## John Innes Foundation
Report and Financial Statements
Year ended: 31st March 2023
Charity no: 1111527
Company no: 05574485
Page **1** of **33**
|**INDEX**|**Page**|
|---|---|
|Report of the trustees|3-11|
|Independent auditor’s report|12-14|
|Consolidated statement of financial activities|15|
|Consolidated balance sheet|16|
|Charity aggregated balance sheet|17|
|Consolidated statement of cashflows|18|
|Consolidated summary income and expenditure account|18|
|Accounting policies and notes to the financial statements|19-33|
Page **2** of **33**
## **Report of the trustees for the year ended 31st March 2023 (incorporating the Directors’ report)**
- 1.1 The trustees (who are also the directors for the purposes of company law) present their annual report and financial statements of the charity for the year ended 31st March 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019. For registration and accounting purposes under the Charities Act 2011 the charity registration number 111527 applies to both John Innes Foundation (“The Charitable Company” or “JIF”) and John Innes Foundation Trust (“The Trust”), together with subsidiary entities this comprises “The Charitable Group”.
## **Objectives and activities for the public benefit**
- 2.1 The John Innes Foundation is a charity supporting education and research and fostering commercial innovation for the benefit of agriculture, the environment and society through:
(i) the provision of premises and facilities for research and the dissemination of the results of such research and assistance with the provision of funding for staffing, studentships, scholarships, professorships or bursaries in collaboration mainly with the John Innes Centre and other organisations located on the Norwich Research Park, and the University of East Anglia.
(ii) the application of a yearly sum of not less than £500 or such other sum as the Commission may from time to time in writing approve in or towards maintaining or providing scholarships to be called "John Innes Scholarships" to be awarded in accordance with rules to be made from time to time by the Governors of Rutlish School in the London Borough of Merton.
- 2.2 Also, the provision of facilities in the interests of social welfare for recreation and leisure-time occupation of children and young persons in the London Borough of Merton; and such other charitable purposes as are required in the Law of England and Wales as the Trustees think fit.
- 2.3 The trustees (who are directors of the Charitable Company) confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives, in planning future activities, setting the grant making policy for the year and in measuring the impact of the range of activities supported by JIF.
- 2.4 The charitable company owns 100% of the share capital of John Innes Bioprospects Limited ("JIB"), which was set up to carry out commercial activities that support the charitable company's aims. JIB was dormant during the year ended 31st March 2023.
- 2.5 JIF is a member of Anglia Innovation Partnership LLP ("AIP LLP") through its investment via JIB and also through ownership of freehold land at Norwich Research Park leased to AIP LLP on a peppercorn basis. The aim is to exploit the full value of the land working in collaboration with AIP LLP (which is responsible for facilitating the further development of a world class research park in Norwich) in pursuance of the Foundation's charitable objectives.
## **Grant making policy**
- 3.1 JIF and the Trust in part further their charitable purposes for the public benefit through its grant making policy which aims at:
- 3.1a making its land and buildings on the Norwich Research Park, Colney, Norwich available for scientific research by John Innes Centre ("JIC"), and other research institutes and organisations.
- 3.1b provision of studentships and fellowships.
- 3.1c fostering a collaborative culture at Norwich Research Park by working with the Institutes to introduce and fund new cross park research projects.
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- 3.1d maintaining as an educational resource the Historical Collections of botanical books and other material which illustrate the history of botany and genetics and which includes the archives of JIC.
- 3.1e making an annual donation of a 'John Innes Scholarship' to be awarded by the Governors of Rutlish School
- 3.1f leasing the 'John Innes Youth Centre' premises in Merton to the YMCA as a programme related investment.
- 3.2 JIF and the Trust carry out this programme, enabling others to provide benefit on their behalf, through partnerships with institutions. In particular, the Trust has concentrated on developing the existing partnerships primarily with the John Innes Centre in Norwich (registered charity 223852) a closely related educational charity and world leading scientific institute undertaking fundamental research on plants and microbes.
- 3.3 As part of JIF’s assessment in achieving public benefit, Trustees receive regular reports and briefings from grant recipients on research and educational advancement. This monitoring, which follows Charity Commission guidance, is reviewed at each Trustee meeting. Trustees also assess the impact of grants made on an annual basis and are satisfied JIF achieves its objective to deliver public benefit.
## **A review of our achievements and performance: How our grants and research programmes deliver public benefit.**
- 4.0 Land and buildings detailed in 3.1a above are leased on concessionary terms and are ‘programme related’ investments in the Norwich Research Park complex contributing to JIF’s aims and objectives. This enables lessees to maximise resources in undertaking scientific research. The value of concessions was last estimated at £1,552,050 in October 2021.
- 4.1 The following reviews grants and commitments for the year (notes 3a and 3b to the accounts).
- 4.1a **Studentships**
|4.1a
**Studentships**||||
|---|---|---|---|
||**Year**|**ended 31/03/23**|**£'s**|
||**Committed**|**Paid**|**Accrual c/f**|
|**JIC Studentships (John Innes Foundation PhD Programme in Plant**
**and Microbial Sciences)**|1,142,500|446,421|2,610,000|
JIC attracts students of the highest calibre from within the UK and abroad, as the programme nurtures tomorrow’s scientists enhancing knowledge of healthy plant development and threats from the natural environment. There are currently 21 students (11 UK) throughout the 4-year programme with JIF committing substantial financial support. Website jic.ac.uk
## 4.1b **Research & Development Grants**
|4.1b**Research & Development Grants**||
|---|---|
|JIC Chris Leaver Fellowship
JIC Sir Ben Gill Fellowship
AIP
UEA Norwich Institute for Sustainable Development
Earlham Institute Data Driven Science
Quadram Institute Amylose Research|**Year ended 31/03/23 £'s**
**Committed**
**Paid**
**Accrual c/f**
(1)
74,297
56,717
-
86,762
212,343
123,250
56,850
66,400
(12,000)
150,000
400,500
75,263
69,593
234,748
22,350
45,725
11,174|
||208,862
483,227
981,882|
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**JIC Chris Leaver Fellowship** - a 5-year research project to 2023 with total JIF funding of £410,960 focusing on starch synthesis in plants at the molecular level, in light of concerns around diet, nutrition and healthy living.
**JIC Sir Ben Gill fellowship** - a 5-year project to 2026 with total JIF funding of £386,061 to consolidate the outputs of JIC’s pea research with a vision to accelerate outputs of new pea varieties with industry demands for pea protein to supplement other food staples, and to meet changing dietary requirements for better health.
**AIP LLP -** Seed Fund Enterprise provides early-stage capital to new projects that are assessed as having the potential to aid world food development and associated health issues.
**University of East Anglia, Norwich Institute for Sustainable Development** - a 5-year project to 2026 with total JIF funding of £750,000 providing for two fellows to intensify collaboration with JIC and other bodies facilitating joint projects with regard to agriculture in developing countries and the use of agricultural technologies.
**Earlham Institute Fellowship in data driven science -** a 4-year project to 2026 with total JIF funding of £333,204 contributing to closing a recognised skills gap in computational biology aiding important national and global future developments in agricultural traits.
**Quadram Institute Amylose Research Fellowship** - a 2-year project to 2023 with total JIF funding of £160,908 to produce high resistant starch content with favourable nutritional characteristics that can then be used as the basis for future projects to transfer knowledge into crop plants and future commercialisation in functional health-promoting foods.
## 4 **.** 1c **Education Grants**
|Agricultural Bursaries
JIC Undergraduate Summer School
JIC Women of the Future
Food Farming Discovery Trust supporting schools’ education
LEAF Education schools project
JIC Year in Industry supporting science education
SAW Trust
Other education grants|**Year ended 31/03/23 £'s**
**Committed**
**Paid**
**Accrual c/f**
37,000
27,750
9,250
102,600
20,000
102,600
20,500
3,000
22,000
20,000
-
18,000
-
2,668
20,168
-
10,000
10,000
-
16,450
16,450
-|
|---|---|
||189,218
135,368
133,850|
**Agricultural bursaries** assist with degree education funding of four financially disadvantaged students from non-traditional farming backgrounds, at the Royal Agricultural University and Newcastle University.
**JIC International Undergraduate School** - 5-year funding to 2027 total £102,600 gives undergraduates experience for 8 weeks each summer in plant and microbial science, interacting with world-leading scientists and gaining unrivalled insight into research.
**JIC Women of the Future -** a 4-year funding to 2026 total of £20,500, an annual event inspiring the next generation of female STEMM professionals.
**Other educations grants** are provided to organisations providing education to young persons opening up career pathways in agriculture and research environments critical to future world food supplies and public health.
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## 4.1d. **Other Grants**
|4.1d.**Other Grants**||
|---|---|
|JIC Rare Books Collection - administration
JIC recreation and sporting facilities for staff and student
welfare
JIC Student Voice - social, academic, wellbeing and training
support
AIP Seed Enterprise Fund transferred to Research &
Development
Other grants|**Year ended 31/03/23 £'s**
**Committed**
**Paid**
**Accrual c/f**
27,642
19,555
13,049
25,186
25,186
-
12,000
12,000
-
(75,000)
-
17,085
7,785
10,001|
||6,913
64,526
23,050|
## **Financial review**
- 5.1 JIF’s and the Trust's work is reliant on income and investment returns from their endowments. The capital value and capital gains of endowed investments is protected in so much that it cannot be used for grant disbursement, income however is transferred to non-endowed funds.
- 5.2 Income and capital gains from unendowed funds are available for charitable purposes of JIF and the Trust.
- 5.3 The charitable group had total income of £1,317,852 (2022: £1,143,152). Direct expenditure excluding depreciation amounted to £1,845,064 (2022: £987,460) and depreciation £338,123 (2022: £338,123) was charged to the financial statements for the year, resulting in a net deficit of £865,335 (2022 deficit: £182,431) before investment results.
- 5.4 There was a net loss of £2,032,663 (2022 gain: £2,401,007) in the value of portfolio managed listed investments (see note 9 to the accounts), resulting in a decrease of £2,897,411 (2022 increase: £1,979,802 in total funds).
- 5.5 In the opinion of the trustees, the market value of the land and buildings at 31st March 2023 would exceed the book value included in the financial statements, but they are unable to quantify this excess in the absence of a full professional valuation, the costs of which are not considered justifiable.
## **Investment policy and performance**
- 6.1 The value of the charitable group's market investments (net of fees and movements in cash held in brokers accounts) decreased by £2,032,663 (2022: £2,401,007) during the year ending 31st March 2023 and generated £1,091,270 (2022: £976,137) in dividends and interest. This represents an income stream of 2.9% (investment income / opening balance of market invested funds) (2022: 2.8%). The overall return for the year (net gains/losses on investments plus investment income less investment management fees as a percentage of opening balance of market invested funds) was -2.7% (2022: 9.1%).
- 6.2 Rathbones Investment Management Limited, Quilter Cheviot and Barratt & Cooke have managed the JIF portfolio during the year ended 31st March 2023. Investment reports are provided quarterly. JIF has an Investment Sub Committee (ISC) to carry out policy in line with Charity Commission guidance, and investment managers meet with the ISC annually to agree requirements for the following year (and at other times as necessary) within the general requirement to maintain capital values while increasing income generation.
- 6.3 The charity is a long-term investor and, on professional advice, continue to hold a mixed portfolio of equities, bonds, cash and other investments designed to provide a stable level of income and the possibility of investment gains. The returns in 6.1 compare with (for the same period) the MSCI PIMFA Private Investor Balanced total return index -3.2%.
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## **Risk management**
- 7.1 The principal risks faced by the Charitable Group lie in the performance of investments and operational risks from ineffective grant making and the capacity of the Charitable Group to make effective grants.
- 7.2 The trustees consider variability of investment returns on endowed and non-endowed funds to constitute the Charitable Group’s major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio.
- 7.3 The operational risk from ineffective research and student grant awards that are not consistent with the advancement of education is managed by firstly retaining trustees of sufficient skill and expertise and secondly through the quality of the institutions, particularly JIC, and their rigorous selection of the people who we support. A thorough process of reporting and reviewing the progress of students has been introduced which assists us in measuring the effectiveness and impact of JIF's support for education in agriculture, horticulture and biotechnology. This review process retains our focus on the public benefit derived from our funding of their work.
- 7.4 Operational risk covering both income and expenditure is also managed with the preparation of net movement in funds and cashflow forecasts, regular monitoring of actual performance against these forecasts and ensuring that adequate liquid resources are in place to meet the requirement s of the business.
- 7.5 The Charitable Group maintains liability insurance for its trustees and officers as permitted by section 233 of the Companies Act 2006. The Charitable Group's insurance policy does not provide cover in the event that a trustee or officer is proved to have acted fraudulently or dishonestly.
- 7.6 The Trust holds a library collection of books and papers. The assets were acquired in past accounting periods and not capitalised. The value of such assets is excluded from the balance sheet reflecting the fact that reliable cost information is not available and conventional valuation approaches lack sufficient reliability. It is also assessed that the inclusion of such information would provide very limited (if any) additional benefit to users of the accounts in assessing the trustees' stewardship of the assets. The library collection is under the guardianship of John Innes Centre who employ an archivist, the cost to which JIF contributes. JIC is also responsible for insurance, valuation for insurance purposes at 31st March 2023 was £2,731,700.
- 7.7 The Charity has generated sufficient financial resources from its activities and holds a significant level of funds. Notwithstanding the financial impact occurring from the conflict in Ukraine, Trustees believe that the Charity is well placed to manage its activities and financial risks successfully. The situation in Ukraine and its effects on the global economy is still evolving but the financial impacts on JIF as a charity are balanced by its diverse portfolio and fund management.
- 7.8 In this context Trustees have also reviewed forecasts for the next 1 to 5 years from the date of approving these financial statements to confirm the resilience of the Charity, consulting with all investment managers on future prospects with regard to portfolio structures and returns.
- 7.9 Trustees do not consider that there has been any other significant increase in risks during the year and that funds have been applied appropriately. A risk register is maintained and reviewed at each Trustee meeting.
.
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## **Reserves Policy**
- 8.1 The reserves policy of the trustees is that the aggregated reserves of the Charitable Company and The Trust shall be sufficient to ensure that, when invested by the appointed investment manager, they shall produce sufficient income to fund budgeted costs each year and, over the long term, increase their capital value at least in line with inflation.
- 8.2 At 31st March 2023 the charitable group had free reserves (being unrestricted funds excluding unrestricted tangible fixed assets) of £2,408,522 (2022: £3,183,478) and this is considered sufficient for immediate needs. The fall in value is due to sums accrued in funding projects over the next 1-5 years and also loss on revaluation of investments.
- 8.3 At 31st March 2023 the charitable group held £38,331,761 (2022: £40,190,693) in endowment funds.
## **Plans for the future**
- 9.1 JIF is a founding member of Anglia Innovation Partnership LLP, which continues to provide a unique opportunity for the Charitable Group to primarily realise the potential of the land within JIF’s ownership at Norwich Research Park in pursuance of its Charitable Objectives. Along with the other two landowners at NRP (UEA and UKRI) JIF is looking to secure an investor to fund the delivery of new developments at NRP in ‘partnership’ with landowners. The intention is that the associated legal agreement will enable the landowners to retain the control necessary to ensure the vision of all Members of AIP is achieved at NRP.
- 9.2 Trustees applaud the level and quality of the science undertaken by JIC and other organisations in and around the Norwich Research Park with support agreed over varying periods as mentioned in 4.1 above and continue to review further opportunities to provide additional support of studentships at educational centres focused on agriculture, horticulture and biotechnology.
- 9.3 The Charitable Group continues to maximise its pursuit of charitable objectives via the effective use of its assets. The sale of 66 acres of land at Newfound Farm to Barratt Developments (BDW Trading Ltd) for the sum of £17,314,983 was completed in March 2019 with payment agreed in four annual tranches. The final payment of £2,462,757 net of associated costs was received in August 2022 (prior year debtor) net of associated costs.
- 9.4 BDW Trading Ltd has a 10 year Option Agreement dated 24[th] August 2018 to purchase 66 acres of Newfound Farm. Non-refundable fees of £155,000 and £20,000 have been paid by Barratt Developments (BDW Trading Ltd) and recognised in accounts year end 31st March 2019 and 2021 respectively. These 66 acres remain at cost in Land and Buildings pending determination of development potential. Should planning permission be obtained for residential development and the option exercised it is expected that there would be a material increase in the value of land to its present value of £30,000.
- 9.5 In 2020 Trustees agreed to contribute a capital sum of £4.5m to the proposed redevelopment of the John Innes Centre site (known as Next Generation Infrastructure – NGI). Heads of Terms currently being agreed include payments of £2.7m on 31st October 2024 and the balance of £1.8m on 31st January 2028. The project has secured substantial Government funding but given the conditionality associated with this proposal (most significantly that JIC’s wider bid for funding is successful and also with legal agreements not yet in place) this is not yet recognised as a commitment by JIF.
JIF may gain possession of certain existing buildings that will not be required as part of NGI. In which case, this will provide Trustees with the opportunity to increase further JIF’s reach and impact. Note 12 of the Financial Statements refers.
- 9.6 As part of the first phase of the NGI project, agreement in principle has been made by JIF on 20th September 2023 to part surrender of the lease dated 7th August 2012 to AIP, for land then to be leased to JIC at a peppercorn rent for the development of a new Norwich Bioscience Institutes Data Centre, the Data Centre then to be sub-let to Earlham Institute.
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## **Structure, governance and management**
- 10.1 John Innes Foundation is an independent charity (registered Charity No. 1111527) and a company limited by guarantee (registered no. 05574485).
- 10.2 The John Innes Foundation Trust's property and original investments prior to 1972 have been quantified and disclosed as Endowment Funds held on permanent endowment trust as stated in the 2005 Charity Commission scheme. The endowment funds of John Innes Foundation Trust are held by John Innes Foundation as trustee subject to the trusts contained in the 2005 Scheme under which income arising from the Endowment Funds are transferred to the John Innes Foundation.
- 10.3 The Charities Commission, in a Scheme dated 4th November 2005, issued a Uniting Direction such that the financial statements show the aggregation of the results of the John Innes Foundation ("the charitable company") and the John Innes Foundation Trust (" the trust "), combining the results as if they are one entity. The charitable company is sole trustee of the trust and accordingly is not the beneficial owner of the trust's assets.
- 10.4 The charitable company is governed by its Memorandum and Articles of Association, incorporated on 26th September 2005 and registered with the Charity Commission on 30th September 2005. New Articles of Association were adopted on 27th October 2015, further updated and adopted on 10th July 2018, and again on 28th January 2021.
- 10.5 The Trust does not actively fundraise and seeks to continue the legacy of John Innes and charitable work through the careful stewardship of its existing resources.
- 10.6 Trustees meet four times each year to agree the broad strategy and areas of activity for the Trust, including consideration of grant making, investment (more specifically managed by an Investment Sub Committee), reserves and risk management policies and performance. Financial budgets based on estimated incomes from investments are approved annually and reviewed at Trustee meetings to recognise available funds for grant disbursement.
- 10.7 An Investment Sub Committee comprising three trustees and Financial Administrator in the capacity of Secretary, The Sub Committee meets at least bi-annually with Investment Managers.
- 10.8 A Property Sub Committee was established by JIF in 2022/23 to provide appropriate oversight of JIF’s property assets in response to increasing activity in this area. This comprises three trustees and meets on a regular basis, as required by ongoing events.
- 10.9 A Remuneration Committee comprising one Trustee and two other independent persons govern Trustees remuneration.
- 10.10 The Trustees are selected to provide a range of business skills and understanding of the areas of activity undertaken by the charitable company. Briefings are received from appropriate experts on key issues facing the Trust.
- 10.11 The Trustees seek to follow the good practice as promulgated by (amongst others) the Charity Commission for England and Wales and has adopted the voluntary Charities Code of Governance. Trustees are encouraged to read the Charity Commission guidance and newsletters, and to attend courses designed to keep them abreast of their duties and responsibilities. The minimum number of trustees is three with no maximum as stated in the Memorandum and Articles of Association of 10th July 2018. Trustees are appointed, with reference to a skills matrix to ensure trustees collectively offer the wide range of appropriate skills needed to manage and operate JIF effectively and also to ensure compliance with its charitable objects. Appointments are for a fixed term of 5 years which may be renewed for further terms of 5 years subject to re-election.
- 10.12 Day to day administration is sub-contracted to the Clerk to Trustees and Financial Administrator.
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- 10.13 John Innes Centre is considered a related party of John Innes Foundation as Jason Vincent (non-trustee) sits on the Governing Council of John Innes Centre as JIF’s representative and one trustee (currently Tina Barsby) acts as an observer at JIC Governing Council meetings (note 16 to the accounts). Jason Vincent’s tenure ended 20th July 2023 and was replaced by William Kendall also non-trustee.
## **Key management personnel remuneration**
- 11.1 Trustees consider the board of trustees as comprising the key management personnel of the charity in directing and controlling the charity, assisted by a Clerk to Trustees and a Financial Administrator in running and operating the charity on a day-to-day basis.
- 11.2 Details of trustee remuneration and expenses and related party transactions are disclosed in notes 4, 5, 6 and 16 to the accounts. Remuneration is governed by the Remuneration Committee.
## **Reference and administration information Trustees:**
**T** he following served as Trustees (and Directors for the purposes of Company Law) during the year and/or as at the date of this report:
P D Innes (Chair of Trustees)
K R Norman
Dr D K Lawrence
D J McLeavy Hill
Dr T L Barsby OBE Professor R S Hails (Resigned 20th December 2022)
## **Registered Office:**
High House Farm, Gunn Street, Foulsham, Norfolk NR20 5RN
## **Auditors:**
Lovewell Blake LLP, Bankside 300, Peachman Way, Broadland Business Park, Norwich NR7 0LB
## **Solicitors:**
Mills & Reeve LLP, Botanic House, 100 Hills Road, Cambridge CB2 lPH
## **Investment Managers:**
Rathbone Investment Management Limited, 8 Finsbury Circus, London EC2M 7AZ Quilter Cheviot, Senator House, 85 Queen Victoria Street, London EC4V 4AB
Barratt & Cooke, 5 Opie Street, Norwich NR1 3DW
## **Clerk to Trustees:**
David Harvey, Harvey & Co, High House Farm, Gunn Street, Foulsham, Norfolk NR20 5RN
## **Financial Administrator:**
David Marshall ACMA, UKMarshall Ltd, 15 Seton Road, Taverham, Norwich, Norfolk NR8 6QE
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## **Trustees' responsibilities in relation to financial statements**
- 12.1 The trustees (who are also directors of John Innes Foundation for the purposes of company law) are responsible for preparing the report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
- 12.2 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently
- observe the methods and principles in the Charities SORP 2019 (FRS102)
- make judgments and accounting estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
- 12.3 The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 12 .4 The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
- 12.5 In so far as each of the trustees is aware:
- there is no relevant audit information of which the charitable group’s auditor is unaware
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Approved by the Trustees on 7th November 2023 and signed on their behalf by:
P D Innes Chair of Trustees
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## **Independent Auditor’s Report to the Members and Trustees of John Innes Foundation**
## **Opinion**
We have audited the financial statements of John Innes Foundation (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31st March 2023 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charity aggregated Balance Sheet, Consolidated Statement of Cashflows, Consolidated Summary Income and Expenditure account and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31st March 2023, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the report of the trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the report of the trustees which includes the directors’ report and prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the report of the trustees has been prepared in accordance with applicable legal requirements.
Page **12** of **33**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the report of the trustees (which includes the directors’ report prepared for the purposes of company law).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption in preparing the directors report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of 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:
- enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- performing audit work over the risk of management override of controls, testing of journal entries and other adjustments for appropriateness, evaluation of the rational of significant transactions outside the normal course of activity and reviewing material accounting estimates for bias.
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.
Page **13** of **33**
..
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and-ethics/auditors-responsibilities-for-the-audit/ This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed.
## **Tobias Wilson BA (Hons) FCA**
Senior Statutory Auditor for and on behalf of Lovewell Blake LLP Statutory Auditor, Chartered Accountants **Norwich**
Page **14** of **33**
## **Consolidated Statement of Financial Activities for the year ending 31st March 2023**
|**Note**
**Income and endowments from:**
Charitable activities
Other trading activities
Investments
2
**Total**
**Expenditure on:**
_Raising funds:_
Investment Manager costs
Legal and other Professional Fees
**Cost of raising funds**
_Expenditure on charitable activities:_
Grants and donations
3
Depreciation
Support and overhead costs
4
**Cost of charitable activities**
**Total expenditure**
Net income / (expenditure)
Net gains / (losses) on investments
9
Other recognised gains / (losses):
**Net movement in funds**
Reconciliation of funds:
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**Endowment**
**funds**
**Total funds**
**2023**
**Total funds**
**2022**
117,382
-
117,382
118,250
48,128
-
48,128
48,226
1,079,261
73,081
1,152,342
976,676|
|---|---|
||**1,244,771**
**73,081**
**1,317,852**
**1,143,152**|
||19,888
126,532
146,420
145,810
1,200
31,043
32,243
30,620|
||**21,088**
**157,575**
**178,663**
**176,430**
1,547,493
-
1,547,493
702,598
263,523
74,600
338,123
338,123
118,908
-
118,908
108,432|
||**1,929,924**
**74,600**
**2,004,524**
**1,149,153**|
||1,951,012
232,175
2,183,187
1,325,583|
||(706,241)
(159,094)
(865,335)
(182,431)
(332,238)
(1,700,425)
(2,032,663)
2,401,007
-
587
587
(238,774)|
||(1,038,479)
(1,858,932)
(2,897,411)
1,979,802
6,925,949
40,190,693
47,116,642
45,136,840|
||**5,887,470**
**38,331,761**
**44,219,231**
**47,116,642**|
Page **15** of **33**
## **Consolidated Balance Sheet as at 31st March 2023 Registered number 05574485**
|**Fixed assets:**
**Note**
Tangible assets
7
Investments
9
**Total fixed assets**
**Current assets:**
10
Debtors
Cash at bank and in hand
**Total current assets**
**Liabilities:**
11
Creditors: Amounts falling due within one
year
**Net current assets or liabilities**
**Total assets less current liabilities**
Creditors: Amounts falling due after more
than one year
11
**Net assets**
**The funds of the charity:**
13
Endowment funds
Unrestricted funds|**Unrestricted**
**funds**
**Endowment**
**funds**
**Total funds**
**2023**
**Total funds**
**2022**
3,478,948
1,170,100
4,649,048
4,987,171
5,273,619
33,577,015
38,850,634
38,458,037|
|---|---|
||**8,752,567**
**34,747,115**
**43,499,682**
**43,445,208**|
||140,703
-
140,703
2,962,450
900,152
3,585,906
4,486,058
4,538,644|
||**1,040,855**
**3,585,906**
**4,626,761**
**7,501,094**|
||(1,159,444)
(1,260)
(1,160,704)
(1,527,517)|
||**(118,589)**
**3,584,646**
**3,466,057**
**5,973,577**|
|||
||**8,633,978**
**38,331,761**
**46,965,739**
**49,418,785**|
||(2,746,508)
-
(2,746,508)
(2,302,143)|
||**5,887,470**
**38,331,761**
**44,219,231**
**47,116,642**|
||-
38,331,761
38,331,761
40,190,693
5,887,470
-
5,887,470
6,925,949|
||**5,887,470**
**38,331,761**
**44,219,231**
**47,116,642**|
Th e accompanying accounting policies and notes on pages 19 to 33 form an integral part of these financial statements.
Approved by the trustees on 7th November 2023 and signed on t heir behalf by:
PD Innes Chair of Trustees
Page **16** of **33**
## **Charity Aggregated Balance Sheet as at 31st March 2023 Registered number 05574485**
|**Note**
**Fixed assets:**
Tangible assets
8
Investments
9
**Total fixed assets**
**Current assets:**
10
Debtors
Cash at bank and in hand
**Total current assets**
Liabilities:
Creditors: Amounts falling due within one year
11
**Net current assets or liabilities**
**Total assets less current liabilities**
Creditors: Amounts falling due after more
than one year
11
**Net assets**
**The funds of the charity:**
13
Endowment funds
Unrestricted funds
Reconciliation of funds:
14
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Charitable**
**Company**
**Charitable**
**Trust**
**Unrestricted**
**funds**
**Endowment**
**funds**
**Total funds**
**2023**
**Total funds**
**2022**
3,478,948
1,170,100
4,649,048
4,987,171
5,273,619
33,577,015
38,850,634
38,458,037|
|---|---|
||**8,752,567**
**34,747,115**
**43,499,682**
**43,445,208**|
||140,703
-
140,703
2,962,450
900,152
3,585,906
4,486,058
4,538,644|
||**1,040,855**
**3,585,906**
**4,626,761**
**7,501,094**|
||(1,159,444)
(1,260)
(1,160,704)
(1,527,517)|
||**(118,589)**
**3,584,646**
**3,466,057**
**5,973,577**|
|||
||**8,633,978**
**38,331,761**
**46,965,739**
**49,418,785**|
||(2,746,508)
-
(2,746,508)
(2,302,143)|
||**5,887,470**
**38,331,761**
**44,219,231**
**47,116,642**|
||-
38,331,761
38,331,761
40,190,693
5,887,470
-
5,887,470
6,925,949|
||**5,887,470**
**38,331,761**
**44,219,231**
**47,116,642**|
||6,925,949
40,190,693
47,116,642
45,136,840
(1,038,479)
(1,858,932)
(2,987,411)
1,979,802|
||**5,887,470**
**38,331,761**
**44,219,231**
**47,116,642**|
The movement in funds of the charity (aggregated charitable company and charitable trust) for the financial year was (£2,897,411) (2022: £1,979,802)
The accompanying accounting policies and notes on pages 19 to 33 form an integral part of these financial statements.
Approved by the trustees on 7th November 2023 and signed on t heir behalf by:
PD Innes, Chair of Trustees
Page **17** of **33**
## **Consolidated Statement of Cash Flows for the year ending 31st March 2023**
|**Note**
**Net cash used in operating activities**
15
_Cash flows from activities:_
Interest and dividends
**Cash provided by investments and activities**
_Cash flows from other sources:_
Transfer to investment funds
**Change in cash and cash equivalents in the year**
Cash and cash equivalents brought forward
**Cash and cash equivalents carried forward**|**Total funds**
**2023**
**Total funds**
**2022**
**1,366,752**
**(1,303,223)**
1,152,342
976,676|
|---|---|
||2,519,094
**(326,547)**
(2,571,680)
(47,235)|
||**(52,586)**
**(373,782)**
4,538,644
4,912,426|
||**4,486,058**
**4,538,644**|
## **Consolidated Summary Income and Expenditure Account for the year ending 31st March 2023**
|Total income
Total expenditure
Gains/(losses) on investments
Other recognised gains/(losses)
Net income / expenditure for year|**2023**
**2022**
1,317,852
1,143,152
(2,183,187)
(1,325,583)
2,032,663)
2,401,007
587
(238,774)|
|---|---|
||**(2,897,411)**
**1,979,802**|
Detailed analysis of expenditure is provided in the statement of financial activities and notes 3 to 6.
The summary income and expenditure account is derived from the financial activities on page 15 which together with the notes to the financial statements on pages 19 to 33 provides full information on the movements during the year on all funds of the group.
Page **18** of **33**
## **Notes to the financial statements**
## **1. Accounting Policies**
## **a) Basis of preparation and assessment of going concern**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), Companies Act 2006 and the Charities Act 2011.
John Innes Foundation is a private charitable company limited by guarantee and is governed by its Memorandum and Articles of Association.
The Charities Commission, in a Scheme dated 4th November 2005, issued a Uniting Direction such that the financial statements should show the aggregation of the results of John Innes Foundation ("the charitable company") and the John Innes Foundation Trust ("the trust") for submission to the Commission. An aggregation combines the results of the two entities to report them as if they were one entity. The charitable company is sole trustee of the trust and accordingly is not the beneficial owner of the trust's assets. The Uniting Direction, contained in the 2005 Scheme, requires the charitable company to file one set of financial statements aggregating the results of the charitable company and the trust. Information in respect of the trust has been identified separately within these financial statements to allow proper identification of the assets and liabilities of the charitable company and its subsidiaries as required by the Companies Act 2006. The charity aggregated balance sheet and the related notes separately identify the assets relating to the Charitable Company and the Trust.
The charity constitutes a public benefit entity as defined by FRS 102.
The trustees consider that there are no material uncertainties about the charitable company and group’s ability to continue as a going concern. The charitable company and group have generated sufficient financial resources from its activities to allow the trustees to believe that the charitable company and group are well placed to manage their business risks successfully in the current economic climate. Accordingly, the trustees have a reasonable expectation that the charitable company and group have adequate resources to continue in operational existence for the foreseeable future, thus they continue to adopt the going concern basis of accounting in preparing the financial statements
## **b) Functional currency**
The functional and reporting currency is £ sterling.
## **c) Basis of consolidation**
The consolidated financial statements comprise the financial statements of John Innes Foundation and its subsidiary undertakings using acquisition accounting and aggregates the results, assets and liabilities of The John Innes Foundation Trust for which the charitable company is the sole trustee.
A separate statement of financial activities has not been included for John Innes Foundation by virtue of Section 408 of the Companies Act 2006. The net incoming resources for the year of John Innes Foundation are included in the consolidated statement of financial activities and the consolidated summary income and expenditure account.
## **d) Funds structure**
The charity has a single permanent endowment bestowed by John Innes in 1904 and established under a scheme of the Charities Commission in 1909 to carry out investigation and research whether of a scientific or practical nature, into the growth of trees and plants generally. The will of John Innes also secured funding as part of the endowment of the John Innes (Merton) Boys Club, and a donation to the Rutlish Foundation to fund scholarships to Rutlish School, Merton being the home of John Innes. A relocation of the charity to Norwich was agreed in 1963.
Page **19** of **33**
Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.
Under the Charity Commission 2005 Scheme income arising from the Endowment Funds is transferred to the John Innes Foundation unrestricted funds. Capital appreciation / depreciation and realised gains / losses in value remain with the endowed fund.
## **e) Income recognition**
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 the income receivable can be measured reliably.
Investment income is recognised on entitlement to the declared dividends and interest on cash deposits, and recognised on an accruals basis. One endowed investment portfolio is specific to fixed interest investments and structured for income to remain in the portfolio. Interest is included in investment income and reinvested back into capital under capital introduced.
Rental income is accounted for on a receivable basis.
BDW Trading Ltd has a 10 year Option Agreement dated 24[th] August 2018 to purchase 66 acres of Newfound Farm. Non-refundable fees of £155,000 and £20,000 have been paid by Barratt Developments (BDW Trading Ltd) and recognised in accounts year end 31st March 2019 and 2021 respectively. These 66 acres remain at cost in Land and Buildings pending determination of development potential. Should planning permission be obtained for residential development and the option exercised it is expected that there would be a material increase in the value of land to its present value of £30,000.
## **f) Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (h) below.
Grants payable are payments to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Trust.
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.
## **g) Irrecoverable VAT**
Irrecoverable VAT is charged against the expenditure heading for which it was incurred **.**
## **h) Allocation of support and governance costs**
Governance costs comprise all costs involving the public accountability of the charitable company and its compliance with regulation and good practice. These costs include those related to the statutory audit, any legal fees incurred for advice to the trustees and an apportionment of support and overhead costs. Support costs and overheads have been allocated between charitable activities and governance. Costs are allocated on the basis of a best estimate of the purpose of expenditure.
## **i) Cost of raising funds**
The costs of generating funds consist of investment management costs and certain legal fees.
Page **20** of **33**
## **j) Charitable activities**
Costs of charitable activities include grants made, governance costs and an apportionment of support costs as shown in notes to the accounts.
## **k) Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost subject to depreciation and impairment.
Depreciation is provided by the charitable company tto write off the cost less estimated residual value of tangible fixed assets by equal instalments over the estimated useful economic lives as follows:
Freehold land Not depreciated
Freehold buildings Originally 34 to 50 years but subsequently amended with changes in valuations and lease terms.
Expenditure on freehold buildings is financed (in part) by grants from other granting bodies. In accordance with the Charities SORP, the amount so expended on fixed assets is capitalised and grants received by the charitable company are included within general funds (having been expended in accordance with the grant conditions).
## **I) Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the bid price at the year-end date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The Trust does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## **m) Heritage assets**
The charity holds a library collection of books and papers. The assets were acquired in past accounting periods and not capitalised. The value of such assets is excluded from the balance sheet reflecting the fact that reliable cost information is not available and conventional valuation approaches lack sufficient reliability. It is also assessed that the inclusion of such information would provide very limited (if any) additional benefit to users of the accounts in assessing the trustees' stewardship of the assets. However, it should be noted that their valuation for insurance purposes (insured by JIC) is £2,731,700.
## **m) Realised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.
Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## **n) Pensions**
There are no employees of the charity.
Page **21** of **33**
## **o) Contingent liabilities**
A contingent liability is identified and disclosed for those grants resulting from:
- a possible obligation which will only be confirmed by the occurrence of one or more uncertain future events not wholly with in the trustees' control; or
- a present obligation following a grant offer where settlement is either not considered probable; or
- the amount has not been communicated in the grant offer and that amount cannot be estimated reliably
## **p) Programme related and mixed motive investments**
A programme related investment is an asset held by the group in order to directly further the charitable purposes of the investing charity. Any financial return obtained is incidental to the primary reason for making the investment. Such assets include those held to further the charitable aims of the charity by funding specific activities or related tangible fixed assets of a third party which, in turn, contribute to the investor's own charitable purposes. Such assets are measured at amortised cost and are assessed for objective evidence of impairment at the end of each reporting period. Such an assessment takes account of their service potential in pursuit of charitable objects.
Where an apportionment of value between a property asset held for financial return and for non-financial motives (mixed motives) is impractical, the whole asset is classed as a fixed asset.
## **q) Estimations and accounting judgements**
In the application of accounting policies, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period or in the period of the revision and future periods if the revision affects current and future periods.
The areas which require the exercising of judgement and reflect a degree estimation uncertainty relate to:
- the fixed assets: determination of useful economic lives and classification as programme related investments (note k above and notes 7,8 and 9).
- investments: the assessment of impairment risk relating to the investment in Anglia Innovation Partnership LLP ('AIP LLP' ) and its classification as a programme related investment (note l above and note 9).
- grants: the point at which such grants should be recognised as outgoing expenses when there are conditional terms attached thereto (note 12 concerning material amounts not yet recognised).
In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year although given their nature such a risk exists.
Page **22** of **33**
## **2. Investment income**
|Investments
Bank Interest|**Unrestricted**
**funds**
**Endowed**
**funds**
**2023**
**2022**
**£**
**£**
1,018,189
73,081
1,091,270
976,137
61,072
-
61,072
539|
|---|---|
||1,079,261
73,081
1,152,342
976,676|
**3. Analysis of charitable expenditure - grants and donations**
## **3a: Grants Payable 2023**
|**Reconciliation of grants payable**
Commitments at 1st April 2022
Commitments made in the year
Grants cancelled or recovered
**Grants payable for the year (Note 3b)**
Grants paid during the year
**Commitments at 31st March 2023**
Within one year
After more than one year
**Grants Payable 2022**
**Reconciliation of grants payable**
Commitments at 1st April 2021
Commitments made in the year
Grants cancelled or recovered
**Grants payable for the year**
Grants paid during the year
**Commitments at 31st March 2022**
Within one year
After more than one year|**Studentships**
**Research**
**Education**
**Other**
**2023**
£
£
£
£
£
1,913,921
1,256,247
80,000
80,663
3,330,831
1,147,500
222,613
190,718
82,612
1,643,443
(5,000)
(13,751)
(1,500)
(75,700)
(95,951)
1,142,500
208,862
189,218
6,913
1,547,493
(446,421)
(483,227)
(135,368)
(64,526)
(1,129,542)|
|---|---|
||**2,610,000**
**981,882**
**133,850**
**23,050**
**3,748,782**|
||510,000
439,749
35,270
17,255
1,002,274
2,100,000
542,133
98,580
5,795
2,746,508|
||**2,610,000**
**981,882**
**133,850**
**23,050**
**3,748,782**|
||**Studentships**
**Research**
**Education**
**Other**
**2022**
£
£
£
£
£
1,906,530
1,743,314
93,750
104,823
3,848,417
430,000
43,500
113,320
122,828
709,648
-
-
(6,500)
(550)
(7,050)
430,000
43,500
106,820
122,278
702,598
(422,609)
(530,567)
(120,570)
(146,438)
(1,220,184)|
||**1,913,921**
**1,256,247**
**80,000**
**80,663**
**3,330,831**|
||443,921
424,104
80,000
80,663
1,028,688
1,470,000
832,143
-
-
2,302,143|
||**1,913,921**
**1,256,247**
**80,000**
**80,663**
**3,330,831**|
All costs were from unrestricted funds for both 2023 and 2022.
Page **23** of **33**
## **3b: Grant commitments agreed during the year**
## **Payable to**
|||
|---|---|
|**Purpose**
**Payable to**
**Studentships**
JIC
**Research and development**
Seed Fund Enterprise
AIP LLP
AIP LLP (Transferred from Other
Grants)
AIP LLP not utilised
Fellowship in Data Driven Science
Earlham Institute
Chris Leaver Fellowship
JIC (accrual adjustment)
Amylose research
Quadram Institute
Norwich Institute for Sustainable Development
UEA (accrual adjustment)
**Education Grants**
JIC Undergraduate Summer School
JIC
JIC Women of the Future
JIC
JIC Women of the Future
JIC (not utilised)
JIC Year in Industry
JIC
Annual grant as per Governing Document
Rutlish Foundation
Forest Garden Project
SAW Trust
Voice of Young Science Partnership 2023
Sense About Science
Norwich Cambridge Student Symposium
University of Cambridge
Agricultural Bursaries
Individuals
**Other Grants**
Seed Fund Enterprise Administrator
AIP
Seed Fund Enterpriise
AIP (Transferred to Research &
Development)
Rare Books Collection - administration
JIC
Rare Books Archivist
JIC
Student Support Activities
JIC
Recreation Centre Manager
JIC
Recreation Centre Refurbishment Review
JIC
Diversity Focused Lectures
JIC (not utilised)
Other
Other|**£**
**1,142,500**
50,000
75,000
(1,750)
75,263
(1)
22,350
(12,000)|
||**208,862**
102,600
22,000
(1,500)
2,668
1,000
10,000
8,450
7,000
37,000|
||**189,218**
10,000
(75,000)
12,695
14,947
12,000
18,016
7,170
(700)
7,785|
||**6,913**|
Page **24** of **33**
## **4. Analysis of support and overhead costs**
|_Support and overhead costs_
Trustee costs and expenses including meetings
Clerk to Trustees and Financial Administration
Auditor’s remuneration
Other professional fees
Insurances
Other costs|**2023**
**2022**
**£**
**£**
42,535
39,966
49,357
49,052
13,075
12,107
3,161
404
6,779
5,507
4,001
1,396|
|---|---|
||118,908
108,432|
All costs were from unrestricted funds for both 2023 and 2022
## **5. Governance costs**
|Trustees' remuneration
Trustees' indemnity insurance
Trustees' and clerk's expenses
Auditor's remuneration
Auditor’s remuneration - non audit fees
Clerk to Trustees and Financial Administrator’s Fees
Other support costs|**2023**
**2022**
**£**
**£**
37,575
37,000
6,779
5,507
4,960
2,966
13,075
12,107
3,161
404
49,357
49,052
4,001
1,396|
|---|---|
||118,908
108,432|
## **6. Trustees remuneration**
|P D Innes
K R Norman
D K Lawrence
D J McLeavey Hill
Dr T L Barsby
Professor R S Hails (Resigned 20thDecember 2022)|**2023**
**2022**
**£**
**£**
10,800
10,000
6,300
6,000
6,300
5,000
6,300
5,000
6,300
6,000
1,575
5,000|
|---|---|
||37,575
37,000|
Page **25** of **33**
The scheme for the charitable company agreed by the Charities Commission on 24th January 2018 following a review by the Remuneration Committee and application to the Charities Commission, authorises remuneration to a maximum payable of £40,000 subject to inflationary increases (2022/23 maximum payable £44,332) and incorporated within The Articles dated 10th July 2018, to be divided among Trustees in such amounts as approved by resolution of the Trustees and recommended by the charity's Remuneration Committee. No one Trustee is to receive more than 25% of the maximum.
The minimum number of trustees is 3 with no maximum as stated in the Memorandum and Articles of Association of 10th July 2018.
The 6 trustees (2022: 6) incurred an aggregate sum of £4,960 (2022: £2,966) for travel expenses and meeting costs.
Directors and officers liability insurance of £6,779 (2022: £5,507) was incurred in the year. There are considered to be no other Key Management Personnel in addition to the Trustees.
There were no employees and no individual earned over £60,000.
## **7. Consolidated tangible fixed assets**
|Cost at 1st April 2022
Additions
Disposals
At 31st March 2023
Depreciation at 1st April 2022
Charge for the year
At 31st March 2023
Net book value at 31st March 2022
Net book value at 31st March 2023|**Unrestricted**
**funds**
**Endowment**
**funds**
**Total funds**
**2023**
**£**
**£**
**£**
13,002,039
2,960,500
15,962,539
-
-
-
-
-
-|
|---|---|
||13,002,039
2,960,500
15,962,539|
||9,259,568
1,715,800
10,975,368
263,523
74,600
338,123|
||9,523,091
1,790,400
11,313,491|
|||
||3,742,471
1,244,700
4,987,171|
||3,478,948
1,170,100
4,649,048|
All tangible fixed assets are considered Program Related Investments, all being used by third parties congruent with charitable objectives.
During the year ended 31st March 2013 the Trustees reviewed the carrying value of the Earlham Institute within land and buildings above. The building was originally designed and built for a specific user and the trustees are pleased that it now continues to be used for scientific purposes. After taking professional advice regarding the value of the building it was identified that the current net book value was greater than the net realisable value and the value in use. Therefore, an impairment charge of £2.2m was identified and applied in 2013.
Endowed funds include £367,800 not depreciated being held at cost.
Page **26** of **33**
## **8. Charity aggregated tangible fixed assets**
The narrative given in note 7 with regard to consolidated fixed assets is equally applicable to those held by the Charity aggregated with the trust.
|he narrative given in note 7 with regard to consolidated
ggregated with the trust.|fixed assets is equally applicable to those held by the Charity|
|---|---|
|Cost at 1st April 2022
Additions
Disposals
At 31st March 2023
Depreciation at 1st April 2022
Charge for the year
At 31st March 2023
Net book value at 31st March 2022
Net book value at 31st March 2023|**Unrestricted**
**funds**
**Endowment**
**funds**
**Total funds**
**2023**
**£**
**£**
**£**
10,973,314
2,960,500
13,933,814
-
-
-
-
-
-|
||10,973,314
2,960,500
13,933,814|
||7,230,843
1,715,800
8,946,643
263,523
74,600
338,123|
||7,494,366
1,790,400
9,284,766|
|||
||3,742,471
1,244,700
4,987,171|
||**3,478,948**
**1,170,100**
**4,649,048**|
Page **27** of **33**
## **9. Investments**
|Listed investments and Cash
Investment in subsidiary undertaking
Provision
Investment in AIP LLP
**Listed investments and cash**
Market value brought forward
Capital introduced
Additions to investments
Disposal proceeds
Management fees
Gains on investments
**Investment portfolio consists of:**
Equities
Fixed interest securities
Alternative investments
Cash
Total|**Group**
**£**
38,017,634
-
-
833,000|**2023**
**Charity &**
**Trust**
**£**
38,017,634
1,083,001
(250,001)
-|**2022**
**Group**
**Charity &**
**Trust**
**£**
**£**
37,625,037
37,625,037
-
1,083,001
-
(250,001)
833,000
-|
|---|---|---|---|
||38,850,634|38,850,634|38,458,037
38,458,037|
|||**Cash**
447,524
2,571,680
(5,989,788)
4,292,210
(146,420)
-|**Portfolio**
**Total 2023**
37,177,513
37,625,037
-
2,571,680
5,989,788
-
(4,292,210)
-
-
(146,420)
(2,032,663)
(2,032,663)|
|||1,175,206|36,842,428
38,017,634|
||||**2023**
**2022**
**£**
**£**
24,481,456
27,480,548
7,533,348
4,948,111
4,827,624
4,748,855
1,175,206
447,523|
||||38,017,634
37,625,037|
The investment portfolios are balanced funds with no single shareholding more than 2.1 % (2022: 2.2%) of total fund value.
The following are the operating undertakings in which the charitable company held an interest during the year:
**Subsidiary undertaking Country of Registration Principal activity Class and percentage shares held** John Innes Bioprospects Limited England Holding Company 100% ordinary shares
John Innes Bioprospects Limited did not trade in the year and has net assets of £833,000 (being the investment in AIP LLP). Its registered office address is the same as that of JIF.
The provision against the investment in subsidiary undertakings has been made as the net assets of John Innes Bioprospects Limited solely comprise its investment as a partner in Anglia Innovation Partnership ('AIP' LLP). Management consider AIP LLP to be a mixed motive investment in that it is not primarily held for financial objectives. Premises and facilities are also provided for research which contributes to the charitable objectives of John Innes Foundation. The investment continues to contribute to the wider objects and purpose of the Group. No impairment is considered necessary at this time but is monitored annually.
As at 31st March 2023 there had been no division of profits agreed by the members of Anglia Innovation Partnership (2022: £nil). Consequently, no amounts were receivable by the group at that date in respect of profits earned by Anglia Innovation Partnership LLP (2022: £nil).
Page **28** of **33**
## **9. Analysis of current assets**
|
Prepayments and accrued income
Trade debtors
Sundry debtors - Newfound Farm
sale proceeds
Cash at Bank
**Analysis of current and long-term liabilities**
_Creditors under 1 year:_
Trade creditors
Sundry creditors – Newfound Farm
disposal costs
Tax and social security
Committed grants
Other accruals and deferred income
_Creditors over 1 year:_
Committed grants|||**2023**
**2022**
**Group**
**Charity &**
**Trust**
**Group**
**Charity &**
**Trust**
**£**
**£**
**£**
**£**
112,531
112,531
122,239
122,239
28,172
28,172
32,977
32,977
2,807,234
2,807,234
4,486,058
4,486,058
4,538,644
4,538,644|
|---|---|---|---|
||||4,626,761
4,626,761
7,501,094
7,501,094|
||||**Group**
**2023**
**Charity &**
**Trust**
**Group**
**2022**
**Charity &**
**Trust**
**£**
**£**
**£**
**£**
104,686
104,686
49,933
49,933
-
-
401,700
401,700
2,513
2,513
2,621
2,621
1,002,274
1,002,274
1,028,688
1,028,688
51,231
51,231
44,575
44,575|
||||1,160,704
1,160,704
1,527,517
1,527,517|
|||||
||||2,746,508
2,746,508
2,302,143
2,302,143|
## **10. Analysis of current and long-term liabilities**
Sundry creditors Newfound Farm disposal costs were discounted at a rate of 6% per annum having regard to rates of return on investments.
|Deferred income b/f
Transferred to income
Deferred in year (Earlham Institute advance rent invoiced)
Deferred income c/f|**2023**
**2022**
**£**
**£**
26,029
26,029
(26,029)
(26,029)
26,029
26,029|
|---|---|
||26,029
26,029|
Page **29** of **33**
## **12. Contingent assets and liabilities**
The agreement to sell 66 acres of 132 acres of Newfound Farm, Norwich to BDW Trading Ltd (BDW) included a contingency to fund up to £1m of required improvements to the Thickthorn interchange, Cringleford. This was a condition of the planning permission obtained by BDW and dependent on Highways England for implementation. This has now been crystalised at a figure of £344,477 (2021: £111,940 accrual made) and was deducted from the final stage payment received August 2022. This sum was accounted for under ‘Other recognised gains/losses’ within the Statement of Financial Activities in the year ended 31st March 2022 (the resulting figure of £238,774 therein adjusted for other professional costs calculated as a percentage of the final total sum received from BDW.
BDW Trading Ltd has a 10 year Option Agreement dated 24[th] August 2018 to purchase the remaining 66 acres of Newfound Farm. Non-refundable fees of £155,000 and £20,000 have been paid by Barratt Developments (BDW Trading Ltd) and recognised in accounts year end 31st March 2019 and 2021 respectively. These 66 acres remain at cost in Land and Buildings pending determination of development potential. Should planning permission be obtained for residential development and the option exercised it is expected that there would be a material increase in the value of land to its present value of £30,000.
In 2020 Trustees agreed to contribute a capital sum of £4.5m to the proposed redevelopment of the John Innes Centre site (known as Next Generation Infrastructure – NGI). Heads of Terms currently being agreed include payments of £2.7m on 31st October 2024 and the balance of £1.8m on 31st January 2028. The project has secured substantial Government funding but given the conditionality associated with this proposal (most significantly that JIC’s wider bid for funding is successful and also with legal agreements not yet in place) this is not yet recognised as a commitment by JIF. JIF may also gain possession of certain existing buildings that will not be required as part of NGI. In which case, this will provide Trustees with the opportunity to increase further JIF’s reach and impact.
There were no other Contingent Liabilities other than the above relating to either the group or the Charity and Trust in 2022.
## **13. Group and Charity analysis of net assets**
|**Year ended 31st March 2023**
Tangible fixed assets
Investments
Debtors due in 1 year
Cash at bank
Creditors due in 1 year
Creditors due after 1 year|**Unrestricted**
**fund**
**Endowment**
**Fund**
**Total**
**£**
**£**
**£**
3,478,948
1,170,100
4,649,048
5,273,619
33,577,015
38,850,634
140,703
-
140,703
900,152
3,585,906
4,486,058
(1,159,444)
(1,260)
(1,160,704)
(2,746,508)
-
(2,746,508)|
|---|---|
||5,887,470
38,331,761
44,219,231|
|**Year ended 31st March 2022**
Tangible fixed assets
Investments
Debtors due in 1 year
Cash at bank
Creditors due in 1 year
Creditors due after 1 year|**Unrestricted**
**fund**
**Endowment**
**Fund**
**Total**
**£**
**£**
**£**
3,742,472
1,244,700
4,987,171
5,625,746
32,832,291
38,458,037
155,216
2,807,234
2,962,450
830,476
3,708,168
4,538,644
(1,125,817)
(401,700)
(1,527,517)
(2,302,143)
-
(2,302,143)|
|---|---|
||6,925,949
40,190,693
47,116,642|
Page **30** of **33**
## **13. Group and Charity aggregated analysis of charitable funds**
|Endowment funds
Unrestricted funds
Total|**Bal B/fwd**
**Income**
**Expenditure**
**Gains/Losses**
**Other**
**recognised**
**losses**
**Fund C/fwd**
**£**
**£**
**£**
**£**
**£**
**£**
40,190,693
73,081
(232,175)
(1,700,425)
587
38,331,761
6,925,949
1,244,771
(1,951,012)
(332,238)
-
5,887,470|
|---|---|
||47,116,642
1,317,852
(2,183,187)
(2,032,663)
587
44,219,231|
## **15 Notes to the Consolidated Statement of Cashflows**
## **15a Reconciliation of net movement in funds to net cash flow from operating activities**
|Net movement in funds
Add back losses / deduct gains on investments
Investment income
Add back depreciation charge
Deduct Investment Management Fees paid from Broker Capital
Accounts
Decrease (increase) in debtors
Increase (decrease) in creditors
Net cash used in operating activities|**2023**
**2022**
£
£
(2,897,411)
1,979,802
2,032,663
(2,401,007)
(1,152,342)
(976,676)
338,123
338,123
146,420
145,810
2,821,747
(69,095)
77,552
(320,180)|
|---|---|
||**1,366,752**
**(1,303,223)**|
## **15b Analysis of Net Funds**
||**31st March 2022**|**Cashflows**|**31st March 2023**|
|---|---|---|---|
||**£**|**£**|**£**|
|Cash at Bank|4,538,664|(52,586)|4,486,058|
## **16** . **Related party transactions**
The charitable registration number within these financial statements represents both the Company and John Innes Foundation Trust ('the Trust') in line with a Uniting Direction from the Charity Commissioners dated 4th November 200
Transactions between the Charitable Company and the Trust during the year have been as follows:
- The Charitable Company, as part of the hive up from John Innes Bioprospects limited, had a lease of land from the Trust on which the building occupied by Earlham Institute (formerly known as the Genome Analysis Centre) was constructed. A new lease dated 2nd March 2015 commenced on 1st December 2014 between John Innes Foundation in its capacity as sole trustee of the John Innes Foundation Trust as landlord, and the Genome Analysis Centre (now the Earlham Institute) as tenant for a term of 25 years to 30th November 2039. The rent for the first year was £70,000, increasing to £100,000pa until the first rent review on 30th November 2019 at which time the rent increased to £112,689pa. However, the increase was waived by JIF for the first year following the rent review. The new rent therefore took effect on 1st December 2020.
- Pursuant to the 2005 Scheme the Charitable Company is entitled to all income arising on the trust's property and investments from 4th November 2005.
Page **31** of **33**
John Innes Centre is considered a related party of John Innes Foundation as Jason Vincent (non-trustee) sat on the Governing Council of John Innes Centre as JIF’s representative (replaced by William Kendall on 20th July 2023) and one trustee (currently Tina Barsby) acts as an observer at JIC Governing Council meetings.
## **Transactions between the entities can be summarised as follows:**
Paid and/or accrued by the Foundation to John Innes Centre:
|Grants for Studentships
Grant for Sir Ben Gill Fellowship
Grant Chris Leaver Fellowship
Grant for Year in Industry
Grant for Undergraduate Summer School
Grant for Women of the Future event
Grants for Staff welfare
Rare Books Administration
Rare Books Archivist
Rare books air conditioning
Diversity focused lectures
Recreation Centre Manager
Recreation Centre Refurbishment Review
**JIC total**|**2023**
**2022**
**£**
**£**
1,142,500
430,000
-
43,500
(1)
-
2,668
17,500
102,600
-
20,500
(6,500)
12,000
12,000
12,695
13,129
14,947
-
-
(550)
(700)
-
18,016
17,199
7,170
-|
|---|---|
||**1,332,395**
**526,278**|
In 2015/16, JIF completed a lease dated 27th July 2015 to JIC for terms of 60 years from 27th July 2015. A peppercorn rent is levied on this letting which is compliant with JIF's charitable objectives.
A creditor balance of £47,362 (2022: £37,073) was outstanding to JIC at the year end, and accrued grants of £3,016,708 (2022: £2,391,704).
A grant of £333,204 was committed to the Earlham Institute in 2020 with an additional £75,263 in 2023. £69,593 was paid in the year and £234,748 was outstanding at the year end.
During the year John Innes Foundation were due ground rents of £48,128 (2022: £48,226) from Anglia Innovation Partnership LLP ('AIP LLP') an entity the group holds an investment in. A balance of £7,875 (2022: £7,799) was outstanding at the year end. A grant of £75,000 was committed to AIP in 2022 toward a Seed Enterprise Fund with an additional £60,000 in 2023 (£10,000 of which relating to scheme administration). £56,850 was paid during the year and with £1,750 underutilised £76,400 was outstanding at the year end.
## **17. Lease and Tenancy Agreement income**
Lease dated 2nd March 2015 commencing 1st December 2014 to Earlham Institute (note 16) income £112,689 (2022: £104,284) with 5 yearly rent reviews. December 2019 kept at £100,000 for further 12 months and December 2020 uplifted to £112,689 per annum.
Farm Business Tenancy dated 1st August 2013 to Morley Farms Ltd at a rent of £1,515 per annum plus the annual Single Farm Payment (replaced by the Basic Payment Scheme in 2015). The tenancy agreement was replaced with new agreement dated 28th January 2020 and then 25[th] February 2021 for 2 years from 1[st] October 2020 to 30[th] September 2022 and again renewed 1[st] October 2023 for 1 year for £757 per annum being the remaining land area at Newfound Farm upon which BDW Trading Ltd has an option agreement (note 12). Income £4,693 (2022: £5,562) includes Basic Payment Scheme payments.
Page **32** of **33**
## **18. Members liability**
The Company is limited by guarantee. The liability to the members is limited to a sum not exceeding £10, being the amount each member undertakes to contribute to the assets of the charity in the event it is wound up which he, she or it is a member or within one year after he, she or it ceases to be a member.
Page **33** of **33**