29,965,309|29,965,309|

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

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Group|Group| |2023|2022| |£|£| |Net|expenditure|for|the|year|(as|per Statement|of|Financial|Activities)|(708,428)|(35,831)| |Adjustments|for:| |Depreciation|charges|141,503|132,513| |Gains|on|investments|281,968|372,779| |Dividends,|interests|and|rents|from|investments|(9,952)|(630)| |Profit|on|the|sale|of fixed|assets|(6,150)|(14,300)| |Increase|in|stocks|(58,848)|(75, 889)| |Decrease|in|debtors|11,364|51,752| |Increase/(decrease)|in|creditors|525,120|(23,199)| |Net cash|provided|by|operating|activities|176,577|407,195|

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THE MORLEY AGRICULTURAL FOUNDATION

(A Company Limited by Guarantee)

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

26. Analysis of cash and cash equivalents

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Group Group
2023 2022
£ £
Cash in hand 1,043,585 1,374,620
Cash held by investment broker 130,133 259,594
Total cash and cash equivalents 1,173,718 1,634,214
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27. Analysis of changes in net debt

At 1
September At 31
2022 Cash flows August2023
£ £ £
Cash at bank and in hand 1,634,213 (457,023) 1,177,190
Finance leases (115,116) 57,558 (57,558)
1,519,097 (399,465) 1,119,632

28. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £Nil (2022 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.

29. Operating lease commitments

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

Group Group
2023 2022
£ £
Not later than 1 year 64 231

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THE MORLEY AGRICULTURAL FOUNDATION (A Company Limited by Guarantee)

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

30. Related party transactions

During the year ended 31 August 2023, rent was charged to Morley Farms Limited (a wholly owned subsidiary) of £239,000 (2022: £239,000) and a grant was paid to the company of £30,000 (2022: £27,500). At 31 August 2023 there was a loan due to Morley Farms Limited of £15,712 (2022: £224,976 due from), which is repayable on demand. Interest of £Nil (2022: £3,039) was chargeable on this loan.

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 £9,000 (2022: £1,500). During the year subscription fees and other purchases paid to Agrifood Charities Partnership were £12,300 (2022: £300).

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 £2,255 (2022: £Nil). £1,515 remained payable at the year end (2022: £Nil).

During the year, no Directors received any remuneration or other benefits (2022: £Nil). Expenses of £404 were reimbursed to 1 Director during the year (2022: £Nil).

31. Controlling party

The company is controlled by the Trustees listed on page 1.

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