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2023-03-29-accounts

Registered number: 7823588 Charity number: 1144528

National Institute of Agricultural Botany Trust

Trustees' Report and Financial Statements

For the Year Ended 31 March 2023

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
Statement of cash flows 16
Notes to the financial statements 17 ‐ 38

National Institute of Agricultural Botany Trust

Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2023

Trustees J A Elliot,Chairman
Dr C W Looker
R Pemberton
R A Macdonald
J E Godfrey (appointed 16 November 2022)
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
Ashtons Legal LLP
Chequers House
77‐81 Newmarket Road
Cambridge
CB5 8EU

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 2023

Property Advice

Bidwells Trumpington Road Cambridge CB2 2LD St Andrews Bureau 18 Mill Road Cambridge CB1 2AD Frazer Halls A3, East Gores Farm Salmons Lane Coggeshall CO6 1RZ Ceres Property Council Offices London Road Saffron Walden CB11 4ER

Page 2

National Institute of Agricultural Botany Trust | Annual Report and Accounts | March 2023

TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT

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.

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 Trust to be charitable in nature.

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 continued improvement to the NIAB Park Farm site to enable consolidation of all Cambridge based operations.

The Trust has provided annual financial support to NIAB, both in the terms of an annual grant to support research and in the provision of a rolling working capital facility.

Page | 3

Performance

Our performance against our 2022/23 objectives is highlighted in the table below:

Objectives Performance
Secure a beneficial value for the next phase of the Darwin
Green Land		 The Trust continues to work closely with a consortium of
Cambridge landowners and a national house builder to secure
planning permission for the future phases of the Darwin Green
development in Cambridge.
Identify further land development opportunities The Trust have identified possible future development sites
within the land holding and is assessing planning consent
feasibility for these
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 a participating employer in the
scheme and therefore stands beside NIAB.

Objectives for 2023/24

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

Page | 4

FINANCIAL REVIEW

Income

The total incoming resources for the year were £1,169k (2022: £1,789k). Income 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. Income in 2022 included a grant of £850k towards the building of new facilities.

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

Expenditure

The total outgoing expenditure totalled £2,739k (2022: £5,277k) made up as follows:

Research funding to NIAB
Support to NIAB in respect of the
Pension Scheme
Donation to NIAB for new
accounting system
Donation to NIAB to fund asset
acquisition
Site development costs
Administrative costs
Bank and other interest
Professional fees
Other
Depreciation
Total**		 2023
£’000
1,000
-
50
-
-
125
70
149
155
1,190
2,739		 2022
£’000
1,000
1,500
600
572
125
136
57
119
1,168

5,277

** A payment of £650k was made during the year out of the accrual made in 2022.

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 of 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 18. The capital sum relating to the 1996 provision at 31 March 2023 was £576k (2022: £593k).

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 and the Trustees continue to believe that NIAB is the best vehicle to deliver the charitable objects of The Trust.

The Trust is a participating employer in the NIAB (1996) Pension Scheme (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.

Capital Expenditure

The charity funded the capital purchases from unrestricted reserves. Capital additions for the year total £49k (2022: £816k). Capital expenditure in the year related to landlord funded improvements to NIAB facilities.

Business Review and key performance indicators

The following financial indicators have been reviewed:

2023 2022
£’000 £’000
Charitable Expenditure 2,739 5,277
Income from Investments 427 291
Support Costs
239		 366

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

The Trustees have reviewed the cash flow supporting its own activities for future years. They have 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.

The Trust’s NET current liabilities at 31 March 2023 were £301k (2022: £6,504k).

The Trust has historically held a loan facility with the Trust’s bankers, Barclays Bank PLC. The bank have indicated a willingness to renew facilities although the Trust does not currently require this. In addition, further funds would become available, if needed, on the sale of the residential properties.

Page | 5

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

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 2025) 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.

Reserves Policy

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, the Trust anticipate this 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 £53,970k at the balance sheet date of which £5,496k is restricted and £48,474k is unrestricted.

Accounting Period

The Trustees present their report and the financial statements for the year ended 31 March 2023. 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.

Page | 6

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.
Financial Failure to generate sufficient cash to support
commitments		 Regular review of ongoing commitments and
reserves policy

Page | 7

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.

Governance Code

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

Fundraising

The following Trustees have served during the period:

The Trust carried out no fundraising activity in the year.

(Chair)

J A Elliot

Dr C W Looker

R Pemberton

R Macdonald CBE J Godfrey (appointed 16 November 2022) J W Lewis (resigned 16 November 2022)

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 of £4,992k (2022:£4,890k) is detailed in note 20.

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.

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. 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 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).

Page | 8

National Institute of AEricultural Botany Trust l Annual Report and Account51 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 purposes of company lawl are responsible for preparing the Trustee5 Report, incorpornting the Strategic Report. and the financial statements in 8ccordance with applicable law and regulations. The Trustees confirrn that.. So f8ras each Trustee is aware, there is 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 ol any relevant audit information and to establish that the charitable companvs auditor 15 aware of that information. Company law requires the Trustees to prepare financial statements for each financial year. Under th3t law the Trustees have elected to prepare the flnancial statements in accordance with United Kingdorn 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 unle55thatthey are satisfied thattheygive a tru and fairview of the state of allairs of the charitable company 3nd of the incoming resources and application of resources. including the income and expenditure, ol the charitable company for that period. In preparing these financial staternents, the Trustees are required to.. The Trustees are re5ponslble for the maintenance and integrity of the corporate fin3ncial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financia5 statements may differ from legislation in other The Tru5tee5 approve the Trustees, Report, incorporating the Strategic Report, and financi31 staternents which are signed on b of the B03 d ol Trustees of The Trust. select suitable accounting policies and then applv them consistently,. observe the method5 and principles in the Charities SORP IFRS1021-, rustee Date.. 4 December 2023 make judgments and accountlng estimates that are reasonable and prudent,. and state whether applicable UK Accounting Standard5 have been followed, subject to any material departures disclosed and explained in the financial statements. The Trustees are responsible for keeping proper accounting records that disclose with re3son3ble accuracy at any time the finaneial position of the charitable company and enable them to ensure that the financial Statements comply with the Comp3nies Act 2006. They are 31so responsible for safeguarding the 85set5 of the charitable cornpany and hen￿ for taking reasonable steps for the prevention and detection ol fraud and other Irregularities. Page | 9

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 2023 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

December 2023

Page 13

National Institute of Agricultural Botany Trust

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2023

Note
Income from:
Charitable activities:
4
. Other charitable activities
Investments
5
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net expenditure before net (losses)/gains
on investments
Net (losses)/gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2023
£000
742
427
1,169
2,713
2,713
(1,544)
(273)
(1,817)
50,291
48,474		 Restricted
funds
2023
£000
‐
‐
‐
26
26
(26)
114
88
5,408
5,496		 Total
funds
2023
£000
742
427
1,169
2,739
2,739
(1,570)
(159)
(1,729)
55,699
53,970		 Total
funds
2022
£000
1,498
291
1,789
5,277
5,277
(3,488)
1,563
(1,925)
57,624
55,699

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

The notes on pages 17 to 38 form part of these financial statements.

Page 14

National Instltute of Agiicu5tural Botany Trust Balance Sheet As at 31 March 2023 2023 £000 2022 £(￿0 Note Fixed asset5 Tangible assets Investment propertv 12 53,212 15,496 54,353 23,246 13 68,708 77,599 Current assets Debtors 14 2,914 10,035 2,009 J,910 Cash at bank and in hand 12,949 3,919 Creditors.. amounts falling due within one year 15 113,2501 (10,423) Net current liabilitiès 13011 (6,504) Total assets less current liabilities 68,407 71,095 Creditors.. amounts falling due after more than one year 16 113,8611 15761 114,$03J 15931 Totsl net assets 53,970 55,699 Charity funds Restricted funds 20 5,496 48,474 5,408 50.291 Unrestrirted funds 20 Total funds 53,970 55,699 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting record5 and preparation of financial st3tement5. The linanclal statements have been prepared in accordance with the provisions applicable to entities subject to the small Companie5 regime. ¢131 tatement5 were approved and authorised for issue by the Trustees on 04 December 2023 and signed on th lot (Chair of Trustees) The notes on pages 17 to 38 form part ol these financi31 statements. Page 15

National Institute of Agricultural Botany Trust

Statement of Cash Flows For the Year Ended 31 March 2023

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 investing activities
Cash flows from financing activities
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		 2023
£000
1,640
427
(49)
7,677
(70)
7,985
(1,500)
(1,500)
8,125
1,910
10,035		 2022
£000
1,749
291
(816)
3,690
(136)
3,029
(5,000)
(5,000)
(222)
2,132
1,910

The notes on pages 17 to 38 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 2023

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 within the accounting policies 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.

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 and the Trustees continue to believe that NIAB is the best vehicle to deliver the charitable objects of The Trust.

The Trust is a participating employer in the NIAB (1996) Pension Scheme (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 future years. They have 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.

The Trust’s NET current liabilities at 31 March 2023 were £301k (2022: £6,504k).

The Trust has historically held a loan facility with the Trust’s bankers, Barclays Bank PLC. The bank have indicated a willingness to renew facilities although the Trust does not currnetly require this. In addition, further funds would become available, if needed, on the sale of the residential properties

Page 17

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.2 Going concern (continued)

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 2025) 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.

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.

Page 18

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

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.

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 8.

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.

Page 19

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

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. Changes in fair value and gains and losses arising on disposal are recognised in 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.

All gains or losses, whether on revaluation or disposal, are included in “Net losses or gains on investments”. Accordingly, the 2022 comparatives of the statement of financial activities has been adjusted to include £43k previously shown as “Disposal of Property”.

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 £944k relating to the DEFRA redundancy fund.

Page 20

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

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 21

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

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 and the assumptions where there is a significant risk of causing a material adjustment to the carrying amount of assets in the next accounting period 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 13).

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 resale at a valuation based on the expected cashflows discounted by 10%. The rate reflects the risks and uncertainties with the development. The Trust will re‐assess both the expected cashflow timings and discount rate used as these move through planning permission.

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 2023 (note 13).

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 2023

4. Income from charitable activities

Provision of facilities to NIAB
Provision of facilities to Cambridge University
Total 2023		 Unrestricted
funds
2023
£000
500
242
742		 Total
funds
2023
£000
500
242
742
Provision of facilities to NIAB
Provision of facilities to Cambridge University
Income from grants for fixed assets
Total 2022		 Unrestricted
funds
2022
£000
500
148
‐
648		 Restricted
funds
2022
£000
‐
‐
850
850		 Total
funds
2022
£000
500
148
850
1,498

Page 23

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

5. Investment income

Rental income ‐ residential investment properties
Interest receivable from NIAB
Bank interest
Total 2023
Rental income ‐ residential investment properties
Interest receivable from NIAB
Total 2022		 Unrestricted
funds
2023
£000
279
64
84
427
Unrestricted
funds
2022
£000
257
34
291		 Total
funds
2023
£000
279
64
84
427
Total
funds
2022
£000
257
34
291

Page 24

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

6. Analysis of grants

Grant to NIAB
Grant to NIAB		 Grants to
Institutions
2023
£000
1,050
Grants to
Institutions
2022
£000
3,100		 Total
funds
2023
£000
1,050
Total
funds
2022
£000
3,100

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
NIAB ‐ new accounting system		 2023
£000
1,000
‐
‐
50
1,050
1,050		 2022
£000
1,000
1,500
600
‐
3,100
3,100

Page 25

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

7. Analysis of expenditure on charitable activities

Summary by fund type

Grants to NIAB (note 6)
Administration fees
Legal & Professional
Property costs
Interest paid
Other costs
Depreciation		 Unrestricted
funds
2023
£000
1,050
125
166
132
70
6
1,164
2,713		 Restricted
funds
2023
£000
‐
‐
‐
‐
‐
‐
26
26		 Total
2023
£000
1,050
125
166
132
70
6
1,190
2,739
Grants to NIAB (note 6)
Administration fees
Legal & professional
Property costs
Provision of facilities
Interest paid
Other costs
Depreciation		 Unrestricted
funds
2022
£000
3,100
125
70
96
572
136
10
1,142
5,251		 Restricted
funds
2022
£000
‐
‐
‐
‐
‐
‐
‐
26
26		 Total
2022
£000
3,100
125
70
96
572
136
10
1,168
5,277

Page 26

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

8. Analysis of expenditure by activities

Grants to NIAB (note 6)
Administration fees
Legal & professional
Property costs
Interest paid
Other costs
Depreciation		 Property
2023
£000
‐
50
151
132
‐
‐
1,190
1,523		 Grant funding
2023
£000
1,050
‐
‐
‐
‐
‐
‐
1,050		 Support costs
2023
£000
‐
75
15
‐
70
6
‐
166		 Total
funds
2023
£000
1,050
125
166
132
70
6
1,190
2,739
Grants to NIAB (note 6)
Administration fees
Legal & professional
Property costs
Provision of facilities
Interest paid
Other costs
Depreciation		 Property
2022
£000
‐
50
57
96
572
‐
‐
1,168		 Grant funding
2022
£000
3,100
‐
‐
‐
‐
‐
‐
‐		 Support costs
2022
£000
‐
75
13
‐
‐
136
10
‐
234		 Total
funds
2022
£000
3,100
125
70
96
572
136
10
1,168
5,277
1,943 3,100

Page 27

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

9. Auditors' remuneration

2023 2022
£000 £000
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 14 10
Fees payable to the Charity's auditor in respect of:
Additional fees in respect of previous year audit ‐ 3

10. 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.

11. Trustees' remuneration and expenses

There were 5 serving Trustees during the year (2022 ‐ 5). During the year three Trustees were paid honorariums or per diem fees totaling £5,200 (2022‐ 3 trustees £9,200).

During the year, expenses totaling £240 were reimbursed or paid directly to 3 Trustees (2022: ‐ £1,563 to 3 Trustees). This principally reflects reimbursed travelling expenses incurred in attending meetings.

Page 28

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

12. Tangible fixed assets

Cost or valuation
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
On disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
property
£000
59,011
49
‐
59,060
4,742
1,178
‐
5,920
53,140
54,269		 Plant and
machinery
£000
421
‐
(169)
252
337
12
(169)
180
72
84		 Fixtures and
fittings
£000
380
‐
(380)
‐
380
‐
(380)
‐
‐
‐		 Total
£000
59,812
49
(549)
59,312
5,459
1,190
(549)
6,100
53,212
54,353

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 (2022 ‐ £NIL) .

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

Page 29

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

13. Investment property

Valuation
At 1 April 2022
Disposals
Gain on revaluation
At 31 March 2023		 Freehold
residential
investment
property
£000
9,060
‐
303
9,363		 Land held for
resale
£000
14,186
(7,677)
(376)
6,133		 Total
£000
23,246
(7,677)
(73)
15,496

The Trustees have reviewed the market value of the Trust’s freehold investments at 31 March 2023.

The residential investment properties are included at £9,363k (2022: £9,060k) 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 2023. DEFRA has an interest of £3,483k in the investment properties (see note 20).

The Trustees have valued the land held for re‐sale at £6,133k (2022: £14,186k) 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 10%. The rate of 10% reflects an the risk factor associated with the sale.

14. Debtors

Trade debtors
Amount due from NIAB **
Other debtors
Prepayments and accrued income
Tax recoverable		 2023
£000
150
2,480
155
11
118
2,914		 2022
£000
150
1,648
162
11
38
2,009

A loan to NIAB of £1.5m included above ** is scheduled to be repaid in full by 8 February 2026 (see note 27).

Page 30

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

15. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other creditors
Accruals and deferred income		 2023
£000
‐
55
12,538
657
13,250		 2022
£000
1,500
11
8,106
806
10,423

Bank loans ‐ Barclays Bank Plc 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 was repaid in September 2022.

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

2023 2022
£000 £000
Accruals and deferred income 13,861 14,803

Deferred income included above of £13,461k (2022: £13,703k) arises from amounts received from the University of Cambridge towards capital expenditure. Similar deferred income of £274k (2022: £274k) is also included in Creditors: Amounts falling due within one year. The total deferred income is £13,735k (2022: £13,977) (note 18).

17. Deferred income

Deferred income at 1 April 2022
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 March 2023		 2023
£000
13,977
‐
(242)
13,735		 2022
£000
12,806
1,389
(218)
13,977

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 17).

Page 31

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

18. Provisions

At 1 April 2022
Amounts reversed		 Redundancy
Fund
£000
593
(17)
576

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.

19. Financial instruments

2023 2022
£000 £000
Financial assets
Financial assets measured at fair value through income and expenditure 10,035 1,910

Page 32

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

20. 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
Total of funds		 Balance at 1
April 2022
£000
116
50,175
50,291
518
1,407
3,483
5,408
55,699		 Income
£000
1,169
‐
1,169
‐
‐
‐
‐		 Expenditure
£000
(2,713)
‐
(2,713)
(14)
(12)
‐
(26)		 Gains/
(Losses)
£000
(273)
‐
(273)
‐
‐
114
114
(159)		 Balance at 31
March 2023
£000
(1,701)
50,175
48,474
504
1,395
3,597
5,496
53,970
1,169 (2,739)

Page 33

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

20. 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 2021
£000
2,278
50,175
52,453
532
1,419
3,220
‐
5,171
57,624		 Income
£000
939
‐
939
‐
‐
‐
850
850
1,789		 Expenditure
£000
(5,251)
‐
(5,251)
(14)
(12)
‐
‐
(26)		 Transfers
in/out
£000
850
‐
850
‐
‐
‐
(850)
(850)		 Gains/
(Losses)
£000
1,300
‐
1,300
‐
‐
263
‐
263
1,563		 Balance at
31 March
2022
£000
116
50,175
50,291
518
1,407
3,483
‐
5,408
55,699
(5,277) ‐

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 £1,395k (2022: £1,407k) 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 £3,597k (2022: £3,483k).

Page 34

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

21. Summary of funds

Summary of funds ‐ current year

General funds
Restricted funds		 Balance at 1
April 2022
£000
50,291
5,408		 Income
£000
1,169
‐
1,169		 Expenditure
£000
(2,713)
(26)
(2,739)		 Gains/
(Losses)
£000
(273)
114
(159)		 Balance at 31
March 2023
£000
48,474
5,496
53,970
55,699

Summary of funds ‐ prior year

General funds
Restricted funds		 Balance at
1 April 2021
£000
52,453
5,171
57,624		 Income
£000
939
850
1,789		 Expenditure
£000
(5,251)
(26)
(5,277)		 Transfers
in/out
£000
850
(850)
‐		 Gains/
(Losses)
£000
1,300
263
1,563		 Balance at
31 March
2022
£000
50,291
5,408
55,699

22. 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
2023
£000
51,313
11,899
12,949
(13,250)
(13,861)
(576)
48,474		 Restricted
funds
2023
£000
1,899
3,597
‐
‐
‐
‐
5,496		 Total
funds
2023
£000
53,212
15,496
12,949
(13,250)
(13,861)
(576)
53,970

Page 35

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

22. 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
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

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

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Losses)/Gains on land for resale
Interest paid
(Gains) on revaluation of investment properties
Decrease/(increase) in debtors
Increase in creditors
Investment income
Net cash provided by operating activities		 2023
£000
(1,729)
1,190
376
70
(303)
(905)
3,368
(427)
1,640		 2022
£000
(1,925)
1,168
(820)
136
(700)
1,762
2,419
(291)
1,749

Page 36

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

24. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2023
£000
10,035
10,035		 2022
£000
1,910
1,910

25. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1 April
2022
£000
1,910
(1,500)
410		 Cash flows
£000
8,125
1,500
9,625		 At 31 March
2023
£000
10,035
‐
10,035

26. 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 £1,395k in charitable assets and £3,597k in investment properties (totaling £4,992k) within note 20.

Page 37

National Institute of Agricultural Botany Trust

Notes to the Financial Statements For the Year Ended 31 March 2023

27. 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:

2023 2022
£000 £000
Income ‐ facilities provision ‐ 500
Support grant (1,000) (1,000)
Provision of administration services (125) (125)
Pension fund support ‐ (1,500)
Support for new accounting system (50) ‐
Facility improvements ‐ (600)
Closing debtor 980 151

NIAB 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 provided a loan of £1,500,000 to NIAB EMR. The loan was transferred to NIAB on 1 April 2021 when NIAB acquired the business of NIAB EMR. The loan is secured by a first fixed and floating charge on the assets of NIAB and, while there is no fixed repayment timetable, it is repayable by 8 February 2026. Interest is charged at 2% above the Bank of England base rate, which is considered to be market value.

28. 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 38