Registered charity number: 268830
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
| CHARITY INFORMATION | |
|---|---|
| Trustees | Hon. S. P. Balcon |
| J A Stephen | |
| Dr N Pyke | |
| Prof. P. A. Racey | |
| S. A. Parfitt | |
| Dr. C. J. Michaels | |
| Dr. N. M. Hammond | |
| Registered charity number | 268830 |
| Registered office | Bowerwood House |
| 15 St Botolphs Road | |
| Sevenoaks | |
| Kent | |
| TN13 3AQ | |
| Accountants | Martin Lunt FCA |
| Creasey Son & Wickenden | |
| Chartered Accountants | |
| Hearts of Oak House | |
| Pembroke Road | |
| Sevenoaks | |
| Kent TN13 1XR | |
| Bankers | National Westminster Bank Plc |
| 67 High Street | |
| Sevenoaks | |
| Kent TN13 1JY | |
| Investment Managers | Rathbones |
| 1 Curzon Street | |
| London | |
| W1J 5FB |
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
| CONTENTS | ||
|---|---|---|
| Page | ||
| Trustees' report | 1 - 6 | |
| Independent examiner's report | 7 | |
| Statement of financial activities | 8 - 10 | |
| Balance sheet | 11 | |
| Notes to the financial statements | 12 - 22 |
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2021
The trustees present their report and the financial statements for the year ended 5 April 2021.
REFERENCE AND ADMINISTRATIVE DETAILS
Charity Number: 268830
Address of Charity Bowerwood House 15 St. Botolph's Road Sevenoaks Kent TN13 3AQ
Independent Examiner Martin Lunt FCA Creasey Son & Wickenden Hearts of Oak House Pembroke Road Sevenoaks Kent TN13 1XR
Bankers National Westminster Bank PLC 67 High Street, Sevenoaks Kent TN13 1JY
The Trustees serving during the year were:
J. A. Stephen (Chairman) Hon. S. P. Balcon Dr. N. Pyke Prof. P. A. Racey Dr. N. M. Hammond S. A. Parfitt Dr. C. J. Michaels
Trust staff:
Dr. P. J. J. Bates Mrs. B. Lanzinger-Bates
Page 1
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Working title
The working title of the Trust is "Harrison Institute, Centre for Systematics and Biodiversity Research", for which the Charity Commission has granted approval.
Governing documents
The Trust was created on 27th April, 1971 by a Deed of Settlement made between J. M. Harrison, J. G. Harrison, and D. L. Harrison. A Scheme augmenting the powers available to the trustees in connection with the administration of the Trust was authorised by the Charity Commission on 30th August, 2000.
Appointment of Trustees
The Scheme requires that the appointment of a Trustee must be made by the Trustees at a special meeting called by the Chairman, or any two Trustees, provided that 21 days' notice of such meeting is given.
Trustee induction and training
Upon appointment, new trustees sign the Register of Trustees and, in accordance with the provisions of the Scheme, are given a copy of the latest Annual Report and Statement of Accounts together with a copy of the governing documents of the Charity. Legal advice on aspects of the Trustees' responsibilities is sought where appropriate and passed on to the Trustees, usually at annual or extraordinary general meetings.
Remuneration policy
The trustees aim to develop and maintain remuneration strategies and policies in line with the objectivies of the Trust in order to retain and motivate staff based on their contribution to the Trust's activities. In setting salary levels, the trustees will have regard to equivalent pay structures in similar research organisations both in the public and private sectors. The trustees review salaries of key management personnel on an annual basis.
Organisation
The daily running of the Trust is undertaken by the Trust staff. Regular contact with, and consultation of, the Trustees is effected through annual and extraordinary general meetings.
Related parties
The Trust is associated with Kent Wildlife Trust, which is also a registered charity. The only association between the two trusts is that there is a collection of mounted birds and fossils belonging to The Harrison Zoological Museum Trust displayed at the Interpretative Centre at the Sevenoaks Wildlife Reserve. These specimens are subject to a long-term loan agreement made originally between The Harrison Zoological Museum Trust and the Jeffery Harrison Memorial Trust. The two trusts operate separately and there are no financial dealings between them.
Risk Management
The Trustees examine the major risks that the Trust faces each financial year. The Trust has systems in place to monitor and control these risks to mitigate any impact that they may have on the Trust in the future. The Trustees have appointed Rathbone Investment Management Limited, who are authorised and regulated by the Financial Services Authority, to advise on investment of the Trust fund. The Trust's annual accounts are examined independently by Creasey, Son & Wickenden, who are registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
Page 2
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
PROOF OF THE TRUST'S PUBLIC BENEFIT PURSUANT TO THE CHARITIES ACT, 2011
In order to comply with guidance issued by the Charity Commission, ten questions were addressed during the course of a general meeting held on 11th August 2021, the answers to which gave the trustees reason to believe, firstly, that the ongoing activities of the Trust passed the test of public benefit and that the Trust was, accordingly, in compliance with the requirements of the Charities Act, 2011 and, secondly, that the Trustees continued to execute their duties with due regard to the Charity Commission's public benefit guidance as detailed in the Charity Commission's guidance documents PB1, PB2, and PB3.
OBJECTIVES AND ACTIVITIES
The Trust has been set up as an institute for the systematic study of mammals and birds with its main objective being the conservation of biodiversity. In bringing about its objective, the Trust is involved in the advancement of science, education, capacity building, environmental protection and community development. Much information is summarised on the Institute's website - https://www.harrison-institute.org/. The Institute's collections are intended for research and educational purposes and are for the use of the international scientific community. Collaborative projects are undertaken with academic institutions and local communities mainly in the Asian and African tropical and subtropical regions and involve training of in-country staff and students in biodiversity research and conservation, and environmental protection. In addition, the Institute carries out community-based conservation.
The Trust has the full use of the premises at Bowerwood House, 15 St. Botolph's Road, Sevenoaks, Kent. As shown in the accounts, certain expenses incurred in the refurbishment of the above premises have been capitalised, in order to accommodate the museum collections.
ACHIEVEMENTS AND PERFORMANCE
Community-based conservation
Myanmar - Up and until the Myanmar military coup of February 2021, Harrison Institute staff were involved with further supervision and evaluation of the second phase of the project Enhancing rural livelihoods and biodiversity conservation through responsible tourism, Myanmar . This project, Destination Ayeyarwady, focuses on capacity building, training, conservation, poverty alleviation, and research in village communities in the Mandalay region. It is based on the Ayeyarwady River within the Irrawaddy River Dolphin Protected Area. The Institute had received funding of £239,375 from the Darwin Initiative for the first three years of the project (20142017). The project has received two awards for excellence (2017 and 2019) and third prize in international competition in 2020 - see the website - https://www.destination-ayeyarwady.com/. The Harrison Institute is monitoring the political and covid situation in Myanmar to determine if it is possible to resume the project in the near term.
Papua New Guinea - The final report was submitted, which included a conservation plan for the Kunua Plains and Mount Balbi Key Biodiversity Area of Bougainville. This project received financial support from the Watterloo Foundation, UK, and the project's principal investigator was an Honorary Research Fellow of the Harrison Institute. It is part of an ongoing programme of community-based biodiversity conservation on the Island of Bougainville. We thank the Waterloo Foundation for providing additional financial assistance during the covid crisis.
Fiji - With support of National Geographic Society, USA, an Honorary Research Fellow of the Harrison Institute, together with colleagues and with local community support, completed his project to support the conservation of the Globally Endangered Fijian Free-tailed Bat ( Chaerephon bregullae ) in Fiji's Proposed Protected Area Network.
Page 3
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
Environmental Protection
Despite covid, and up and until the military coup of February 2021, the Harrison Institute remained actively involved in an EU Erasmus+ project, MuEuCAP https://www.myanmar-edu.org/. During the year, this included extensive training and capacity building workshops with Myanmar and European colleagues online. The focus was 'environmental protection and biodiversity conservation'. The Myanmar staff and students were drawn from three Myanmar universities (Mandalay, Myeik, and Mawlamyine).
Biodiversity research
During the year, the Institute supported biodiversity research, especially of small mammals and bats, which is being undertaken by students and staff in Myanmar, Nigeria, and Thailand. It published in Scientific Reports, as a co-author, a paper on bird diversity and composition in northern Myanmar and a paper in the journal Oryx on Myanmar bats. Both studies focused on Myanmar's northern forest complex of Hkakabo Razi Landscape in Kachin State.
Outreach
The Institute updated its website - www.harrison-institute.org and the website for its project, Destination Ayeyarwady, on the Ayeyarwady River, Myanmar www.destination-myanmar.com. Destination Ayeyarwady was widely reported in the ecotourism press.
It continued its work to provide outreach and communication for the EU Erasmus+ project MuEuCAP and its website https://www.myanmar-edu.org/.
In December 2020, an Institute staff member took part, as a scientific advisor, in the Third Annual Meeting of WABNet (Western Asia Bat Network), co-chairing an online session on the role of zoological collections in the study of zoonotic diseases. This project, funded by the Defence Threat Reduction Agency USA, focuses on the very topical subject of bats, zoonoses and coronaviruses.
Owing to covid restrictions, there were few visitors. However, highlightsincluded visits from the Bat Conservation Trust, Bristol University and the Myanmar Embassy, London.
Investment performance
The Trustees maintain a medium risk investment objective with the aim of protecting capital and generating sufficient investment income to enable the Trust to carry out its stated charitable objectives and to cover its general and specific operating costs.
Income of £70,062 was received from the Trust's investments in stocks and shares during the financial year while property investments generated gross income of £15,600.
FINANCIAL REVIEW
The surplus for the year, after taxation, amounted to £356,360 (2020 - deficit £311,055) .
The Trust has three main sources of income, from investments, donations and grant receipts.
The Trust's investments continue to generate sufficient funds to enable the Charity to continue operating on a day to day basis.
General investment powers and authority
The Trust is empowered to invest monies not immediately required for its purpose in or upon such investments,
Page 4
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
securities or property as may be thought fit and within the law.
Reserves policy
As stated in note 15 the unrestricted funds at the balance sheet date are £5,667,044 ( 2019: £5,997,068) . These funds are retained in order to finance the assets and general operations of the Charity. The Trustees consider the level of funds held to be adequate.
The Trust also has restricted funds at the balance sheet date of £19,355 ( 2018: £386 )
Resources
The Trust's assets are considered by the Trustees to be sufficient to meet its obligations.
Principal risks
The Trustees consider that the three principal risks to which the Trust is exposed are:
-
The loss of grant income, from which the Trust derives the majority of its current funding for overseas projects;
-
A significant downturn in global financial markets, which may have an effect on the Trust's capital position and present a liquidity risk;
-
A negative effect on the value of the Trust's investments and the loss of access to E.U. funding on account of the United Kingdom's decision to leave the European Union.
Factors affecting future financial performance
The Trust generates the majority of its income from governmental and non-governmental grants and from investments in shares and property. Although the success of grant applications is, by their nature, uncertain and investment income may fall and rise according to market conditions, the Trustees are not aware currently of any factors that are likely to have a substantive effect on the short-term financial performance of the Trust.
PLANS FOR FUTURE PERIODS
To ensure that the Trust is able to achieve its charitable objectives, one of the principal concerns of the Trustees is to maintain an total return level (capital and income) in excess of the Trust's annual expenditure. This has been achieved to date by the investment of the Trust Fund in a range of securities and fixed interest accounts. The Trustees continue to seek and follow professional advice in respect of investments.
Grant funding is sought where appropriate to facilitate scientific projects.
Page 5
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
Trustees' responsibilities statement
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Charity and of the surplus or deficit of the Charity for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies for the Charity's financial statements and then apply them consistently;
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether the policies adopted are in accordance with the SORP, Accounting by Charities and with applicable UK Accounting Standards, 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 Charities Act 2011. 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.
This report was approved by the board on 27 January 2022 and signed on its behalf.
J A Stephen
Trustee
Page 6
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
INDEPENDENT EXAMINERS' REPORT TO THE TRUSTEES ON THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST) FOR THE YEAR ENDED 5 APRIL 2020
I report to the trustees on my examination of the accounts of The Harrison Zoological Museum Trust (the Trust) for the year ended 5 April 2021 , which are set out on pages 8 to 23.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trustee's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have undertaken this examination in accordance with the requirements of the Auditing Practices Board Ethical Stanards, including the "Provisions Available for Small Entities", in the circumstances set out in note 3 to these financial statements.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
(1) accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
(2) the accounts do not accord with those records; or
-
(3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Martin Lunt FCA
Creasey Son & Wickenden
Chartered Accountants Hearts of Oak House Pembroke Road Sevenoaks Kent TN13 1XR 27 January 2022
Page 7
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021
| INCOME AND ENDOWMENTS FROM: Donations and legacies: Sundry donations Grants Charitable activities: Consultancy, lecture fees and sundry income Royalty fees and book sales Investments: Bank and building society interest Dividends and fixed interest Investment property income Total incoming resources |
Unrestricted funds £ 28,504 - 3,090 396 83 70,062 15,600 117,735 |
Restricted funds £ - 15,998 - - - - - 15,998 |
2021 total £ 28,504 15,998 3,090 396 83 70,062 15,600 133,733 |
2020 total £ 100 31,000 4,840 438 926 81,999 15,600 134,903 |
|---|---|---|---|---|
Page 8
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021
| Unrestricted funds £ EXPENDITURE ON: Raising funds Investment management costs 10,431 Investment property costs 7,019 17,450 Charitable activities: Scientific staff salaries, pension and National Insurance contributions 66,053 Research, training and outreach 15,858 Travel and subsistence 162 Subscriptions 272 Light, heat and water 3,925 Repairs and maintenance 16,230 Insurance 3,670 Depreciation - equipment, fixtures and fittings 1,838 Administration staff salaries and National Insurance contributions - Stationery, postage and office supplies 1,183 Telephone and internet 1,041 Sundries 544 Bank charges 53 Rates - Accountancy fees 4,680 115,509 |
Restricted funds £ - - - - 29,697 - - - - - - - - - - - - - 29,697 |
2021 total £ 10,431 7,019 17,450 66,053 45,555 162 272 3,925 16,230 3,670 1,838 - 1,183 1,041 544 53 - 4,680 145,206 |
2020 total £ 11,277 4,719 15,996 67,018 32,444 1,990 269 3,786 8,538 3,751 1,385 5,295 1,104 961 976 168 1,857 4,680 134,222 |
|---|---|---|---|
Page 9
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021
| Unrestricted funds £ Total resources expended 132,959 Gains and losses on investment assets: Realised gains/(losses) on investment assets 30,479 Unrealised gains/(losses) on investment assets 354,806 385,285 Net income/(expenditure) 370,061 Net movement in funds 370,061 Reconciliation of funds: Funds balance brought forward 5,667,043 Funds balance carried forward 6,037,104 |
Restricted funds £ 29,697 - - - (13,699) (13,699) 19,356 5,657 |
2021 total £ 162,656 30,479 354,806 385,285 356,362 356,362 5,686,399 6,042,761 |
2020 total £ 150,218 (4,100) (291,640) (295,740) (311,055) (311,055) 5,997,454 5,686,399 |
|---|---|---|---|
Page 10
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST) REGISTERED NUMBER: 268830
BALANCE SHEET AS AT 5 APRIL 2021
| Note Fixed assets Tangible assets 8 Investments 9 Investment property 10 Current assets Debtors: amounts falling due within one year 11 Cash at bank and in hand 12 Creditors: amounts falling due within one year 13 Net current assets Net assets Capital and reserves Restricted income funds Unrestricted income funds |
£ 3,330 253,706 257,036 (8,194) |
2021 £ 3,011,240 2,332,679 450,000 5,793,919 248,842 6,042,761 5,657 6,037,104 6,042,761 |
£ 3,330 290,401 293,731 (7,723) |
2020 £ 3,011,179 1,939,212 450,000 |
|---|---|---|---|---|
| 5,400,391 286,008 |
||||
| 5,686,399 | ||||
| 19,356 5,667,043 |
||||
| 5,686,399 |
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 January 2022.
Dr. N. M. Hammond
Trustee
The notes on pages 12 to 22 form part of these financial statements.
Page 11
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The trust constitutes a public benefit entity as defined by FRS 102.
The financial statements are prepared in sterling which is the functional currency of the Trust and rounded to the nearest £. They present information for this Trust alone.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Charity's accounting policies (see note 2).
The following principal accounting policies have been applied:
1.2 Going concern
The trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.
1.3 Income recognition
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.
Donations, are recognised when the Trust 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 before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfillment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/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 measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.
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 bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.
All other income is accounted for under the accruals concept.
Page 12
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
1. Accounting policies (continued)
1.4 Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.
1.5 Tangible fixed assets
Tangible fixed assets under the cost model, other than investment properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
Freehold land - 20% on spirit room cost only Equipment, fixtures and fittings - 15% or over 4 years straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
All assets costing more than £100 are capitalised.
1.6 Investment property
Investment property is initially measured at cost and subsequently at fair value at the reporting date. No depreciation is provided on investment property.
1.7 Valuation of investments
Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in the Statement of Financial Activity as they arise.
Realised gains and losses on investments are calculated as the difference between the sales proceeds and their opening carrying value or their purchase value if acquired subsequent to 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.
Page 13
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
1. Accounting policies (continued)
1.8 Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
1.9 Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
1.10 Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.11 Funds structure
The Trust has a number of restricted income funds to account for situations where a grant has been received for a particular project.
All other funds are unrestricted income funds and can be used as the trustees require. The funds held in each of these categories are disclosed in note 15.
1.12 Value added tax
The Trust is not able to reclaim VAT suffered on costs. Such costs are therefore shown inclusive of that VAT cost.
1.13 Pensions
Defined contribution pension plan
The Charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Charity pays fixed contributions into a separate entity. Once the contributions have been paid the Charity has no further payments obligations.
The contributions are recognised as an expense in the Statement of Financial Activity when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Charity in independently administered funds.
All the pension cost has been allocated to unrestricted funds.
Page 14
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
2. Judgments in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires Trustees to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimates means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect upon amounts recognised in these financial statements:
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in estimates of useful lives and residual values of assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technology advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the property, plant and equipment.
Investment property
The annual fair value movement is sensitive to changes in housing market which the charity can not control. The fair value is re-assessed annually by the Trustees and is based on the sales value of similar property in the area.
3. Other work performed by the independent examiner
In common with many other organisations of our size and nature we use our independent examiner to assist with the preparation of accounting records, preparation of these financial statements, and to prepare and submit returns to the tax authorities.
4. Net incoming resources
The net incoming resources is stated after charging:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets | 1,838 | 1,385 |
| Defined contribution pension cost | 3,184 | 3,108 |
During the year, no trustee received any emoluments (2020 - £NIL) .
Page 15
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
5. Analysis of income by financial instruments
| Financial assets measured at fair value through SOFA Financial assets measured at cost less impairment |
Dividend and fixed interest 2020 £ 70,062 - 70,062 |
Gain/(loss) on investment 2020 £ 385,285 - 385,285 |
Dividend and fixed interest 2019 £ 81,999 - 81,999 |
Gain/(loss) on investment 2019 £ (295,740 - |
|---|---|---|---|---|
| (295,740 |
6. Independent examiners' remuneration
| Fees payable to the Charity's independent examiner and its associates in respect of: Independent examiners fee All other services Employees Staff costs were as follows: Wages and salaries Social security costs Cost of defined contribution scheme |
2021 £ 2,000 2,680 4,680 2021 £ 60,890 1,978 3,184 66,052 |
2020 £ 2,000 2,680 |
|---|---|---|
| 4,680 | ||
| 2020 £ 66,184 3,021 3,108 |
||
| 72,313 |
7. Employees
No employee received emoluments of more than £60,000.
The average monthly number of employees during the year was as follows:
| 2021 | 2020 | |
|---|---|---|
| No. |
No. | |
| Scientific staff | 2 | 2 |
Page 16
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
8. Tangible fixed assets
| Cost or valuation At 6 April 2020 Additions At 5 April 2021 Depreciation At 6 April 2020 Charge for period on owned assets At 5 April 2021 Net book value At 5 April 2021 At 5 April 2020 |
Freehold property £ 3,017,611 - 3,017,611 10,104 - 10,104 3,007,507 3,007,507 |
Equipment, fixtures and fittings £ 65,609 1,899 67,508 61,937 1,838 63,775 3,733 3,672 |
Total £ 3,083,220 1,899 |
|---|---|---|---|
| 3,085,119 | |||
| 72,041 1,838 |
|||
| 73,879 | |||
| 3,011,240 | |||
| 3,011,179 |
Page 17
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
9. Fixed asset investments
| Cost or valuation At 6 April 2020 Additions Disposals Revaluations At 5 April 2021 Net book value At 5 April 2021 At 5 April 2020 All listed investments are registered in the UK. |
Listed investments £ 1,939,212 212,926 (174,265) 354,806 2,332,679 2,332,679 1,939,212 |
|---|---|
Page 18
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
10. Investment property
| Valuation At 6 April 2020 At 5 April 2021 Comprising Cost Annual revaluation surplus/(deficit): 2015 2016 2017 At 5 April 2021 |
Freehold investment property £ 50,000 50,000 42,500 2,500 5,000 - 50,000 |
Long term leasehold investment property £ 400,000 400,000 333,986 16,014 15,000 35,000 400,000 |
Total £ 450,000 |
|---|---|---|---|
| 450,000 | |||
| 376,486 18,514 20,000 35,000 |
|||
| 450,000 |
Freehold investment property relates to a piece of land adjacent to Bowerwood House.
Long term leasehold investment property relates to a property which the Institute purchased during the year ended 5 April 2013.
The land was valued by the Trustees in April 2020 at £50,000. The value was based on the probate value given by Ibbett Moseley for the estate of Dr D L Harrison.
The investment property was valued by the Cavendish residential letting and property management in April 2017 at £400,000. The Trustees do not consider that this value has changed.
11. Debtors
| Other debtors Prepayments and accrued income Tax recoverable |
2021 £ 22 2,895 413 3,330 |
2020 £ 22 2,895 413 |
|---|---|---|
| 3,330 |
Page 19
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
12. Cash and cash equivalents
| Cash and cash equivalents | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Cash at bank and in hand | 253,706 | 290,401 |
13. Creditors: Amounts falling due within one year
| Other taxation and social security Accruals and deferred income |
2021 £ 198 7,997 8,195 |
2020 £ 198 7,525 |
|---|---|---|
| 7,723 |
14. Financial instruments
| Financial instruments | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through the statement of financial | ||
| activity | 2,782,679 | 2,389,212 |
Financial assets measured at fair value through the statement of financial activity comprise of listed investments and investment properties.
Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
Investment property which is valued at open market value by the trustees every year.
The Trust manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings with investment asset classes that are quoted on recognised stock exchanges. The Trust does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.
Page 20
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
15. Analysis of charitable funds
| At 6 April 2020 Incoming resources Resources expended Net realised gains/(losses) on investments Net unrealised gains/(losses) on investments |
Un- restricted funds General fund £ 5,667,043 117,735 (132,959) 30,479 354,806 6,037,104 |
Restricted funds The Waterloo Foundation Rufford Foundation £ £ 19,355 - 10,000 5,998 (27,534) (2,162) - - - - 1,821 3,836 |
Restricted funds The Waterloo Foundation Rufford Foundation £ £ 19,355 - 10,000 5,998 (27,534) (2,162) - - - - 1,821 3,836 |
|---|---|---|---|
| 3,836 |
Name, description, nature and purpose of the fund:
General Fund
The un-restricted general funds are available to be spent for any purposes of the Trust.
Rufford Foundation
This relates to a grant recieved in the year from the Rufford Foundation for a biodiversity survey in Cameroon.
The Waterloo Foundation
This relates to a grant received in the year from the Waterloo Foundation for a project titled "Protecting Tropical Rainforests of Bougainville, Papua New Guinea".
16. Analysis of net assets between funds
| Tangible fixed assets Investments Cash in bank and hand Other net assets/ (liabilities) |
Un- restricted fund £ 3,011,240 2,782,679 248,049 (4,864) 6,037,104 |
Restricted fund £ - - 5,657 - |
|---|---|---|
| 5,657 |
Page 21
THE HARRISON INSTITUTE (THE HARRISON ZOOLOGICAL MUSEUM TRUST)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
17. Pension commitments
The Trust operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Trust in an independently administered fund. The pension cost charge represents contributions payable by the Trust to the fund and amounted to £3,108 ( 2020 - £3,108 ).
18. Related party transactions
During the year no trustees ( 2020: none ) were reimbursed for their costs of travelling to attend the AGM, the aggregate amount of expenses in the year being £nil ( 2020: £nil ).
There have been no other related party transactions in the year.
Page 22