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2021-03-29-accounts

Registered number: 7823588 Charity number: 1144528

National Institute of Agricultural Botany Trust

Trustees' Report and Financial Statements

For the Year Ended 31 March 2021

National Institute of Agricultural Botany Trust

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1 ‐ 2
Trustees' report 3 - 10
Independent auditors' report on the financial statements 11 ‐ 13
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 ‐ 39

National Institute of Agricultural Botany Trust

Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2021

Trustees J W Lewis,Chairman
Dr C W Looker
R Pemberton
J A Elliot
R A Macdonald(appointed 8 December 2020)
Dr H Ferrier(resigned 8 December 2020)
R C Butler(resigned 8 December 2020)
Company registered
number
7823588
Charity registered number
1144528
Registered office
93 Lawrence Weaver Road
Cambridge
CB3 0LE
Company secretary
Dr J McKee
Independent auditors
Crowe U.K. LLP
Statutory Auditors
55 Ludgate Hill
London
EC4M 7JW
Bankers
Barclays Bank plc
1 Churchill Place
Canary Wharf
London
E14 5HP
Solicitors
Birketts LLP
22 Station Raod
Cambridge
CB1 2JD
Ashton KCJ
Chequers House
77‐81 Newmarket Road
Cambridge
CB5 8EU
Property
Bidwells
Trumpington Road
Cambridge
CB2 2LD
St Andrews Bureau
18 Mill Road
Cambridge
CB1 2AD

Page 1

National Institute of Agricultural Botany Trust

Reference and Administrative Details of the Charity, its Trustees and Advisers (continued) For the Year Ended 31 March 2021

Strutt and Parker 66‐68 Hills Road Cambridge CB2 1LA Carter Jonas LLP One Station Square Cambridge CB1 2GA

Savills 132‐134 Hills Road Cambridge CB2 8PA

Page 2

National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2021

TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT STRATEGIC REVIEW

Background

The National Institute of Agricultural Botany was founded by Deed of Trust in 1919. It was regulated by a scheme made by the Secretary of State for Education and Science until 1998, when a new structure was agreed which saw the formation of two charities which would operate in tandem. The National Institute of Agricultural Botany Trust provide land, facilities and financial support to NIAB, which the Trust determine is the preferred vehicle to deliver its charitable objectives. The activities of the unincorporated Trust were transferred to a new charitable company of the same name in 2012.

The focus has been on the completion of state of the art research facilities, creating a Crop Science Campus on the outskirts of Cambridge.

The successful completion of a programme of re-investment has provided a new HQ Building off Lawrence Weaver Road, as well as the augmentation of facilities at the Park Farm Site.

These facilities will underpin crop science research, globally supporting the activities of NIAB, including the partnership with Cambridge University, the Crop Science Centre.

Mission and Vision

The specific objects of the National Institute of Agricultural Botany Trust are the promotion of agriculture, horticulture and arboriculture anywhere in the world by charitable means, including the provision of support to NIAB. (Charity No. 1064230).

NIAB’s mission is to support independent science-based research and information to support, develop and promote agriculture and horticulture; helping the industry to fulfil its potential in supplying food and renewable resources, while respecting the natural environment.

NIAB’s vision is to connect the science base and industry by providing an integrated research and knowledge transfer hub for the entire crop improvement pipeline.

Strategy

The strategy of the Trust is to support NIAB through the provision of land, facilities and finance for investment in scientific research. The current focus is on the provision of facilities, and in recent years the Trust has embarked on a programme of land sales and the renewal of the facilities which NIAB occupies.

Public Benefit

The Trust provides facilities, research funding and other support to NIAB, which has underpinned the provision of independent science-based research and information to agriculture. The Trust seeks to:

The Trustees are satisfied they have complied with their duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. Based on this guidance, and as described in this Trustees’ report, the Trustees believe the activities of the National Institute of Agricultural Botany Trust to be charitable in nature.

Page 3

Performance

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

Objectives Performance
Manage sale of properties held for sale and ensure cash flow
remains strong and with ongoing ability to support NIAB.
Darwin Green land sales next instalment received in July 2020
and the next due in July 2021.		 Sales of properties continues to complete on schedule.
Completion of Barn 4 construction on time and on budget. Barn
4 construction is scheduled to house agritech SME’s in
furtherance of NIAB’s charitable objectives.		 Funding was received from the Cambridge and Peterborough
Combined Authority to provide a new building comprising
incubator space (both office and lab) for start-up agritech
companies which will be managed by NIAB. Construction was
completed on time and in budget by March 2021.
Provision of funding for 2 Fellowships at the University of
Cambridge, supporting the Crop Science Centre which is the
alliance between NIAB and the University.		 Two Fellows have been appointed and funding will commence
when they are in position.
Provision of facilities, research funding and covenant support
to NIAB.		 The Trust continues to support NIAB in the provision of
facilities and research funding. The site development activities
have provided new and replacement facilities which will
underpin the delivery of charitable activities for the
foreseeable future.
The Trust is providing covenant support in respect of the NIAB
Pension Scheme deficit as it is now a participating employer in
the scheme and therefore stands beside NIAB.

Page 4

Objectives for 2021/22

The National Institute of Agricultural Botany Trust will address the following objectives in the forthcoming year:-

Page 5

FINANCIAL REVIEW

Income

The total incoming resources for the year were £4,108k (2020: £2,876k). The income for 2021 includes a grants of £2,771k towards the building of new facilities and the remainder is derived from charges for the use of the Trust’s charitable assets, as well as investment income and other activities. Other funding sources include realised proceeds from sale of surplus assets from property developers.

Investment Policy

Land

Surplus land assets are subject to a consortium agreement and will be disposed of in due course. The Trustees will seek to obtain the maximum sale proceeds available.

Redundancy Fund

Expenditure

The total outgoing expenditure totalled £3,025k (2020: £5,503k) made up as follows:

2021 2020
£’000 £’000
Research funding to NIAB 1,000 1,000
Further support to NIAB 500 1,272
Cambridge University committed 0 1,000
Administrative costs 125 125
Bank and other interest 179 117
Professional fees 25 756
Depreciation 1,079 661
Other 117 572
Total 3,025 5,053

Capital Expenditure

The charity funded the capital purchases from unrestricted reserves. Capital additions for the year total £3,639k (2020: £20,067k). A significant portion of the year’s capital purchase was funded by a contribution from the Cambridge and Peterborough Combined Authority.

Business Review and key performance indicators

The following financial indicators have been reviewed:-

2021 2020
£’000 £’000
Charitable Expenditure 3,025 5,503
Income from Investments 265 291
Support Costs 373 344

The Charitable Expenditure is a measure of the facilities and research funding provided to NIAB. The Trustees have considered how they can best demonstrate the impact of this funding and how it can be measured.

Capital sums are held separately in respect of the NIAB Redundancy Fund. This fund was established to provide for the redundancy costs associated with staff in post as at 31 March 1996. Interest on capital is refunded to Defra, together with repayment of capital when staff leave NIAB through retirement/resignation. Sums relating to this fund are disclosed in note 20. The capital sum relating to the 1996 provision at 31 March 2021 was £757k (2020: £781k).

Going Concern

The Trust delivers its charitable objects primarily through its support for NIAB (Charity No: 1064230). The two charities were formed in 1998, following the separation of the National Institute of Agricultural Botany from government in 1996. The Trust held the charitable assets from the original charitable scheme, and the operational activities were transferred to NIAB. The two charities have continued to work closely, the trustees continue to believe that NIAB is the best vehicle to deliver the charitable objects of the Trust.

When the new legal structure was finalised in 1998, NIAB became the sponsoring employer of a defined benefit pension scheme, the NIAB (1996) Pension Scheme (the Scheme).

The NIAB (1996) Pension Scheme (‘Scheme’) was established in 1996 following NIAB’s separation from government and establishment as a not-for-profit. NIAB has taken steps to manage the Scheme deficit, closing the Scheme to new members in 2001 and to future accrual in 2007. The current Scheme deficit is £19,225k (2020: £13,987k), which moves the NIAB group balance sheet to a deficit of £12,474k (2020: deficit £10,766k), and the charity only balance sheet into a deficit of £15,025k (2020: deficit £10,934k).

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

The trustees have reviewed the cash flow supporting its own activities for the next four years. It has also considered the NIAB management projections and cash flow projections to ensure there is sufficient resources within the TRUST to be able to fully support its own and NIAB’s activities and financial position for the foreseeable future, being at least twelve months from the date of approval of these financial statements.

Page 6

National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2020

The TRUST’s NET current liabilities at 31 March 2021 were £8351k (2020: £8,331k). Included in its creditors were the following:

Cambridge University revolving loan £5.0m Barclays Bank revolving loan £1.5m DEFRA share of sale of surplus assets £4.9m

Proceeds from sale of surplus land to developers is scheduled to be receivable as follows:

£5.6m July 2021 £5.6m July 2022 £7.7m July 2023

Therefore in terms of cash flow the Trust has contracted income due on dates which will ensure it is able to pay back its loans as they fall due.

The NIAB Trust have considered the financial position of NIAB and the funding required to support NIAB in the future. The NIAB financial position suggests that over the medium term (to 31 March 2022) under some scenarios it is possible that in order to ensure NIAB remains viable the Trust may need to provide short term lending to NIAB of up to £2m. The Trustees have considered this and have agreed to provide a letter of comfort to NIAB. The Trustees have provided that comfort letter having considered the financial position of the TRUST and are satisfied that the TRUST can provide that support as and when it is required without having a significant impact on its own ability to continue as a going concern.

and are not aware of any other material uncertainties which may adversely affect the organisation. Accordingly, the financial statements continue to be prepared on the going concern basis.

Reserves Policy

The Trustees have reviewed the reserves of the Trust. There has been considerable cost associated with making the land available for development. The Trustees deem the current level of reserves as appropriate given their current commitments.

The Trustees will re-consider their reserves policy in conjunction with the allocation of proceeds from land sale and longer term asset finance. The Trustees will seek to balance the aim of maintaining the value of its total reserves position with their desire to provide to NIAB continuing annual funding for research initiatives and support.

The Trust had total reserves of £57,624k at the balance sheet date of which £5,171k is restricted and £52,453k is unrestricted.

Accounting Period

The trustees present their report and the financial statements for the year ended 31 March 2021. The company’s year end (Accounting Reference Date) has been amended to 28 March, although the financial statements continue to be prepared to 31 March as permitted by section 390(3) of the Companies Act 2006.

The trustees therefore have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future being at least twelve months from the date of approval of these financial statements,

Page 7

National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2020

RISK ASSESSMENT AND MANAGEMENT

The Board of Trustees is responsible for ensuring there are effective and adequate risk management and internal control systems in place to manage the major risks to which the Charity is exposed. The Board reviews the risk register at each meeting.

Principal Risks and Uncertainties

Risk Area Risk Management
Covid-19 •
Loss of key staff providing administrative support
for TRUST activities.
•
•
Failure to maintain utilisation of properties for
charitable purposes because of necessary social
distancing and ability to keep staff safe on site.		 •
NIAB Executive continue to provide support of
TRUST activities. NIAB has sufficient staff
resources to be able to manage the
administrative support of TRUST.
•
All
TRUST
operational
properties
have
remained open. NIAB have managed Covid-19
related risk assessments to allow continued
use of the properties for charitable purposes
and are managing return to the workplace in
line with current government guidelines
Compliance •
Performance of contractual obligations with third
parties
•
Delivery of Charitable Objects		 •
Clear delegation to NIAB for management of
key projects and contracts, with regular
reporting back to the Trustees.
•
The Chairman of the Trust attends NIAB Board
meetings by invitation. NIAB reports regularly
to the Trustees regarding its activities and
reports specifically on the impact of Trust
support.
Financial •
Failure to generate sufficient funds to support
planned activities
•
Risks related to Site Development Project
•
The NIAB (1996) Pension Scheme deficit – the
next valuation will be as at 31 March 2021.		 •
The Finance Committee monitor plans and
financial forecasts to ensure a regular review
of on-going commitments and review of the
reserves policy.
•
Day to day management delegated to NIAB
COO who reports to both TRUST and NIAB
Board
regarding
project
progress
and
expenditure. Trust approved all expenditure
relating to capital projects. The development
programme is supported by legal and
professional advisors who report regularly to
the project team. Long term cash flow
forecasts are reviewed regularly.
•
NIAB Executive in consultation with the
Trustees of NIAB, the TRUST, the Scheme and
professional advisors will continue to manage
the Scheme and ensure that any agreed
contribution payments are affordable to both
NIAB and NIAB TRUST.

Page 8

National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2020

STRUCTURE, GOVERNANCE and MANAGEMENT

Members and Board of Trustees

The members of the Trust are the Trustee/Directors. The Board of Trustees comprises the Chair and up to seven additional trustee directors.

The Board has established the following sub-committees:Finance (1)

The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015).

Governance Code

The following Trustees have served during the period:

J W Lewis 1 (Chair)
Dr C W Looker 1
R Pemberton
J A Elliot 1

R C Butler (retired 8 December 2020) Dr H Ferrier (retired 8 December 2020) R Macdonald CBE (appointed 8 December 2020)

The Trustees will be reviewing the Charity Code of Governance in how best to enhance the organisation’s effectiveness.

Fundraising

The Trust carried out no fundraising activity in the year.

Charge

Recruitment, induction and training of Trustees

The National Institute of Agricultural Botany Trust recruits Trustees with the relevant skillset to support the charity’s activities. An induction programme has been put in place for newly appointed Trustees and is kept under review and updated where appropriate.

Organisation and governance

The National Institute of Agricultural Botany was founded by a Deed of Trust dated 13 January 1919 and, up until 31 March 1998 regulated by a scheme made by the Secretary of State for Education and Science under section 18 of the Charities Act 1960. The Institute’s registered charity number was 306069.

A new structure was initiated in 1996 and agreed with the Charity Commission from 1 April 1998, which saw the formation of two charities which would operate in tandem. The National Institute of Agricultural Botany Trust provide land, facilities and financial support to the National Institute of Agricultural Botany (NIAB) who perform the charitable activities. The activities of the unincorporated entity were transferred to a new charitable company on 6[th] July 2012.

When the structure was changed in 1996, the interests of DEFRA were expressed within a legal charge over certain properties and parcels of land. The original 1996 Debenture was revised in 2007, as a result of negotiations regarding land sales. The fair value of this interest (£4,556k) is detailed in note 28.

Trustee Remuneration

Charity Commission approval has been received to enable the Trust to make payments to Trustees. The Trust provides an honorarium for the Chairman of the Board and the Chairman of the Finance Committee. In addition to this, a per diem fee is payable to qualifying Trustees. This is subject to regular review.

Decision making and key management

The Board of Directors (Trustees) administer the company, and meet quarterly.

The Trust has no employees. To facilitate effective operations, members of the executive within NIAB have delegated authority, within terms of delegation approved by the trustees, for operational matters.

Liability Insurance

The National Institute of Agricultural Botany Trust was incorporated in England and Wales as a company limited by guarantee on 26 October 2011, and is governed by its Memorandum and Articles of Association dated 26 October 2011, and amended 19 July 2013. It is registered as a charity with the Charity Commission (Charity No: 1144528). Its principal operating address is 93 Lawrence Weaver Road, Cambridge, CB3 0LE.

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

Page 9

National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2020

STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL AUDIT REPORT AND FINANCIAL STATEMENTS

The trustees (who are also directors of the Trust for the purposes of company law) are responsible for preparing the Trustees Report, incorporating the Strategic Report, and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom general accepted accounting practise (United Kingdom accounting standards and applicable law), including FRS102, the financial reporting standard applicable in the UK and Republic of Ireland. Under company law the trustees must not approve the financial statements unless that they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

The trustees confirm that:

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

The Trustees approve the Trustees Report, incorporating the Strategic Report, and financial statements which are signed on behalf of the Board of Trustees of The National Institute of Agricultural Botany Trust

J W Lewis, Trustee Date: 17 November 2021

Page 10

National Institute of Agricultural Botany Trust

Independent Auditors' Report to the Members of National Institute of Agricultural Botany Trust

Opinion

We have audited the financial statements of National Institute of Agricultural Botany Trust (‘the charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of cashflows 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:

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 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 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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Page 11

National Institute of Agricultural Botany Trust

Independent Auditors' Report to the Members of National Institute of Agricultural Botany Trust (continued)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report included within the trustees’ report.

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10 , 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 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 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non‐ compliance with laws and regulations are set out below.

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 auditor’s report.

Page 12

National Institute of Agricultural Botany Trust

Independent Auditors' Report to the Members of National Institute of Agricultural Botany Trust (continued)

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non‐compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context were General Data Protection Regulation (GDPR), Health and safety legislation and taxation legislation.

Auditing standards limit the required audit procedures to identify non‐compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, the override of controls by management and judgement and estimates. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non‐compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non‐detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non‐compliance and cannot be expected to detect non‐compliance with all laws and regulations.

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.

Naziar Hashemi Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

London

Date: 30 November 2021

Page 13

National Institute of Agricultural Botany Trust

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Disposal of property
7
Total income
Expenditure on:
Charitable activities
9
Total expenditure
Net (expenditure)/income before net
gains on investments
Net gains on investments
Net (expenditure)/income
Transfers between funds
22
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2021
£000
‐
753
265
6
1,024
2,999
2,999
(1,975)
1,556
(419)
3,084
2,665
49,788
52,453		 Restricted
funds
2021
£000
‐
3,084
‐
‐
3,084
26
26
3,058
727
3,785
(3,084)
701
4,470
5,171		 Total
funds
2021
£000
‐
3,837
265
6
4,108
3,025
3,025
1,083
2,283
3,366
‐
3,366
54,258
57,624		 Total
funds
2020
£000
2,000
518
291
67
2,876
5,503
5,503
(2,627)
1,052
(1,575)
‐
(1,575)
55,833
54,258

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

The notes on pages 17 to 39 form part of these financial statements.

Page 14

National Institute of Agricultural Botany Trust Registered number: 7823588

Balance Sheet As at 31 March 2021

Note
Fixed assets
Tangible assets
14
Investment property
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one year
17
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
18
Provisions for liabilities
20
Total net assets
Charity funds
Restricted funds
22
Unrestricted funds
22
Total funds		 3,771
2,132
5,903
(14,254)		 2021
£000
54,705
25,416
80,121
(8,351)
71,770
(13,389)
(757)
57,624
5,171
52,453
57,624		 2,932
1,071
4,003
(12,334)		 2020
£000
52,151
24,747
76,898
(8,331)
68,567
(13,528)
(781)
54,258
4,470
49,788
54,258

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

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

The financial statements were approved and authorised for issue by the Trustees on 17 November 2021 and signed on their behalf by:

J W Lewis

The notes on pages 17 to 39 form part of these financial statements.

Page 15

National Institute of Agricultural Botany Trust

Statement of Cash Flows For the Year Ended 31 March 2021

Cash flows from operating activities
Net cash used in operating activities (note 24)
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
Interest paid
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Cash inflow from contribution to capital
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£000
2,618
265
(3,639)
2,496
(179)
(1,057)
(500)
‐
(500)
1,061
1,071
2,132		 2020
£000
4,542
292
(20,790)
4,065
(117)
(16,550)
(850)
12,413
11,563
(445)
1,516
1,071

The notes on pages 17 to 39 form part of these financial statements

Page 16

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

1. General information

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.

2. Accounting policies

2.1 Going concern

The Trust delivers its charitable objects primarily through its support for NIAB (Charity No: 1064230). The two charities were formed in 1998, following the separation of the National Institute of Agricultural Botany from government in 1996. The Trust held the charitable assets from the original charitable scheme, and the operational activities were transferred to NIAB. The two charities have continued to work closely, the trustees continue to believe that NIAB is the best vehicle to deliver the charitable objects of the Trust.

When the new legal structure was finalised in 1998, NIAB became the sponsoring employer of a defined benefit pension scheme, the NIAB (1996) Pension Scheme (the Scheme).

The NIAB (1996) Pension Scheme (‘Scheme’) was established in 1996 following NIAB’s separation from government and establishment as a not‐for‐profit. NIAB has taken steps to manage the Scheme deficit, closing the Scheme to new members in 2001 and to future accrual in 2007. The current Scheme deficit is £19,225k (2020: £13,987k), which moves the NIAB group balance sheet to a deficit of £12,474k (2020: deficit £10,766k), and the charity only balance sheet into a deficit of £15,025k (2020: deficit £10,934k).

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

The trustees have reviewed the cash flow supporting its own activities for the next four years. It has also considered the NIAB management projections and cash flow projections to ensure there is sufficient resources within the TRUST to be able to fully support its own and NIAB's’ activities and financial position.

The TRUST’s NET current liabilities at 31 March 2021 were £8.3m. Included in its creditors were the following:

Cambridge University revolving loan £5.0m
Barclays Bank revolving loan £1.0m
DEFRA share of sale of surplus assets £4.9m

Proceeds from sale of surplus land to developers is scheduled to be receivable as follows:

July 2021 £5.6m
July 2022 £5.6m
July 2023 £7.7m

Page 17

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

2. Accounting policies (continued)

2.1 Going concern (continued)

Therefore in terms of cash flow the Trust has contracted income due on dates which will ensure it is able to pay back its loans as they fall due.

Supporting NIAB’s activities will require ongoing funding.

The NIAB Trust have considered the financial position of NIAB and the funding required to support NIAB in the future. The NIAB financial position suggests that over the medium term (to 31 March 2022) under some scenarios it is possible that in order to ensure NIAB remains viable the Trust may need to provide short term lending to NIAB of up to £2m. The Trustees have considered this and have agreed to provide a letter of comfort to NIAB. The Trustees have provided that comfort letter having considered the financial position of the TRUST and are satisfied that the TRUST can provide that support as and when it is required without having a significant impact on its own ability to continue as a going concern.

After making enquiries and considering the uncertainties described above, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence and accordingly they adopt the going concern basis in preparing the annual report and accounts.

2.2 Fund accounting

General unrestricted funds

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

Designated funds

Designated funds are unrestricted funds of the charity which the trustees have decided, at their discretion, to set aside to use for a specific purpose.

Restricted funds

Restricted funds represent grant funded assets which are allocated by the donor for specific purposes and in which the donor maintains a residual interest.

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

Page 18

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

2. Accounting policies (continued)

2.3 Income

Income has been analysed in accordance with the service provided.

Income from charitable activities:

Incoming resources are recognised, when the charity has entitlement to the funds.

Grant income, whether ‘capital’ or ‘revenue’, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. They are recognised as restricted funds in the statement of financial activities where relevant under the particular terms of the grant.

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

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.

2.4 Accrued and deferred income

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

2.5 Resources expended

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

Charitable Activities

Expenditure incurred directly in the fulfillment of the objectives of the charity including allocated overheads

Support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include administrative and governance costs which support the objectives of the charity. These costs have been allocated across fundraising and charitable activities. The bases on which support costs have been allocated are set out in note 10.

Governance costs

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

All expenditure is inclusive of irrecoverable VAT.

2.6 Interest receivable

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

Page 19

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

The charity’s policy is to carry all land and buildings at value in use. Depreciation is not provided on freehold land. Assets in the course of construction are carried at cost and not depreciated. On other assets depreciation is provided on cost or revalued amounts in equal annual installments over the estimated lives of the assets.

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 between 20 and 60 years ‐ Plant and machinery 5 to 15 years ‐ Fixtures and fittings 4 to 10 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities.

2.8 Investments

Land held for re‐sale and properties held to earn rental or for capital appreciation rather than for use in the supply of service are held at fair value. Net movements are transferred to the statement of financial activities and to the appropriate fund holding the investment. No depreciation is provided in respect of land held for re‐sale or investment properties.

2.9 Financial instruments

The Charity only has financial assets and financial liabilities which qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.10 Cash at bank and in hand

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition or the balance sheet date and that are readily convertible to known amounts of cash with insignificant risk of change of value. The cash balance includes funds of £945k relating to the DEFRA redundancy fund.

2.11 Debtors

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

Page 20

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

2. Accounting policies (continued)

2.12 Liabilities

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

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.

2.13 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

The Charity’s functional and presentational currency is GBP

Page 21

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

3. Critical accounting estimates and areas of judgement

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

Land for re‐sale

The Trust has made a significant judgement in revaluing the land held for re‐sale at Darwin Green, for which forecasted cash flow receipts, from disposal strategy reports prepared by Bidwells, have been used as a basis for the revaluation (note 15).

A purchase contract has been signed for a significant amount of the land holdings and the cash receipts have been received on time and in line with the contract. Further annual receipts are similarly expected in 2022 and 2023. A discount rate of 5% has been used (Trust rate of debt, 2.85%, plus a reasonable adjustment for remaining uncertainties).

The next phase is dependent on planning permission expected to be submitted by the end of 2021. The Trust believes that the buyer is more likely than not to contract to purchase the remaining portion of land and therefore includes the land held for re‐sale at a valuation based on the expected cashflows discounted by 10%. The higher rate reflects the additional risks and uncertainties with these phases of the development. The Trust will re‐assess both the expected cashflow timings and discount rate used as these move through planning permission. The Trust recognises that this will likely result in an uplift of the valuation.

Residential investment properties

Residential investment properties, for which the Trust receives rental income, are held at Fair value as determined by an annual valuation exercise. These are included at the latest professional valuation (note 15).

Cost allocation

The cost allocation methodology requires a judgement as to what are the most appropriate bases to use to apportion support costs. These are reviewed annually for reasonableness.

Page 22

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

4. Income from donations and legacies

Donations
Donations		 Unrestricted
funds
2021
£000
‐
Unrestricted
funds
2020
£000
2,000		 Total
funds
2021
£000
‐
Total
funds
2020
£000
2,000

5. Income from charitable activities

Unrestricted
funds
2021
£000
Provision of facilities to enable charitable activities to be
performed
753
Income from grants ‐ Restricted funds
‐
Total 2021
753
Provision of facilities to enable charitable activities to be performed		 Restricted
funds
2021
£000
‐
3,084
3,084
Unrestricted
funds
2020
£000
518		 Total
funds
2021
£000
753
3,084
3,837
Total
funds
2020
£000
518

Page 23

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

6. Investment income

Rental income ‐ residential investment properties
Interest receivable from NIAB EMR
Rental income ‐ residential investment properties
Interest receivable from NIAB EMR
Other incoming resources
Profit on disposal of land and buildings
Profit on disposal of land and buildings		 Unrestricted
funds
2021
£000
233
32
265
Unrestricted
funds
2020
£000
250
41
291
Unrestricted
funds
2021
£000
6
Unrestricted
funds
2020
£000
67		 Total
funds
2021
£000
233
32
265
Total
funds
2020
£000
250
41
291
Total
funds
2021
£000
6
Total
funds
2020
£000
67

7. Other incoming resources

Page 24

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

8. Analysis of grants

Grant to NIAB for research funding
Grant to NIAB for research funding		 Grants to
Institutions
2021
£000
1,000
Grants to
Institutions
2020
£000
1,000		 Total
funds
2021
£000
1,000
Total
funds
2020
£000
1,000

Page 25

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

9. Analysis of expenditure on charitable activities

Summary by fund type

Legal and professional
Provision of facilities
Research funding ‐ grant to NIAB
Restricted funds
Other expenditure
Legal and professional
Provision of facilities
Research funding ‐ grant to NIAB
Restricted funds
Other expenditure		 Unrestricted
funds
2021
£000
328
541
1,000
7
1,123
2,999
Unrestricted
funds
2020
£000
921
2,431
1,073
15
1,037
5,477		 Restricted
funds
2021
£000
‐
‐
‐
‐
26
26
Restricted
funds
2020
£000
‐
‐
‐
‐
26
26		 Total
funds
2021
£000
328
541
1,000
7
1,149
3,025
Total
funds
2020
£000
921
2,431
1,073
15
1,063
5,503

Other expenditure includes an agreement of £1million to pay £200k pa for five years from 2021 to support the costs of two research fellows in Crop Sciences based in the University of Canbridge's Crop Science Centre.

Page 26

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

10. Analysis of expenditure by activities

Legal and professional
Provision of facilities
Research funding
Restricted funds
Other expenditure		 Activities
undertaken
directly
2021
£000
25
500
‐
‐
1,143
1,668		 Grant funding
of activities
2021
£000
‐
‐
1,000
‐
‐
1,000		 Support costs
2021
£000
303
41
‐
7
6
357		 Total
funds
2021
£000
328
541
1,000
7
1,149
3,025
Raising funds
Provision of facilities
Research funding
Restricted funds
Other expenditure		 Activities
undertaken
directly
2020
£000
733
2,363
‐
‐
1,063
4,159		 Grant funding
of activities
2020
£000
‐
‐
1,000
‐
‐
1,000		 Support costs
2020
£000
188
68
73
15
‐
344		 Total
funds
2020
£000
921
2,431
1,073
15
1,063
5,503

Page 27

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Legal and professional
Management
Governance costs
Legal and professional
Provision of facilities
Governance costs
Legal and professional
Provision of facilities
Governance costs
Total 2020		 Raising funds
2021
£000
163
78
62
303
Raising funds
2020
£000
86
13
89
188		 Provision of
facilities
2021
£000
41
‐
‐
41
Provision of
facilities
2020
£000
20
48
‐
68		 Research
funding
2021
£000
‐
‐
‐
‐
Other
expenditure
2021
£000
‐
‐
6
6
Research
funding
2020
£000
31
9
33
73		 Other
expenditure
2021
£000
‐
7
‐
7
Total
funds
2021
£000
204
85
68
357
Other
expenditure
2020
£000
‐
15
‐
15

Page 28

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Legal and professional
Provision of facilities
Governance costs
Total 2020		 Other
expenditure
2020
£000
‐
‐
‐
‐		 Total
funds
2020
£000
137
85
122
344

11. Auditors' remuneration

2021 2020
£000 £000
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 10 9
Fees payable to the Charity's auditor in respect of:
Additional fees in respect of previous year audit 9 8

12. Taxation

The Trust is a registered charity and is thus exempt from tax on income and capital gains falling within section 505 of the Income and Corporation Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.

No deferred tax liabilities have been recognised for assets held at fair value.

13. Trustees' remuneration and expenses

There were seven (2020 ‐ seven) serving Trustees during the year. During the year five Trustees were paid honorariums or per diem fees totaling £11,000 (2020 ‐ eight trustees £14,867).

During the year, expenses totaling £532 were reimbursed or paid directly to one Trustee (2020 ‐ £2,452 to three Trustees). This principally reflects reimbursed travelling expenses incurred in attending meetings.

Page 29

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

14. Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
Transfers between classes
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£000
54,450
3,112
55
57,617
2,513
1,072
3,585
54,032
51,937		 Plant and
machinery
£000
428
2
(9)
421
313
13
326
95
115		 Fixtures and
fittings
£000
380
‐
‐
380
380
‐
380
‐
‐		 Assets in the
course of
construction
£000
99
525
(46)
578
‐
‐
‐
578
99		 Total
£000
55,357
3,639
‐
58,996
3,206
1,085
4,291
54,705
52,151

The completion of the build and refurbishment of the Headquarters Building and Barns 1 and 2 in 2020 allowed all Cambridge‐based staff to relocate to those buildings enabling NIAB to vacate other leased buildings. Cambridge University started to use the Crop Science Centre from September 2020.

Barn 4 was completed and brought into use in March 2021.

Building costs are held as "Assets in the course of construction" until completed when they are transferred to the relevant asset class.

As stated in the accounting policy (note 2), the Trust carries land and freehold buildings at value in use.

When the new scheme was initiated in 1996, the interests of DEFRA were expressed within a legal charge over certain properties and parcels of land. This interest amounts to £1,455k of the cost of the land and buildings.

The carrying amount under the cost model of the assets which have been revalued would have been £NIL (2020 ‐ £NIL) .

The charity's bankers and the University of Cambridge have a legal charge secured on certain of the freehold land and buildings.

Page 30

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

15. Investment property

Valuation
At 1 April 2020
Disposals
Gain on revaluation
At 31 March 2021		 Freehold
residential
investment
property
£000
7,170
‐
1,190
8,360		 Land held for
resale
£000
17,577
(1,614)
1,093
17,056		 Total
£000
24,747
(1,614)
2,283
25,416

The Trustees have reviewed the market value of the Trust’s freehold investments at 31 March 2021.

They have valued the residential investment properties at £8,360k (2020: £7,170k) based upon a valuation carried out by Messrs Strutt & Parker on 22 September 2021. DEFRA has an interest of £3,220k in the investment properties (see note 22).

The Trustees have valued the land held for re‐sale at £17,056k (2020: £17,694k) based upon a valuation carried out by Savills on 31 March 2018. The valuation is based on projected future cash flows, which have been discounted to the net present value at a rate of 5%, and 10% for part of the site to be sold under separate agreement. The rate of 5% is representative of the Trust’s current rate of debt (2.85%) uplifted for the uncertain timing of projected future cash flows, due to the proposed put and call options on the land. The rate of 10% reflects an additional risk factor associated with the separate sale.

16. Debtors

Trade debtors
Loan to NIAB EMR
Other debtors
Prepayments and accrued income		 2021
£000
826
1,501
1,121
323
3,771		 2020
£000
188
1,541
1,191
12
2,932

The loan to NIAB EMR (a subsidiary company of NIAB see note 29) is repayable in full by 8 February 2026. On 1 April 2021 the business, assets and laibilities of NIAB EMR were merged into NIAB.

Included in other debtors is £572k in respect of building work being undertaken for NIAB. This was invoiced in May 2021 upon completion.

Page 31

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

17. Creditors: Amounts falling due within one year

Bank loans
Other loan
Trade creditors
Amount owed to NIAB
Other creditors
Accruals and deferred income		 2021
£000
1,500
5,000
569
‐
6,317
868
14,254		 2020
£000
1,000
5,000
906
284
4,857
287
12,334

Bank loans ‐ Barclays Bank Plc has made available a revolving loan facility of up to £9,700k at an interest rate of 1.5% above LIBOR (from January 2022 this will change to Bank of England Base Rate plus margin). The loan, which is repayable by October 2022, is secured by a charge over certain land and buildings. The amount of the loan drawn down at the year end was £1,500k (2020: £1,000k).

Other loan ‐ the University of Cambridge has made available a loan of £5,000k at an interest rate of 1.75% above Bank of England base rate, secured by a charge over certain land and buildings. The loan was repaid in September 2021.

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

2021 2020
£000 £000
Accruals and deferred income 13,389 13,528

Deferred income included above of £12,589k (2020: £12,528k) arises from amounts received from the University of Cambridge towards capital expenditure. Similar deferred income of £217k (2020: £212k) is also included in Creditors: Amounts falling due within one year. The total deferred income is £12,806k (2020: £12,740) (note 19).

Page 32

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

19. Deferred income

Deferred income at 1 April 2020
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 March 2021		 2021
£000
12,740
284
(218)
12,806		 2020
£000
999
11,759
(18)
12,740

Deferred income arises from amounts received from the University of Cambridge towards capital expenditure on the Cambridge Crop Science Centre (note 18).

20. Provisions

At 1 April 2020
Amounts reversed		 Redundancy
Fund
£000
781
(24)
757

The provision reflects the potential costs of future redundancies of staff employed at 31 March 1996 for their service to that date and is cash backed.

21. Financial instruments

2021 2020
£000 £000
Financial assets
Financial assets measured at fair value through income and expenditure 2,131 2,991

Page 33

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

22. Statement of funds

Statement of funds ‐ current year

Unrestricted
funds
General Funds
Fixed asset
Restricted funds
ERDF
DEFRA Charitable
Assets reserve
DEFRA Investment
Property reserve
Combined
Authority grants
Total of funds		 Balance at 1
April 2020
£000
(387)
50,175		 Income
£000
1,024
‐		 Expenditure
£000
(2,999)
‐
(2,999)
(14)
(12)
‐
‐
(26)
(3,025)		 Transfers
in/out
£000
3,084
‐
3,084
‐
‐
‐
(3,084)
(3,084)
‐		 Gains/
(Losses)
£000
1,556
‐
1,556
‐
‐
727
‐
727
2,283		 Balance at 31
March 2021
£000
2,278
50,175
52,453
49,788 1,024
546
1,431
2,493
‐
4,470
54,258		 ‐
‐
‐
3,084
3,084
4,108
532
1,419
3,220
‐
5,171
57,624

Page 34

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

22. Statement of funds (continued)

Statement of funds ‐ prior year

Unrestricted
funds
General Funds
Fixed asset
Restricted funds
ERDF
DEFRA Charitable
Assets reserve
DEFRA Investment
Property reserve
Total of funds		 As restated
Balance at
1 April 2019
£000
20,374
30,963
51,337
560
1,443
2,493
4,496
55,833		 Income
£000
2,876
‐
2,876
‐
‐
‐
‐
2,876		 Expenditure
£000
(5,477)
‐
(5,477)
(14)
(12)
‐
(26)
(5,503)		 Transfers
in/out
£000
(19,212)
19,212
‐
‐
‐
‐
‐
‐		 Gains/
(Losses)
£000
1,052
‐
1,052
‐
‐
‐
‐
1,052		 Balance at
31 March
2020
£000
(387)
50,175
49,788
546
1,431
2,493
4,470
54,258

The ERDF restricted fund relates to a capital grant for the Sophi Taylor Building and associated glasshouse facilities. The funds will be written off over the relevant reporting period.

DEFRA have an interest in a proportion of the Charitable Assets, which is secured by a legal charge. The DEFRA Charitable Assets reserves £1,419k (2020: £1,431k) reflects the fair value of this interest, should the Trust dispose of their estate. The DEFRA Investment property reserve reflects the fair value of the interest in investment properties of £3,220k (2020: £2,493k).

Page 35

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

23. Analysis of net assets between funds

Analysis of net assets between funds ‐ current year

Tangible fixed assets
Investment property
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
Total
Analysis of net assets between funds ‐ prior year
Tangible fixed assets
Investment property
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
Total		 Unrestricted
funds
2021
£000
52,754
22,196
5,903
(14,254)
(13,389)
(757)
52,453
Unrestricted
funds
2020
£000
50,175
22,253
4,003
(12,334)
(13,528)
(781)
49,788		 Restricted
funds
2021
£000
1,951
3,220
‐
‐
‐
‐
5,171
Restricted
funds
2020
£000
1,976
2,494
‐
‐
‐
‐
4,470		 Total
funds
2021
£000
54,705
25,416
5,903
(14,254)
(13,389)
(757)
57,624
Total
funds
2020
£000
52,151
24,747
4,003
(12,334)
(13,528)
(781)
54,258

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National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

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

Net income/expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gains on investments
Interest paid
Loss on the sale of fixed assets
Decrease/(increase) in debtors
Increase in creditors
Investment income
Net cash provided by operating activities
25.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
26.
Analysis of changes in net debt
At 1 April
2020
£000
Cash at bank and in hand
1,071
Debt due within 1 year
(6,000)
(4,929)		 2021
£000
3,366
1,085
(2,283)
179
‐
(839)
1,375
(265)
2,618
2021
£000
2,132
2,132
Cash flows
£000
1,061
(500)
561		 2020
£000
(1,575)
661
(1,052)
117
151
6,436
95
(291)
4,542
2020
£000
1,071
1,071
At 31 March
2021
£000
2,132
(6,500)
(4,368)

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National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

27. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

28. Contingent liabilities

In the past certain purchases of land and buildings were partly or wholly financed by a capital grant received from DEFRA. It is a condition of such grants that, in the event of the property being sold, the net sale proceeds will be apportioned between the Trust and DEFRA based upon their respective contributions to the original purchase price, and an allocation of agreed deductible costs incurred since the original acquisition. The Trustees have disclosed the DEFRA interest of £1,419k in charitable assets and £3,137k in investment properties (totaling £4,556k) within note 22.

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National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2021

29. Related party transactions

The National Institute of Agricultural Botany Trust has an object to support NIAB. A facilities charge is made for the occupation of the land and buildings owned by the Trust. The Trust receives an invoice from NIAB relating to the provision of support through a Research Funding Agreement between the two parties. These transactions will be represented by both cash and non‐cash, due to accruals made for activities at the end of the financial year.

Transactions during the year relate to receipt of a facilities charge, and expenditure on research contracts conducted by NIAB. No charge is made with respect to the Sophi Taylor Building.

These transactions are summarised below:

2021 2020
£000 £000
Income ‐ facilities provision 500 500
Support grant (1,000) (1,000)
Provision of administration services (125) (125)
Pension fund support (500) (700)
Contribution to other costs ‐ (128)
Closing debtor/(creditor) 1 (284)

NIAB also has an option to take an interest free loan from National Institute of Agricultural Botany Trust, secured by a first fixed and floating charge on its assets.

The National Institute of Agricultural Botany Trust has previously provided a loan of £1,500,000 to NIAB EMR. This loan is secured by a first fixed and floating charge on the assets of NIAB EMR and, while there is no fixed repayment timetable, it is repayable within 10 years (by 8 February 2026). Interest is charged at 2% above the Bank of England base rate, which is considered to be a market value.

30. Capital commitments

2021 2020
£000 £000
Contracted for but not provided in these financial statements
Acquisition of tangible fixed assets 1,363 2,800

Further improvement works are being undertaken at Park Farm including the erection of a new glasshouse

31. Related undertaking

The Trust has an objective to support NIAB (a company limited by guarantee) and delivers its charitable aims through this associated company. Copies of the NIAB accounts are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

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