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2021-12-31-accounts

Registered number: 08811248 Charity number: 1155563

Innovation for Agriculture

Trustees' Report and Financial Statements

For the Year Ended 31 December 2021

Innovation for Agriculture

(A company limited by guarantee)

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Chairman's statement 2
Trustees' report 3 - 6
Independent auditors' report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 31

Innovation for Agriculture (A company limited by guarantee)

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

Trustees P J Westaway, Chairman
D R Galbraith
A W Ward
P J Gready (Royal Agricultural Society of England) (resigned 15 August 2022)
R N F Drewett (The Royal Bath & West of England Society)
Company registered
number
08811248
Charity registered
number
1155563
Registered office
Stoneleigh Park
Kenilworth
Warwickshire
CV8 2LZ
Company secretary
M Kaur
Independent auditors
Dains LLP
15 Colmore Row
Birmingham
B3 2BH
Bankers
Barclays Bank Plc
1 Princes Street
Ipswitch
Suffolk
IP1 1PB
Solicitors
Wright Hassall LLP
Olympus Avenue
Leamington Spa
Warwickshire
CV34 6BF

Page 1

Innovation for Agriculture

(A company limited by guarantee)

Chairman's Statement For the Year Ended 31 December 2021

The chairman presents his statement for the year.

It is my pleasure, on behalf of the IFA board, to present our audited accounts for the year 2021.

2021 was a challenging year as we came to terms and had to deal with the aftermath of both COVID & Brexit, plus a significant change in the executive leadership of the charity. Despite these challenges I am delighted with the amazing job our team did in the year, they deserve great credit.

UK agriculture and rural life is about to embark on the biggest change since the Second World War, as we move away from the EU and direct subsidy payments into the new world of Environmental payments and more Sustainable ways of farming. I firmly believe charities such as IFA will be essential to provide an independent and technical sound platform for the very best advice.

At IFA we are reliant on the support we get from charitable donations from our excellent partners and also the English show society’s that are our valued members.

I would like to take this opportunity to again thank all the IFA team for there work and dedication In 2021, and in particular Mr Roly Taplin who has done a simply brilliant job as our acting COO.

P J Westaway Chairman Date: 22 September 2022

Page 2

Innovation for Agriculture

(A company limited by guarantee)

Trustees' Report For the Year Ended 31 December 2021

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 January 2021 to 31 December 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning their future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

The charitable objects of the Charity are the advancement and promotion, for the public benefit, of agriculture and horticulture including without limit:

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

The Charity was founded in December 2013 and at the end of its seventh full year of operation is becoming established both as an entity and within the market landscape. During 2021 the Charity continued to deliver its Soil & Water and Precision Livestock programmes and successfully attracted funding to establish a new work stream on Antibiotic reduction, which will facilitate expansion during 2022. In the medium term the objective is to continue to raise funding to facilitate the creation of new areas of activity.

As an environmental background to this growth, as we enter 2022, we face more uncertainty than ever before in both European Union funding and in UK Government Policy. Whilst we are in growth and continuing to develop all of our work programmes it is crucial that we are mindful of tougher times ahead and that we continue to manage the cost side of the organisation prudently.

Page 3

Innovation for Agriculture (A company limited by guarantee)

Trustees' Report (continued) For the Year Ended 31 December 2021

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

To achieve its charitable aims IfA stages training events on topics covering Soil Enrichment and Precision Livestock Farming & Animal Welfare. When organising such events it ensures that they embrace, promote and advance agricultural education and best practice, enable the establishment of networks for the transfer of knowledge with the overall aim of contributing to the well-being and prosperity of the Agricultural community.

It is the Charity’s intention that it will continue to develop and enhance its network of agricultural societies around England to improve the communication between the technical research institutions and farmers relating to agricultural and horticultural issues. During 2016 Cheshire Agricultural Society joined Innovation for Agriculture’s network to bring the total number of societies participating in the initiative to 16. During 2021, no societies joined or left.

d. Main activities undertaken to further the Charity's purposes for the public benefit

As identified above the Charity arranges training events on topics covering Soil Enrichment, Precision Livestock Farming and antimicrobial resistance and the appropriate use of Antibiotics. When organising such events it ensures that they embrace, promote and advance agricultural education and best practice, to enable the enhancement of networks for the transfer of knowledge.

The events lead to an improvement in animal welfare, soil health and freshwater quality.

Achievements and performance

a. Review of activities

A review of activities is contained within the Chairman's Statement.

Financial review

a. Going concern

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

b. Reserves policy

In the medium term, IfA aspires to hold reserves equivalent to 50% of annual operating costs and for the Charity to move its focus to generating an increasing proportion of its income from operations rather than relying entirely on fund-raising from other charities and institutions. The Trustees are pleased with what has been achieved in this regard in the five periods of operation.

At 31 December 2021 the total free reserves amounted to £140,407 (2020 - £241,102) which are expected to produce negligible income.

c. Principal funding

Funding is generated from other charities, the European Horizon 2020 Science Programme and a growing number of commercial customers.

Page 4

Innovation for Agriculture (A company limited by guarantee)

Trustees' Report (continued) For the Year Ended 31 December 2021

Structure, governance and management

a. Constitution

Innovation for Agriculture (“IfA” or the “Charity”) is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 11 December 2013. Under Section 60 of the Companies Act 2006 it is exempt from the requirement to use the word “limited” after its name. It is registered as a charity with the Charity Commission. Subject to the approval of the Trustees, membership is open to all and at 31 December 2021 there were five members (2020: five members), each of whom has agreed to contribute £10 in the event of the Charity winding up. We hope to increase this number during 2022.

b. Methods of appointment or election of Trustees

The initial Trustees were nominated by the sponsoring agricultural societies. As set out in the Articles of Association, the Chairman of the Board of Trustees is appointed by the other Trustees and, as for all other Trustees, serves until he is required to retire by rotation at the Annual General Meeting. Trustees have no formal service agreements. The Board meets at least quarterly to conduct the business of the Charity. Two independent Trustees also form part of the Board, each of whom brings relevant experience to assist the Charity with the achievement of its objectives.

c. Organisational structure and decision-making policies

The Charity has a very flat management structure with a Chief Executive reporting to the Chairman and ten other employees.

d. Policies adopted for the induction and training of Trustees

The Trustees appointed to date are all experienced directors and have needed no additional training. It is intended that the Trustees will be briefed on changes to the legal and compliance environment on at least an annual basis.

e. Pay policy for key management personnel

The Charity has entered into an agreement to pay the Chairman a fee of £900 per month plus reasonable travel expenses for his services assisting with the raising of funds on behalf of the Charity. No other Trustees receive any remuneration.

f. Related party relationships

The Charity has no subsidiaries or associated companies.

The Chief Executive of the Charity is also the Chief Executive of the Royal Agricultural Society of England – a member of the Charity. The Chairman of RASE is also a Board Member of the Charity.

Plans for future periods

The Charity will, as funding allows, continue to develop its resources to build an extension service to improve the communication between the technical research institutions and farmers relating to agricultural and horticultural issues.

Page 5

Innovation for Agriculture

(A company limited by guarantee)

Trustees' Report (continued) For the Year Ended 31 December 2021

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Dains LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 22 September 2022 and signed on their behalf by:

P J Westaway Chairman

Page 6

Innovation for Agriculture (A company limited by guarantee)

Independent Auditors' Report to the Members of Innovation for Agriculture

Opinion

We have audited the financial statements of Innovation for Agriculture (the 'charity') for the year ended 31 December 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 7

Innovation for Agriculture (A company limited by guarantee)

Independent Auditors' Report to the Members of Innovation for Agriculture (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

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

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the 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.

Page 8

Innovation for Agriculture (A company limited by guarantee)

Independent Auditors' Report to the Members of Innovation for Agriculture (continued)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Page 9

Innovation for Agriculture

(A company limited by guarantee)

Independent Auditors' Report to the Members of Innovation for Agriculture (continued)

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

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Gurney FCCA (Senior statutory auditor)

for and on behalf of Dains LLP

Statutory Auditor Chartered Accountants Birmingham

26 September 2022

Page 10

Innovation for Agriculture

(A company limited by guarantee)

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

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
15
Net movement in funds
Total funds carried forward
15		 Unrestricted
funds
2021
£
106,274
96,223
-
25,000
227,497
12,724
317,831
330,555
(103,058)
243,465
(103,058)
140,407		 Restricted
funds
2021
£
342,258
-
-
-
342,258
-
351,093
351,093
(8,835)
8,835
(8,835)
-		 Total
funds
2021
£
448,532
96,223
-
25,000
569,755
12,724
668,924
681,648
(111,893)
252,300
(111,893)
140,407		 Total
funds
2020
£
628,886
37,686
3
-
666,575
11,390
562,033
573,423
93,152
159,148
93,152
252,300

The notes on pages 14 to 31 form part of these financial statements.

Page 11

Innovation for Agriculture

(A company limited by guarantee) Registered number: 08811248

Balance Sheet As at 31 December 2021

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total net assets
Charity funds
Restricted funds
15
Unrestricted funds
15
Total funds		 83,254
422,504
505,758
(365,351)		 2021
£
-
140,407
140,407
-
140,407
140,407		 28,428
667,828
696,256
(446,319)		 2020
£
2,363
249,937
252,300
8,835
243,465
252,300

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

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

The financial statements were approved and authorised for issue by the Trustees on 22 September 2022 and signed on their behalf by:

_________ P J Westaway Chairman

The notes on pages 14 to 31 form part of these financial statements.

Page 12

Innovation for Agriculture

(A company limited by guarantee)

Statement of Cash Flows For the Year Ended 31 December 2021

Note
Cash flows from operating activities
Net cash used in operating activities
17
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
18		 2021
£
(245,324)
-
-
-
(245,324)
667,828
422,504		 2020
£
60,535
225
225
-
60,760
607,068
667,828

The notes on pages 14 to 31 form part of these financial statements

Page 13

Innovation for Agriculture (A company limited by guarantee)

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

1. General information

Innovation for Agriculture is a charitable company incorporated in England and Wales and registered with the Charity Commission. The address of the registered office is given in the reference and administrative details section of these financial statements. The nature of the Charity's operations and principal activities are detailed in the Trustees Report.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Innovation for Agriculture 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

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

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Charity's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Page 14

Innovation for Agriculture (A company limited by guarantee)

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

2. Accounting policies (continued)

2.3 Income (continued)

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

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

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

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

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

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 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 15

Innovation for Agriculture (A company limited by guarantee)

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

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

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

2.8 Debtors

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

2.9 Cash at bank and in hand

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

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.11 Financial instruments

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

2.12 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

Page 16

Innovation for Agriculture (A company limited by guarantee)

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

2. Accounting policies (continued)

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

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

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

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

Critical areas of judgment:

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

4. Income from donations and legacies

Donations
Grants
Government grants		 Unrestricted
funds
2021
£
10,000
48,724
47,550
106,274		 Restricted
funds
2021
£
-
342,258
-
342,258		 Total
funds
2021
£
10,000
390,982
47,550
448,532

Page 17

Innovation for Agriculture (A company limited by guarantee)

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

4. Income from donations and legacies (continued)

Donations
Grants
Government grants		 Unrestricted
funds
2020
£
103,026
84,770
91,606
279,402		 Restricted
funds
2020
£
-
349,484
-
349,484		 Total
funds
2020
£
103,026
434,254
91,606
628,886

The Charity has been eligible to claim from the Government's support schemes in response to the Covid19 outbreak. The Charity furloughed certain staff under the Government's Coronavirus Job Retention Scheme (CJRS). The funding received of £47,550 (2020: £91,606) relates to claims made in respect of the year.

5. Income from charitable activities

Events income
Events income
Other incoming resources
Unrestricted
funds
2021
£
Business interuption insurance claim
25,000		 Unrestricted
funds
2021
£
96,223
Unrestricted
funds
2020
£
37,686
Total
funds
2021
£
25,000		 Total
funds
2021
£
96,223
Total
funds
2020
£
37,686
Total
funds
2020
£
-

6. Other incoming resources

Page 18

Innovation for Agriculture (A company limited by guarantee)

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

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2021
£
Entertainment
1,924
Consultancy
10,800
12,724
Unrestricted
funds
2020
£
Entertainment
590
Consultancy
10,800
11,390		 Total
funds
2021
£
1,924
10,800
12,724
Total
funds
2020
£
590
10,800
11,390

Page 19

Innovation for Agriculture (A company limited by guarantee)

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

8. Analysis of expenditure by activities

Charitable activities
Charitable activities
Analysis of direct costs
Staff costs
Professional fees
Events costs		 Activities
undertaken
directly
2021
£
538,877
Activities
undertaken
directly
2020
£
511,521		 Support
costs
2021
£
130,047
Support
costs
2020
£
50,512
Total
funds
2021
£
385,888
98,378
54,611
538,877		 Total
funds
2021
£
668,924
Total
funds
2020
£
562,033
As restated
Total
funds
2020
£
457,855
12,168
41,498
511,521

Page 20

Innovation for Agriculture (A company limited by guarantee)

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

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Depreciation
Travel and subsistence
HR costs
Bank charges
Advertising and marketing
Telephone
Insurance
IT contracts
Printing, postage and stationery
Subscriptions
Rent
Foreign exchange differences
Irrecoverable VAT
Governance costs
9.
Auditor's remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts		 Total
funds
2021
£
2,364
9,532
3,737
1,033
2,470
3,605
2,864
2,947
57
5,362
18,000
37,921
32,667
7,488
130,047
2021
£
4,900		 As restated
Total
funds
2020
£
3,654
9,718
3,444
939
953
6,165
3,245
915
577
3,763
18,000
(18,889)
5,578
12,450
50,512
2020
£
4,550

Page 21

Innovation for Agriculture (A company limited by guarantee)

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

10. Staff costs

Wages and salaries
Social security costs
Pension costs		 2021
£
338,486
33,492
13,910
385,888		 2020
£
405,446
43,226
9,183
457,855

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

2021 2020
No. No.
Staff 10 11

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2021 2020
No. No.
In the band £100,001 - £110,000 - 1

Key management personnel are deemed to be those having authority and responsibility delegated to them by the Charity for planning, directing and controlling the activities of the Charity. During 2021 the total amounts paid to key management personnel was £41,360 (2020 - £120,148).

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year the Chairman of the Trustees provided his service to the charity via a service contract to facilitate fund-raising efforts. During the year the Chairman was paid £10,800 (2020: £10,800).

Page 22

Innovation for Agriculture (A company limited by guarantee)

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

12. Tangible fixed assets

Cost
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Fixtures and
fittings
£
1,330
1,330
1,256
74
1,330
-
74		 Computer
equipment
£
10,929
10,929
8,640
2,289
10,929
-
2,289		 Total
£
12,259
12,259
9,896
2,363
12,259
-
2,363

Page 23

Innovation for Agriculture (A company limited by guarantee)

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

13. Debtors

Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
4,213
7,202
71,839
83,254		 2020
£
18,313
2,307
7,808
28,428

14. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 January 2021
Resources deferred during the year
Amounts released from previous periods		 2021
£
26,906
36,244
178,230
123,971
365,351
2021
£
124,927
-
(5,671)
119,256		 2020
£
4,508
9,049
302,526
130,236
446,319
2020
£
194,694
15,003
(84,770
124,927

Deferred income relates to grant funding for which conditions and deliverables had not been met at the balance sheet date.

Page 24

Innovation for Agriculture (A company limited by guarantee)

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

15. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Restricted funds
H2020 - IWMPRAISE
H2020 - Nefertiti
H2020 - DISARM
H2020 - EURAKNOS
H2020 - FAIRshare
H2020 - DECIDE
H2020 - RUCAPS
Linbury
Cadogan
Total of funds		 Balance at 1
January
2021
£
243,465
-
-
-
-
-
-
-
8,835
-
8,835
252,300		 Income
£
227,497
3,525
130,236
80,903
89,281
25,988
1,145
5,509
-
5,671
342,258
569,755		 Expenditure
£
(330,555)
(3,525)
(130,236)
(80,903)
(89,281)
(25,988)
(1,145)
(5,509)
(8,835)
(5,671)
(351,093)
(681,648)		 Balance at
31
December
2021
£
140,407
-
-
-
-
-
-
-
-
-
-
140,407

Page 25

Innovation for Agriculture (A company limited by guarantee)

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

15. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General funds
Restricted funds
H2020 - IWMPRAISE
H2020 - Nefertiti
H2020 - DISARM
H2020 - EURAKNOS
H2020 - FAIRshare
H2020 - SmartAgriHubs
Linbury
Cadogan
Ashden
Total of funds		 Balance at
1 January
2020
£
159,148
-
-
-
-
-
-
-
-
-
-
159,148		 Income
£
317,091
69
12,939
32,372
42,399
32,720
43,988
60,000
84,997
40,000
349,484
666,575		 Expenditure
£
(232,774)
(69)
(12,939)
(32,372)
(42,399)
(32,720)
(43,988)
(51,165)
(84,997)
(40,000)
(340,649)
(573,423)		 Balance at
31
December
2020
£
243,465
-
-
-
-
-
-
8,835
-
-
8,835
252,300

Page 26

Innovation for Agriculture (A company limited by guarantee)

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

15. Statement of funds (continued)

H2020 – 4D4F

The Data Driven Dairy Decisions for Farmers (4D4F) thematic network focuses on the role which dairy animal and environmental sensors play in collecting real time information to make informed decisions in dairy farming. The network will develop a Community of Practice comprised of farmers, farm advisors, technology suppliers, knowledge exchange professionals and researchers who work together to debate, collect and communicate best practice drawn from innovative farmers, industry and the research community and facilitate the creation of best practice. The results will be communicated to farmers using best practice guides on the use of sensors and data analysis tools supported by videos, infographics and an online virtual warehouse of dairy sensor technologies.

H2020 – Agrocycle

AgroCycle focuses on converting low value agricultural waste into highly valuable products, achieving a 10% increase in waste recycling and valorisation by 2020. This will be achieved by developing a detailed and holistic understanding of the waste streams and piloting a key number of waste utilisation/valorisation pathways. The AgroCycle consortium is a large (25) multi-national group (including China) comprising the necessary and relevant multi-actors (i.e. researchers; companies in the technical, manufacturing, advisory, retail sectors (Large and SMEs); lead users; end users; and trade/producer associations) for achieving the project’s ambitions goals.

H2020 – IWMPRAISE

IWMPRAISE aims to support the implementation of Integrated Weed Management (IWM). IWMPRAISE demonstrates that adoption of IWM supports more sustainable cropping systems both agronomically and environmentally, which are resilient to external impacts without jeopardising profitability or the steady supply of food, feed and biomaterials.

H2020 – Nefertiti

17 Countries, 10 Networks, 45 Regional Hubs 267 Events. The overall objective of Nefertiti is to establish as EU wide connected network of demonstration and pilot farms, designed to enhance knowledge exchange and cross-fertilisation among participants. This project aims to improve innovation uptake in the farming sector through peer to peer learning and demonstration of management techniques across the 10 major agricultural challenges in Europe. Due to our strong links to practical agriculture, IfA has been well respected in this project, Richard Lloyd has led KE at European meetings and Deborah Crossan is offering training for On-Line Demonstrations following our experience with The Greatest On-Line Agricultural Show earlier this year.

H2020 - DISARM

DISARM (Disseminating Innovative Solutions for Antibiotic Resistance Management) aims to bring people together to discuss and share effective, practical solutions to promote and sustain responsible antibiotic use whilst maintaining or improving animal welfare and farm economic performance. Practical innovations will be gathered in an online database, and an online Community of Practice allows farmers, farm advisors and veterinarians, researchers, and other industry actors to share their expertise. Case study examples of a Multi-Actor Farm Team approach to developing an action plan tailored to individual farms will also be produced alongside guidance to set up and coach your own farm team. Results will be communicated to farmers and farm advisors through best practice abstracts, guides, videos and a series of events and workshops.

Page 27

Innovation for Agriculture (A company limited by guarantee)

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

15. Statement of funds (continued)

H2020 - Euraknos

EURAKNOS believes the future of innovation in EU agriculture and forestry is based on the improved (digital) exchange of best practices between farmers, researchers and advisors from different sectors and member states. EURAKNOS aims to reinforce the EU agricultural knowledge base by building the blueprint for a data-system which would enable the farming/rural community easier access to best practices from all EU H2020 thematic networks. To realise this, EURAKNOS will co-create the “thematic network to connect all thematic networks” to map the existing knowledge within each network, develop best practices for effective thematic network projects integrating the multi-actor approach for high impact, and develop a prototype online data platform.

H2020 - FAIRshare: (Digital Tools for Farm Advisors)

A 7-million-euro project, co-funded by the European Commission under the Horizon 2020 initiative. Being led by Teagasc, the Irish Agriculture and Food Development Authority, the project brings together 22 partners from 15 countries across Europe. This 5 year project will engage, enable and empower the independent farm advisory community, through sharing of tools, expertise and experiences. IfA is leading Work Package 4: Learning from the adoption of new Digital Agriculture Tools & Services (DATS) by advisors in diverse advisory and farming contexts across the EU.

H2020 - RUCAPS

16 participants, 5 countries including Chile and Argentina. To enhance and implement knowledge based ict solutions within high risk and uncertain conditions for agricultural production systems. IfA play a practical role in this project, helping to identify the current challenges and conditions in agriculture, which may in the future, require ict solutions. These include environmental uncertainty and considers inputs, packaging and other post -harvest considerations.

IfA have hosted visits to the UK by other partners and have participated in exchange visits to see crop production in Italy. Knowledge share and peer to peer learning are a vital part of this consortium.

H2020 - SmartAgriHubs

A €20 million 4 years project part of the EU H2020 initiative, aiming to accelerate the digital transformation of the agri-food sector in Europe. The project has the potential to be a real game changer in the adoption of digital solutions by the farming sector. SmartAgriHubs will leverage, strengthen and connect local Digital Innovation Hubs, and Competence Centres (CCs) throughout Europe. Given its widespread geographical coverage, SmartAgriHubs is using a regional cluster approach, where each cluster represents a group of DIHs and CCs within a region. The project covers all 28 Member States who have been divided into 9 Regional Clusters. SmartAgriHubs also has a wide sectorial outreach, covering a variety of agricultural sectors and application areas which have been organised into 5 groups: livestock, vegetables, fruit, arable farming and aquaculture. We, IfA are co-leading the Regional Cluster UK & Ireland.

Esmee Fairbairn Foundation

To support core costs in maintaining and building IfA’s reach and impact on the farming community through implementation of the business plan. Also to aid Farmers in reducing their use of antibiotics and use antibiotics more effectively, influenced by the development and delivery of a new work stream on antibiotic reduction within the Precision Livestock Farming programme.

Cadogan

IfA aims to attend nine agricultural shows and six specialist trade events each year with a trade stand full of the latest advice on antibiotic reduction and technology. The specialist events attract the progressive farmers, covering all the major livestock sectors and attracting in excess of 40,000 visitors each year, including farm consultants and advisers. The agricultural shows attract a broad farming and rural public - progressive farmers as well as the more ‘difficult to reach’ traditional farmers and smallholders. To support this IfA will develop 20 short YouTube videos per year. These cover antibiotic use in dairy, beef, pigs, sheep and poultry, capturing practical tips on how farmers can improve practice to reduce use.

Page 28

Innovation for Agriculture (A company limited by guarantee)

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

15. Statement of funds (continued)

Linbury

A three year grant towards the enhancement of IfA’s communications capability. To address the antibiotics issue successfully and permanently, IfA needs to reach the entire livestock farming spectrum.

Ashden

Growing season 2018/19: We have now conducted a full base line survey to gain farmer views on current issues within agriculture.

We have compiled these results and have concluded in depth interviews with 40 farmers to capture current techniques associated with improving soil health. These include the circumstances around which practices work and feedback on failures, these will be with regard to spring crops, no-till drills, use of cover crops, re-introduction of livestock onto farms etc.

Growing season 2019/20: We re-interviewed 40 farmers and captured lessons from 2nd growing season. Delivered KE at 10 farmers workshops based on this information.

Growing Season 2020/21: Covid-19 has delayed the final stage of a further round of interviews and the workshops which will enable the dissemination of survey results to a wider farming audience. We will be resuming this work once we can safely commence our on-farm visits and workshops.

16. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Current assets
210,479
Creditors due within one year
(70,072)
Total
140,407		 Restricted
funds
2021
£
295,279
(295,279)
-		 Total
funds
2021
£
505,758
(365,351)
140,407

Analysis of net assets between funds - prior year

Unrestricted
funds
2020
£
Tangible fixed assets
2,363
Current assets
261,339
Creditors due within one year
(20,237)
Total
243,465		 Restricted
funds
2020
£
-
434,917
(426,082)
8,835		 Total
funds
2020
£
2,363
696,256
(446,319)
252,300

Page 29

Innovation for Agriculture (A company limited by guarantee)

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

17. 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
Surplus on the sale of fixed assets
(Increase)/decrease in debtors
Decrease in creditors
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Cash held for grants
Total cash and cash equivalents		 2021
£
(111,893)
2,363
-
(54,826)
(80,968)
(245,324)
2021
£
246,480
176,024
422,504		 2020
£
93,152
3,654
(225)
123,843
(159,889)
60,535
2020
£
366,673
301,155
667,828

18. Analysis of cash and cash equivalents

19. Analysis of changes in net debt

At 1 At 31
January December
2021 Cash flows 2021
£ £ £
Cash at bank and in hand 667,828 (245,324) 422,504

20. Pension commitments

The Charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £13,910 (2020 - £9,183). Contributions totalling £2,193 (2020 - £894) were payable to the fund at the balance sheet date and are included in creditors.

Page 30

Innovation for Agriculture (A company limited by guarantee)

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

21. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member.

22. Related party transactions

The Charity is controlled by the Directors (the Trustees), whose names are shown on page 1. The Charity has paid £997 (2020 - £985) for Professional Indemnity Insurance. This cover protects the Charity from losses arising from the neglect or default of Trustees and seconded employees. It also indemnifies the Trustees or other officials against the consequences of any neglect or default on their part.

During the year the Charity was recharged £26,951 (2020 - £29,112) from the Royal Agricultural Society of England, a related party due to it being a member of the Charity, for rent and office running costs.

At the year end £14,883 (2020 - £464) was due to the Royal Agricultural Society of England.

Page 31