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2022-03-29-accounts

Registered number: 7823588 Charity number: 1144528

National Institute of Agricultural Botany Trust

Trustees' Report and Financial Statements

For the Year Ended 31 March 2022

National Institute of Agricultural Botany Trust

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1 ‐ 2
Trustees' report 3 ‐ 9
Independent auditors' report on the financial statements 10 ‐ 13
Statement of financial activities 14
Balance sheet 15 ‐ 16
Statement of cash flows 17
Notes to the financial statements 18 ‐ 40

National Institute of Agricultural Botany Trust

Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2022

Trustees J W Lewis,Chairman
Dr C W Looker
R Pemberton
J A Elliot
R A Macdonald
Company registered
number
7823588
Charity registered number
1144528
Registered office
93 Lawrence Weaver Road
Cambridge
CB3 0LE
Company secretary
Dr J McKee
Independent auditors
Moore Kingston Smith LLP
Statutory Auditors
9 Appold Street
London
EC1M 7AD
Bankers
Barclays Bank plc
1 Churchill Place
Canary Wharf
London
E14 5HP
Solicitors
Birketts LLP
22 Station Road
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 2022

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 2022

TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT

The Trustees note with great sadness the passing of our Patron, Her Majesty Queen Elizabeth II on the 8th September 2022

Her Majesty took a keen interest in the work of NIAB, most recently spending time with us to mark the occasion of our organisation's Centenary in 2019

STRATEGIC REPORT

Background

The National Institute of Agricultural Botany (NIAB) 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 (The Trust) provides 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.

Mission and Vision

The specific objects of The 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.

In recent years, 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 reinvestment 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.

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:

Page | 3

charitable means as the Directors shall determine. NIAB’s research has global reach, and through a number of partnerships, addresses issues in agriculture in developing countries as well as in the developed world.

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 Trust to be charitable in nature.

Performance

Our performance against our 2021/22 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..		 Sales of properties continues to complete on schedule. The
final payment in relation to the sale of land to the developers
of Darwin Green 1 was received in July 2022
With NIAB, agree with Trustees of the NIAB 1996 Pension
Scheme the recovery plan following the triennial valuation as
at 31 March 2021.		 The 2021 valuation has been submitted to The Pensions
Regulator for approval
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.

Objectives for 2022/23

The Trust will address the following objectives in the forthcoming year:-

Page | 4

FINANCIAL REVIEW

Income

The total incoming resources for the year were £1,832k (2021: £4,108k). The income for 2022 includes a grant of £ 850k 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.

Expenditure

The total outgoing expenditure totalled £ 5,277k (2021: £3,025k) made up as follows:

Research funding to NIAB
Support to NIAB in respect of the
Pension Scheme
Donation to NIAB to fund asset
acquisition
Site development costs
Administrative costs
Bank and other interest
Professional fees
Other
Depreciation
Total		 2022
£’000
1,000
1,500
600
572
125
136
57
119
1,168
5,277		 2021
£’000
1,000
500
-
-
125
179
25
117
1,079
3,025

Capital Expenditure

The charity funded the capital purchases from unrestricted reserves. Capital additions for the year total £ 816k (2021: £3,639k). 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:

2022 2021
£’000 £’000
Charitable Expenditure 5,277 3,025
Income from Investments 291 265
Support Costs
366		 357

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.

Investment Policy

Land

Surplus land assets, which together with other parties surplus land, are subject to a Consortium Promotion Agreement and will be disposed of in due course. The Trustees will seek to obtain the maximum sale proceeds available.

Redundancy Fund

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 19. The capital sum relating to the 1996 provision at 31 March 2022 was £593k (2021: £757k).

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 holds 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 Scheme was established in 1996 following NIAB’s separation from government and establishment as a not-forprofit. 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 £17,405k (2021: £19,225k), which moves the NIAB group balance sheet to a deficit of £588k (2021: deficit £12,474k), and the charity only balance sheet into a deficit of £3,390k (2021: deficit £15,025k).

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

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National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2022

months from the date of approval of these financial statements.

The Trust’s NET current liabilities at 31 March 2022 were £6,504k (2021: £8,351k). Included in its creditors were the following:

uncertainties which may adversely affect the organisation. Accordingly, the financial statements continue to be prepared on the going concern basis.

Reserves Policy

Barclays Bank revolving loan (now repaid) £1.5m DEFRA share of sale of surplus assets £7.6m

Proceeds from sale of surplus land to developers of £12.1m was received in July 2022 of which 35% is due to DEFRA in addition to the amount shown above.

The Trust’s bankers, Barclays Bank PLC, have indicated a willingness to renew facilities. In addition, further funds would become available, if needed, on the sale of the residential properties.

The Trust has considered the financial position of NIAB and its subsidiaries (together “NIAB Group”) and the funding required to support them in the future. The NIAB Group financial position suggests that over the medium term (to 31 March 2024) it is possible that in order to ensure they remain viable The Trust may need to provide short term lending 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, including its available reserves and ability to borrow against assets, 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.

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, and are not aware of any other material

The Trustees have reviewed the reserves of The Trust. There has been considerable cost associated with making the land available for development. Whilst free reserves are currently negative that position will be resolved with the planned disposal of further land assets. 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 £55,699k at the balance sheet date of which £5,408k is restricted and £50,291k is unrestricted.

Accounting Period

The Trustees present their report and the financial statements for the year ended 31 March 2022. 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.

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National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2022

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
Compliance Performance of contractual obligations with third
parties		 Clear delegation to NIAB for management of key
projects and contracts, with regular reporting back
to the Trustees
Strategy Failure to generate income from the asset base Day to day management delegated to NIAB COO
who reports to both The Trust and NIAB regarding
project progress and expenditure. The 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.
Strategy Third Party creating a liability for The Trust and NIAB
through financial risk.		 Land Sales are dealt with under consortium
agreements
NIAB group performance regularly monitored and
Chair of Trustees sits as an Observer on NIAB
Board
Strategy Non-performance
of
The
Trust's
contractual
obligations with other 3rd party organisations		 Monitoring
of
NIAB’s
performance
against
contracts where The Trust is a signing party.
Regular interactions with DEFRA in relation to land
sales
Strategy NIAB 1996 Pension Scheme There are legally binding agreements in place
between The Trust, NIAB and the Pension Scheme.
The March 2021 Triannual valuation and recovery
plan has been agreed between the parties and has
been submitted to The Pensions Regulator for
approval.
Financial Failure to generate sufficient cash to support
commitments		 Regular review of ongoing commitments and
reserves policy

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National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2022

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.

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 Board has established the following sub-committees:

The following Trustees have served during the period:

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

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

J W Lewis will retire on 16 November,2022. J A Elliot will be appointed as Chair on that date.

Recruitment, induction and training of Trustees

The 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 Trust provide land, facilities and financial support to NIAB who perform the charitable activities. The activities of the unincorporated entity were transferred to a new charitable company on 6[th] July 2012.

The 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.

Fundraising

The Trust carried out no fundraising activity in the year.

Charge

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 (£4,890k) (2021:£4,639k) is detailed in note 20.

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 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.

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

Page | 8

National In5tltute of Agrlcu5tural BotanyTru5t | Annual Report and Accounts l March 2022 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 purpose5 01 company lawl are responsible for preparSng the Trustees Report, iricorporating the Strategic Report, and the financial statements in accordance with applicable law and regulations. state whether applicable UK Accounting Standards have been followed, sublect to any material departures disclosed and explained in the flnanclal statements. The Trustees are responsible for keeping proper accountlng records that disclose with reasonable accuracy at any time the flnancial positlon of the charitable company and enable them to ensure that the financial statem&nts 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. Cornpany law requires the Trustees to prepare flnancia5 statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdtsrn general accepted accounting practise Iunited Kingdom accounting standards and applicable lawl, 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 falr vlew of the stste of affalrs of the charltable company and of the incoming resources and 3pplication of resources, includin8 the income and expenditure. of the charitable company for that period. In preparing these financial ststements, the Trustees are requlred to: The Trustees confirm that.. SO far ès each Trustee is aware, therÈ 15 no relevant audit information of which the auditors are unaware,. and The Trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditor is aware of that infomiation. select suitable accounting policies and then apply them consistently,. The Trustees are responsible for thè maintenance and integrity of the corporate financial information included on the charltable company's website. Legislation in the United Kingdom governing the preparation and dissemination of Inancial ststements may differ from legislation in other jurisdictions. observe the methods and prSnclples In the Charities SORP IFR51021; make Judgments and accounting estlmates that re reasonable and prudent., and The Trustees approve the Trustees Report. incorporating the Strategic Report, and financial statements which are of the Board of Trustees of The Trust. Lewis, Trustee ate.. 16 November 2022 Page | 9

National Institute of Agricultural Botany Trust

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

Opinion

We have audited the financial statements of National Institute of Agricultural Botany Trust (‘the company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities (incorporating the Summary Income and Expenditure Account), the Balance Sheet, the Cash Flow Statement 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 FRS 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other 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 there is 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 10

National Institute of Agricultural Botany Trust

Independent Auditors' Report to the 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 the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

We have nothing to report in respect of the following matters where 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 9, 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page 11

National Institute of Agricultural Botany Trust

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

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

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non‐ compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Page 12

National Institute of Agricultural Botany Trust

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Stickland (Senior statutory auditor)

for and on behalf of

Moore Kingston Smith LLP

Statutory Auditors

9 Appold Street London EC1M 7AD

Page 13

National Institute of Agricultural Botany Trust

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2022

Note
Income from:
Charitable activities:
4
. Other charitable activities
Investments
5
Disposal of property
6
Total income
Expenditure on:
Charitable activities
8
Total expenditure
Net (expenditure)/income before net
gains on investments
Net gains on investments
Net (expenditure)/income
Transfers between funds
21
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2022
£000
648
291
43
982
5,251
5,251
(4,269)
1,257
(3,012)
850
(2,162)
52,453
50,291		 Restricted
funds
2022
£000
850
‐
‐
850
26
26
824
263
1,087
(850)
237
5,171
5,408		 Total
funds
2022
£000
1,498
291
43
1,832
5,277
5,277
(3,445)
1,520
(1,925)
‐
(1,925)
57,624
55,699		 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

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

The notes on pages 18 to 40 form part of these financial statements.

Page 14

National Institute of Agricultural Botany Trust

Balance Sheet As at 31 March 2022

Note
Fixed assets
Tangible assets
13
Investment property
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one year
16
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
17
Provisions for liabilities
Total net assets		 2,009
1,910
3,919
(10,423)		 2022
£000
54,353
23,246
77,599
(6,504)
71,095
(14,803)
(593)
55,699		 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

Page 15

Natlonal Institute of Agrlcultural Botany TNst Balance Sheet Icontlnuedl As at 31 March 2022 2022 £000 2021 Note Ch3rlty fund5 Restrlcted funds 21 SA08 50.291 5,171 52,453 Unrestricted funds 21 Total funds 55.699 57,624 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with fespect to accounting records and preparation of flnanelal statements. The financlal statements have been prepared in accordance with the provisions applicable to entities subject to the sma15 companies regime. The financial stat their behalf ents were approved and authorised for issue by the Trustees gn 16 November 2022 and signed on JWLe (Trust J A Elllot (Trustee) The otes on ges 8 to 40 form part of these flnanclal ststements. Page 16

National Institute of Agricultural Botany Trust

Statement of Cash Flows For the Year Ended 31 March 2022

Cash flows from operating activities
Net cash used in operating activities (note 23)
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 provided by/(used in) investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2022
£000
1,749
291
(816)
3,690
(136)
3,029
‐
(5,000)
(5,000)
(222)
2,132
1,910		 2021
£000
2,618
265
(3,639)
2,496
(179)
(1,057)
(500)
‐
(500)
1,061
1,071
2,132

The notes on pages 18 to 40 form part of these financial statements

Page 17

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

1. General information

National Institute of Agricultural Botany Trust is a company limited by guarantee incorporated in England and Wales and a registered charity.

The registered office of the charity is 93 Lawrence Weaver Road, Cambridge, CB3 0LE.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified wuthin teh accounting polcies and in accordance with the Charities SORP (FRS 102) ‐ Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

National Institute of Agricultural Botany Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 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 holds 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 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 £17,405k (2021: £19,225k), which moves the NIAB group balance sheet to a deficit of £588k (2021: deficit £12,474k), and the charity only balance sheet into a deficit of £3,390k (2021: deficit £15,025k).

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 18

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.2 Going concern (continued)

The Trust’s NET current liabilities at 31 March 2022 were £6,504k (2021: £8,351k). Included in its creditors were the following:

Barclays Bank revolving loan £1.5m DEFRA share of sale of surplus assets £7.6m

Proceeds from sale of surplus land to developers of £12.1m was received in July 2022 of which 35% is due to DEFRA in addition to the amount shown above.

The Trust’s bankers, Barclays Bank PLC, have indicated a willingness to renew facilities. In addition, further funds would become available, if needed, on the sale of the residential properties

The Trust has considered the financial position of NIAB and its subsidiaries (together "NIAB Group") and the funding required to support them in the future. The NIAB Group financial position suggests that over the medium term (to 31 March 2024) it is possible that in order to ensure they remain viable The Trust may need to provide short term lending 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, including its available reserves and ability to borrow against assets, 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.

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, 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.

2.3 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 19

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.4 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 to a future period by a funder. 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.

2.5 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 received in advance of work done.

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 20

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.7 Resources expended

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Trust 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 9.

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.

2.8 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.

2.9 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.

Page 21

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.10 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.

2.11 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.

2.12 Debtors

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

2.13 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.

2.14 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 22

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

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 14).

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. A further annual receipt was received in July 2022.

The next phase is dependent on planning permission. 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 carried out by Messrs Strutt & Parker on 22 September 2021 (£8,360k) uplifted by the general increases in local residential property prices as at 31 March 2022 (note 14).

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 23

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

4. Income from charitable activities

Provision of facilities to enable charitable activities to be
performed
Income from grants for fixed assets
Total 2022
Provision of facilities to enable charitable activities to be
performed
Income from grants for fixed assets
Total 2021		 Unrestricted
funds
2022
£000
648
‐
648
Unrestricted
funds
2021
£000
753
‐
753		 Restricted
funds
2022
£000
‐
850
850
Restricted
funds
2021
£000
‐
3,084
3,084		 Total
funds
2022
£000
648
850
1,498
Total
funds
2021
£000
753
3,084
3,837

Page 24

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

5. Investment income

Rental income ‐ residential investment properties
Interest receivable from NIAB
Total 2022
Rental income ‐ residential investment properties
Interest receivable from NIAB EMR
Total 2021
Other incoming resources
Profit on disposal of land and buildings
Profit on disposal of land and buildings		 Unrestricted
funds
2022
£000
257
34
291
Unrestricted
funds
2021
£000
233
32
265
Unrestricted
funds
2022
£000
43
Unrestricted
funds
2021
£000
6		 Total
funds
2022
£000
257
34
291
Total
funds
2021
£000
233
32
265
Total
funds
2022
£000
43
Total
funds
2021
£000
6

6. Other incoming resources

Page 25

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

7. Analysis of grants

Grant to NIAB for research funding
Grant to NIAB for pension fund
Grant to NIAB ‐ facility improvement
Total 2022
Grant to NIAB for research funding
Grant to NIAB for pension fund
Total 2021
The Charity has made the following material grants to institutions during the year:
Name of institution
NIAB ‐ to fund research
NIAB ‐ contribution to pension fund deficit through to 2024
NIAB ‐ facility improvement		 Grants to
Institutions
2022
£000
1,000
1,500
600
3,100
Grants to
Institutions
2021
£000
1,000
500
1,500
2022
£000
1,000
1,500
600
3,100
3,100		 Total
funds
2022
£000
1,000
1,500
600
3,100
Total
funds
2021
£000
1,000
500
1,500
2021
£000
1,000
500
‐
1,500
1,500

Page 26

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

8. Analysis of expenditure on charitable activities

Summary by fund type

Provision of facilities
Grants to NIAB
Research funding ‐ grant to NIAB
Other expenditure
Depreciation
Pension fund donations
Other donations to NIAB		 Unrestricted
funds
2022
£000
851
60
1,027
71
1,142
1,500
600
5,251		 Restricted
funds
2022
£000
‐
‐
‐
‐
26
‐
‐
26		 Total
funds
2022
£000
851
60
1,027
71
1,168
1,500
600
5,277
Legal and Professional
Provision of facilities
Research funding ‐ grant to NIAB
Restricted funds
Other expenditure
Depreciation
Pension fund donations		 Unrestricted
funds
2021
£000
303
41
1,000
7
89
1,059
500
2,999		 Restricted
funds
2021
£000
‐
‐
‐
‐
‐
26
‐
26		 Total
funds
2021
£000
303
41
1,000
7
89
1,085
500
3,025

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 Cambridge's Crop Science Centre.

Page 27

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

9. Analysis of expenditure by activities

Provision of facilities
Provision of facilities
Research funding
Other expenditure
Depreciation
Pension fund donation
Other donations to NIAB
Raising funds
Provision of facilities
Research funding
Restricted funds
Other expenditure
Depreciation
Pension fund donation		 Activities
undertaken
directly
2022
£000
572
‐
‐
71
1,168
‐
‐
1,811
Activities
undertaken
directly
2021
£000
‐
‐
‐
‐
83
1,085
‐		 Grant funding
of activities
2022
£000
‐
‐
1,000
‐
‐
1,500
600
3,100
Grant funding
of activities
2021
£000
‐
‐
1,000
‐
‐
‐
500		 Support costs
2022
£000
279
60
27
‐
‐
‐
‐
366
Support costs
2021
£000
303
41
‐
7
6
‐
‐
357		 Total
funds
2022
£000
851
60
1,027
71
1,168
1,500
600
5,277
Total
funds
2021
£000
303
41
1,000
7
89
1,085
500
3,025
1,168 1,500

Page 28

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

9. 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 2021		 Raising funds
2022
£000
119
75
85
279
Raising funds
2021
£000
163
78
62
303		 Provision of
facilities
2022
£000
60
‐
‐
60
Provision of
facilities
2021
£000
41
‐
‐
41		 Research
funding
2022
£000
‐
27
‐
27
Other
expenditure
2022
£000
‐
‐
‐
‐
Research
funding
2021
£000
‐
‐
‐
‐		 Other
expenditure
2022
£000
‐
‐
‐
‐
Total
funds
2022
£000
179
102
85
366
Other
expenditure
2021
£000
‐
7
‐
7

Page 29

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

9. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Legal and professional
Provision of facilities
Governance costs
Total 2021		 Other
expenditure
2021
£000
‐
‐
6
6		 Total
funds
2021
£000
204
85
68
357

10. Auditors' remuneration

2022 2021
£000 £000
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 10 10
Fees payable to the Charity's auditor in respect of:
Additional fees in respect of previous year audit 3 9

11. 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.

12. Trustees' remuneration and expenses

There were five (2021 ‐ seven) serving Trustees during the year. During the year three Trustees were paid honorariums or per diem fees totaling £9,200 (2021‐ five trustees £11,000).

During the year, expenses totaling £1,563 were reimbursed or paid directly to 3 Trustees (2021: ‐ £532 to one Trustee). This principally reflects reimbursed travelling expenses incurred in attending meetings.

Page 30

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

13. Tangible fixed assets

Cost or valuation
At 1 April 2021
Additions
Transfers between classes
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Freehold
property
£000
57,617
‐
1,394
59,011
3,585
1,157
4,742
54,269
54,032		 Plant and
machinery
£000
421
‐
‐
421
326
11
337
84
95		 Fixtures and
fittings
£000
380
‐
‐
380
380
‐
380
‐
‐		 Assets in the
course of
construction
£000
578
816
(1,394)
‐
‐
‐
‐
‐
578		 Total
£000
58,996
816
‐
59,812
4,291
1,168
5,459
54,353
54,705

Freehold property includes NIAB's headquarters building (which includes the Crop Science Centre) and the buildings and glasshouses at Park Farm.

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 structure was initiated in 1998 (see "Background" in the Trustees' Report), 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 (2021 ‐ £NIL) .

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

Page 31

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

14. Investment property

Valuation
At 1 April 2021
Disposals
Gain on revaluation
At 31 March 2022		 Freehold
residential
investment
property
£000
8,360
‐
700
9,060		 Land held for
resale
£000
17,056
(3,690)
820
14,186		 Total
£000
25,416
(3,690)
1,520
23,246

The Trustees have reviewed the market value of the Trust’s freehold investments at 31 March 2022.

The residential investment properties are included at £9,060k (2021: £8,360k) based upon a valuation carried out by Messrs Strutt & Parker on 22 September 2021 (£8,360k) uplifted by the general increases in local residential property prices as at 31 March 2022. DEFRA has an interest of £3,483k in the investment properties (see note 22).

The Trustees have valued the land held for re‐sale at £14,186k (2021: £17,056k) 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.

15. Debtors

Trade debtors
Amount due from NIAB
Other debtors
Prepayments and accrued income
Tax recoverable		 2022
£000
150
1,648
162
11
38
2,009		 2021
£000
826
1,501
861
323
260
3,771

Following the merger of NIAB EMR with NIAB on 1 April 2021, the loan to NIAB EMR (a subsidiary company of NIAB see note 28) is now repayable by NIAB. The loan is scheduled to be repaid in full by 8 February 2026 .

Page 32

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

16. Creditors: Amounts falling due within one year

Sums due to DEFRA
Bank loans
Other loan
Trade creditors
Other creditors
Accruals and deferred income		 2022
£000
7,555
1,500
‐
11
551
806
10,423		 2021
£000
5,569
1,500
5,000
569
748
868
14,254

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 changed to Bank of England Base Rate plus margin). The loan facility, which expires in November 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 (2021: £1,500k). The loan was repaid in October 2022.

Other loan ‐ the University of Cambridge 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.

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

2022 2021
£000 £000
Accruals and deferred income 14,803 13,389

Deferred income included above of £13,703k (2021: £12,589k) arises from amounts received from the University of Cambridge towards capital expenditure. Similar deferred income of £274k (2021: £217k) is also included in Creditors: Amounts falling due within one year. The total deferred income is £13,977k (2021: £12,806) (note 19).

Page 33

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

18. Deferred income

Deferred income at 1 April 2021
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 March 2022		 2022
£000
12,806
1,389
(218)
13,977		 2021
£000
12,740
284
(218)
12,806

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

19. Provisions

At 1 April 2021
Amounts reversed		 Redundancy
Fund
£000
757
(164)
593

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.

20. Financial instruments

2022 2021
£000 £000
Financial assets
Financial assets measured at fair value through income and expenditure 1,910 2,132

Page 34

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

21. 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
Capital asset
grants
Total of funds		 Balance at 1
April 2021
£000
2,278
50,175		 Income
£000
982
‐		 Expenditure
£000
(5,251)
‐
(5,251)
(14)
(12)
‐
‐
(26)
(5,277)		 Transfers
in/out
£000
850
‐
850
‐
‐
‐
(850)
(850)
‐		 Gains/
(Losses)
£000
1,257
‐
1,257
‐
‐
263
‐
263
1,520		 Balance at 31
March 2022
£000
116
50,175
50,291
52,453 982
532
1,419
3,220
‐
5,171
57,624		 ‐
‐
‐
850
850
1,832
518
1,407
3,483
‐
5,408
55,699

Page 35

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

21. 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
Capital asset
grants
Total of funds		 Balance at
1 April 2020
£000
(387)
50,175
49,788
546
1,431
2,493
‐
4,470
54,258		 Income
£000
1,024
‐
1,024
‐
‐
‐
3,084
3,084
4,108		 Expenditure
£000
(2,999)
‐
(2,999)
(14)
(12)
‐
‐
(26)		 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
532
1,419
3,220
‐
5,171
57,624
(3,025) ‐

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 £1,407k (2021: £1,419k) 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 £3,483k (2021: £3,220k).

Page 36

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

22. Summary of funds

Summary of funds ‐ current year

General funds
Restricted funds		 Balance at 1
April 2021
£000
52,453
5,171		 Income
£000
982
850		 Expenditure
£000
(5,251)
(26)
(5,277)		 Transfers
in/out
£000
850
(850)
‐		 Gains/
(Losses)
£000
1,257
263
1,520		 Balance at 31
March 2022
£000
50,291
5,408
55,699
57,624 1,832

Summary of funds ‐ prior year

General funds
Restricted funds		 Balance at
1 April 2020
£000
49,788
4,470
54,258		 Income
£000
1,024
3,084
4,108		 Expenditure
£000
(2,999)
(26)
(3,025)		 Transfers
in/out
£000
3,084
(3,084)
‐		 Gains/
(Losses)
£000
1,556
727
2,283		 Balance at
31 March
2021
£000
52,453
5,171
57,624

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		 Unrestricted
funds
2022
£000
52,428
19,763
3,919
(10,423)
(14,803)
(593)
50,291		 Restricted
funds
2022
£000
1,925
3,483
‐
‐
‐
‐
5,408		 Total
funds
2022
£000
54,353
23,246
3,919
(10,423)
(14,803)
(593)
55,699

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National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

23. Analysis of net assets between funds (continued)

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		 Restricted
funds
2021
£000
1,951
3,220
‐
‐
‐
‐
5,171		 Total
funds
2021
£000
54,705
25,416
5,903
(14,254)
(13,389)
(757)
57,624

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
Decrease/(increase) in debtors
Increase in creditors
Investment income
Net cash provided by operating activities		 2022
£000
(1,925)
1,168
(1,520)
136
1,762
2,419
(291)
1,749		 2021
£000
3,366
1,085
(2,283)
179
(839)
1,375
(265)
2,618

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National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

25. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2022
£000
1,910
1,910		 2021
£000
2,132
2,132

26. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1 April
2021
£000
2,132
(12,069)
(9,937)		 Cash flows
£000
(222)
3,014
2,792		 At 31 March
2022
£000
1,910
(9,055)
(7,145)

27. 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 21.

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National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

28. 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:

2022 2021
£000 £000
Income ‐ facilities provision 500 500
Support grant (1,000) (1,000)
Provision of administration services (125) (125)
Pension fund support (1,500) (500)
Facility improvements (600) ‐
Closing debtor/(creditor) 151 1

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 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.

The loan was transferred to NIAB on 1 April 2021 when the business, assets and liabilities of NIAB EMR were merged into NIAB

29. 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.

Page 40