**Registered number: 09894859 Charity number: 1165055** ## **NIAB EMR** **(A company limited by guarantee)** **Trustees' Report and Financial Statements** **For the Year Ended 31 March 2022** ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Contents** ||Page| |---|---| |**Reference and administrative details of the Charity, its Trustees and advisers**|1| |**Trustees' report**|2 ‐ 6| |**Independent auditors' report on the financial statements**|7 ‐ 10| |**Statement of financial activities**|11| |**Balance sheet**|12| |**Notes to the financial statements**|13 ‐ 27| **NIAB EMR** **(A company limited by guarantee)** ## **Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2022** |**Trustees**|Dr N W KerbyMBE,Chair| |---|---| ||Prof M J Caccamo(appointed 1 October 2021)| ||Dr T L BarsbyOBE(resigned 12 November 2021)| |**Company registered**
**number**
09894859
**Charity registered number**
1165055
**Registered office**
93 Lawrence Weaver Road
Cambridge
CB3 0LE
**Company secretary**
Dr J McKee
**NIAB Chief executive**
Prof M J Caccamo (appointed 1 October 2021)
**Independent auditors**
Moore Kingston Smith LLP
Statutory Auditors
9 Appold Street
London
EC2A 2AP
**Bankers**
Barclays Bank PLC
1 Churchill Place
Canary Wharf
London
E14 5HP
**Solicitors**
Birketts LLP
22 Station Road
Cambridge
CB1 2JD
Thomson Snell & Passmore LLP
3 Lonsdale Gardens
Tunbridge Wells
Kent
TN1 1NX|| Page 1 NIAB EMR | Annual Report and Accounts | March 2022 ## TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT ## STRATEGIC REVIEW ## Background NIAB EMR was incorporated in November 2015 and commenced activities when NIAB bought the business and assets of East Malling Research on 9 February 2016. NIAB EMR is a wholly owned subsidiary charity of NIAB. On 1 April 2021 the majority of the business, assets and liabilities of the charity were merged into NIAB. All NIAB EMR’s employees were transferred to NIAB and to fulfill its contractual obligations NIAB EMR contracts the expertise of NIAB and utilises its facilities at East Malling. ## Strategy & Public Benefit The operations of NIAB EMR are an integral part of the strategy of the wider NIAB Group. In 2021/22, NIAB EMR continued to receive income from contracts that had not been novated to NIAB (NIAB EMR’s parent). An agreement with AHDB will remain in place until early 2023. As such, NIAB EMR will continue to report financial activity through to 2023/24 and will continue to contract necessary services, expertise, and facilities from NIAB The Trustees are satisfied they have complied with their duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. The Trustees believe the activities of NIAB EMR to be scientific and therefore charitable in nature. ## Performance Performance against the specific 2021/22 objectives is highlighted in the table below: |**Objectives**|**Performance**| |---|---| ||| |Having transferred the majority of operations to NIAB,|One contract will remains in NIAB EMR and it will continue to| |there remain 22 contracts still to assign or complete. 19 of|receive income from AHDB in relation to the project “Diagnostic| |these contracts were scheduled to complete in the|
tests to assess Fusarium disease risk and monitor soil| |financial year 21/22. The aim is to transfer the remainder|microbiome”. This work will continue to be delivered by NIAB| |of the contracts to NIAB before the year end|
EMR until the conclusion of the project.| ||| ||| ||| |Obtain agreement fromThe East Malling Strawberry Breeding
Club (EMSBC) to novate the EMSBC contract to NIAB with effect
from 1 April 2021.|The East Malling Strawberry Breeding Club (EMSBC) is no longer
included in the NIAB EMR accounts as this project was novated
to NIAB with effect from 1 April 2021, with the agreement of the
EMSBC Board.| ## Objectives for 2022/23 Through NIAB, NIAB EMR will continue to deliver the remaining AHDB contract under the terms of the agreement. Page 2 NIAB EMR | Annual Report and Accounts | March 2022 ## FINANCIAL REVIEW ## Income Total incoming resources for the period were £666k (2021: £7,302k). Of the total £Nil (2021: £1,998k) related to grants for the purchase of capital assets. Income is derived from a mixture of research grants and contracts, as well as recharges to East Malling Services Ltd., a subsidiary organisation. ## Related parties Other than other group entities within the NIAB group there were no related parties ## Going Concern The Trustees have acknowledged the guidance on going concern and financial reporting published by the Financial Reporting Council in 2016. ## Fundraising The NIAB EMR does not undertake fundraising activities ## Expenditure Total outgoing ordinary expenditure totaled £689k (2021: £5,505k). Of that amount £550k (2021: £2,351k) related to staff costs for staff employed by NIAB but working on NIAB EMR projects with amounts being charged to NIAB EMR for their time. The ultimate parent undertaking is NIAB (charity no: 1064230). The majority of the business, assets and liabilities of NIAB EMR have been merged into NIAB to form a single entity on a going concern basis. The Trustees have reviewed the NIAB Group cash flows and management accounts supporting NIAB’s activities for the period to 31 March 2024. ## Capital Expenditure The charity funded capital purchases from unrestricted and restricted income. Of the total purchases of £Nil (2021: £2,099k) £Nil (2021: £1,998k) was from restricted grants. ## Business Review and Key Performance Indicators NIAB EMR has considered the most appropriate Key Performance Indicators by which the development, performance or position of the various elements of its operations can be effectively measured. The only Key Performance Indicator is the fulfillment of its remaining scientific contracts. ## Subsidiaries and related parties NIAB EMR is part of the NIAB Group of companies; NIAB (Charity No: 1064230) controls NIAB EMR through its membership of the charity. The results of NIAB EMR are consolidated within NIAB’s financial statements. ## Reserves Policy The total charity reserves are £1,623k (2021: £1,646k). NIAB EMR reserves will be managed until the final delivery of the remaining contract with AHDB. ## Accounting Period The Trustees have considered the following in arriving at their conclusions on going concern: - 1. NIAB’s cash flow forecast and latest management accounts, which give confidence that the charity can continue to pay its debts as they fall due, through the provision of ongoing support of National Institute of Agricultural Botany Trust (TRUST). 2. TRUST have confirmed to the NIAB group that, through the provision of facilities and funding, said support will remain in place to March 2024. 3. The TRUST’s joint responsibility to the Pension Scheme including to fund future Pension Scheme Recovery Plan payments. After making enquiries and considering the current uncertainties the Trustees have a reasonable expectation that both the charity and NIAB have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements, and are not aware of any other material uncertainties which may adversely affect the organisation. Accordingly, the financial statements continue to be prepared on the going concern basis. The Trustees present their report and the financial statements for the year ended 31 March 2022. The company’s year-end (Accounting Reference Date) is 28 March, although the financial statements continue to be prepared to 31 March as permitted by section 390(3) of the Companies Act 2006. Page 3 NIAB EMR | Annual Report and Accounts | March 2022 ## RISK ASSESSMENT AND MANAGEMENT The risks of NIAB EMR are considered by the NIAB Board of Trustees who are responsible for ensuring there are effective and adequate risk management and internal control systems in place to manage the major risks to which the NIAB group is exposed. The NIAB EMR Trustees have reviewed the risk register of the NIAB group and are satisfied this sufficiently addresses risks that are applicable to NIAB EMR. Future Principal Risks and Uncertainties for the NIAB EMR: |**Risk Area**|**Risk**|**Management**| |---|---|---| |||| |||| |||| ||Failure to deliver remaining|The performance of the remaining project(s) are monitored and reviewed| |Customer||| ||contract(s) in NIAB EMR|regularly. NIAB continues to provide resources to support delivery in full.| |||| |||| Page 4 NIAB EMR | Annual Report and Accounts | March 2022 ## STRUCTURE, GOVERNANCE and MANAGEMENT ## Members and Board of Trustees ## Trustee Remuneration NIAB is the sole member of NIAB EMR. NIAB EMR does not remunerate its Trustees. ## Board of Trustees The Board of Trustees comprises the Chair and up to four additional Trustee directors. The following Trustees have served during the period: Dr N W Kerby MBE, Chairman Dr T L Barsby OBE (resigned 12 November 2021) Professor M J Caccamo (appointed on 1 October 2021) ## Recruitment, induction and training of Trustees NIAB EMR recruits Trustees with the relevant skillset to support the charity’s activities. An induction programme is in place for newly appointed Trustees and is kept under review and updated where appropriate. In addition, Trustees are in regular contact with the Managing Director and executive team and receive updates on key areas of activity. ## Decision making and key management The Board of Directors (Trustees) administer the company and aim to meet quarterly. The average number of employees for the year was Nil (2021 - 65). ## Liability Insurance The Trustees have affected liability insurance as permitted by the company’s articles. This insurance does not provide cover in the event that a Trustee is proved to have acted fraudulently or dishonestly. ## Organisation and governance NIAB EMR is incorporated in England and Wales and is a company limited by guarantee (registered number 09894859) and a registered charity (number 1165055). It is governed by its Memorandum and Articles of Association adopted on 30 November 2015. The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). Page 5 NIAB EMR | Annual Report and Accounts | March 2022 STATEMENT OF TRUSTEES, RESPONSIBILITES IN RESPECT OF THE ANNUAL AUDIT REPORT AND FINANCIAL STATEMENTS The Trustees Iwho are also directors of NIAB EMR for the purpose5 of company lawl are responsible for preparing the Trustee5' Report and the financial staterrents in accordance with applicable law and regulations. The Trustees confirm that: so far as each Trustee is aware, there 15 no relevant audit information of which the auditors are unaware.. and the Trustees have taken all the steps that they ought to have taken a5 Trustees in order to make thernselves ware of any relevant audit information and to establish th3t the charitable company's auditor is aware of that information. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom general accepted accounting practice Iunited Kingdorn accounting standards and 3pplicable lawl, including FRS102, the financial repoTting standard applicable in the UK and Republic of Ireland. Under company law the Trustees must not approve the financial statement5 unless that theyare sat15fied that they give a true and fair view of the state of affair5 of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. Iri preparing these financial statements, the Trustees are required to: The Trustees are responsible for the maintenance and integrity of the corporate financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Trustees approve the Trustees Report incorporating the Strategic Report and financial statements. Signed on behalf of the Board of Trustees of NIAB EMR select suitable accounting policles and then applv them consistently- observe the method5 and principles in the Charlties SORP IFRS1021,' makejudgments and accounting estirrates that are reasonable and prudent,. Dr N W Kerby, Chairman state whether applicable UK Accounting Stèndard5 have been followed, subject to any material departures disclosed and explained in the financial statements,. and Date.. 14 November 2022 prepare the financial statements on the going concern basis unless it is'inappropriate to presume that the charitable company will continue in business.. The Trustees are responsible for keeping proper accounting records that disclose with reasonable atcuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Cornpanies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irre8ularitie5. Page 6 **NIAB EMR** **(A company limited by guarantee)** ## **Independent Auditors' Report to the of NIAB EMR** ## **Opinion** We have audited the financial statements of NIAB EMR (‘the company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 7 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Independent Auditors' Report to the of NIAB EMR (continued)** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the strategic report and the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the strategic report and the trustees’ annual report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with 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 explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ annual report and from preparing a strategic report. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s Responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control. Page 8 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Independent Auditors' Report to the of NIAB EMR (continued)** - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. ## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** Irregularities, including fraud, are instances of non‐compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows: - We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council - We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. - We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. - We inquired of management and those charged with governance as to any known instances of non‐compliance or suspected non‐ compliance with laws and regulations. - Based on this understanding, we designed specific appropriate audit procedures to identify instances of non‐compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non‐ compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Page 9 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Independent Auditors' Report to the of NIAB EMR (continued)** ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Andrew Stickland (Senior statutory auditor) for and on behalf of ## **For and on behalf of Moore Kingston Smith LLP** Statutory Auditors 9 Appold Street London EC2A 2AP November 202224 Page 10 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2022** |**Note**
**Income from:**
Charitable activities
3
Investments
4
**Total income**
**Expenditure on:**
Charitable activities
5
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£000**
**426**
**‐**
**426**
**449**
**449**
**(23)**
**1,646**
**(23)**
**1,623**|**Restricted**
**funds**
**2022**
**£000**
**240**
**‐**
**240**
**240**
**240**
**‐**
**‐**
**‐**
**‐**|**Total**
**funds**
**2022**
**£000**
**666**
**‐**
**666**
**689**
**689**
**(23)**
**1,646**
**(23)**
**1,623**|_Total_
_funds_
_2021_
_£000_
_7,184_
_118_
_7,302_
_5,505_
_5,505_
_1,797_
_(151)_
_1,797_
_1,646_| |---|---|---|---|---| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 13 to 27 form part of these financial statements. Page 11 NIAB EMR IA company limited by guarantee) Registered number.. 09894859 Balance Sheet As at 31 March 2022 2022 £000 2021 £000 Note Fixed assets Intangible assets Tangible assets li 980 12 2.825 3,805 Current assets Debtors 13 1,664 82 1.300 1,322 Cash at bank and in hand 1,746 2.622 Creditors: amounts falling due within one year 14 11231 (3,2811 Net current assetsllliabilite51 1,623 (659) Total assets less current liabilities 1,623 3.146 Creditors- amounts falling due after more than one year 15 (1.500) Total net assets 1,623 1,646 Charity funds Restricted funds 16 Unrestricted funds 16 1,623 1,646 Total funds 1,623 1,646 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 were approved and authorised for issue by the Trustees on 14 November 2022 and signed on their behalf by.. Dr N W Kerby MME Director The notes on pages 13 to 27 form part of these financial statements. Page 12 **(A company limited by guarantee)** ## **NIAB EMR** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **1. General information** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The particular accounting policies adopted in the preparation of the financial statements are set out below and have been applied consistently. NIAB EMR 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. Accounting policies** ## **2.1 Basis of preparation of financial statements** The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. - the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv); - the requirements of Section 7 Statement of Cash Flows; - the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); - the requirements of Section 11 Financial Instruments paragraphs 11.30 to 11.48a; - the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29. ## **2.2 Fund accounting** ## _General unrestricted funds_ General unrestricted funds represent income which is expendable at the discretion of the Board in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment. ## _Restricted funds_ 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 purpose. Page 13 **(A company limited by guarantee)** ## **NIAB EMR** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **2. Accounting policies (continued)** ## **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. Incoming resources from charitable activities are accounted for in the year in which the service is provided. 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. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. ## **2.4 Coronavirus Job Retention Scheme** Government grants are recognised on the performance model, when the charity has complied with any conditions attaching to the grant and the grant will be received. The grant in connection with the Coronavirus Job Retention Scheme has been recognised in the period to which the underlying furloughed staff costs relate. Included in income is an amount of £Nil (2021 ‐ £101,593) in respect of the Coronavirus Job Retention Scheme. ## **2.5 Accrued and deferred income** Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions and is recognised as earned as the relevant services are provided. This may mean accruing for invoices not yet raised or deferring payments received in advance of work done. ## **2.6 Resources expended** Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. Expenditure is allocated as follows: ## _Support costs_ Support costs which include central office functions such as general management, finance, information technology and human resources are allocated across categories of expenditure. The basis of the cost allocation has been explained in note 6 to the accounts. ## _Governance costs_ Expenditure incurred in running and administering the charity which is not directly attributable to charitable activities. All expenditure is inclusive of irrecoverable VAT. Page 14 **(A company limited by guarantee)** ## **NIAB EMR** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **2. Accounting policies (continued)** ## **2.7 Research and development** All research and development costs are written off as incurred. Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Statement of Financial Activities. ## **2.8 Foreign currency translation** The charity's functional and presentational currency is GBP. Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non‐monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non‐monetary items measured at fair value are measured using the exchange rate when fair value was determined. ## **2.9 Intangible assets and amortisation** ## _Purchased goodwill_ Goodwill representing the excess of the purchase price compared with the fair value of net assets acquired is capitalised and amortised evenly over 5 years as in the opinion of the Trustees this represents the period over which the goodwill is expected to give rise to economic benefit. Goodwill is reviewed for impairment at the end of the first financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. ## P _lant variety rights_ Plant variety rights are recognised at their fair value at acquisition and are amortised evenly over the period in which the rights expire, as in the opinion of the Trustees this represents the period over which the rights are expected to give rise to economic benefit. Plant variety rights are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable. Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight‐line basis over its expected useful life. ## **2.10 Tangible fixed assets and depreciation** All tangible assets are stated at historical cost. Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use. Page 15 **NIAB EMR** **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **2. Accounting policies (continued)** ## **2.10 Tangible fixed assets and depreciation (continued)** Depreciation is provided on cost over the estimated lives of the assets. Depreciation is provided on the following bases: ‐ Agricultural and motor vehicles 3‐10 years straight line ‐ Apparatus and equipment 3‐10 years straight line ## **2.11 Debtors** Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid. ## **2.12 Creditors** Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. ## **2.13 Financial instruments** The charity only enters into financial assets and financial liabilities which qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **2.14 Pensions** NIAB EMR operates a money purchase scheme, in addition to making contributions into employees’ personal pension schemes. For these, the pension costs charged in the financial statements represent the contributions payable by the company during the period. ## **2.15 Redundancy payments** Redundancy payments are recognised as a liability and an expense only when the event is demonstrably committed to by either: - a) termination of the employment of an employee or group of employees before the normal retirement date; or - b) provision of termination benefits as a result of an offer made in order to encourage voluntary redundancy. ## **2.16 Going concern** The Trustees have acknowledged the guidance on going concern and financial reporting published by the Financial Reporting Council in 2016. Page 16 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **2. Accounting policies (continued)** The ultimate parent undertaking is NIAB (charity no: 1064230). The trustees have reviewed the NIAB Group cash flows and management accounts supporting NIAB’s activities for the period to 31 March 2024. The trustees have considered the following in arriving at their conclusions on going concern: ‐ 1. NIAB’s cash flow forecast and latest management accounts, which give confidence that the charity can continue to pay its debts as they fall due, through the provision of ongoing support of National Institute of Agricultural Botany Trust (TRUST). 2. TRUST have confirmed to the NIAB group that, through the provision of facilities and funding, said support will remain in place to March 2024. 3. The TRUST’s joint responsibility to the Pension Scheme, including to fund future Pension Scheme Recovery Plan payments. After making enquiries and considering the current uncertainties the trustees have a reasonable expectation that both the charity and NIAB have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements, and are not aware of any other material uncertainties which may adversely affect the organisation. Accordingly, the financial statements continue to be prepared on the going concern basis. ## **2.17 Judgements in applying accounting policies and key sources of estimation uncertainty** Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: - Depreciation, which has been charged in line with the accounting policy above. The amount of depreciation charged and net book value of the assets is included in note 12. - Intangible assets which were recognised at the fair value of acquisition have been amortised and the net book value of the assets is included in note 11. - Income, which has been recognised in accordance with the work completed on grants and contracts. ## **3. Income from charitable activities** |Laboratory and Research
Other activities
**Total 2022**|**Unrestricted**
**funds**
**2022**
**£000**
426
‐
426|**Restricted**
**funds**
**2022**
**£000**
240
‐
240|**Total**
**funds**
**2022**
**£000**
**666**
**‐**| |---|---|---|---| ||||**666**| Page 17 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **3. Income from charitable activities (continued)** |Laboratory and Research
Other activities
_Total 2021_
**4.**
**Investment income**
Gift aid received from subsidiary
Gift aid received from subsidiary
**5.**
**Analysis of expenditure on charitable activities**
**Summary by fund type**
Laboratory and Research|_Unrestricted_
_funds_
_2021_
_£000_
_4,722_
_184_
_4,906_
**Unrestricted**
**funds**
**2022**
**£000**
449|_Restricted_
_funds_
_2021_
_£000_
_2,278_
_‐_
_2,278_
_Unrestricted_
_funds_
_2021_
_£000_
_118_
**Restricted**
**funds**
**2022**
**£000**
240|_Total_
_funds_
_2021_
_£000_
_7,000_
_184_| |---|---|---|---| ||||_7,184_| ||||**Total**
**funds**
**2022**
**£000**
**‐**| ||||_Total_
_funds_
_2021_
_£000_
_118_| ||||**Total**
**funds**
**2022**
**£000**
**689**| Page 18 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **5. Analysis of expenditure on charitable activities (continued)** ## **Summary by fund type (continued)** ||_Unrestricted_|_Restricted_|_Total_| |---|---|---|---| ||_funds_|_funds_|_funds_| ||_2021_|_2021_|_2021_| ||_£000_|_£000_|_£000_| |Laboratory and Research|_5,225_|_280_|_5,505_| Page 19 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **6. Analysis of expenditure by activities** |Laboratory and Research
Laboratory and Research
**Analysis of support costs**
Management
Finance
Information Technology
Human Resources
Governance|**Activities**
**undertaken**
**directly**
**2022**
**£000**
613
_Activities_
_undertaken_
_directly_
_2021_
_£000_
_4,559_|**Support costs**
**2022**
**£000**
76
_Support costs_
_2021_
_£000_
_946_
**Total**
**funds**
**2022**
**£000**
**35**
**21**
**7**
**5**
**8**
**76**|**Total**
**funds**
**2022**
**£000**
**689**| |---|---|---|---| ||||_Total_
_funds_
_2021_
_£000_
_5,505_| ||||_Total_
_funds_
_2021_
_£000_
_433_
_264_
_86_
_57_
_106_| ||||_946_| Central support costs have been allocated to cost categories on a basis consistent with use of resources e.g. staff costs by the time spent and other costs by their usage. Page 20 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **7. Auditors' remuneration** ||**2022**|_2021_| |---|---|---| ||**£000**|_£000_| |Fees payable to the Charity's auditor for the audit of the Charity's annual||| |accounts|**5**|_6_| ## **8. Staff costs** |Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2022**
**£000**
**‐**
**‐**
**‐**
**‐**|_2021_
_£000_
_2,018_
_174_
_159_| |---|---|---| |||| |||_2,351_| The average number of persons employed by the Charity during the year was as follows: ||**2022**|_2021_| |---|---|---| ||**No.**|_No._| |Technical and scientific|**‐**|_54_| |Support staff|**‐**|_11_| |The number of employees whose employee benefits (excluding employer pension costs)|exceeded £60,000 was:|| ||**2022**|_2021_| ||**No.**|_No._| |In the band £60,001 ‐ £70,000|**‐**|_1_| |The key management personnel during the year were:||| |Professor M Caccamo (Managing Director NIAB EMR; CEO of NIAB from 1 October 2021)||| |Dr T L Barsby (CEO of NIAB to 30 September 2021)||| The above personnel were employed by and paid through NIAB, this charity's parent charity. Page 21 **(A company limited by guarantee)** ## **NIAB EMR** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **9. Trustees' remuneration and expenses** No Trustees received any remuneration or other benefits from the Charity during the year and no Trustee expenses were incurred during the year (2021 ‐ £Nil and £Nil). ## **10. Taxation** NIAB EMR is a registered charity and is thus exempt from tax on income and capital gains falling within section 505 of the Income and Corporation Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives. No tax charges have arisen in the Charitable Company. There is no provision for deferred tax on fair value adjustments because any chargeable gains are applied to charitable objectives so no tax liability arises. ## **11. Intangible assets** |At 1 April 2021
Transfer to parent company
Disposals
At 31 March 2022
At 1 April 2021
Transfer to parent company
On disposal of assest
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_
Goodwill has now been fully amotised and has been written off.|**Plant variety**
**rights**
**£000**
**1,350**
**(1,350)**
**‐**
**‐**
**370**
**(370)**
**‐**
**‐**
**‐**
_980_|**Goodwill**
**£000**
**100**
**‐**
**(100)**
**‐**
**100**
**‐**
**(100)**
**‐**
**‐**
_‐_|**Total**
**£000**
**1,450**
**(1,350)**
**(100)**
**‐**
**470**
**(370)**
**(100)**
**‐**
‐| |---|---|---|---| ||||_980_| Page 22 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **12. Tangible fixed assets** |At 1 April 2021
Transfer to parent company
At 31 March 2022
At 1 April 2021
Transfer to parent company
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Agricultural**
**and motor**
**vehicles**
**Apparatus and**
**equipment**
**£000**
**£000**
**42**
**1,685**
**(42)**
**(1,685)**
**‐**
**‐**
**34**
**877**
**(34)**
**(877)**
**‐**
**‐**
**‐**
**‐**
_8_
_808_|**Assets under**
**construction**
**£000**
**2,009**
**(2,009)**
**‐**
**‐**
**‐**
**‐**
**‐**
_2,009_|**Total**
**£000**
**3,736**
**(3,736)**| |---|---|---|---| ||||**‐**| ||||**911**
**(911)**| ||||**‐**| ||||**‐**| ||||_2,825_| On 1 April 2021 the business, assets and liabilities of NIAB EMR were merged into the parent company, NIAB. ## **13. Debtors** |**Due within one year**
Trade debtors
Amounts owed by group undertakings
Prepayments and accrued income|**2022**
**£000**
**181**
**1,438**
**45**
**1,664**|_2021_
_£000_
_580_
_559_
_161_
_1,300_| |---|---|---| Page 23 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **14. Creditors: Amounts falling due within one year** |Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Pension fund
Other creditors
Accruals and deferred income
Deferred income at 1 April 2021
Resources deferred during the year
Amounts released from previous periods|**2022**
**£000**
**50**
**‐**
**‐**
**‐**
**‐**
**73**
**123**
**2022**
**£000**
**337**
**53**
**(337)**
**53**|_2021_
_£000_
_225_
_850_
_46_
_23_
_1,260_
_877_| |---|---|---| |||| |||_3,281_| |||_2021_
_£000_
_384_
_262_
_(309)_| |||| |||_337_| ## **15. Creditors: Amounts falling due after more than one year** ||**2022**|_2021_| |---|---|---| ||**£000**|_£000_| |Loan|**‐**|_1,500_| The company had a loan, bearing interest at market rate, from the National Institute of Agricultural Botany Trust, a related party of NIAB, which was repayable within 10 years from January 2016. The loan has been transferred to NIAB. Page 24 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **16. Statement of funds Statement of funds ‐ current year** |**Unrestricted funds**
General Fund
**Restricted funds**
Restricted Grants
**Total of funds**
**Statement of funds ‐ prior year**
**Unrestricted funds**
General Fund
**Restricted funds**
Restricted Grants
East Malling Trust
Capital grants
**Total of funds**|_Balance at_
_1 April 2020_
_£000_
_(151)_
_‐_
_‐_
_‐_
_‐_
_(151)_|**Balance at 1**
**April 2021**
**£000**
**1,646**
**‐**
**1,646**
_Income_
_£000_
_5,024_
_80_
_200_
_1,998_
_2,278_
_7,302_|**Income**
**£000**
**426**
**240**
**666**
_Expenditure_
_£000_
_(5,225)_
_(80)_
_(200)_
_‐_
_(280)_
_(5,505)_|**Expenditure**
**£000**
**(449)**
**(240)**
**(689)**
_Transfers_
_in/out_
_£000_
_1,998_
_‐_
_‐_
_(1,998)_
_(1,998)_
_‐_|**Balance at 31**
**March 2022**
**£000**
**1,623**| |---|---|---|---|---|---| ||||||**‐**| ||||||**1,623**| ||||||_Balance at_
_31 March_
_2021_
_£000_
_1,646_| ||||||_‐_
_‐_
_‐_| ||||||_‐_| ||||||_1,646_| During the previous year the Charity received restricted grants totaling £Nil (2021: £1,998k) for the purchase of specified fixed assets. Once purchased, the fixed assets form part of the unrestricted assets and a transfer has therefore been made. Page 25 ## **NIAB EMR** ## **(A company limited by guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **17. Analysis of net assets between funds** ## **Analysis of net assets between funds ‐ current year** |Current assets
Creditors due within one year
**Total**|**Unrestricted**
**funds**
**2022**
**£000**
1,746
(123)
1,623|**Total**
**funds**
**2022**
**£000**
**1,746**
**(123)**
**1,623**| |---|---|---| ## **Analysis of net assets between funds ‐ prior year** |Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|_Unrestricted_
_funds_
_2021_
_£000_
_2,825_
_980_
_2,622_
_(3,281)_
_(1,500)_
_1,646_|_Total_
_funds_
_2021_
_£000_
_2,825_
_980_
_2,622_
_(3,281)_
_(1,500)_
_1,646_| |---|---|---| ## **18. Members' liability** The charitable company is incorporated as a company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 March 2022 there was 1 member (2021: 1) ‐ the parent charity NIAB. The member has full voting rights. Page 26 **(A company limited by guarantee)** ## **NIAB EMR** ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **19. Related party transactions** The charitable company has taken advantage of the exemption conferred by Financial Reporting Standard 102 not to disclose any transactions with its parent undertaking and wholly owned subsidiary undertakings. No transactions have been undertaken with key management personnel during the period. At 31 March 2021 NIAB EMR had a loan of £1,500,000 from National Institute of Agricultural Botany Trust, a related party of NIAB. This loan is secured by a first fixed and floating charge on the assets of NIAB EMR and, while there is no fixed repayment timetable, it is repayable within 10 years. Interest is charged at 2% above the Bank of England base rate, which is considered to be a market value. Interest payable in the year on this loan amounted to £NIL (2021: £31k). On 1 April 2021 the majority of the business, assets and liabilities of the charity were merged into NIAB. The loan was transferred to NIAB in accordance with the merger agreement between the two charities. ## **20. Immediate and ultimate parent undertaking** The immediate and ultimate parent undertaking of this company is NIAB which is incorporated in England and is a registered charity. The consolidated accounts of NIAB are available from its registered office at 93 Lawrence Weaver Road, Cambridge, CB3 0LE. Page 27