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2024-03-31-accounts

The Freshwater Biological Association

(A company limited by guarantee)

Annual Report and Audited Financial Statements

31 March 2024

Company registration number: 00263162 Charity registration number: 214440

The Freshwater Biological Association

Contents

Reference and Administrative Details 1
Trustees' report 2
Independent auditors' report (Co Act) 7
Statement of financial activities 10
Balance sheet 11
Cash flow statement 12
Notes to the financial statements 13

The Freshwater Biological Association Reference and Administrative Details

Charity name The Freshwater Biological Association Charity registration number 214440 Company registration number 00263162 Principal office Species Recovery Centre Far Sawrey Ambleside CUMBRIA LA22 0LP Registered office Species Recovery Centre Far Sawrey Ambleside CUMBRIA LA22 0LP Auditor Couch Bright King & Co 2 Tolherst Court Turkey Mill Business Park Ashford Road Maidstone KENT ME14 5SF Accountant Dodd & Co Limited FIFTEEN Rosehill Montgomery Way CARLISLE CA1 2RW

Page 1

The Freshwater Biological Association

Trustees' Report for the Year Ended 31 March 2024

The members of the Board of the Freshwater Biological Association (the Association), acting as Directors of the Association submit their Annual Report and audited Accounts for the year ended 31st March 2024.

The financial statements have been prepared in accordance with the current Financial Reporting Standards in use and The Statement of Recommended Practice for Charities (the SORP). The Accounting Standards Board recognises the SORP as being in line with its Code of Practice and the Freshwater Biological Association agrees to follow these principles.

Trustees

The following were members of the Board during the year, appointed in accordance with the Articles of Association.

President Vacant

Chairman of Council Chris Dessent

Honorary Treasurer

Vacant

Mr R.A.W Middleton - Resigned 21 November 2023

Representative Members

Royal Society Prof. K J Beven FRS

Elected Members

Prof G Woodward - Resigned 27 March 2024

Dr E Dollar - Resigned 21 November 2023

Prof Dr N Bonada - Resigned 18 January 2024

Dr M Jackson – Appointed October 2021 Mr C Dessent – Appointed October 2022

Ms P Nolan – Appointed October 2022

Prof P Wood – Appointed March 2023

Directors

The majority of the members of the Board of Directors are nominated by either the Board or the general membership are proposed for election at the AGM. These appointments are for four years but can be reappointed to serve a consecutive term after which they must cease to be a Director for at least 12 months before they are eligible for reappointment. A further Director is nominated by The Royal Society. A review of Directors’ skills is periodically undertaken and this is used to inform the nomination process for prospective Directors.

At the forthcoming Annual General Meeting to be held on Tuesday 22nd October, 2024, Chris Dessent will take over as Chair of the Board of Directors following the resignation of Evan Dollar. Ron Middleton left the Board position of Treasurer at last year’s AGM. The position of Treasurer remains vacant.

Page 2

The Freshwater Biological Association

Trustees' Report for the Year Ended 31 March 2024

Status

The Association is a Company Limited by Guarantee (registered number 263162) and a registered Charity (registered number 214440). The Board of Directors has no interests in the Association as defined by the Companies Act 2006 and receive no remuneration for their services to the Association. The Association’s Directors do receive reimbursement of travel and subsistence costs necessarily incurred in the performance of their duties. The liability of the Members is laid out in clause 9 of the Articles of Association and limits the liability of the members to £10 each.

The Directors of the Association meet twice yearly for a formal Board Meeting and again midterm to concentrate on a particular aspect of the Charities work to discuss and review the strategic direction of the Association; the operational activities of the Association are fully delegated to the Executive Director. A sub-committee of the Board, the Finance Committee, has delegated strategic responsibilities and meets on a regular basis to receive reports on activities from Simon Johnson the Executive Director, and Lesley Hadwin the Business Manager. The terms of reference for the Finance Committee are reviewed periodically by the Board of Directors. The delegation of authority to the Executive Director is also reviewed by the Board of Directors.

Objectives of the Charity

The objects of the Association, as defined by its Memorandum, are to promote the understanding and the investigation of the biology (in the widest interpretation of the word) of the animals and plants and other organisms found in fresh (including brackish) waters, and to promote the sound and sustainable management of freshwater ecosystems and resources. The current strategic objectives are:

Review of Activities

The Freshwater Pearl Mussel ARK project continues to be an exemplar of species recovery and together with the LIFE4RiverKent partnership maintains the thriving continuation of our species recovery site. A lot of work has gone into developing the foundations for a Heritage Lottery Fund bid which would secure the site down at Ferry Landing and move towards a 21st Century facility which befits the work that has been done there over the years.

The Big Windermere surveys have attracted a lot of take up from our local volunteers and a great deal of interest, especially by the media for the data it has provided. Interest in these project results has raised the profile of the FBA as an independent research and data provider.

Priority Habitats took off well with a new member of staff taking over. The challenge of engaging with new hubs which was set by the funders was met. However the uncertainty over continued project funding meant that Josie left and the project has stalled for the moment.

The Lakefly citizen science project development also stalled with the loss of the member of staff. However, these projects now have new leadership and will evolve over the 2024/2025 year.

Riverfly continues to go from strength to strength and with a new team engaging with hubs and volunteers and the development of a new cartographer database aims to achieve the objectives set by the Esme Fairburn foundation which currently fund the development work.

Financial Review

During the current year significant progress has been made in achieving further developments of strategic partnerships with other likeminded businesses who can assist the FBA meet its charitable objectives whilst maintaining financial stability.

Page 3

The Freshwater Biological Association

Trustees' Report for the Year Ended 31 March 2024

There was an overall operating surplus before investment gains/losses of £41,857 compared with a surplus of £47,949 for the previous year. However, an unrealised gain in investments results in an overall surplus of £130,935 compared to a surplus of £24,625 in the prior year. The performance in 2023/2024 reflected an increase in costs for the running of Mitchell Whyke Bay arising out of the sale of the Pearsall Building to Mikhail Holdings who refused to share any of the costs of running the Biomass boiler. Results were also reflective of a drop in investment property income from £196,575 to £154,756 which was largely a result of a drop in demand and occupancy rates as was seen throughout the Lakes. The in-year surplus also includes the release of the provision of the USS pension valuation net income of £90,142 (2022 - £6,267 cost). Total income for 2024 was £1,000,493 (2023 - £955,081) and expenditure £958,636 (2023 - £907,132).

Significant additional monies were generated under scientific, research & activity, direct funding and grants. This latter category comprised additional work carried out by the charity in connection with the surveys performed on Lake Windermere itself and its issues with pollution.

Significant long-term investment assets are held by the Association which are not readily available as free reserves. Investment assets of £2,980,979 (2023: £2,903,197) are held by the Association to generate both a short-term annual return through rental income, dividends and interest and a longer-term capital appreciation. The annual investment return of between £180,000 and £240,000 (see note 5 to the accounts) provides crucial unrestricted cash contributions towards the Association’s core costs, allowing it to focus more of the funding received directly to specific project use in line with its objectives. Total investments are represented by £1,567,866 investments properties (2023: £1,561,620) and quoted share investments of £1,413,113 (2023: £1,341,577), which includes £6,162 held as cash not yet invested in specific share schemes (see note 12 of the accounts). The Trustees deemed it appropriate to designate £2,980,979 of funds in proportion to the investments held to ring-fence those funds held for the reasons stated above.

Financial Reserves Policy

The purpose of the Association’s reserves is to provide sufficient protection against changing financial circumstances and to maintain its long-term viability in order to promote its principal charitable objectives. The level of reserves, as reflected in the Unrestricted General Fund Account of £180,417 (2023 - £127,264), is represented by tangible assets, net current assets and a liquid investment asset reserve. The remaining unrestricted designated funds of £14,344 (2023: £14,344) are made up entirely of Cash at Bank and in Hand. These reserves are considered sufficient for the Association to meet its short to medium term expenditure obligations.

Investment Policy

The Association’s investments are detailed in Note 12 to the Financial Statements. The Directors approved an Investment Policy in December 2005, which provides the framework for the complete investment portfolio of the Association. This was updated during the 2023/2024 year to remove any association with fossil fuels. The policy states that the portfolio should be structured to provide a balanced return between income and capital growth, whilst being sufficiently diversified to spread risk. The Directors ensure that any investments held reflect the ethical considerations of the Association and that no investment shall be held that is contrary to its objectives.

Plans for Future Periods

It remains a continuing project to update and refine the original FBA growth strategy, which is led by Simon Johnson and his senior management team in conjunction with the Board of Directors. Reference has been made to the significant progress already achieved in forging strategic partnerships with other likeminded businesses and this is still a major focus for the team. The objective of maintaining a small profit has been achieved and this continuing trend of achieving profitability remains the financial objective going forwards.

Capital investment in the holiday lets is planned for 2024/2025 as access to the biomass system currently held in the Pearsall Building is being withdrawn by the new owners, Mikhail holdings.

Fund Raising Standards

During the year, FBA engaged in the services of a commercial fundraising company, who was selected following a recruitment process which identified Two Green Magpies (TGM) approach to be in tune with the FBA’s requirements.

Page 4

The Freshwater Biological Association

Trustees' Report for the Year Ended 31 March 2024

There were terms and conditions with Two Green Magpies which we believe are within regulatory requirements and therefore no failures to report were identified.

There were regular updates to a fundraising spreadsheet which shows the activities of TGM and the grants they have applied for, together with the responses and feedback received. FBA have not been made aware of any complaints received.

All activity by TGM was conducted in writing and copies of their submissions were provided to the FBA and reviewed by our Treasurer for quality and accuracy.

Two Green Magpies services were terminated in August 2023.

Risk Management

The Directors reviewed the risks to which the Association is exposed. Changes were updated in the Association’s Corporate Risk Register. This document, approved by the Board of Directors, is reviewed annually by the Board of Directors as part of its governance arrangements.

Public Benefit Test

Under the terms of The Charities Act 2011, the Directors have a statutory duty to report on the Association’s compliance with the Public Benefit Test. The Directors consider that the aims and objectives of the Association are able to deliver a public benefit and have given due regard to that fact.

The trustees (who are also directors of The Freshwater Biological Association for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and the Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Statement of Trustees’ Responsibilities

Company law requires the trustees to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

•select suitable accounting policies and apply them consistently;

•observe the methods and principles in the Charities SORP;

•make judgements and estimates that are reasonable and prudent; and

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue its activities.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In accordance with company law, as the Trustees of the Association, we confirm that:

•So far as we are aware, there is no relevant audit information of which the Association’s auditors are unaware ;and

•We have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the Association’s auditors are aware of that information.

The Trustees are responsible for the maintenance and integrity of the corporate and 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.

Page 5

The Freshwater Biological Association

Trustees' Report for the Year Ended 31 March 2024

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the Board on 22 October 2024 and signed on its behalf by:

.........................................

C S Dessent Trustee

Page 6

Independent Auditors' Report to the Members of

The Freshwater Biological Association

Opinion

We have audited the financial statements of The Freshwater Biological Association for the year ended 31 March 2024 which comprise the primary statements such as the Statement of Financial Activities including Income and Expenditure Account and Statement of Total Recognised Gains and Losses, the Balance Sheet, Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)'.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees 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 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.

Page 7

Independent Auditors' Report to the Members of

The Freshwater Biological Association

......... 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 trusteesʼ report (incorporating the directorsʼ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trusteesʼ report has 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 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 the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 5, 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 controls as they 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 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Page 8

Independent Auditors' Report to the Members of

The Freshwater Biological Association

......... continued

We have;

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

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

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 auditor's 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.

......................................... 2 Tolherst Court Ms Tarwa Mohammed BA FCA (Senior Statutory Turkey Mill Business Park Auditor) Ashford Road For and on behalf of Couch Bright King & Co, Chartered Maidstone Accountants and Statutory Auditors KENT ME14 5SF

Date:................................

Couch Bright King & Co is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 9

The Freshwater Biological Association

Statement of Financial Activities (including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) for the Year Ended 31 March 2024

Note
Income
Donations and legacies
3
Other trading activities
4
Investments
5
Charitable activities
6
Total income
Expenditure
Raising funds
Charitable activities
Total expenditure
Net gains/(losses) on investments
Net income/expenditure
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Designated
Funds
Total Funds
2024
Total Funds
2023
£
£
£
£
11,429
-
11,429
10,616
1,788
-
1,788
18,632
192,257
-
192,257
234,908
795,019
-
795,019
690,925
1,000,493
- 1,000,493 955,081
109,584
-
109,584
135,464
849,052
-
849,052
771,668
958,636
-
958,636
907,132
89,078
-
89,078
(23,324)
130,935
-
130,935
24,625
(77,782)
77,782
-
-
53,153
77,782
130,935
24,625
127,264
3,207,541
3,334,805
3,310,180
180,417
3,285,323
3,465,740
3,334,805

All of the Charity's activities derive from continuing operations during the above periods.

All income and expenditure in the prior year related to unrestricted funds.

The notes on pages 13 to 27 form an integral part of these financial statements. Page 10

The Freshwater Biological Association

Company registration number: 00263162

Balance Sheet as at 31 March 2024

2024 2024 2023 2023
Note £ £ £ £
Fixed assets
Tangible assets 11 228,597 242,703
Investments 12 2,980,979 2,903,197
3,209,576 3,145,900
Current assets
Debtors 13 148,367 207,511
Cash at bank and in hand 207,667 282,374
356,034 489,885
Creditors: Amounts falling due within
one year		 14 (99,870) (210,838)
Net current assets 256,164 279,047
Total assets less current liabilities 3,465,740 3,424,947
Provisions for liabilities - (90,142)
Net assets 3,465,740 3,334,805
The funds of the charity:
Designated funds 3,285,323 3,207,541
Unrestricted funds
Unrestricted income funds 180,417 127,264
Total charity funds 3,465,740 3,334,805

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board on 22 October 2024 and signed on its behalf by:

.........................................

C S Dessent Trustee

The notes on pages 13 to 27 form an integral part of these financial statements.

Page 11

The Freshwater Biological Association

Cash Flow Statement for the Year Ended 31 March 2024

2024 2023
£ £
Net cash provided by (used by) operating activities
Net income for the period 130,935 24,625
Depreciation charges 16,898 16,117
(Gains)/losses on investments (75,168) 29,001
Dividends, interest and rents from investments (37,501) (38,333)
Decrease/(increase) in debtors 59,144 (66,569)
(Decrease)/increase in creditors (110,968) 68,258
(Decrease)/increase in provisions (90,142) 6,267
(106,802) 39,366
Net cash provided by (used in) investing activities
Dividends, interest and rents from investments 37,501 38,333
Purchase of property, plant and equipment (2,792) (23,822)
Proceeds from sale of investments 430,823 473,893
Purchase of investments (433,437) (468,173)
32,095 20,231
(Decrease)/increase in cash (74,707) 59,597

The notes on pages 13 to 27 form an integral part of these financial statements.

Page 12

The Freshwater Biological Association

Notes to the Financial Statements for the Year Ended 31 March 2024

1 Status

The Association is a Company incorporated in England within the UK Limited by Guarantee and not having a Share Capital. The liability of the Members who constitute the Association is limited to £10 per Member. An elected Board of Directors who constitute honorary directors of the Association for Companies Act purposes manages the affairs of the Association. Details of the Board Members are given in the Directors' Report. The address of the registered office is Species Recovery Centre, Far Sawrey, Ambleside, Cumbria, LA22 OLP.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

The charitable company 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 notes.

The charitable company's functional and presentation currency is sterling rounded to the nearest pound.

Going concern

These financial statements have been prepared on a going concern basis, as the trustees believe that no material uncertainties exist.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Fund accounting policy

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside at the discretion of the trustees for specific purposes.

Further details of each fund are disclosed in note 19.

Page 13

The Freshwater Biological Association

Notes to the Financial Statements for the Year Ended 31 March 2024

......... continued

Income and endowments

Donations are recognised when the Charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the Charity before the Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Charity and it is probable that these conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the grant of probate when the administor/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measured with a degree of reasonable accuracy and the title to the asset having been transferred to the Charity.

Income from Government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Investment income is recognised on a receivable basis.

Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract.

Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Costs of generating funds are the costs of trading for fundraising purposes.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fixed assets

Individual fixed assets costing £1,000 or more are initially recorded at cost.

Page 14

The Freshwater Biological Association

Notes to the Financial Statements for the Year Ended 31 March 2024

......... continued

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Freehold land and buildings 50 years straight line basis Leasehold improvements Over the length of the lease Scientific equipment 5-10 years straight line basis Computer & other equipment 4 years straight line basis

Depreciation is charged on the buildings element only, which represents approximately 60% of the total value of this class of tangible assets.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measure at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Association does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the Association is that of volatility in equity markets and investments markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired after the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value, realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Trade Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Liabilities

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 15

The Freshwater Biological Association

Notes to the Financial Statements for the Year Ended 31 March 2024

......... continued

Operating leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.

Pensions

The Association participates in the Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The Association is therefore exposed to actuarial risks associated with the other institutions' employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS102 Employee Benefits, the Association therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme and the deficit recovery contributions payable under the scheme's Recovery Plan.

Where a scheme valuation determines that the scheme is in deficit on a technical provisions basis (as was the case following the 2020 valuation), the trustee of the scheme must agree a Recovery Plan that determines how each employer within the scheme will fund an overall deficit. The Association recognises a liability for the contributions payable that arise from such an agreement (to extent that they relate to a deficit) with related expenses being recognised through the income statement. Further disclosures relating to the deficit recovery liability can be found in Note 17.

The Trustees are satisfied that the Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the recovery plan in existence at the date of approving these financial statements.

At 31 March 2023, the Association's balance sheet included a liability of £90,142 for future contributions payable under the deficit recovery agreement which was concluded on 30 September 2021, following the 2020 valuation when the scheme was in deficit. No deficit recovery plan was required from the 2023 valuation, because the scheme was in surplus. Changes to contribution rates were implemented from 1 January 2024 and from that date the Association was no longer required to make deficit recovery contributions. The remaining liability of £90,142 was released to the income and expenditure account. Further disclosures relating to the deficit recovery liability can be found in Note 17.

3 Donations and legacies

Unrestricted Designated Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Donations and legacies
Membership donations 11,429 - 11,429 10,616

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4 Other trading activities

Unrestricted Designated Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Miscellaneous income 1,788 - 1,788 18,632

5 Investments

Unrestricted Designated Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Windermere (inc. annexe) 154,756 - 154,756 196,575
Investment income 37,501 - 37,501 38,333
192,257 - 192,257 234,908

6 Charitable activities

Unrestricted Designated Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Membership services 10,310 - 10,310 13,126
Scientific and special publications 32,846 - 32,846 27,846
Research contracts - - - 52,733
Scientific research & activity, direct funding
and grants		 673,217 - 673,217 558,396
Training courses and meetings 64,000 - 64,000 38,824
Miscellaneous income 14,646 - 14,646 -
795,019 - 795,019 690,925

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Notes to the Financial Statements for the Year Ended 31 March 2024

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7 Expenditure

Land &
buildings		 Charitable
activities		 Total
2024		 Total
2023
£ £ £ £
Direct costs
Administration of investments - 11,296 11,296 11,397
Membership services - 8,272 8,272 14,746
Scientific and special publications - 3,692 3,692 10,043
Scientific research activity, direct funding and
grants		 - 491,526 491,526 391,454
Training courses and meetings - 30,932 30,932 19,351
Windermere 109,584 - 109,584 124,067
Bad debts written off - 3,459 3,459 -
109,584 549,177 658,761 571,058
Support costs
Employment costs - 120,508 120,508 187,543
Computer software and maintenance costs - 165,075 165,075 119,225
Cost of trustee meetings - 2,805 2,805 3,696
Accountancy fees - 2,750 2,750 2,200
The audit of the charity's annual accounts - 7,000 7,000 7,000
Other professional fees - 1,737 1,737 16,410
- 299,875 299,875 336,074
109,584 849,052 958,636 907,132

8 Governance costs

Cost of trustee meetings
Accountancy fees
Auditors remuneration
Investment management fees
Other professional fees		 2024
2023
£
£
2,805
3,696
2,750
2,200
7,000
7,000
11,296
11,397
1,737
17,993
25,588
42,286

9 Trustees' remuneration and expenses

No members of the Board received any remuneration during the year (2023 - none).

Travel costs and board expenses amounting to £533 (2023: £2,625) were paid for or reimbursed to 4 (2023: 2) members of the Board.

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Notes to the Financial Statements for the Year Ended 31 March 2024

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10 Employees' remuneration

The monthly average number of persons (including senior management) employed by the charity during the year was as follows:

Charitable activities
The aggregate payroll costs of these persons were as follows:
Salaries
Employer's National Insurance contributions
Employer's pension contributions
Employer's pension provision		 2024
No.
13
2023
£
427,823
37,917
31,790
(90,142)
407,388		 2023
No.
10
2022
£
282,227
24,139
28,678
6,267
341,311

One employee received emoluments of between £90,001 and £100,000 including pension contributions during the year (2023 - 1).

The key management personnel comprise the Trustees and the Executive Director. The total employee benefits of the key management personnel of the Charity were £93,755 (2023 - £84,503).

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The Freshwater Biological Association

Notes to the Financial Statements for the Year Ended 31 March 2024

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11 Tangible fixed assets

Computer &
Freehold land Leasehold Scientific other
and buildings improvements equipment equipment Total
£ £ £ £ £
Cost
As at 1 April 2023 215,432 43,963 24,811 52,145 336,351
Additions - - 2,792 - 2,792
As at 31 March
2024 215,432 43,963 27,603 52,145 339,143
Depreciation
As at 1 April 2023 21,802 14,934 4,767 52,145 93,648
Charge for the
year		 2,585 8,792 5,521 - 16,898
As at 31 March
2024 24,387 23,726 10,288 52,145 110,546
Net book value
As at 31 March
2024 191,045 20,237 17,315 - 228,597
As at 31 March
2023 193,630 29,029 20,044 - 242,703

The historical cost of freehold land and buildings is £151,980 (2023 - £151,980).

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The Freshwater Biological Association

Notes to the Financial Statements for the Year Ended 31 March 2024

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12 Investments held as fixed assets

Investment Quoted
properties investments Total
£ £ £
Market value
As at 1 April 2023 1,561,620 1,341,577 2,903,197
Revaluation 6,246 68,922 75,168
Additions - 433,437 433,437
Disposals - (430,823) (430,823)
As at 31 March 2024 1,567,866 1,413,113 2,980,979
Net book value
As at 31 March 2024 1,567,866 1,413,113 2,980,979
As at 31 March 2023 1,561,620 1,341,577 2,903,197

Investment property

The Annexe development completed in May 2018 and was valued at a market value of £1,155,000 in February 2019 by Carigiet Cowen, an external Independent Chartered Surveyors. The Board of Directors have subsequently made the 2024 valuation on an open market basis by reference to market evidence of transaction prices for similar properties and generally available capital value indices.

The historical cost of the Annexe is £1,210,963.

Quoted investments

Quoted investments are valued in accordance with their UK Stock Exchange listings at the balance sheet dates.

Investment Management fees of £11,296 were charged during the year (2023 - £11,397).

Represented by:
Investments held on UK Stock Exchange
Cash held as part of Portfolio		 £
1,406,951
6,162
1,413,113

13 Debtors

2024 2023
£ £
Other debtors 110,226 185,564
Prepayments and accrued income 38,141 21,947
148,367 207,511

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14 Creditors: Amounts falling due within one year

2024 2023
£ £
Taxation and social security 13,128 35,679
Other creditors 37,944 71,694
Accruals and deferred income 48,798 103,465
99,870 210,838

15 Operating lease commitments

As at 31 March 2024 the charity had total future minimum lease payments under non-cancellable operating leases as follows:

Other Other
2024 2023
£ £
Within two and five years 32,296 -

During the year, lease payments totalling £7,807 were recognised in the SOFA.

16 Other financial commitments

There are annual commitments of £12,000 for a five year lease at the Hedley Building, Newby Bridge and £10,643 for a six year licence to occupy various rooms at the River laboratory. These were entered into shortly after the year ended 31st March 2021.

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Notes to the Financial Statements for the Year Ended 31 March 2024

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17 Pension schemes

The Association participates in the Universities Superannuation Scheme (USS), a defined benefit scheme which is externally funded and contracted out of the State Second Pension (S2P). There are current members of the USS pension scheme and in addition an alternative defined contribution stakeholder pension scheme is offered with Scottish Widows to those staff not eligible for the USS scheme.

The total credit released to the income and expenditure account is £90,142 (2023 - Cost of £6,267) as shown in note 10.

A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. As set out in Note 1, no deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. The institution was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the profit and loss account.

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2023 (the valuation date), which was carried out using the projected unit method.

Since the institution cannot identify its share of the USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme's technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles. (uss.co.uk/about-us/valuation-and-funding/statement-of-funding-principles).

Term dependent rates in line with the difference between the Pension increases (CPI) Fixed Interest and Index Linked yield curves, less: 1.0% p.a. to 2030, reducing linearly by 0.1% p.a. from 2030 Pension increases (subject to a floor of 0%) Benefits with no cap: CPI assumption plus 3bps Benefits subject to a "soft cap" of 5% (providing inflationary increases up to 5% and half of any excess inflation over 5% up to a maximum of 10%): CPI assumption minus 3bps

Pension increases (CPI)

Discount Rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement: 2.5% p.a. Post retirement: 0.9% p.a.

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the Scheme's experience as carried out as part of the 2023 actuarial valuation. The mortality assumptions used in the these figures are as follows:

2023 Valuation

101% of S2PMA 'light' for males and 95% of S3PFA for Mortality base table females

CMI 2021 with a smoothing parameter of 7.5, an initial Future improvements to mortality addition of 0.4% p.a. and a long term improvement rate of 1.8% pa for males and 1.6% pa for females.

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The current life expectancies on retirement at age 65 are: 2024 2023
Males currently aged 65 (years) 23.7 24.0
Females currently aged 65 (years) 25.6 25.6
Males currently aged 45 (years) 25.4 26.0
Females currently aged 45 (years) 27.2 27.4

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Notes to the Financial Statements for the Year Ended 31 March 2024

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18 Related parties

Controlling entity

The charity is controlled by the trustees who are all directors of the company.

Related party transactions

Chris Dessent (Board member) is CEO of Creative Concern who have been appointed to carry out work for the Freshwater Biological Association, during the year ended 31 March 2024 the work done totalled £8,254 (2023 - £29,393).

19 Analysis of funds

Other
recognised
At 1 April Incoming Resources gains/losse At 31 March
2023 resources expended Transfers s 2024
£ £ £ £ £ £
General Funds
General funds 127,264 1,000,493 (958,636) (77,782) 89,078 180,417
Designated Funds
Fritsch Fund 9,344 - - - - 9,344
R I Webb Fund 5,000 - - - - 5,000
Retention reserve 290,000 - - - - 290,000
Investments 2,903,197 - - 77,782 - 2,980,979
3,207,541 - - 77,782 - 3,285,323
3,334,805 1,000,493 (958,636) - 89,078 3,465,740

Fritsch Fund - fund established to support the scientific collection of algal illustrations together with taxonomic references.

R I Webb - this fund was established in 2018 following a bequest of £5,000 received from Mr R I Webb, a Life member of 42 years. This fund is to be used for research projects and for the provision of equipment and support for training.

Retention reserve - this designated fund is to ring-fence funds held in case the charity was to wind up, and covers redundancy costs, legal costs, exit charges from existing contracts and 6 months premises expenditure that would be incurred in the expected wind-up timeframe prior to assets being liquidated.

Investments - This designated fund represents investment assets of £2,980,979 (2023: £2,903,197) which are held by the Association to generate both a short-term annual return through rental income, dividends and interest and a longer-term capital appreciation. The annual investment return of between £180,000 and £240,000 (see note 5 to the accounts) provides crucial unrestricted cash contributions towards the Association’s core costs, allowing it to focus more of the funding received directly to specific project use in line with its objectives.

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Notes to the Financial Statements for the Year Ended 31 March 2024

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Prior period

At 1 April
2022		 Incoming
resources		 Resources
expended		 Transfers Other
recognised
gains/losses		 At 31 March
2023
£ £ £ £ £ £
Designated
Funds
Fritsch Fund 9,344 - - - - 9,344
R I Webb
Fund		 5,000 - - - - 5,000
Retention
reserve		 - 290,000 290,000
Investments - 2,903,197 2,903,197
14,344 - - 3,193,197 - 3,207,541
General -
Funds
Unrestricted
income fund		 3,295,836 955,081 (907,132) (3,193,197) (23,324) 127,264
3,310,180 955,081 (907,132) - (23,324) 3,334,805

20 Transfers

The transfer of £77,782 from unrestricted funds to designated funds represents the movement in assets held as investments during the year.

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21 Net assets by fund

Unrestricted Total Funds Total Funds
Funds 2024 2023
£ £ £
Tangible assets 228,597 228,597 242,703
Investments 2,980,979 2,980,979 2,903,197
Current assets 356,034 356,034 489,885
Creditors: Amounts falling due within one year (99,870) (99,870) (210,838)
Provisions for liabilities - - (90,142)
Net assets 3,465,740 3,465,740 3,334,805
Prior period
Unrestricted Total Funds Total Funds
Funds 2023 2022
£ £ £
Tangible assets 242,703 242,703 234,998
Investments 2,903,197 2,903,197 2,937,918
Current assets 489,885 489,885 363,719
Creditors: Amounts falling due within one year (210,838) (210,838) (142,580)
Provisions for liabilities (90,142) (90,142) (83,875)
Net assets 3,334,805 3,334,805 3,310,180

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