Registered number: RC000865 Charity number: 1155893 THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ishop Fleming
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM CONTENTS Page Roference and administrative details of the Charity, ils Trustees and advisers Trustee8' report Independent audltors. report on the Ilnancial statements 12-15 Statement of financlal #ctlvltles 16-17 Balanco shoot 18 Stsiemenl of cash flows 19 Noles lo the financial statements 20-42
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021 Tru$to•$ Dr Gill Rider. President Mr R Mills. Treasurer lelecledl Professor P S RainLw (resigned 2 December 20201 Professor M J Whitaker Professor S Rogers Professor C Frid Dr J Ashworth Professor J A Raven Professor A G Smith Mr R Coombs, Trustee Professor J Petts Professor P J B Hart Professor P M Holligan Professor D Laffoley Professor Ros Rickaby (elected 2 December 20201 Professor Heather Koldewey (elected 2 December 20201 Company reglsternd number RC000865 Charity registered number 1155893 Registered offic• The Laboratory Citadel Hill Plymouth PL12PB Secrotary and Dirnctor Professor W Wilson Treasuror Mr R Mills lelected annually) Independent auditors Bishop Fleming LLP Chartered Accounlanls Sall Quay House 4 North Easl Quay Sutton Harkour Plymouth PL4 OBN Page 1
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2021 The Tnjstees present their Annual R8POrt logelher wilh the audi18d financial statements of the charity for the year 1 April 2020 10 31 March 2021. The Annual Report serves the purposes of both a Trustees, report and Directors. report under company law. The Trustees confimi that the Annual Report and Financial Statements of the charitable company comply with the current statutory requirements, the TequiTemenls of the charitable companys governing document and the provisions of the Slalemenl of Recommended Practice ISORPI applicable to charities preparing Iheir accounls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS102) (effective 1 January 20191. ObJoCtlv•$ and actlvltlo$ a. ObJectlv8s and actlvltlès The Marlne Blo10glcal Assoclatlon IMBA> is a Learned Society of scientists and members in over 40 countries. across 5 continenls. Ils in-depth scientific research into the inlerconnecled marine environment is carried out from ils prests"gious laboratory HQ in Plymouth, UK_ It has a Royal Charter that recognises its wodd-leading status in marine biology. Since 1884, the MBA has worked as a voice for the ocean and in the interests of the global marine biological community. The MBA'S advanced knowledge has contributed to the work of 12 Nobel Laureates and over 170 Fellows of the Royal Society. MBA Vlslon: To b8 th8 voice of Marine Biology. Focused on marine biology, our Mission is.. to understand lh8 causes and consequences of environmental change in the ocean through discovery and dissemination. This mission is achieved through M8A's offer, which in¢ludes-. our wodd class resear¢h- membership- information and dats services- consultancy-. postgraduate education. scients'fic outreach. public engagement, and training programmes. The Board of Trustees has given regard to the legislative and rogulalory requirements for disclosing how its charitable objectives have provided benefit to the public. The Board of Trustees has complied with the duty set out in Section 17{51 of the Charities Act 2011 This reFort outlines how our achievements during the P8ric4J have benefited the public, either directly 01 indir8CtIy. In setting objectives and planning for activities. the Trustees have given due consideration lo general guidance published by the Charity Commission relating to public benehi, including the guidance 'Public b8nefil.' running a charity IPB2)'. Strateg1¢ report Achievements and perfonnance . Achievements and perforniance Th8 full achievements and the p6rformance of thè MBA are describ8d in th8 Annual Report, which is published separately. A brief review of key achievements and activtties during the year is provided below along with key perfomiance indicators (KPlsl in the onward sections. Financial P8rfom78nce The Trustees ar8 pleased to report a continued strong financial p8rformance whith has been driven by hvo primary indicators: 11 the merger with the Sir Alist&r Hardy Foundation for Ocean Science ISAHFOS} in April 2018. a charity that managed the Continuous Plankton Recorder ICPRI Survey {also see onward section on CPR Survey KPlsl and has continued lo perfomi well in parallel with operational savings Ihe merger broughl lo the M8A- and 21 the granucontracl capture success rate of MBA Research Fellows and CPR Survey Research Scienlisls remains high at 270/0 lin value} and 52% lin numberl. which included another prestigious European Research Council IERC) grant: which is now 3 ERC grants held by the MBA. Membetshi numbers dropped compared lo the previous 2 years, largely driven by COVID StriCt10nS which prevented some of our primary recruilmenl events. However, we conducted a comprehensive strategic view of membership using professional consullanls and have arnbitious plans to reslruclure the Page 2
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 membership offer with a view to significantly increasing membership numbers and improving the membership offer over the next 10 years. Scienlilic Outreach & Public En ement As we focus increasingly on Climate Change, Health of the Ocean Ecosystem, and their impacts on marine life, the MBA had several high profile stories in the media that were covered by a range of press and social media outlets. as well as numerous articles in the international press. Part of this was through our research on (for example) algal physiology (first observation of calcium ion sonaling driving phosphate sensing huge implications for understanding nulrienl uptake in th8 ocean)., impact of ocean deoxygenation on shark dislribulions (also translated for the Science Journal for Kids)., long-lemi data milestones le.g, we received a Guinness World-Record cilalion for the "greatest distance sampled by a marine survey refetring to the 7-million nautical mile mark by the CPR Survey)., importance of ocean rnicrobes with a £1.35-rnillion award from the Wowson Foundation to build a Marine Microbiome Cenlre of Excellence IMMCEI which received sy)silive publicity for the MBA. Inlrastructure Im rovement We have now made significant hèadway in developing a Ciladel Hill infraslruclure improvement maslerplan., with construction managers already appointed and planning at advanced stages for a malor refurbishment of the north-wing laboratories {MMCEI. Refurbishment of the basement area is now complete and the Mary Parke Bioimaging Cenlre was opened during the period,. this will house some of the most powerful light microscopes known and is now the most advanced bioimaging facility for any Marine Research Laboratory in the wortd. Staff A¢hi8v8m8nls Wè celebrated the achievements of our staff wth prèsligious awards granted to= Dr Trupli Gaikwad who received the Asian Women of Achievement Award in Saence lin assoaalion with Natwestl., and Professor David Sims who won the Zoological Society of London {ZSLI Marsh Award for contributions of shark research lo conservation. COVID-19 Control Measuffjs This pOrting period was dorninaled by the COVID-19 pandèmic. Although this did impact the MBA. most of these impacts will not be noticeable until future reporting periods. We conducted a business impact assessment of different lockdown scenarios in 3 month blocks through lo March 2021. This allowed us to identify and priorilise conlraclua1 delivery issues., impacts on grant proposal opportunities., impads of consultancy work drying up,. irnpacls of gaps in tirne-series resear¢h- impads of staff moving to new positions., impacts of being unable lo hire new staff,. impacts on infrastnjcture projecl. Most of the impacts identified were medium to long-lerm12 - 3 years) since some contracts may be delayed and would require no¢ost extensions. which would have a small financial risk lo the MBA. 11 is likely there will be an impact lo the infraslruclure project, with labour and materials costs expected to increase by up lo 15% above nonnal (thought to be driven by a combination of COVID and BREXIT impaclsl". the full impact of this will be reported next year. We did benefit from the Govemmenl Coronavifus Job Retention Scheme Ifurloughl income largely during the first half of the reporting period. With subsequent Govemment easement guideline announcements, we were able to bring laboratory research staff back following strict on-site control measures {andlor any staff who could work from home were mandated lo do so}. Although there was a significant drop {15.3°/0) in the value of our investment portfolio al the end ol the previous reporb'ng period 131 St March 2020} driven by a market downturn at the start of the pandemic, this has largely recovered during this current porting period. b. Research and postgraduate education The MBA research programme is driven by world-dass scientists based at its Ciladel Hill Laboralories. Our suence strategy spans overlapping biological scales from microscopic to oan-basIn focusing on 11 Marine Microbiome-, 21 Coastal Ecology., and 31 Ocean Biology, which contribute to three broad highly topical strategic Science theme5: Climate Chan e is one of the greatest societal challenges of ihe 21st Century. The continued colleclion and interpretation of biological data provides detsiled insights into how the ocean is rèsponding lo this threat and supports predictions about future impacts. Blue Econom is best defined as taking inspiration from the ocean to derive economic benefit for a Page 3
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 sustainable society. Biodiversity (particularly microbial biodiversity} and susl2inable resources are the foundations of a vibrant blue economy, including biotechnology. Ecos stem Heallh As a major reservoir of natural capital, the ocean provides global economic benefits valued at $2.5 Trillionlyear. Most of that value depends on healthy ecosystems. Our researchers perfom) unique health checks al large ecological scales helping to identify anthropogenic threats such as microplaslics, pathogens and invasive species. There are now almost 30 research active Principle Investigators (Pls). These are made up of MBA Fellows, Independent Research Fellows IIRFSI. CPR Survey Research Scientists, Associate Fellows and Lankesler Research Fellows. It is a rich group of suence Pls that all contribute sKJnificantly to the M8A's engaging research prograrnrne. MBA Fellow5 and IRFS typIllY run their own curi05ity-driven research groups funded from grant revenues., CPR Sutvey Research Scientisls focus on the science from the CPR Survey, and are also expected lo generate granl income. Some of the Pls in these groups have joint appointment arrangements with different universities, which helps increase the reach of our research and educab.on (undergraduate and poslgradualel. Associate Fellows and Lankester Research Fellows ar8 typically not employees of the Association, instead are senior experienced independent scientists that base their curiosity-driven research at the MBA. They can apply for grants land be employed on them), which are administered by the MBA. bul importandy they add great depth and experience to the MBA researth programme and are a crilical link lo our eminent history. The MBA continues to b8 successful in securing research councll responsive mod8 funding and has secured a number of European Commission IEC) grants as well as fvnding through charitable bodies and philanthropic foundations. The MBA is holder of three highly psligIouS European Research Council Grants. the latest of which was awarded in this reporting period. The MBA has a dynamic poslgraduale education programme that includes providing an MRes in Marine Biology in partnership wrth the University of Plymouth. The MRes selects 25 - 30 lop students to study advanced Marine Biology, a course that reflects the breadth and excitement of the topic through its dose links th the MBA'S woTld-¢lass searCh Pfogramme. MBA Research Fellows play an active role in teaching the modules and supervising the student research projects. In addition. the MBA hosts a PhD programme through partnerships with a range of Doctoral Training Partnerships IDTPS) including.. AIRIES Iuniversily of East Anglia lead): INSPIRE (University of Southampton lead}- ACCE (University of Sheffield lead).. CENTA (University of Birmingham lead).. and SW8io (University of Bath lead). The M8A has invested £500k over a 5-year programme 12019 - 20241 to co-fund PhD students from these DTPS land other programmes as they become available). The MBA currently lakes on beiween 3 - 5 PhD students annually who are based at the Citadel Hill laboratory. 2018 2019 2020 2021 Number of new Research Council Grants awarded Number of Charity grants awarded Number of EC granls awarded Number of other grants awarded Number of students gaining PhD Number of students gaining a MRes Number of bursaries given 16 19 18 18 19 18 26 27 28 23 28 c. CPR Survey As a large-scale global survey. the CPR Survey provides the scienttfic and policy communilies with basin-wide and long-lerm measure of th& health of marino plankton. Established in 1931. thè CPR Survey is the longest running and most geographically extensive marine ecological survey in the wot1d. 11 has almost 90 years of experience with working with the commercial shipping industry and is an eslablished plaifomi providing a global network of Ships of Opportunity for saenlific research. The merger has strengthened the Page 4
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 MBA'S position as an inl8rnalional leader in Marine Biology with new scientific syn8rgies and global policy advice. In addition, Ihe CPR Survey has played an important role in the finanaal strength and diversity of the MBA as it continues to win new contracts from a range of national and international customers. 2018 2019 2020 25 21 98.000 95,000 18 22 2021 22 98,659 22 Contracts and Grants Miles Towed Number of Routes 104,000 d. Momborshlp Membership of the Association is open lo all and this provides a wide Tange of member benefits induding The Marine Biologist Magazine,. the opportunity to apply for bursaries and awards and lo gain access to the National Marine Biological Library. Our Royal Charter give5 us a representative role for the discipline of Marine Biology. As such, th& Association liaises with ils members in responding lo government consultations and providing advice on policy. both national and international. The MBA has established ils firsl inlemalional Special Interest Groups and has sought lo engage its members in the UN Decade Of Ocean Science. We also support standards within the discipline and provide career support for marine biologists. We have cently upgraded the processes by which we deliver our membership supwrt lincluding implementing a new cuslomer relationship management-CRM - system) and have ambilious growth targets for the coming years. Our Marine Biologist Magazine is highly valued and continue5 to be a key benefit, the move from two to four magazines this year has been welcomed by members, indeed ils F)opularily has seen an increase in the number of quality articles in the magazine's pipeline. 2018 31 513 92 83 319 2019 38 485 92 110 332 2020 43 2021 49 525 90 98 316 Number of Fellows (including Honorary Fellows) Number of professional members Number of life members Number of associate members Number of sludenl membefs Number of corporate l institutional members Number of Young Marine Biologists 109 383 338 602 717 556 . Public benefit The MBA works with a wide range of slakeholders induding from policy. academia, industry and the wider public. The MBA endeavours to influence national, European and intemalional policy and strategy on biodiversity and climate change by providing advice to govemment bc4Jies and also, wh8re relevant, to industry. The MBA Research Programme is concerned with understanding the biological mechanisms undertying the functioning of marine ecosystems and the responses to changing environmental pressures. Marine organisms are also studied lo address basic biological and biomedical questions. The M8A Research Programme is ¢ognised as wodd le8ding and continues to grow the quantity and quality of its outputs benefiting the public. In Ihe past year Ihe MBA has continued to receive significant UKRI funding as well as grants trom Ihe EU Horizon 2020 Programme, including the European Research Council. The MBA also hosts the UK Marine Data Ar¢hive Conlre for benthi¢ survey data of species and habitats IDASSH). DASSH is an accredited Dats Archive Centre under the UK Govemmenl supported by the Marine Environmental Data Information Network IMEDINI. This information is made available on publically accessible platfomis and is often uts"lised when the MBA is asked lo speak lo the media. A key development has been the recent reslruclure of the MBA communication5 area. This supports the MBA. which continues to be asked lo contribute lo print meclia. TV and public engagemenl events. Page 5
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Th& MBA conlinues its role as an independent provider of inlomiation and advice through Marine Life Infomiation Netsvork IMarLINI and the Oata Team. The category of Young Marine Biologist conlinues to slrenglhen, with one of the highest tumouts at their annual summit in 2020 with partJ"cipants from 35 countries and 5 continents, deady helped by the virtual platfom due lo COVID restrictions. Related, COVID did have its casualties. with many of our training and public events being cancelled-, we did have a range of Deep Dive virtual seminars which continue to be popular and will be a vehicle for future communications as we evolve the concept. 2018 63 2019 2020 60 25 10 18 2021 Number of volunteers Number of seasho S8farislPublic Evenls Number of sch¢)ol aclivib.es Training courses run al I by the MBA Number of conlerences supported or njn by the MBA 26 28 15 f. Publl¢atlon$ The MBA has published the Journal of the Marine Biological Association {JMBAI since 1887. The MBA also produces a wide range of other publications including the online Gold Open Access joumal Marine Biodiversity Records and The Marine Biologlst Magazine. Many of these are published online as well as hard copy. The findings from the MBA Research Programme are published in high ranking. peer viewed scientific joumals. including both mainstream subject journals and some of the highest ranking interdisciplinary joumals. In addition. scientists also conlribule lo books. reports. occasional publications and popular scienlffjc artides. 2018 69 2019 73 2020 66 2021 135 Peer reviewed publications in ISI Joumals Other publieations and reports Flnanclal revlew . Golng concern After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concem basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies. b. R•s•Th*•s 11 is the polScy of the Counc51 to maSntaSn general reseNes, which are Included within Unrestricted Funds at a sufficient level lo satisfy operational cash flow requirements and the fuffilmenl of contractual and slalvlory obligations. This reserve should ¢over al least three months, operational Costs (excluding premises co$ts} and any projected annual deficit and has a current largel level of £1 m. Funds of £1.2m Ibefore recognition of USS pension liability of £506.$001 were held in this reserve al the yearond. 11 is planned lo increase the general unrestricted reserve following a review of designated funds and maintain an increase in long temi reserves in line wlh inflation. 11 is also the policy of the Council to maintain a particular level of income generating reserves lo produce sufficient annual income for the sPeriC purp05e of the maintenance and running of the premi5e5 occupied by the MBA. Whilst these funds are free reserves, they are not available for the general. operational and strategic application of the resources of the MBA. The Council is not bound, however. by any reslTiclion as to applicalion of the funds, and consequenuy these funds are maintained within the Unrestricted Fund, Page 6
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 represented by the Designated Fund described in note 22 on page 24. Surplus income generated shall not be c£)nsidered lo be designated for these purposes. The Designated Premises Fund held £11 m al the year-end. This has been increased lo allow for the discharge of liabilities in relation lo the lease of The Laboratory, Citadel Hill and the commitment for the ongoing infrastructur8 project - phase 1. Flnanclal Revlew The MBA received a lolal of £5,198,397 of incoming resources which was a decrease compared to the results for 2019120 where a lolal of £7,384,112 incoming resources were received. Total resources expended were £5,629,717 resulting in a deficit before investments gains and losses of £431,350 after nel investment gains of £2,305,214 and 9ains on revaluation of assets Ihe net surplus was £2,082,729. As shown in the Statement of Financial Activities. of the lolal £5,198.367 of incoming resources from operations, £2,189,869 was generated for reslricled purposes induding specific research projects. £3,008,498 was generated from voluntary income and other aclivits.es to be used for other unrestricted purposes including the knowledge exchange programme and support for laboratory operations and basic intraslruclure. At the year-end, a lolal of £16.081.488 was held as Unreslricled Funds. This includes Desi9naled Funds of £11,019,395 to support the ongoing piemises costs including the infraslruclure developrnenl projeGI and a Fellowship Fund of £2,763,770 to support wotld-Glass research. d. Risks Under the lems of the Risk Management Policy adopled by Ihe MBA. Ihe strategic. operational and financial risks to which the MBA is exposed are evaluated on a quartedy basis lor more frequendy when required) by the Senior Management Team and appropriate systems pul into place lo mitigate any major risks identified. The Council reviews these risks and is satisfied that the policy of continual monitoring of potential risks lo which the MBA is exposed is sufficient lo identify those risks on a timely basis and to ensure that the appropriate action may be taken lo minimise the perceived risk lo an acceptable level. A comprehensive Risk Register has been established under the control of the Senior Management Team {SMTI and annual review of the three Council Cornrnittee5 (Finance and Management,. Mernber5hip and Engagement.. and Research), the risks being categorised and allocated lo the relevant department for ongoing monitoring and lo be actioned as appropriate. The Committees report their findings to Council annually. e. Investment poll¢y and retum$ In accordance wrth the Bylaws of the Association. the Council has the power to invest funds in any investments that it s88s fiL The policy is lo adopt a medium risk investment strategy with a view to maximising returns. Th& performance of the investments held are managed by Professional Fund Managers who report lo the Finan and Management Committee who in lum report to Council on a six monthly basis. Additional independent advice is commissioned as necessary. During 2020121, a large proportion of the investment portfolio was transferred lo CCLA who have historically shown a greater return on inveslment. This decision was also laken du8 to ethical and responsibl8 investment policy of the CCLA investment fund which is more in lune with the wishes of Members and Trusl8es. Because of the COVID-19 pandemic. investments took an inllial 15.3Yo hit in 2019120.. during 2020121 the investment portfolio has recovered well. Al 31103121 the value of the portfolio stood at a little over £16.Sm. 11 is the intention of the MBA TTuslees lo draw some of th8se fuDds lo support fvlure ir)frastructure investment at Citadel Hill. Page 7
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Structur•, gov&rnanc• and manag•m8nL a. Constitutlon The Marine Biological Association {MBAI was founded in 1884 and incorporated in 1885 as a company limiled by guaranlee Iregislered no. 214011 wilhoul a share capital. The MBA was granted a Royal Charter in May 2013, as official recognition of its long and eminent history and slalus within the field of marine biology. This resulted in the incorporation of a Charter Body (Privy Council reference C951} registered with the Charity Commission under number 1155893. MBA Council and Members agreed lo transfer the assets and operations with all pre-exisling restricts.ons over intended use from the exists.ng limited company lo this new Charter Body by way of a gift wilh effect from 1 April 2014, The chartered corporation is constituted by its Charter and BOaws. Responsibility for the overall govemance of the MBA rests with the Council who are Trustees for the purposes of the Charities Act. b. Oroanlsatlon Review of strategy. policy and delivery of the charitable objectives is the responsibility of the Trustees who are formally elected by the Membership and referred to as 'The MBA Council.. Trustees are selected to provide specific expertis8 in a wide range of areas including research, business, educalion, public engagement, communications, policy and operations and are drawn from UK and intemational academia, funding inslilut6S, Statutory agencies and the commercial sector. Appointed Trustees S composed of a mixture of expertise from both al the wider community nominated by members andlor current MBA staff & Trustees, and bl nominated by the founding bodies of the MBA.. The Fishmongers, Company,. The Royal Society.. The University of Cambridge- The University of Oxford: The British Science Associab"on: Thè Departrnenl for Environment, Food and Rural Affairs (Defral., The Physiological Soaety and the Zoological Society of London. The MBA Regulations were recently updated {and subject to Privy Council of the United Kingdom approval) to limit the temi of a Trustee lo three years with the possibility of serving a further Iwo terms not exceeding a lolal of nine years if the MBA Council so decides. Vice Presidents are non-Trustee members of Council Ilypically composed of Trustee and Director Alumni) and can advise bul not vote on Council matters. The President, Vlce Presidents and the Treasurer are appointed by the MBA Council from those members with voting rights, as defined in the Bylaws and Regulations. and are proposed for election al the Annual General Meeting. The President and Treasurer are individually elected for a lemi of five years and are eligible for re-election for a further term. but so that the total period of their oifice does not exceed ten years (recently updated, and subjecl lo PriY Counal of the United Kingdom approval). Trusle8s s&rv8 on a number of Committees. These curr&nlly comprise Executive Committee (Chairs of the the other committees)," Finance 2nd Management Committee., Research Commtitee.. and Membership and Engagement Committee. Management of the MBA is devolved from the Council to Ihe Director of the MBA based at its HQ al the Ciladel Hill Laboratory in Plymouth. The Director also acts as Secretary lo The Council. The Director is assisted by a Senior Management Team wilh responsibilities for research, finance, HR. policy, membership, health & safety, communications, library, data, eslales and operations, sustainability, and the CPR Survey. c. Trustee Inductlon and tralnlng New Truslees a introduced to the objectives and policies of the MBA and brièfèd on their legal obligatlons under Chanly and Company Law. They are given an induction pack containing the Charter, Bylaws and regulations of Association as well as its slralegy and development document. the Annual Report and Accounts detailing recent financial performance, a lisl of current Council members, minutes of previous Page 8
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Council meetings and other 18aflels and notes concerning th8 activities of the MBA. Where appropriate, fomial Trustee training is offered and is provided through external training events and an induction visit lo the Laboratory is arranged. d. The Councll Council members who were Trustees during the period {with Governing organisations where relevant noted in brackets) were.. Dr G Rider (President) Mr R Mills Treasurer lelecled annually) Professor P S Rainbow IThe Zoological Society of London) Is4gned 2 December 2020) Professor M J Whitaker (The Physiological Society) Professor S Rogers ICEFAS on behalf of DEFRA) Professor C Frid (The British Science Association) Dr J Ashworth IThe Worshipful Company of Fishmongers) Professor J A Raven {The Royal Society) Professor A G Smith {University of Cambridge) Professor D Laffoley Mr R Coombs Professor J Petts Professor P J B Hart Professor P M Holligan Professor Ros Rickaby (Universty of Oxford) lelecled 2 December 20201 Prolessor Heather Koldewey (Zoological Society of London) (elected 2 December 2020) Council mombors who are not Trusl66s, and each hold a VI President role (who can advisè, bul not vole on Council matters). were approved al the 2 Dember 2020 AGM and include.. Professor G A Boxshall, Professor M Burrows & Professor S Hawkins. Vice Presidenl SignationS reiVed during the year include Sir Richard Carew Pole. Sir Neil Chalmers. Sir Crispin Tickell & Professor Michael Whiffield. e. Romunoratlon The Council Members did not receive any remuneratbon nor any payment for services provSded in the year. Travel expenses were £NIL during the year as Council Meetings were conducted virtually using video conference facilities. f. Related Parties Th& Ray Lankesler Fund Iregislered charity number.. 206855) provides support for researchers lo undertake projects based al the MBA laboratory. Professor W Wilson IMBA Director during the yearl is also a Trustee of the Ray Lankester Fund. The National Marine BiologicAI Library INMBL) within th8 MBA houses and curat8s a significant collection of reports. data and archived material relevant lo a range of marine biological and environmental saence. The NMBL provides services locally lo the Plymouth Marine Laboratory IPML} through a Service Level Agreement. The Annual Report gives details of the wide range of collaborative projects undertaken by Fellows. students and staff. Page 9
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Plans for futura p•rlod$ The MBA is now working from a new insb"luUonal strategy= Pathway to 150 Years of MBA. There is obviously major focus on the first stage of the slrategy12020 - 2024}, bul il also looks lo 10 (to 20291 and 15-year {to 20341 milestones lo allow us lo be more ambitious in our thinking. Hence, we are considering a focused 5- year plan in the context of a 15-year slrategy. This roadmap will lead Ihe MBA lo the year 2034, and the 150th Anniversary of the establishment of the MBA. The new strategy will be designed lo sel priortties that will prepare the MBA for increased competition for funding in Ihe face of a challenging financial climate. Following final BREXIT negotiations, the path lo EU funding will be more challenging Ilhough we are now eligible for the new Horizon Europe programmes}', hence. we musl look more globally for new opportunities, particularly under the auspices of the UN Decade of Ocean Science for Sustainable Development. where the MBA is now involved in several of their endorsed Programmes. In addition. we are looking for rejuvenating green shoots of opportunity following the forest fire of the COVID-19 pandemic. The strategy will detail how we will capitalise on the many beacons of excellence wilhin the MBA. from our r8s8arch, membership, poslgraduale education, training, outreach, dats and information resources, and facilities. An implemenlalion plan will focus on a lriumvirale foundation to build the MBA.. 11 Excellence and Growth.. 2} Reach and Influence., and 3) Strength and Performance. In addition, we will pul new emphasis on cornrnerciali5ation and philanthropic opportunities. strengthening local & regional partnerships, and ensuring we have effective processes in plac8 lo allow our scientists lo take advantage of these opportunities and partnerships. Recent progress with lh8 Plymoulh-focussed Marine Rese8rch Plymouth IMRPI will see the MBA building on the synergy created from working more closely with our local partners and bringing new research investment into Plymouth. Improved communication and modemising our approaches will become Central lo our operation-, diversty and inclusion wll be ¢ore values central to our mission. We are already well into the planning and procurement stages of our infraslruclure improvement programme. Ihis will be a major theme over lal least) the next 2 years. STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees {who are also the Directors of the charity for the purposes of company lawl are r8sponsible for preparing the Tru5tee5' Report including the Strategi¢ Report and the Financial Statement5 in accordance with applicable law and United Kingdom Accounting Siandards {United Kingdom Generally Accepted Acca)unting Practice). Company law requires the Trustees lo prepare financial statements for each finanoal year. Under company law the Trustees musl not approve the financial slalements unless they are satisfied that they give a true and fair view of the slate of affairs of the group and the charity and of their incoming resources and application of resources. including their income and expenditure. for that period. In preparin9 these financial statements, the Trusl88s are r8quir8d lo.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP {FRS 1021., make judgments and accounting estimates that are reasonable and prudenl-. state whether applicable UK Accounting Siandards IFRS 1021 have been followed, subject to any material departures disclosed and explained in Ihe financial statements- pr8par8 the financial stal8m8nls on the going concern basis unless il is inappropriate to presume that the group wll continue in business. Th8 Trustees are responsible for keeping adequate accounliDg records that are sufficient to show and explain the group and the charity's transactions and disclose with reasonable accuracy at any time the financial position of Ihe group and the charity and enable them to ensure Ihal the financial statements comply wilh the Companies Act 2006. They are also responsible for safeguarding Ihe assets of ihe group and the charity and hence for taking reasonablè steps for the prevenbon and detectson of fraud and other irrègularities. Dlsclosure of Inforniatlon to audltors Page 10
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Each of the persons who are Trnstees at the time when this Trust88s' Report is approved has confinned that.. so far as that Trustee is aware, there Is no relevant audit Informatbon of which the charitable group's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee In order lo be aware of any relevant audit information and to eslablish that the charitable 9roup's auditors are aware of that information. Audltors The auditors. Bishop Fleming LLP, have indicated IheiT willingness lo continue in office. The designaled Tw5tee5 will propose a motion reappointing the auditors al a meeting of the Trustee$. Approved by order of the members of the Board of Trustees and signed on their behalf by.. Dr Glll Rld•r President Date: 27 October 2021 Page 11
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM OPINION We have audited the financial statements of The Marine Biobgical Association of the United Kingdom lthe 'chariVI lor the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance sheel. the Slalemenl 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 Siandards, including Financial Reporting Standard 102 'The Finanal Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Praclicel. In our opinK)n the financial statements.. give a true and fair view of the slate of the charitable companls affairs as al 31 March 2021 and of its incoming r850urces and applicatson of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance wlh United Kingdom Generally Accepted Accounting Praelic8: and have been prepared in accordance wth the requirements of the Companies Act 2006. BASIS FOR OPINION We conducted our audrt in accordance wilh Intemalional Standards on Auditing IUKI IISAS {UKII and applicable law. Our responsibilities under those standards are further described in the Auditors. responsibilities for the audit of the financial slalemenls seclion of our report. We are independent of the charitable company in accordance with the ethical requirements thal are relevant lo our audil of the financial statements in the United Kingdom. including the Financial Reporting Counal's Ethical Standard, and we have ftjlfilled our other ethical responsibilities in accordance with these requiremenls. We believe that the audil evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have conduded that the Trustees, use of the going concem basis of accounting in Ihe preparation of the financial statements is appropriate. Based on the work we have perforyned, we have not identified any material uncertainties relating to events OT conditions Ihat, individually or collectively, may cast significanl doubt on the charitable companys ability lo conlinue as a going concem for a period of al least tsvelve months from when Ihe finanaal slalemenls are aulhonsed lor issue. Our responsibilities and the reswnsibililies of the Trustees wth respecl to gcyng concem are described in the relevanl sections of this report. OTHER INFORMATION The other informalbon comprises the information included in the Annual report olher than the financial statements and our Auditors. Report Ihereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial slalemenls does not cover the other informalion and, except lo the exlenl otherwise explially slated in our report. we do not express any Icmi of assurance conclusion Ihereon. OUT responsibility is lo read the other information and, in doing so. consider whether the other infomialion is materially inconsislenl with the financial slalemenls or our knowledge obtained in the course ol the audit. or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls. we are required lo determine whelher this gives rise lo a material misstalemenl in the financial statements themselves. If. based on the wor* we have performed. we conciude Ihal there is a material misslalement ol this other information, we are required lo report that fact. We have nothing to report in this regard. Page 12
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM (CONTINUED) OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinv)n, based on the work undertaken in the course of the audit.. the infomialion gwen in the Trustees. Report including the Strategic Report for Ihe financial year for which the financial statements are prepared is consislenl wilh the financial statements. the Trustees. Reporl and the Siralegic Report have been prepared in accordance with applicab18 legal requirement5. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understanding ol the charitable company and its environment obtaine(l in the coijrse of the audil. we have not identified material misstatements in the Trustees. Report induding the Siralegic Report. We have nothing lo report in respect of the following matters in relation to bthich Companies Act 2CKI6 requires us lo report lo you if. in our opinion.. adequate accounting records have not been kept, or relums adequate for our audit have not been received from branches not visited by us., or the finanaal slalemenls are not in agreement wlh the accounting records and returns-, or certain disclosures of Trustees, remuneration specified by law are not made. or we have not received all the information and explanalions we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustees. responsibilities stslement, the Trustees (who are also the direclors of the charitable company for the purwses of company lawl are responsible for the preparatbon of the financial stslements and for being satisfied that they give a true and fair view. and for such inlemal control as the Trustees delemiine is necessary lo enable the preparaon of financial statements that are free from material misstatement. whether due lo fraud or error. In preparing the financial slatemenls. the Trustees are spOnSible for assessbng the charitable companys ability to continue as a going concem. ¢Jiscloslng. as applicable, matters lated to going concem and using the going concem basis of accounting unless the Trustees either intend to liquidate the charitsble company or to cease operallons, or have no realbstic allemative but to do so. Page 13
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM (CONTINUED) AUDITORS. RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtsin reasonable assurance about whether the financial slalemenls as a whole are free from material misstatement, whether due lo fraud or error, and lo issue an Auditors. Report Ihal includes our opinion, Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wlh ISAS IUKI will always delecl a material misslalemenl when It exists. Misslatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalemenls, Irregularilie5, including fraud, are instances of non-compliance with law5 and regulations. We design procedures in line wlh our responsibilities. outlined above, lo delect malerial misslalemenls in respecl of irregularities. including fraud. The extent to which our procedures are capable of delecling irregularities, induding fraud is delailed below.. We have considered the nature of the sector. control environment and financial perfomiance.. We have considered the results of enquiries with management and Iruslees in relation to Iheir own idenlificalion and assessment of the risk of irregularilies within the enlity., We have reviewed the documentation of key processes and conlrols and perfom)ed walkthroughs of Iransaclions lo confirm that the systems are operating in line with documentation., We have considered the matters discussed among the audit engagemenl team regarding how and where fraud might occur in the financial slalements and any polenlial indicators of Iraud. As a result of Ihese prccedures. we have considered the opportunities and incentives that may exist within the organisalion for fraud and identified the highesl area of risk lo be in relation lo income recognition. with a particular risk in relation lo yearend cul off. In common with all audits under ISAS IUKI we are also required lo Ferform specific procedures lo respond lo the risk of management override. We have also obtained an understanding of the legal and regulatory framewots that the Charity operates in. fUSIng on provisions of those laws and regulations that had a direct effect on the delefminalion of material amounts and disclosures in the financial slalemenls. The key laws and regulations we considered in this context included the Charities Act 2011, Charty SORP 2019, FRS 102 and th8 lemis and conditions attachin9 10 material grants received by the Charity. In addition. we considered the provisions of other laws and regulations that do nol have a direct effect on the financial slalemenls bul compliance with which may be fvndamenlal lo the Charity's ability lo operate or avoid material penalty. These included Maritime Law. Environmenlal Law and compliance the Natural Environment Research Council INERCI H&S framework. Our procedures lo respond lo risks identified included the lollowing.. Reviewing the finanal stslemenl disclosures and lesling lo supporting documenlalion lo assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements., Perfomiing analytical procedures lo identify unusual or unexpected relationships that may indicate risks of material misslalemenl due lo fraud.. Reviewing b)ard meeting minutes.. Enquiring of management in relation lo actual and potential daims or litigations.. Perfomiing detailed transactional testing in relation lo the reccgnition of income. specifically grants with a particular focus around yearnd cul off,, and In addressing the risk of fraud through management override of controls, lesling the appropriateness of journal entries and other adjustments,. assessing whether the judgments made in accounting eslimales are indicative of potential bias: and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business. We also communicated idenlrfied laws and regulations and potential fraud risks lo all members of the engagement team and remained alert lo possible indicators of fraud or non-compliance th laws and regulations throughout the audit. As a result of the inherent limitslions of an audit, there is a rlsk that not all irregularities, including 8 material Page 14
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM (CONTINUED) misstatement in financial statements or non-compliance with regulation, will be detected by us. The risk increases Ihe further removed compliance with a law and regulation is from the events and transactions reflected in the financial slalements, given we will be less likely lo be aware of it. or should the irregularity occur as a result of fraud rather than a one-off error, as this may invdve intentional concealment, forgery. collusion. omission or misrepresentation. A further description of our responsibilrties for the audit of the finanaal statements is located on the Financial Reporting Council's website al.. www.frc.or .ukJaudilorsres onsibililies. This descriplion forms part of our Auditors. Report. USE OF OUR REPORT This report is made solely lo the charitable ccmpanls members, as a body, in accordance wtlh Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so thal we might slate lo the charitable companls members those matters we are required lo stale lo Ihem in an Auditors. Report and for no olheT purpose. To the fullest extent peNnilled by law, we do nol accept or assume responsibility to anyone other than the charitable company and ils members, as a body, for our audit work. for this report. or for the opinions we have formed. Pamela Tuckett FCA DChA (Senlor slatutory audltor) for and on behalf ol Blshop Flemlng LLP Chartered Accounlanls Stslulory Audito Sall Ouay House 4 North East Quay Sutton Harbour PloUth PL4 OBN Date: 2 November 2021 Page 15
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 Unrestrictsd funds 2021 Restrictsd Endowment funds funds 2021 2021 Total funds 2021 Total funds 2020 Note Income and endowments from: Donations and legacies Charitable activities Other trading activities Investments 2,121 2.622.233 55,399 328,745 162,352 2.027.517 164,473 4.649,750 55.399 328,745 11.814 6,767.989 153,467 450,842 Total incorne and endowments Expenditure on: Raising funds Charitable activities 3,008,498 2,189,869 5,198,367 7,384.112 65.027 2.605.170 65,027 5.564,690 163.511 5,839.624 2.959,520 Total expendllure Net Incom•1 lèxpèndlturo) before nèt galnsl{lossesl on Invastmènts 2.670,197 2.959,520 5,629,717 6,003.135 338.301 1769.6511 1431.3501 1,380.977 Nel gainslllosses} on investments 1.988.458 281.860 34.896 2.305.214 (1, 190,871) Nel Incomel lexpendlturel Transfers between funds Net movement In funds before other recognlsed galns Other recognlsed galns: Gains on revaluatK)n of assets 2.326,759 1487.7911 142,894 34.896 1.873.864 190,106 22 {142,8941 2.183.865 {344.8971 34.896 1.873.864 190.106 208,865 208,865 Net movernent i funds 2.392.730 1344,8971 34,896 2.082,729 190,106 Page 16
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM STATEMENT OF FINANCIAL ACTivmES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2021 Unrestricted funds 2021 Restricted Endowment funds funds 2021 2021 Total funds 2021 Total funds 2020 Reconclllatlon of funds: Total funds brought fomard Nel movemenl in fvnd8 13,688,758 2.392,730 5,133,704 1344.8971 226,044 34,896 19,048,506 2.082,729 18,858.400 190.106 Total funds carrSod forward 16.081,488 4.788,807 260,940 21.131,235 19,048.506 The Ststemenl of Finane4al ActNities includes all gains and losses recognised in the year. The notes on pages 20 to 42 form part of these financial statements. Page 17
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM REGISTERED NUM8ER',RC000865 BALANCE SHEEr AS AT 31 MARCH 2021 2021 2020 Note Fixed assets Tangible assets Herilage assels Investments 14 2,$46,896 1.276.665 16.637,483 2,368.352 1,067,800 I4,379.0 15 16 20.461,044 17,816.052 CurreDt assets Siocks Debtors Cash at bank and in hand 17 18 63,710 1,636,284 2,140,645 70,095 1.971,034 1.773,912 3,840,639 3,815,041 Creditors.. amounts falling due wrthln one year 19 12,674.4831 11.976,3061 Net current assets 1,166.156 1,838.735 Total assetsloss current liabililios 21.627,200 19,654.787 Creditors.. amunls falling due after more than one year 20 {495,9651 1606.281 } Total net assets 21,131,235 19,048,506 Charity funds Endment lunds 22 260.940 4.788,807 16,081.488 226.044 5,133.704 13,688.758 Restricted funds Unr6stricted funds 22 Total funds 21.131.235 19,048.506 The Trustees acknOedge their responsibilities for complying with the requirements of the Act with reScl lo accounting records and preparation of financial slatemenls. The finanaal stslemenls were approved and aulhorised for issue by the Trustees and signed on their behaw by.. Ider CB President Dale: 27 October 2021 The notes on pages 20 to 42 form part of these ffinan¢i81 ststements. Page 18
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Cash flows from oporaling activities Nel cash used in operating adivities 778,281 668.189 Cash flows from Investlng activitifrs Dividends, interest and rents from investments Drawdown from investment portfolio Purchase of intsngible assets Purchase of investments 328,745 450.842 113,403 507,839 (556,940) 11,198.213) {296.756} 1447.264) Not cash used In Invosllng actlvltles 1411.548) 1686.7961 Change in cash and cash oquivalents in the year Cash and cash equivalents at the beginning of the year 366,733 (18,6071 1,792.519 1.773,912 Cash and cash equlval8nls at th• end of the year 2,140,645 1,773.912 The notes on pages 20 10 42 form part of these financial statements Page 19
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 GENEIiAL INFORMATION The Charity 15 a company limited by Royal Charter, incorporated in England within Ihe United Kingdom. The registered number is RC000865 and the address of the registered office is The Laboratory. Citadel Hill. Plymouth. PL1 2PB. ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The finanaal stal6m8nls have been pr6par8d in aceordance with th6 Charits"89 SORP IFRS 1021- Accounting and Rèporting by Chariliés= Slal6m8nl of Recornmèndèd Practice applicable lo charilies preparing théir aeeounts in accordance with th6 Finaneial Rèporling Standard applic8blè in thé UK and Republic of Ireland IFRS 1021 léff8cb.vo 1 January 20191, the Financial R6POrting Standard applScablè In the UK and R6public of Imland IFRS 102) and the CompanSas Act 2006. The Marine Biological Asso¢Sats"on of the United Kingdom me61$ the (Jeflnilion of a public b8n8fll enlity under FRS 102. Assets and liabilities are inilially recognised al historical wsl or Iransa¢b"on value unless olheThSe staled in Ihe relevant accountsng policy. 2.2 GOING CONCERN The accounts have been prepared under the going concem basis. Although the COVID pandem has impacted the operations, there is no significanl impact on the finances of th8 charity. There are sufficient reserves, and continuing funding slrearns lo continue the operations of Ihe charity. For these reasons the Trustees consider the 90Sng ¢oncem basis is appropriatè. 2.3 FUND ACCOUNTING General funds are unreslricled lunds which are available for use at th8 dlscr8tion ol the Truslees in furlherance of the general objectives of th8 Charity and which have not been designal8d for other purposes. Designaled funds comprise unreslricled funds Ihal have been set aside by the Trustees for particular purposes. The aim and use of each d8signated lund is sel oul in the noles lo the financial stalemenls. Restricted funds are lunds which are lo be used in accordance with specific reslriclions 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 reslricled fund is set out in the notes lo the financial slalemenls. Investment income. gains and losses are allcKaled lo the appropriate lund. Endowment funds have beerb given wtth a requirement that only Ihe income arising is to b8 applied for specific purposes bul the capitsl is lo be retained permanently. Page 20
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES Icontlnued) 2.4 INCOME Vduntary income including donations. grfts and legacies and grants that provide core funding. is induded in incoming resources when these are received. except as follows.. When donoTs speafy that donatK>ns and grants given lo the charity musl be used in future accounting pericyjs. the income is defeThed until those pericfvJs. When donors impose conditions which have to be fulfilled under contract before the charity becomes entitled lo use such incorne. the income is deferred lo maich with future performance under ntraCt. Inveslmenl income is recognised when it is receivable. Grants and awards to finance specific research programmes and the related expenditure are treated as transactions of reslricled funds. Where the MBA is part of a collaboralive project with other organisalions. only Ihose elements of funding awarded lo the MBA or that relate lo aclivilies controlled by the MBA are recognised as incoming resources. Funds awarded to other organisalions where monies are distributed via the MBA are recorded directly as creditors and not recognised as income. Incoming resources from knowledge exchange activities are recognised in line wlh performance of contracts and specific deliverables. When donors specify that donatS and grants. induding capital grants. are for particular restricted purposes which do not amount lo pre-conditions regarding enlillemenl. this income is included in incoming resoufces ol restricted lunds %then il is received. Donated staff costs are values al the equivalent employer payroll cost. Income is staled net of Value Added Tax. 2.5 EXPENDITURE Fundraising costs are those incurred in seeking voluntary contributions and do not indud8 the costs of disseminating inlofmalion in support of the charilable activities. Support costs are those costs Incrred directly in support of expendilure on the objects of the charity and include project management carried out al Headquarters. Governance costs are those incurred in connection administralion ol ltte chafily and complianc6 with conslilulional and stslutory requirements. The following definitions have been adopted in drawng up these accounts: Costs of generating funds are those costs incurred in attracting voluntary income, being those inujrred in activities that raise funds. an an apFQrtionmenl of support costs. Charitable activities indudes all costs relating lo activities where the primary aim is part of the objects of the MBA, such as the core research activities and the dissemination of that knowledge. and include both the direct costs and support costs relating lo those activities. Govemance costs are those associated wth the govemance of the MBA which relate to the general running of the charity as a legal entity and which are not connected with the generation of income or wth dire¢t charitable expenditure. Support costs, which include Central office and management functions not falling wlhin one of the le9ories of expenditure above. are all(xaled on a basis consislenl with the use of resources. Expenditure on charitable activities is incurred on directly undertaking the aotivities which further the Charity's objectives, as well as any associated support Costs. Page 21
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES Icontlnued) 2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION Tangible fixed assets costing £2,000 or more are capitalised and reccgnised when future economic benefits are probable and the cost or value of the asset can be measured reliably. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrwng values of fixed assels and their recoverable amounts are recognised as impaimients. Impairmenl losses are recognised in the Sialement ol Financial Activities. Tangible fixed assets are carried al cost, nel of depreciation and any prowsion for impainnenl. Depreciation is provided al rates calctjlaled lo write off the cosl of fixed assels, less Iheir estimated residual value, over Iheir expected uselul lives on the following bases.. Long-te leasehold property Plant arbd machinery Research and laboratory equipment Research vessel Over the remaining lemi of the lease 5 years slraighl line 20-250/0 reducing balance 10010 reducing balance 2.7 INVESTMENTS Fixed asset investments are a form of financial instrument and are initially reccgnised al their transaction cost and subsequently measured al fair value al the Balance sheet dale. unless the value cannot bo measured reliably in which case il is measured al cost less impairmenl. Investment gains and losses, whether realised or unrealised. are combined and presented as 'GainsllLossesl on investments, in Ihe Slalemenl ol finanal activities. 2.8 INTEREST RECEIVABLE Interest on funds held on deposit is included when receivabl8 and the amount can be measured relk9bly by the Charity.. this is normally upon notificalTron of the interest paid or payable by the Bank. 2.9 STOCKS Siccks are valued al the lower of cosl and net realisable value after making due albwance for obsolete and slow-moving stocks. Cosl includes all direct costs and an appropriate prop)rtion of fixed and variable ovetheads. 2.10 DEBTORS Trade and other debtors are recognised al the selllemenl amount after any trade discount offered. Prepayments are valued al the amount prepaid nel ol any trade discounts due. 2.11 CASH AT BANK AND IN HAND Cash al bank and in hand includes cash and short.lerm highly liquid investments with a short maturity of three months Of less from the dale of acquisition or opening of the deposit or similar a¢counl. Page 22
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES Icontlnued) 2.12 LIABILITIES AND PROVISIONS Liabilities are recognised when there is an obligation at the Balan sheet dale as a result of a past event, il is probable that a Iransfer of economic benefit will be required in setllemenl. and the amount of the seluement can be estimaled reliably. Liabilities are recognised at Ihe amount that the Charity anlicipales it wll pay lo settle the debl or the amount il has received as advanced payments for the goods or services il musl provide. Provisions are measured al the best estimate of the amounts required lo settle the obligation. Where the effect of the lime value of money is material, the provision is based on the present value of those amounts, discounted al Ihe pre-tax discount rale that reflects the risks specific lo the liability. The unwinding of the discount is recognised in Ihe Statement ol finanal activities as a finance cosl. 2.13 FINANCIAL INSTRUMENTS The Charity only has finanal assets and financial liabilities of a kind Ihal qualify as basic financial instruments. Basic financial instruments are initially recognised al transaction value and subsequent measured al their setllemenl value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest methcfvd. 2.14 FOREIGN CURRENCIES Monetary assels and liabilities denominaled in forewJn currencies are translated into slerting at rates of exchange ruling al Ihe balance sheet dale. Transacts'ons in forewn cUrreneS are translated into slerting al the rale njling on the dale of the transaction. Exchang8 gains and losses are recognised in the Stalemenl of Financial AclivilTres. 2.15 PENSIONS The institution partiapales in Universities Superannuation Scheme. The scheme is a hybfid pension scheme, providing defined benefils Ilor all members). as well as defined coniribulion benefits. The assets of the scheme are held in a separate Iruslee-adminislered fund. Because ol the mutual nalure of the scheme, the assets are not attributed lo individual institutions and a scheme-wide contribution rale is sel. The institution is therefore exFosed lo actuarial risks a$Slated wth other instilulw)ns' employees and is unable lo identify ils share of the underlying assets and liabilities of the scheme on consislenl and reasonable basis. As requifed by Section 28 of FRS 102 Employee benefits". the institution therefore accounts for the scheme as if il were a wholly defined contribution scheme. As a result, the amount charged lo the profil and loss account represents the contributions payable lo the scheme. Since the inslilulion has entered into an agreement Ilhe Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement {lo the exlenl that they relate to the deficit} and therefore an expense is recognised. Further disdosures in respect of the pension scheme are given in the notes to the financial stalemenls. The MBA also conlribules lo a defined contribution scheme on behatf of certain members of stsff not eligible lo belong lo the USS, the Costs of which are charged lo the Slalement of Financial Activities as incurred. Page 23
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES Icontlnued) 2.16 HERITAGE ASSETS The Association hdds herilage assets relating to a nationally and inlemalionally recognised Library of significant scientific importance which dates back lo 1888, Many of the works are unique and are the only copies in existence. Durtng the year ended 31 March 2021 the majority of these assets were revalued and have been accounted for as follows.. Library books, offprinls. expedition reports and joumals with a value of £1,000 or more have been independenuy valued and included in Ihe Balance Sheet al replacement value al the lime of valuation. Expenditure, which in the Trustees. view is required to preserve Ihe Library, is recognised in the Slalement ol Financial Activity when il is incurred. Scientrfic instruments, apparatus. paintings and drawings have been independently valued and induded in the Balance Sheet al replacement value al the lime of valualions. Bwks in evewlay use on open shelves with an ind1val value of less than £1.000 have r1 been valued as the Trustees believe Ihe benefits of obtaining a valuation for these Items would not just the ca)sl. Archive material such as personal letters, diaries elc have not been valued. As these are of a unique nature the Trustees believe the benefits of obtaining valuations for these items could nol justify the costs. 2.17 IRRECOVERABLE VAT All resources expended are classified under activity headings Ihal aggregate all costs related lo Ihal category. Irrecoverable VAT is chafged a9ainsl the activity of expenditure for which il was incurred. Page 24
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT Eslimales and judgments are continually evalualed and are based on historical experience and oiher factors. including expeclalions of future events that are believed lo be reasonable under the circumstances. Critical accounting estimates and assumptions.. FRS102 makes the distinctN)n behveen a Group Plan and a mullimployer scheme. A Group Plan consists of a collection of enlilies under common control typically wtth a sponsoring employer. A multimployer scheme is a scheme for entits'es not under common control and represenls Ilypicaltyl an industry-wide scheme such as that provided by USS, The accounting for a mulli-employer scheme where the employer has enlered into an agreement with the scheme that detemiines how the employer will fund deficit results in the recognition of a liability lor the contributions payable that arise from the agreement Ilo the extent Ihal they relate lo the deficill and the resulting expense is recognised in the slalemenl of financial actsvitses. The Trustees are satisfied that the scheme provided by USS meets ihe definition of a multi-employeT scheme and has therefore recognised the discounted lair value of the conlraclual contributions under the funding plan in existence at the dale of approving the financial slatemenls. Critical areas of judgment: Herrlage assets are included in the accounts at market value. The valuation is subject lo judgemental of an expert. There is a judgemental as lo whether an provision can be calculated for any dilapidation should be provided on the Citadel. See note 28 for more detail. INCOME FROM DONATIONS AND LEGACIES Unrestricted Restricted funds funds 2021 2021 Total funds 2021 Total funds 2020 Donations Govemment grants 2,121 2.121 162.352 11,814 162.352 2,121 162.352 164.473 11.814 TOTAL 2020 11,814 11,814 Page 25
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 INCOME FROM CHARITABLE ACTIVITIES Unrestricted Restrl¢t•d Endowment funds funds funds 2021 2021 2021 Total funds 2021 Total funds 2020 Research activities Other knowledge exchange activities Courses and workshops Joumals 1,657.929 1,988,939 3.646.868 5,775,080 481.499 5.031 477,774 38,578 520.077 5,031 477,774 507.075 105.027 380.807 TOTAL 2021 2,622.233 2,027,517 4.649,750 6,767.989 TOTAL 2020 2,740.098 4,023,391 4.500 6,767,989 INCOME FROM OTHER TRADING ACTIVITIES Income from fundraising events Unrestricted funds 2021 Total funds 2021 Total funds 2020 Renlal income and setvice charges In-house catering and visitors, facilities Membership subscriptions Sales of silk 29,893 72.994 46.990 3.590 55.399 55.399 55.399 55.399 153.467 TOTAL 2020 153.467 153,467 Page 26
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 INVESTMENT INCOME Unrestricted funds 2021 Total funds 2021 Total funds 2020 Dividends received Bank deposit inleresl 328.453 292 328,453 292 449.682 1.160 328.745 328,745 450.842 TOTAL 2020 450.842 450,842 ANALYSIS OF EXPENDITURE BY ACTIVrnES Activities undertaken directly 2021 Support costs 2021 Total funds 2021 Total funds 2020 Research aclmlies Other Knowledge Exchange adiwties Courses and workshops Joumals 3,297,492 667,562 24,831 10,223 1,394.027 162.599 2.340 5.616 4.691.519 830,161 27,171 15.839 4,656.936 962.412 115,239 105.037 4.CQO,108 1,564.582 5,564,690 5,839.624 TOTAL 2020 3,945,975 1,893.649 5,839,624 Page 27
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ANALYSIS OF EXPENDITURE BY ACTIVITIES ICONTINUEDI ANALYSIS OF DIRECT COSTS Other Courses R•search knowledge and activities exchange workshops 2021 2021 2021 Total funds 2021 Total funds 2020 Joumals 2021 Staff costs Depreciation Other direct costs 1,979,027 499,¢X4 819,401 421,812 2,400,839 499,064 1,100,205 2,317.247 452.172 1,176.556 245.750 24,831 10.223 3,297,492 667.562 24,831 10.223 4,000,108 3,945.975 TOTAL 2020 3,048,659 684.046 113,724 99.546 3,945,975 Support costs 2021 2020 Rent and rates 220,895 248.112 158.276 237.215 35,431 37.755 29.948 87,300 67.039 3.106 127.091 11.708 799,419 {11.634} 62.883 Repairs and rnaintenance IT costs Travel and staff costs Office costs Insuran Legal and professional Subscriptions and grant costs Bank charges Irrecoverable VAT 82,717 2,972 45,996 30,516 15,825 52,847 2.591 83,156 12,854 909,401 144,559) $4,885 Pension inleresl Stsff costs Exchange rale variances Support costs- Govemance 1,564,580 1,893.649 Page 28
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 10. GOVERNANCE COSTS Unrestrld•d Restricted funds funds 2021 2021 Total funds 2021 Total funds 2020 Auditors. remuneration Trustees. subsistence feimbursed Wages and salaries 10,350 10,350 10,350 13.955 38.578 44,535 44.535 54,885 54,885 62,883 TOTAL 2020 48,928 13.955 62,883 11. NET INCOMEIIEXPENDITUREI This is stsled after charging.. 2021 2020 Depreaalion of tsngible fixed assets - owned by the charitsble company Auditors. remuneration - audit Auditors. remuneration - other services 499,064 10,350 6.300 452.172 10.350 8.610 12. STAFF COSTS 2021 2020 Wages and salaries Social security cosls con1ributn lo defin contribulon p8nskJn schemes 2.942.869 227,397 184,509 2,720.538 201,041 306.588 3,354.775 3,228.167 Page 29
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 12. STAFF COSTS (CONTINUED> The average number of persons employed by the Charity during the year was as fdlows: 2021 No. 2020 No. Cost of generating fvnds Charitable activities Govemanc 83 77 87 81 The number of employe&s whose employee benefits (excluding 8mployer PenOn costs) exceeded £60,000 was: 2021 No. 2020 No. In th8 band £60,001 - £70.000 In the band £70,001 - £80.000 In the band £80,001- £90.000 13. TRUSTEES. REMUNERATION AND EXPENSES During Ihe year. no Trustees received any remuneration or oth8r b8nefils12020- £NIL). During the year ended 31 March 2021. expenses lotalling £NIL were raimbursed or paid directly to Truslee12020 - £13.995 10 13 Trustees). Page 30
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 14. TANGIBLE FIXED ASSETS Research and laboratory 6quSpment Long-temi leasehold property Plant and machlnery R•search v8ssel Total COST OR VALUATION At 1 April 2020 Additions 1.132,819 225.825 264.277 1.986,938 451.783 366.872 3,750,906 677,608 At 31 March 2021 1,358,644 264,277 2,438,721 366,872 4.428,514 DEPRECIATION At 1 April 2020 Charge for the year 155,268 47,514 112,623 38,257 1.000,809 387,990 113,854 25,303 1,382,554 499,064 At 31 March 2021 202.782 150,880 1,388,799 139,1 $7 1,881.618 NET BOOK VALUE At 31 March 2021 1.155,862 113,397 1,049,922 227,715 2.546,896 At 31 March 2020 977,551 151,654 986,129 253,018 2,368.352 15. HERITAGE ASSETS Assets recognised at cost Heritag9 asset 2021 Total 2021 CarryirrfJ value at 1 April 2020 Revaluations 1,C7,800 208,865 1.067,800 208,865 CARRYING VALUE AT 31 MARCH 2021 1,276,665 1,276.665 The atove represents valuations made for books and similar technical items held in the library £1,254.8601 and for other heritage assels1£21.8051. These assets were valued in 2021 by Dr P Pollack, ABA, FLS and ara included in the Balance Sh8et at their estimated replacement value. Page 31
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 16. FIXED ASSET INVESTMENTS Llstsd Investments COST OR VALUATION At 1 April 2020 Additions Disposals Revaluations 14.379,900 296,756 147,6311 2.008,458 AT 31 MARCH 2021 16.637,483 NET BOOK VALUE AT 31 MARCH 2021 16.637,483 AT 31 MARCH 2020 14,379,900 The total market value at 31 March 2021 comprises investrnents quoted on the UK stock exchange £16,538,591 12020= £7.107,4591, other quoted investments outside the UK £Nil {2020.. £5,536.550) and cash £98,89212020= £1.73S.891) 17. STOCKS 2021 2020 Finished goods and gcK*Js for resale 63.710 70.095 18. DEBTORS 2021 2020 DUE WITHIN ONE YEAR Trade deblors Other debtors PrepayTmenls and acthed income Grants receivable 855,959 2.649 167,942 609,734 914.728 2,510 134,808 918.988 1,636,284 1,971.034 Page 32
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 2020 Trade Creditors Amounts owed lo group undertakings Other laxalion and social security Other Creditors Accruals and defeed income 273,969 13,397 53.316 13.079 2,320,722 238.196 13,394 116.549 12.518 1,595.649 2,674,483 1,976,306 Deferred income represents funding received for specific projects. vthere entitlement only arises once prqecl costs have been in(yJrred. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2021 2020 Other creditors 495.965 606.281 Other creditors falling due after more than one ar represent a liability to ntrIbute lo Ihe USS pension heme defi¢il as disdosed in note 29. 21. FINANCIAL INSTRUMENTS 2021 2020 FINANCIAL ASSETS Financial assets measured 81 fair value through income and expendilu 16,637,483 14,379.900 2021 2020 FINANCIAL LIABILITIES Financial liabilities measured at amrtised cost 422.128 404.222 Financial assets measured al fair value through income and expenditure comprise investments held at market value. Financial liabilities measured at amortised cost comprise trade creditors. other creditors and accruals. Page 33
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 22. STATEMENT OF FUNDS STATEMENT OF FUNDS- CURRENT YEAR Balance at 31 March 2021 Balance at 1 April 2020 Tran¥fgrs inlout Galnsl (Losses) Income Expenditure UNRESTRICTED FUNDS DESIGNATED FUNDS Investment reseNe Herttage asset5 reserve 256,907 151,614 408,521 1.057,800 208,865 1,266,665 Designated premises lund Designated fellows fund 9.591,146 1.428,249 11.019.395 2.457,640 (67,2731 373,403 2.763.770 13.363.493 167,2731 2,162.131 15,458,351 GENERAL FUNDS General reseNe Pension liability 943.255 1617.9901 3,008,498 (2,714.4141 111,490 1142,894) 35,192 1,129,637 1506.500) 325,265 3,008,498 12.602,9241 (142.894) 35,192 623,137 TOTAL UNRESTRICTED FUNDS 13.688.758 3,008,498 (2,670.1971 (142,894) 2.197,323 16.081,488 ENDOWMENT FUNDS Soulhward & Tc4Jd Fund Spooner B8quest 137.661 88.383 21,252 13,644 158.913 102,027 226.044 34.896 260.940 Page 34
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 22. STATEMENT OF FUNDS (CONTINUED) Balance al 31 March 2021 Balance at 1 April 2020 Transfors inlout GalDsI ILossesl Income Expendlture RESTRICTED FUNDS Grants and Research EU Programme Awards Browne Bequesl Browne & Bull Library Mary Parke Bursary Morely Neale Fund Seawater Hall & Resour¢e Cent Caprtal Grants SAHFOS NERC. Blue Gok 97,290 1,329,638 11,553,520) 126,592 213,604 33.213 657,657 1859,8971 11,364 38,340 5.127 173,982 26,859 200,841 1,007 1.007 312.219 635,139 1.883,052 224,932 1.556.218 312,219 665,646 2.132.926 201,598 {171,0911 249,874 {241,2341 1133.7781 16.302 ICPR 976 1.423,416 5.133,704 2,189,869 12.959,5201 142,894 281,860 4.788,807 TOTAL OF FUNDS 19.048,506 5,198,367 15,629,717) 2.514,079 21,131.235 Page 35
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 22. STATEMENT OF FUNDS (CONTINUED) The transfers column within the above Statement ol Funds note indudes both overheads recharged lo fund balances and transfers from unrestricted funds to subsidise reslricled lund deficil balances. Reslricted funds are as follows.. Grants and Research The Research Programme combined funds awarded for specific research projects that cannot be used for other purposes. The deficit represented an excess of expenditure over income on restricted research projects in the year. A transfer from unrestricted lo restricted reserves was made to offset the deficit. Research Prc>gramme funds are now shown as follows.. EU Programme awards These funds are projecls supported through the Inlerreg Horizon 2020 programmes. Funding awarded covers only a proportion of the full project cosls and transfers from unrestricted reserves. Browne Bequest - for the purchase of apparatus and the publication of books on Brilish Marine Fauna. Browne and Bull Library Fund - combines speafic legacies for the "purchase of rare or valuable books as need OT occasion arises. for the MBA'S library. Mary Parke Bursary Fund - to provide bursaries for physiological students al Ihe MBA. Modey Neale Fund - lo provide scaal facilities lo the stsff members of the MBA. Seawater Hall and Resource Centre - Infrastructure grants for the Resource Centre and Seawater Hall are held as reslricled lunds with a proFQrtion of the depreciation lor Ihese assets tting charged lo the respective fund each year. calculated as the amount that the capital grant bears lo the total cost of the assei fvnded. Capttsl grant- This is a grant for capital equipment purchased. Save our Seas Foundation This project will provide the first long-term tracking of shortfin mako shark movements and spac£ ulilisalion in the central North Allanlic Ocean. SAHFOS - This represents the amount transferred from the Sir Alister Hardy FOundatn for Ocean Science. As part of the lems and conditions ol transfer, the balanc£ is lo be restricted lo expendilufe relating to Continuous Plankton Recorder sueyS. Endcmment fijnds are as follows.. Tojd Fund - is for the purchase of rare and Ca)slly books. Spooner Bequest- represents a specific legacy for the provision of student bursaries by the MBA. Southward Bequest represenis a specific legacy lo generate income from which books, serial publications or any other saenlific papers can be purchased. Designated funds are as follows.. Investment reserve - This fund represents the differen between the original cost ol the inveslmenls held and the marf(el value al the balance sheet dale. less any funds held in unreslricled general reserves. Heritage assets reserve- This fund represents the value of the Heritage assets held on the balan sheet at year end. Premises Fund - This fund Is held to provide a capital amount that covers the remaining leasehold liabilities (including repairs and mainlenanee and the requirement lo make good dilapidalionsl and an Income level lo cover the annual premises and running costs. A transfer Is made lo the General Reserv Page 36
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 22. STATEMENT OF FUNDS (CONTINUED) lo represent funds drawn down lo contribute towards relevanl expenditure. A transfer from the General Reserve is made from investment income received lo maintain the fund al the required level. The lund has also been increased in relation lo the commitment lo the ongoing infraslruclure project. Fellows Fund - This supports Research Fellowships by providing underpinning salary and asswaled costs. A transfer from the General Reserve is made from investment income received. STATEMENT OF FUNDS- PRIOR YEAR Balance at 31 March 2020 Balance al 1 April 2019 Transfers in/oul Gainsl {Lossesl Income Expenditure UNRESTRICTED FUNDS DESIGNATED FUNDS Investment reserve 278,162 121,2551 256.gJ7 Herttage assets reserve 1.057,800 1.057.800 Designated Premises lund Designated fellows fund 10,382,059 {790,9131 9,591.146 2,750,103 353 186,6941 3.383 (209,5051 2,457.640 14,468, 124 353 186,6941 3.383 11,021,673) 13,363,493 GENERAL FUNDS Ganeral reserye Pension liability 1,290.788 1562.897) 3.355,868 13,169.979) 155.093) 1399,9491 1133.4731 943,255 1617,9901 727.891 3,355,888 I3,225.072} 1399,9491 1133.473) 325,265 TOTAL UNRESTRICTED FUNDS 15,196.015 3,311.7661 1396,5661 11, 155.146) 13.688,758 ENDOWMENT FUNDS Soulhward & Tcéd Fund Spoonèr 88quest 149,012 95,671 111,351) 17,288) 137,661 88,383 4,500 14,500) 244,683 4,500 14,500} 118,639} 226,044 Page 37
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 22. STATEMENT OF FUNDS (CONTINUED) RESTRICTED FUNDS Grants and Research 15.581) 926,907 (1.108,041) 284,005 97,290 EU Programme Awards Browne Bequest Browne & Bull Library Mary Parke Bursary Morely Neale Fund Seawaler Hall & Resource Centre Capitsl Grants SAHFOS NERC - Blue Gokl ICPR 166.103 35,952 928,580 1976.052) 94.973 213.604 33,213 12,7391 188,329 {14,347) 173,982 3.048 3.048 1.Cw)7 1.CKI7 312,219 193,974 1,883,052 643.987 312,219 635,139 1.883,052 224,932 1,556,218 615,369 1191,792) 17,588 1419,055) 12,480) 1,558,698 3,422.090 4.029,554 12,697,420) 396,566 {17,086) 5.133.704 TOTAL OF FUNDS 18,862,788 4,034,054 16,013,686) 11,190,871) 19,048,506 Page 38
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 23. SUMMARY OF FUNDS SUMMARY OF FUNDS- CURRENT YEAR Balanco al 31 March 2021 Balance at 1 April 2020 Transfgrs inlout Galnsl (Losses) Income Expendlture Designated funds General funds Endment funds Reslricled funds 13,363,493 325,265 {67,273} 3,008,498 12,602,924} 2.162,131 15,458,351 35,192 623,137 1142,8941 226,044 5,133.704 34,896 281.860 260.940 4.788,807 2.189,869 12,959,520) 142,894 19,IM8.506 5.198,367 15,629.717) 2,514,079 21,131,235 SUMMARY OF FUNDS - PRIOR YEAR Balanct at 31 March 2020 Balance at 1 April 2019 Transfers inlout Gainsl {Lossesl Income Expend Designated funds General funds Endowment funds 14,468, 124 727,891 3S3 186,6941 3,355,868 13,225,072) 3.383 11,021,673) 13,363,493 {399,949) {133,4731 325,265 244,683 3,422,090 4.500 4.029.$54 (4,5001 12,697,420) 118,6391 226.044 117,0861 5,133.704 Restricted funds 396.566 18,862,788 7,390,275 16,013,686) 11,190,871) 19,048.506 24. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR UnrnstrIct Restrlcted Endowmènt fund$ funds fund$ 2021 2021 2021 Total funds 2021 Tangible fixed assets Fixed asset investments Herilage assels Current assets Creditors due within one year Creditors due in more than one year 1,569,030 14,071,785 1,276,665 390,285 3,445.854 1730,3121 11,944.171) 1495,9651 977.866 2.309.258 2,546,896 256,440 16,637.483 1.276,665 3,840,639 (2.674,4831 1495,9651 TOTAL 16,081,488 4,788.807 260,940 21.131,235 Page 39
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 24. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED) ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR Unreslricled funds 2020 Restricted Endowm8nt funds funds 2020 2020 Total funds 2020 Tangible fixed assets Fixed assel inveslments 1,463,875 12,275,973 1,067,800 149,117 3,661.422 1661,7271 11,314.578) 1606,2811 904.477 1,882.383 2,368.352 221,544 14,379.900 1,067,800 3,815.039 1,976.305) {606.281) Heritage assets Current assets Creditors due within one year Creditors due in more than one year TOTAL 13,688,757 5,133.704 226,044 19,048.505 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 25. 2021 2020 Net income for the year las per Statement of Financial Activities) 1,873,864 190.106 ADJUSTMENTS FOR: Depreciation charges GainsJ{lossesl on inve5trnents Diwdends, interest and rents from investments Decreasel{increasel in stocks Decreasellincreasel in debtors Increaselldecreasel in creditors 499,064 12,305,214) {328.745) 6.385 334,750 698,177 452.172 1,190.871 {450,842) 14.722) (680.318) 124.690) NET CASH PROVIDED BY OPERATING ACTIVITIES 778,281 672,577 ANALYSIS OF CASH AND CASH EQUIVALENTS 2021 2020 Cash in hand 2.140.645 1,773.912 TOTAL CASH AND CASH EQUIVALENTS 2.140,645 1,773,912 Page 40
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ANALYSIS OF CHANGES IN NET DEBT At 1 April 2020 Cash Ilows At 31 March 2021 Cash at bank and in hand 1.773,912 366,733 2,140,645 28. CONTINGENT LIABILITIES Under the temis of the lease from the Crown Estsle re18ting lo the sile and premises at Ciladel Hill there is a requirement lo meet the cost of making good dilapidations and of vacating the premises should the MBA transfer lo new premises. The premises undergo a rolling programme of repairs and refurbishment, funded by a drawdown from the Designated Premises Fund to ensure they are routinely maintained in good condition. Council therefore considers that there are not expected to be any signifieanl costs 8SSOClated with dilapidations that would be without a nomal annu81 maintenance budget. Any costs or settlement associated with vacating the premises cannot be reliably estimated al present and hence tt is not possible lo make a reliable estimate of the potential costs of any contingent liability. PENSION COMMITMENTS University Superannuation Schème The latest available full actuarial valuation of the scheme was al 31 March 2018 1.the valualron dale"). which was carried out using the projected unrt method. Since the institution cannot identify ils share of schèmè assets and liabilities, the following disclosures reflect those relevant for the schèmè as a whole. Thè 2018 valuation was the fourth valuation for USS undèr the schem&specific funding regime introduced by the Pensions Acl 2004, which requires sehemes lo adopt a statutory funding objectivè, which is lo have sufficient and appropriate assets to cover their leehnical provision5. Al the valuation dale, the value of the assets of the scherne was £63.7 billion and the value of the sch6mè's leehnical provisions was £67.3 billion indicating a shortfall of £7.5 billion and a funding rabo of 95010. The key financial as5urnptions used in thè 2018 valuation are d6sttib8d bèlow. Morè detail is sal out in thè SLilement of Funding Principles. Pension increases ICPII Term dependent rates in linè with the differenc8 b8tsvean thè Fixed Inl6rast and Ind6x Linked yièld curves. less 1.3Yo p.a. Discount rate (forward rates} Years 1-10.. CPI + 0.14 °k reducing linearly lo CPI - 0.730 Years 11-20.. CPI + 2.S2ts/o reducing lineady to CPI + 1.55°A by year 21 Years 21 +: CPI + 1.550/ The main demographic assurnption used relates to tho mortality assumplions. These assumption$ are based on analysis of the scheme's experience G4rri8d out as part of the 2018 actuarial valuation. The mortality assumptions usod in these figures ar8 as follows: Mortalily base lable Pre-retirement.. 71 Yo of AMCOO Iduralion O} for rnalos and 112Yo of AFCOO Iduralion O) for f8mal8s Post retirement: 97.6°kn of SAPS S1 NMA 'light" for mal8s and 101.3% of RFVOO for females Future Improvements to mortality CMI_2017 with a smoothing parameter of 8.5 and a long term Improvement rale of 1.8% pa for males and Page 41
THE MARINE BIOLOGICAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 PENSION COMMITMENTS ICONTINUEDI 1.6% pa for females The current life expectancies on retirement at age 65 are.. 2021 24.4 25.9 2020 24.4 25.9 26.3 27.7 Males currenlly aged 65 lyearsl Females currently aged 65 lyearsl Males currenlly aged 45 lyearsl Females currently aged 45 {yEarsl 27.7 A new deficit recovery plan was pul in place as part of the 2018 valuation, which requires payment of 2Y. of salaries over the period 1 October 2019 10 30 September 2021. al which poinl Ihe rale will increase lo 6%. 2021 2.120 NIA 1.800 2020 2.080 NIA 2.11% Discount rate Pensionable salary growth Pension increases {CPI) RELATED PARTY TRANSACTIONS The Ray Lankesler Fund Iregislered charity number, 2068551 is a related paty of ihe MBA. Professor W Wilson IMBA Director during the yearl is a Trustee of the Ray Lankesler Fund. The Ray Lankesler Fund provides support lor researchers lo undertake projects based al the MBA laboratory. During the year. the MBA made recharges of £20.11312020.' £NILI lo the Ray Lankesler Fund. Al the year end the balance owed lo the MBA was £Nil12020.' £Nill Due to the structure of the board and management team. no members ol management have been deemed lo meet the definition of key management personnel and therefore no disclosure of key management personnel has been made within these financial slalements. Page 42