Registered number: 09604451 Charity number: 1170105
QI PARTNERS
(A Company Limited by Guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
QI PARTNERS
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 8 |
| Independent Auditors' Report on the Financial Statements | 9 - 12 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 |
| Statement of Cash Flows | 15 |
| Notes to the Financial Statements | 16 - 27 |
(A Company Limited by Guarantee)
QI PARTNERS
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021
| Trustees | Sam Higginson |
|---|---|
| Professor David Richardson | |
| Dr Celia Ann Caulcott (appointed 19 August 2020) | |
| Dr Karen Jane Lewis (appointed 19 August 2020) | |
| Company registered number 09604451 Charity registered number 1170105 Registered office Quadram Institute Norwich Research Park Colney Lane Norwich NR4 7UQ Company secretary David Foreman Independent auditors Larking Gowen LLP Chartered Accountants Statutory Auditors King Street House 15 Upper King Street Norwich NR3 1RB Bankers Barclays Bank Plc Norwich NR1 3QH |
Page 1
QI PARTNERS
(A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The Trustees present their Annual Report together with the audited financial statements of QI Partners for the year 1 April 2020 to 31 March 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
About QI Partners
QI Partners is a charitable company which was established in 2015 by four partners – UK Research and Innovation - Biotechnology and Biological Sciences Research Council (BBSRC), the Norfolk and Norwich University Hospitals NHS Foundation Trust (NNUH), Quadram Institute Bioscience (QIB) and the University of East Anglia (UEA).
The company was created to support the establishment of the Quadram Institute – a new multi-million pound food and health research institute completed in autumn 2018. The Quadram Institute is at the forefront of the interface between food science, gut biology and health, developing solutions to worldwide challenges in foodrelated disease and human health.
About the Quadram Institute
The four partners provided funding for the Quadram Institute building that has the capacity for 300 research staff and a further 100 staff supporting one of Europe’s largest endoscopy facilities. It is engaged in fundamental and translational food and health research, alongside clinical studies, endoscopy and industry, working together to be a leading international hub for food and health research. It combines scientific excellence and clinical expertise, delivering patient care and accelerating innovation.
Objectives and activities
Objectives
The objectives of the Charity are to facilitate:
-
The advancement of education in food and health sciences for the public benefit by the provision of facilities for the conduct of charitable research into food and health sciences including the publication of the useful results of that research; and
-
The advancement of health for the public benefit by the provision of facilities for the investigation, diagnosis and treatment of diseases and disorders and for research into diseases and disorders including the publication of the useful results of that research.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Page 2
QI PARTNERS
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Achievements and performance
Performance
As for most, this year has been extraordinary for QI Partners, with tenant and building activities having been impacted by Covid-19 measures. From late March 2020 until June 2020, the Quadram Institute was closed except for essential work and activity supporting Covid-19 related testing and research. Measures were quickly put in place to provide a safe environment in which tenant activities were able to resume.
During this second full year of operation of the Quadram Institute building, the Charity has:
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Held meetings of its Executive Group;
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Monitored the activities of the tenants of the building, through its QI Public Benefit Committee;
-
Collated KPIs which have been reported to both the QI Executive Group and the QI Partners' Board;
-
• Installed additional energy metering.
Plans for future periods
The principal objectives for 2021/22 are to:
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Finalise Stakeholder Strategy to identify key relationships and activities required to deliver objectives;
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• Re-tender the Facilities Management contract;
-
Review security and catering arrangements;
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Agree the communications/engagement plan, and set out a strategic objective to develop collaboration between researchers and clinicians;
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Schedule seminars/outreach activities to highlight microbiome research to clinicians;
-
Continue the recruitment of new Group Leaders and cross-QI appointments to support QI objectives for collaboration and innovation;
-
Develop an innovation management framework across the QI Partners to develop, identify and manage new QI innovations. The operational framework will underpin the implementation of the new QI Innovation Strategy which is expected before FYE 21/22;
-
Review the benefits realisation plan and, where necessary, update this to ensure that the data captured meaningfully reflects the ongoing development and long-term delivery of QI’s strategic goals.
Financial review
Financial review
The second full year of the Quadram Institute Building was completed, with service charges rendered to all tenants totalling £2.9m (2020: £2.6m). Service charges represent a re-charge of all operational costs. After allowing for donations received and deducting depreciation and other non-operational costs there was a deficit for the year of £0.3m (2020: deficit of £0.5m). The deficit is due to depreciation on non-tenanted areas of the QI building and loan interest costs, less donations received.
The operational costs were moderately impacted by the Covid-19 pandemic with additional catering subsidy and facilities management costs totalling £0.1m (2020: £nil). Capital expenditure was £16k (2020: £nil).
Total reserves at 31 March 2021 was £23.9m (2020: £24.1m), all relating to restricted funds.
Page 3
QI PARTNERS
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Reserves policy
The Charity‘s restricted capital reserve represents the capital grant funding received to support the capital costs of the new building. Restricted capital reserves have reduced in the year in line with the depreciation of the retained parts of the building, less donations received.
The Charity regularly reviews reserve levels alongside cost and income projections to ensure that it has sufficient working capital to support the operation of the QI building.
KPIs
A benefits realisation plan has been developed which incorporates key performance indicators by which the Quadram Institute can monitor its performance. The KPIs include the number of engagement events/activities, the number of formal knowledge exchange activities and metrics on the volume of tenant activity such as research projects awarded, clinical research studies undertaken and number of endoscopies performed.
Page 4
QI PARTNERS
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Principal risks and uncertainties
The Board of Trustees is responsible for ensuring there are effective and adequate risk management and internal control systems in place to manage the major risks to which the Charity is exposed. The Audit and Risk Committee reviews a full risk report at each meeting. The Board reviews a full risk report annually, including a ‘heat map’ tracking major risks.
The principal risks and uncertainties facing the Charity are considered to be:
Page 5
(A Company Limited by Guarantee)
QI PARTNERS
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Structure, governance and management
Organisation and governance
QI Partners is a company limited by guarantee (registered number 09604451) and was first registered as charity (number 1170105) on 10 November 2016.
Members
The members of QI Partners are:
-
UK Research and Innovation - Biotechnology and Biological Sciences Research Council (“BBSRC”);
-
Quadram Institute Bioscience (“QIB”);
-
The University of East Anglia (“UEA”); and
-
Norfolk and Norwich University Hospitals NHS Foundation Trust (“NNUH”).
The Members are all guarantors of QI Partners, a company limited by guarantee and a registered charity, of an amount not exceeding £10.
Board of Trustees
The Trustees who served during the year and up to the date of signing these financial statements were:
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Dr Tim Brears (QIB nomination) resigned on 9 June 2020
-
Dr Paul Burrows (BBSRC nomination) resigned 29 May 2020
-
Dr Celia Ann Caulcott (Chair - QIB nomination) appointed on 19 August 2020
-
Sam Higginson (NNUH nomination)
-
Dr Karen Lewis (BBSRC nomination) appointed on 19 August 2020
-
Professor David Richardson (UEA nomination)
Recruitment, induction and training of Trustees
New trustees receive appropriate induction training, including meeting with key stakeholders to learn about the Quadram Institute and get more involved with the Charity’s work.
All Trustees receive regular briefings on key issues facing the charity.
Trustee remuneration
None of the Trustees received any remuneration in the year in respect of their role as Trustees.
Key management personnel
There are no employees except the Trustees.
The Trustees delegate management of the day-to-day activities of the charitable company to a QI Executive Group consisting of representatives from the four partners.
Page 6
QI PARTNERS
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Structure, governance and management (continued)
Related parties
Details of related parties are disclosed in note 20 of the financial statements.
Going concern
The Trustees have reviewed whether it is appropriate for the financial statements to be prepared on a going concern basis. Having considered cash flow forecasts for the twelve months immediately after signing these accounts and longer term to March 2026, the Trustees have a reasonable expectation that taking account of the anticipated impact of Covid-19 on its operations and financial resources, the Charity will have adequate resources to continue in operational existence for the foreseeable future.
The Trustees do not feel that the impacts of the Covid-19 pandemic pose a risk to the continuing operations of the Charity. All tenants have been able to operate without significant disruption and therefore are expected to meet their service charge liabilities to the Charity as they become due.
The Trustees have therefore concluded that it remains appropriate to prepare the financial statements on a going concern basis.
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently; observe the methods and principles of the Charities SORP (FRS 102); make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 7
QI PARTNERS
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Public benefit
The Trustees are satisfied they have complied with their duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. Based on this guidance, and as described in this Trustees’ report, the Trustees believe the activities of QI Partners to be charitable in nature.
Insurance Disclosure
QI Partners maintains liability insurance for its Trustees, with an annual aggregate cover limit for all claims against them in that capacity. The Trustees have also been granted a qualifying third party provision under section 233 of Companies Act 2006. Neither the Institute’s indemnity nor insurance provides cover in the event that a trustee is proved to have acted fraudulently or dishonestly.
Independent Auditors
Larking Gowen LLP have been appointed as auditors and a resolution has been passed by the Board concerning their reappointment as auditors.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Dr Celia Ann Caulcott
Date: 6 December 2021
Page 8
QI PARTNERS
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF QI PARTNERS
Opinion
We have audited the financial statements of QI Partners (the 'charity') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 9
QI PARTNERS
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF QI PARTNERS (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
the Trustees' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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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
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
Page 10
(A Company Limited by Guarantee)
QI PARTNERS
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF QI PARTNERS (CONTINUED)
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Due to the field in which the charitable company operates, we identified the areas most likely to have a direct material impact on the financial statements as compliance with UK tax legislation, UK accounting standards, UK charity law and the Companies Act 2006. In addition, we considered the provisions of other laws and regulations which whilst not having a direct impact on the financial statements, are fundamental to the conduct of the company’s operations.
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:
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Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, potential litigation or claims and fraud;
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Reviewing legal and professional fees to confirm matters where the company engaged lawyers during the year;
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Reviewing financial statement disclosures and tax matters, and testing to supporting documentation to assess compliance with applicable laws and regulations;
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Reviewing board minutes and any relevant correspondence with external authorities;
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Challenging assumptions and judgements made by management in their significant accounting estimates, and;
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Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the rationale of any significant transactions outside the normal course of business.
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
Page 11
(A Company Limited by Guarantee)
QI PARTNERS
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF QI PARTNERS (CONTINUED)
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Anders Rasmussen FCA (Senior Statutory Auditor)
for and on behalf of Larking Gowen LLP Chartered Accountants Statutory Auditors King Street House 15 Upper King Street Norwich NR3 1RB
Date:
Page 12
QI PARTNERS
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021
| Note Income from: Donations and legacies 3 Charitable activities 4 Investments 5 Total income Expenditure on: Charitable activities 6 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £000 - 2,868 - 2,868 2,868 2,868 - - - - |
Restricted funds 2021 £000 489 - - 489 772 772 (283) 24,140 (283) 23,857 |
Total funds 2021 £000 489 2,868 - 3,357 3,640 3,640 (283) 24,140 (283) 23,857 |
Total funds 2020 £000 297 2,688 10 2,995 3,501 3,501 (506) 24,646 (506) 24,140 |
|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 16 to 27 form part of these financial statements.
Page 13
QI PARTNERS (A Company Limited by Guarantee) REGISTERED NUMBER: 09604451
BALANCE SHEET AS AT 31 MARCH 2021
| 2021 | 2021 | 2020 | 2020 | ||||
|---|---|---|---|---|---|---|---|
| Note | £000 | £000 | |||||
| Fixed assets | |||||||
| Tangible assets | 10 | 23,973 | 24,632 | ||||
| Current assets | |||||||
| Debtors | 11 | 2,076 | 3,446 | ||||
| Cash at bank and in hand | 1,406 | 1,211 | |||||
| 3,482 | 4,657 | ||||||
| Creditors: amounts falling due within one | |||||||
| year | 12 | (2,348) | (2,358) | ||||
| Net current assets | 1,134 | 2,299 | |||||
| Total assets less current liabilities | 25,107 | 26,931 | |||||
| Creditors: amounts falling due after more | |||||||
| than one year | 13 | (1,250) | (2,791) | ||||
| Total net assets | 23,857 | 24,140 | |||||
| Charity funds | |||||||
| Restricted funds | 23,857 | 24,140 | |||||
| Total funds | 23,857 | 24,140 |
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Dr Celia Ann Caulcott
Date: 6 December 2021
The notes on pages 16 to 27 form part of these financial statements.
Page 14
QI PARTNERS
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021
| Cash flows from operating activities Net cash provided by operating activities Cash flows from investing activities Dividends, interests and rents from investments Adjustment to fixed assets Purchase of tangible fixed assets Net cash (used in)/provided by investing activities Cash flows from financing activities Cash outflows from loan repayments Interest payable Net cash used in financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year |
2021 £000 1,283 - 7 (16) (9) (975) (104) (1,079) 195 1,211 1,406 |
2020 £000 133 10 - - 10 (1,300) (145) (1,445) (1,302) 2,513 1,211 |
|---|---|---|
The notes on pages 16 to 27 form part of these financial statements
Page 15
(A Company Limited by Guarantee)
QI PARTNERS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. General information
QI Partners is a limited liability company limited by guarantee incorporated in England and Wales, registration number 09604451. The members of the company are those named on page 6. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £10 per member of the Company.
The registered office is Quadram Institute, Norwich Research Park, Colney Lane, Norwich, NR4 7UQ.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
QI Partners 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.
The accounts are presented in Sterling (£) which is the functional currency of the Charity and rounded to the nearest £'000.
2.2 Going concern
The Trustees have reviewed whether it is appropriate for the financial statements to be prepared on a going concern basis. Having considered cash flow forecasts for the twelve months immediately after signing these accounts and longer term to March 2026 the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future.
The Trustees have considered the impacts of the Covid-19 pandemic and do not feel that this poses a risk to the continuing operations of the Charity. All tenants have been able to operate without significant disruption and therefore are expected to meet their service charge liabilities to the Charity as they become due.
The Trustees have therefore concluded that it remains appropriate to prepare the financial statements on a going concern basis.
Page 16
(A Company Limited by Guarantee)
QI PARTNERS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
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.
Charitable grant income represents grants received and receivable in the year from outside granting bodies and other miscellaneous income. Capital grants are recognised in the Statement of Financial Activities ("SOFA") when entitlement passes, which is typically on receipt.
Other income represents bank interest received.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Depreciation charges are allocated on the portion of the asset’s use.
Charitable activities and Governance costs are costs incurred on the Company's operations, including support costs and costs relating to the governance of the Company apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 17
QI PARTNERS
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. Accounting policies (continued)
2.6 Tangible fixed assets and depreciation (continued)
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
| Freehold property | - the shorter of 60 years and the remaining life |
|---|---|
| of the sublease | |
| Plant and machinery | - 10 years |
| Fixtures and fittings | - 10 years |
| Soft furnishings | - 5 years |
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.9 Creditors
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
2.10 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 18
QI PARTNERS
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
3. Income from donations and legacies
| Grants and donations Total 2020 |
Restricted funds 2021 £000 489 297 |
Total funds 2021 £000 489 297 |
Total funds 2020 £000 297 |
|---|---|---|---|
4. Income from charitable activities
| Unrestricted funds 2021 £000 Advancement of education in food and health sciences and the advancement of health 2,868 Total 2020 2,688 Investment income Unrestricted funds 2021 £000 Other interest receivable - Total 2020 10 |
Total funds 2021 £000 2,868 2,688 Total funds 2021 £000 - 10 |
Total funds 2020 £000 2,688 |
|---|---|---|
| Total funds 2020 £000 10 |
||
5. Investment income
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
6. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2021 £000 Advancement of education in food and health sciences and the advancement of health 2,868 Total 2020 2,698 |
Restricted funds 2021 £000 772 803 |
Total funds 2021 £000 3,640 3,501 |
Total funds 2020 £000 3,501 |
|---|---|---|---|
7. Analysis of expenditure by activities
| Advancement of education in food and health sciences and the advancement of health Total 2020 |
Activities undertaken directly 2021 £000 3,640 3,501 |
Total funds 2021 £000 3,640 3,501 |
Total funds 2020 £000 3,501 |
|---|---|---|---|
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
7. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Depreciation Audit and accountancy Equipment Loan interest Other Catering subs Telephone, fax & internet Utilities Insurance Rent and rates Intelligent client Facilities maintenance Tenant only costs Security Auditors' remuneration Fees payable to the Charity's auditor for the audit of the Charity's annual accounts Fees payable to the Charity's auditor in respect of: All non-audit services not included above |
Total funds 2021 £000 668 27 26 104 - 130 21 534 50 105 45 1,633 - 297 3,640 2021 £000 4 1 |
Total funds 2020 £000 667 28 19 145 3 61 15 563 59 135 45 1,445 5 311 |
|---|---|---|
| 3,501 | ||
| 2020 £000 4 1 |
8. Auditors' remuneration
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
9. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration, reimbursement of expenses, or other benefits (2020 - £NIL) .
10. Tangible fixed assets
| Cost or valuation At 1 April 2020 Additions Adjustments At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Freehold property £000 23,187 - (7) 23,180 386 386 772 22,408 22,801 |
Plant and machinery £000 - 16 - 16 - 2 2 14 - |
Fixtures and fittings £000 1,421 - - 1,421 142 142 284 1,137 1,279 |
Soft furnishings £000 690 - - 690 138 138 276 414 552 |
Total £000 25,298 16 (7) 25,307 666 668 1,334 23,973 24,632 |
|---|---|---|---|---|---|
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11. Debtors
| Due after more than one year Trade debtors Due within one year Trade debtors Other debtors Prepayments and accrued income |
2021 £000 500 500 1,400 45 131 2,076 |
2020 £000 1,900 1,900 1,306 117 123 3,446 |
|---|---|---|
12. Creditors: Amounts falling due within one year
| Amounts owed to related parties Trade creditors Accruals and deferred income Deferred income Deferred income at 1 April 2020 Resources deferred during the year Amounts released from previous periods |
2021 £000 1,550 510 288 2,348 2021 £000 29 - (29) - |
2020 £000 984 656 718 2,358 2020 £000 624 29 (624) 29 |
|---|---|---|
13. Creditors: Amounts falling due after more than one year
| 2021 | 2020 | |
|---|---|---|
| £000 | £000 | |
| Other loans | 1,250 | 2,791 |
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
14. Statement of funds
Statement of funds - current year
| Balance at 1 April 2020 £000 General funds - Restricted funds 24,140 24,140 Statement of funds - prior year Balance at 1 April 2019 £000 General funds - Restricted funds 24,646 24,646 |
Income £000 Expenditure £000 2,868 (2,868) 489 (772) 3,357 (3,640) Income £000 Expenditure £000 2,698 (2,698) 297 (803) 2,995 (3,501) |
Balance at 31 March 2021 £000 - 23,857 23,857 Balance at 31 March 2020 £000 - 24,140 24,140 |
|---|---|---|
The restricted fund relates to retained elements of the QI Building.
15. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Debtors due after more than one year Current assets Creditors due within one year Creditors due in more than one year Total |
Restricted funds 2021 £000 23,973 500 2,982 (2,348) (1,250) 23,857 |
Total funds 2021 £000 23,973 500 2,982 (2,348) (1,250) 23,857 |
|---|---|---|
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15. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Unrestricted funds 2020 Restricted funds 2020 £000 £000 Tangible fixed assets - 24,632 Debtors due after more than one year - 1,900 Current assets 29 2,728 Creditors due within one year (29) (2,329) Creditors due in more than one year - (2,791) Total - 24,140 16. Reconciliation of net movement in funds to net cash flow from operating activities 2021 £000 Net expenditure for the year (as per Statement of Financial Activities) (283) Adjustments for: Depreciation charges 668 Dividends, interests and rents from investments - Decrease in debtors 1,370 Decrease in creditors (576) Interest payable 104 Net cash provided by operating activities 1,283 17. Analysis of cash and cash equivalents 2021 £000 Cash in hand 1,406 |
Total funds 2020 £000 24,632 1,900 2,757 (2,358) (2,791) 24,140 2020 £000 (506) 667 (10) 2,011 (2,174) 145 133 2020 £000 1,211 |
|---|---|
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18. Analysis of changes in net debt
| Cash at bank and in hand Debt due within 1 year Debt due after 1 year |
At 1 April 2020 £000 1,211 (984) (2,791) (2,564) |
Cash flows £000 195 975 - 1,170 |
Other non- cash changes £000 - (1,541) 1,541 - |
At 31 March 2021 £000 1,406 (1,550) (1,250) (1,394) |
|---|---|---|---|---|
19. Operating lease commitments
At 31 March 2021 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2021 £000 100 399 1,714 2,213 |
2020 £000 100 399 1,814 2,313 |
|---|---|---|
The following lease payments have been recognised as an expense in the Statement of Financial Activities:
| 2021 | 2020 | |
|---|---|---|
| £000 | £000 | |
| Operating lease rentals | 100 | 100 |
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
20. Related party transactions
Quadram Institute Bioscience (QIB)
QIB is a related party by virtue of being a member of the charity. In an earlier financial period, QIB made a loan to the Company. The loan is unsecured, and interest is charged at 3% per annum. During the year, interest of £104,427 was charged (2020: £145,249) and at 31 March 2021 £25,045 (2020: £31,617) of loan interest was due to QIB. The loan balance owed to QIB at the year end was £2,800,000 (2020: £3,775,000). Other purchases from QIB totalling £Nil (2020: £47,733) were made during the year. Service charge income from QIB and its subsidiary QIB Extra Limited of £1,602,453 was received during the year (2020: £1,434,966). A grant of £99,000 was received during the 2020 year in relation to post-completion costs for the QI building, with no such amounts in 2021.
University of East Anglia (UEA)
UEA is a related party by virtue of being a member of the charity. During the year, QI Partners received grants of £488,802 (2020: £99,000) in relation to the QI building. Charges of £470,718 (2020: £416,582) were incurred during the year relating to the provision of security, intelligent client and cafe services. The balance owed to UEA at year end was £48,933 (2020: £33,637) in relation to normal trading.
Norfolk and Norwich University Hospital (NNUH)
NNUH is a related party by virtue of being a member of the charity. During the year, QI partners recognised service charge income of £1,254,885 (2020: £1,196,187) from NNUH. A grant of £99,000 was received during the previous year in relation to post-completion costs for the QI building, with no such amounts in the current year. The balance owed to the charitable company by NNUH at the period end was £1,900,000 (2020: £3,200,000) in relation to lease premiums and service charges invoiced in advance. Purchases of £Nil (2020: £120,200) were made from NNUH by the charitable company.
Anglia Innovation Partnership LLP (AIP)
AIP is a related party as NNUH, UEA, UK Research and Innovation (UKRI) and QIB are all members of both AIP and QI Partners. AIP provides support services to QIP with total purchases in the year being £22,099 (2020: £23,500). At 31 March 2021 £4,412 (2020: £4,550) was owed to AIP by the charitable company.
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