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2021-10-31-accounts

Company no. 1513190 Charity no. 281276

Progressive Farming Trust Limited Report and Audited Financial Statements 31 October 2021

Progressive Farming Trust Limited

Reference and administrative details

For the year ended 31 October 2021

Company number 1513190 Charity number 281276 Registered office and Trent Lodge operational address Stroud Road Cirencester Gloucestershire GL7 6JN Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: A M F Astor (resigned 15 December 2021) T Bennett A Blackshaw (resigned 15 December 2021) J Dwyer (appointed 16 June 2021) H Eldridge (appointed 16 June 2021) R Kerr D Peck J Pickering (appointed 16 June 2021) S Rajani (appointed 8 September 2021) C Watson N Westaway Senior management team L MacLennan - CEO T Connett - Head of Finance (resigned 25 February 2021; reappointed 1 November 2021) P Jenkins - Head of Finance (8 February 2021 - 12 November 2021) W Simonson - Head of Research (appointed 9 Novemeber 2020) A Costanzo - Deputy Head of Research Company secretary L MacLennan Bankers Triodos Bank Deanery Road Bristol BS1 5AS Auditors Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

1

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

Chairman’s report

The year we are reporting on continued to be impacted by the restrictions placed on society by COVID-19. The Organic Research Centre's (ORC) operations were primarily home based and outside activity was restricted for some of the year we are reporting on. Despite that, our CEO, supported by the team, managed to organise a number of external events linked to raising our profile. This allowed for discussion around opportunities to increase our income from donors wishing to support ORC, including support for specific research projects.

As planned, this year has been another year of change for ORC with considerable investment in communications, new financial and governance systems, a new fundraising strategy and significant time put into developing our future research priorities.

I wish to thank the trustees for all their help overseeing these developments and for joining so many virtual meetings. We were delighted to recruit four new trustees and I welcome Janet Dwyer, Honor Eldridge, Jake Pickering, and Seeta Rajani. We are already benefiting from their experience, and I thank them for committing to help ORC despite already being busy in other roles.

As indicated last year, Alice Astor agreed to stay on an extra year to help ORC and she stood down as a trustee in December 2021. Adrian Blackshaw also decided to step down as a trustee at the same time. On behalf of the trustees and the ORC team, I want to thank them both for many years of commitment to the organisation. We will miss their considerable knowledge of ORC though I know they will stay closely involved in the future development of ORC.

I reported last year that we had moved to Trent Lodge in Cirencester following the sale of Elm Farm. Part of Elm Farm was sold within this financial year and the £625,000 proceeds of the sale are reflected in the accounts. A further sum of approximately £9,000, held back until certain works had been carried out, is also in the accounts for this year. Those proceeds complete the sale of Elm Farm and, with it, a significant chapter in the history of ORC.

Our future research funding continues to face uncertainty due to the funding of European projects through Horizon Europe being delayed. Despite continuing uncertainties on timings, we trust that our important partnerships within Europe will be able to continue this year through new Horizon funding. There have been important commitments from the UK government including at COP 26 where our CEO was a speaker. Those commitments to a sustainable food system in the UK will demand considerable change in the way we produce food and manage land. Investment in research will be needed to facilitate that change; we hope to be working with DEFRA on such projects in the coming year.

Our total fundraising income has doubled compared with the previous year, despite the difficulties posed by the pandemic for some external activities. Our aim for the 2021-2022 financial year is to raise that figure substantially again, as part of the ongoing plan to achieve a balanced budget, excluding investment returns.

I reported last year that following recommendations from our auditors we have changed how we account for research funding payments and our 2020-21 accounts therefore reflect changes to our income accruals.

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Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

The balance sheet is showing a healthy net balance of £2,175,459. The investments we hold with Rathbones Greenbank were showing a value of £1,242,656 at the end of October 2021, with a gain on those investments of £221,270 for the year. The trustees requested that £200,000 of those funds should be encashed and they have been made available to fund investment in the charity's activities in 2021-22.

On behalf of our trustees I want to thank our CEO and all the team at ORC for maintaining momentum in another difficult year.

Through their efforts, and the last two years of change at ORC and investment in the charity, we are now in a better position to concentrate on increasing our income across all parts of our operation in the coming years so that we can continue to hold adequate reserves and expand or maintain the important work of the charity.

Tim Bennett

3

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

Chief executive report

During the past year we have continued to deliver the implementation of our three-year strategy and have built upon the strong start made in 2019-20, with fewer fundamental changes to the organisation.

Income has been gained principally from two revenue streams: Fundraising income and Research project funding. Fundraising income more than doubled year on year (excluding legacy income), to more than £200,000. This has been achieved through implementation of a clear fundraising strategy to focus resources in three areas: individual giving, Trusts & Foundations, and major donor engagement. The year ahead will seek to build on this strong start and increase yield further.

Research income was up year on year although it was lower than budgeted for two significant reasons. Firstly, there were delays to statutory funding decisions caused both by Brexit and by the UK's Horizon Europe membership issue. A number of bids have been submitted but delays in the decision-making process have meant that deadlines were extended beyond the end of our financial year.

Secondly research income was reduced because of the impact of changes made to accounting policy through the reversal of accruals which were not fully completed in the previous financial year. However, we are confident that this process is now fully complete and that we have a clean balance sheet to take forward into the new financial year.

This work on finance is an example of how the team have worked to simplify, strengthen, and stabilise the internal systems and processes. We have invested in our systems and now have in place:

▪New online payroll system;

These systems will help to continue to drive efficiencies within the business so that our resources can be better spent in driving our business further forward.

The continuing COVID pandemic lockdown restrictions during 2020-21 resulted in reduced expenditure on travel and expenses. Outgoings were reduced further through cost control on staffing, where recruitment for several positions was delayed and unfunded activity on the Agricology information hub was controlled.

Year 2 of our strategy is underway and focuses resources on networking, communicating, and collaborating. We appointed a central Communications Officer who has run the first year of our communications programme, which focused on our most important research over the past 40 years. This has given us a good platform to build upon in future for the ORC to gain more recognition and attract further funding and collaboration opportunities.

The highlight of the year for us was hosting an event to celebrate the ORC’s 40th anniversary. The day brought together both old and new friends of the organization and gave us the opportunity to share our work and reconnect with one another again after the frustrations of lockdown.

4

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

The year ahead will see us continue to build on recent activity, driving efficiencies and improving recognition of the organization. We will also start work on Year 3 of our strategy to generate additional income streams to ensure the future sustainability of the organization.

Lucy MacLennan

5

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

The trustees present their report and financial statements for the year ended 31 October 2021. Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Research and knowledge exchange report

2020-21 saw the appointment of a new Head of Research and Deputy Head of Research, who through the course of the year have led a 12-strong team working across five research themes and cross-cutting knowledge exchange activities.

In total, work on over 20 different projects was undertaken, with five projects reaching completion in this period. The project portfolio continues to be supported through EU funding, UK statutory funding (UK Research Councils, DEFRA), and shorter-term consultancies, as well as some Trust/Foundation support.

In addition, ORC has kept maintaining and developing the Agricology programme: a collaborative information hub, comprising independent information from over 40 respected partners and many pioneering and innovative farmers. Through this programme of applied research and knowledge exchange linked to organic farming and growing, and their contribution to the current climate and nature emergencies, continues to be supported.

Crop diversity and agronomy

Research on organic crops has a pivotal role to play in redesigning the whole of agriculture towards greater sustainability and resilience.

In 2020-21 we have continued to develop and deepen our approach to on-farm research and collective experimentation directly with farmers on their fields, tackling the dual challenges of ensuring appropriate seeds are available to be grown organically and improving the productive and environmental performance of organic and low-input growing systems.

Three projects were successfully completed: the EU project LIVESEED on boosting organic seed production and increasing the availability of cultivars adapted to organic growing conditions in Europe (2017-2021); the EIP (European Innovation Partnership) Soils project on improving organic soil management and soil quality monitoring (2019-2021); and the EIP Ancient Cereals project with a group of Welsh farmers, aimed at supporting a local bread supply chain by testing spring modern and heritage wheats under organic management (2019-2021).

Ongoing projects are:

Animal husbandry

Keeping livestock is a key part of many organic farming systems. Our work covers cattle, sheep, goats, pigs, and poultry.

6

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

In 2020-21 a key focus has been the animal welfare and productivity benefits of integrating trees into livestock systems, implemented in particular through 3 projects:

Our senior livestock researcher has shared knowledge with farmers on the benefits of silvopasture for livestock at a range of events including Groundswell.

The last year also saw the successful completion of the OK-Net Eco-Feed project: Organic Knowledge Network on Monogastric Animal Feed, for which ORC coordinated feed and feeding trials focussed on delivering 100 percent organic and regional feed to pigs and poultry. For a second ongoing Horizon 2020 project, Organic Plus, ORC is conducting another experimental trial, in this case, to evaluate the effect of antioxidant and immunostimulatory herbs, administered pre-calving, on colostrum quality and immune responses in dairy cows.

Healthy and sustainable food systems

Developing healthy and sustainable food systems with a focus on holistic management within a whole farm context.

The focus of research under this theme in 2020-21 has been farm-level sustainability assessment through various applications of ORC’s Public Goods Tool. Our sustainability researcher has continued to develop the PG Tool and its proven value for farm sustainability assessments through four projects, two of which have been part of DEFRA’s Tests & Trials process preparing for environmental land management.

7

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

Business and markets

Socio-economic analysis of agri-food markets and supply chains to understand pathways to greater innovation and sustainability.

The business and markets team have worked across a broad range of projects and topics in 2020-21 including:

LIVESEED : ORC contributed to deliverables on business models for (1) organic seed and breeding, and (2) organic consumer willingness to pay for new plant breeding techniques;

AGROMIX : ORC has been exploring the business management implications of establishing mixed farming and agroforestry systems at the farm and supply chain levels. This includes providing key example cases of where the attributes of mixed farming and agroforestry lead to greater resilience and sustainability in different farm business models. ORC has also been working to highlight social and economic opportunities for the agroforestry and mixed farming sector through the analysis of different value chain actor perspectives;

DiverIMPACTS : ORC has investigated how supply chain actors and stakeholders are involved in and impacted by diverse cropping systems. ORC has produced seven value chain maps of the different case studies involved in the project to show the impact that crop diversification has on the relationships between actors and stakeholders in a supply chain; and

Carbon footprinting : ORC was commissioned to calculate the carbon footprint of grain transport for an Organic Arable producer. Also, the team produced the analysis of the economic benefits of increasing the UK hedgerow network by 40% (see Agroforestry).

With the University of Reading, the Royal Agricultural University, and partners across Europe, this last year also saw the beginning of our participation in the FOODLEVERS project (see food systems, above).

Agroforestry

Integrating trees with agriculture to encourage positive interactions to improve farm resilience, lead to an overall increase in productivity, biodiversity, and other mutual benefits.

2020-21 saw the recruitment of both a Principal Researcher and a Senior Researcher in Agroforestry. Together with the input of our Senior Livestock Researcher focussing on silvopasture research, this new team consolidated on past research with two strategic new projects:

Agromix: This Horizon-funded European collaboration focuses on the potential of transitioning to agroforestry and other mixed farming systems across the continent, particularly with respect to conferring greater resilience in the face of climate, other environmental and economic change. For work package 3 (biophysical measurement) we have been studying the biodiversity of agroforestry fields at Wakelyns, Suffolk, in comparison to fields without trees; and

Agroforestry ELM Test: In partnership with the Woodland Trust, Soil Association and Abacus Agriculture, we have been running workshops with farmers to gather evidence on past barriers to agroforestry uptake, and what these teach us about the building blocks needed to encourage uptake in the future.

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Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

This last year has also seen the completion of the WOOFS project on the potential of using woodchip to build soil health, as well as two knowledge exchange projects funded by the A Team Foundation , focussing on developing an agroforestry demonstration network and a favourable policy environment. In collaboration with CPRE The Countryside Charity , we also modelled the environmental and economic benefits of increasing the UK hedgerow network by 40%, resulting in a report that was the focus of a high-profile launch in the Houses of Parliament in September.

Knowledge exchange and policy

Knowledge exchange has been integral to many of the above referenced projects, with the aim of achieving impact within the organic and wider farming and food growing sectors. Additional projects with a particularly strong knowledge exchange emphasis have been:

Agricology

Commissioned service fees were introduced to collaborating partners during the year. AHDB, RSPB and Woodland Trust commissioned work as a result, helping establish this new income stream, with two fee paying projects for DEFRA and The A Team (via GWCT Allerton). Eleven new farmer profiles were created, and 4 existing profiles were updated. 8 podcasts were published, bringing the total available to 12. Key resources focus on topics such as bio-pesticides, conservation agriculture, organic vs non-organic meat, blackgrass, and healthy soils.

Outreach and impact

Farmers and stakeholders’ engagement

ORC’s research work follows a participative approach, conceived with farmers and taking place on a wide range of organic as well as conventional farms. In 2020-21 the crops team worked closely with 20 farms across 3 projects (Livewheat, Living Mulch, and LiveOats), whilst the agroforestry team continued to use Wakelyns Agroforestry as an experimental site for field data collection and through the Silvpasture Field Lab and Optimum Shelterbelt projects networked with 7 farms in Devon and 30 farms in the Cotswolds, respectively.

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Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

Events and dissemination

We have conveyed our message and findings to the farming, industry, policy, and scientific arenas in over 35 conferences, seminars and workshops including:

Agricology

During the 2020-21 year, the Agricology programme attracted double the interest of the previous year. We can highlight:

Publications

To round off our 40th anniversary year we have published an eBook “40 Years of ORC” celebrating our pioneering research in organic farming from 1980 to 2020. This brings together all the 10 Factsheets and 30 Research Digests that we put together over the 2020 financial year into one publication. We have kept up our commitment to scientific excellence and impact, with 11 peerreviewed journal papers published in 2020-21 (Annex 1), as well as 8 papers in conference proceedings and 1 book chapter.

Shaping future work

The ORC Research and Knowledge Exchange team has put significant effort in bidding for future work, by submitting:

Will Simonson, Head of Research Ambrogio Costanzo, Deputy Head of Research

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Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

Annex 1: Scientific papers 2021-2022

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Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

Objectives and activities

The Progressive Farming Trust (trading as The Organic Research Centre) (ORC) aims to combine scientific excellence with practical experience to deliver real benefits on the ground for all our futures by working, nationally and internationally, to:

Our objectives are pursued by means of a detailed programme of activities as set out in our annual business plans, with a quarterly review process, internally and by the Council of Management, used to monitor progress of activities and the outputs delivered.

The trustees have identified the following public benefits derived from the charity’s activities:

All findings of our research programmes are made available in the public domain.

Sources of funding

A range of funding is utilised by ORC including restricted project funding gained through funding bids and unrestricted funds donated by charitable trusts and individual donors.

Risk factors and management

The trustees have given due consideration to the major risks to which ORC is exposed and holds a register of these. We have taken all reasonable steps to mitigate these risks. Risk assessment and management processes are in operation on an on-going basis throughout the organisation and cover all aspects of financial and non-financial performance.

The monitoring of our financial control systems and procedures and risk-management strategies is delegated to the Finance Committee, which meets quarterly and reports to the Council of Management. The major risks identified relate to failure to achieve income goals, however the appointment of a new senior management team who have a stronger knowledge and understanding of the organisation business model, sensitivity analysis and KPI management will help to mitigate this risk, along with additional support from a fundraising consultancy practice.

Financial review

The financial performance of the charity is set out in the attached financial statements.

The result stated on page 20 is a net cost of £29,488 compared to a surplus of £683,270 in the previous year.

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Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

As set out on page 20, total incoming resources, including income from charitable activities, was £970,338 for the year (£2,097,643 in 2019-20).

Reserves policy

The charity’s reserve policy is to maintain liquid reserves equating to four months of its regular expenditure, i.e £400,000-£450,000. The charity’s reserves consist of its unrestricted net current assets plus the most liquid portion of its listed investment portfolio, together these total more than the top figure in the range for that target. The charity’s longer-term investments portfolio is held as fixed assets relating to its long-term business strategies.

Structure, governance and management

The Progressive Farming Trust Ltd was registered as a charity in 1980.

The company is limited by guarantee and does not have a share capital. It has no subsidiary companies or legal association with other organisations. The company does work in partnership with many organisations on the delivery of projects and other charitable activities.

Governance structure

ORC has a Council of Management consisting of not less than three and not more than fifteen unpaid Trustees (Directors), which sets strategy and direction and monitors performance.

The company is run on a day-to-day basis by a Senior Management Team lead by a Chief Executive Officer, supported by a Director of Research & Innovation, a Head of Finance and Deputy Head of Research. The Senior Management Team is responsible for implementing the plans approved by the Council on the basis of a statement of Delegated Authority.

The remuneration of the Senior Management Team is set by the Council as advised by the Remuneration Committee. The remuneration policy seeks to ensure that a) as this is a research organisation, for all staff relative pay levels compared with the Higher Education sector are maintained, and b) that for the Senior Management comparability with remuneration in other similar charities is also maintained.

Trustee recruitment and induction

The trustees (members of the Council of Management) are elected by the Members of the Progressive Farming Trust at the Annual General Meeting, with one-third retiring annually and eligible for re-election.

Recruitment of trustees is achieved through personal recommendation or utilising specialist agencies. The Council contains a broad range of farming, business, finance and organic experience, research, legal and international knowledge, and political experience linked with environmental interests.

Information is provided to help new trustees to familiarise themselves with the objectives and activities of ORC. They are also referred to the Trustee Act 2000 and relevant Charity Commission guidance.

Details of trustee and related party transactions are disclosed in note 20 to these accounts.

13

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2021

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

▪select suitable accounting policies and then apply them consistently;

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees 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.

In so far as the trustees are aware:

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.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 18 March 2022 and signed on their behalf by

Tim Bennett – Trustee and Chair

14

Independent auditors' report

To the members of

Progressive Farming Trust Limited

Opinion

We have audited the financial statements of Progressive Farming Trust Limited (the 'charity') for the year ended 31 October 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 charity 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 charity'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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

15

Independent auditors' report

To the members of

Progressive Farming Trust Limited

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity 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 in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

16

Independent auditors' report

To the members of

Progressive Farming Trust Limited

Our 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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing the appropriateness of journal entries;

▪Testing transactions that are unusual or outside the normal course of business.

17

Independent auditors' report

To the members of

Progressive Farming Trust Limited

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. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charityʼs 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 charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 23 March 2022

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of: GODFREY WILSON LIMITED Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

18

Progressive Farming Trust Limited

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 October 2021

Restricted
Note
£
Income from:
Donations and legacies
3
95,203
Charitable activities:
Research and projects
4
475,793
Information services
5
42,195
Other trading activities
6
-
Investments
-
Other:
Miscellaneous income
-
Gain on disposal of fixed assets
-
Total income
613,191
Expenditure on:
Raising funds:
Fundraising
39,580
Charitable activities:
Research and projects
453,026
Information services
161,994
Total expenditure
8
654,600
Net gains / (losses) on investments
-
Net income / (expenditure)
(41,409)
Transfers between funds
137,570
Net movement in funds
9
96,161
Reconciliation of funds:
Total funds brought forward
807,572
Total funds carried forward
903,733		 Unrestricted
£
107,826
-
-
5,255
23,578
2,525
217,963
357,147
105,974
412,072
48,450
566,496
221,270
11,921
(137,570)
(125,649)
1,397,375
1,271,726		 Restated
2021
2020
Total
Total
£
£
203,029
143,758
475,793
207,481
42,195
107,297
5,255
24,274
23,578
1,120
2,525
804
217,963
1,612,909
970,338
2,097,643
145,554
100,585
865,098
968,751
210,444
324,170
1,221,096
1,393,506
221,270
(20,867)
(29,488)
683,270
-
-
(29,488)
683,270
2,204,947
1,521,677
2,175,459
2,204,947

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 19 to the accounts.

The 2020 comparatives have been restated to correct the over-accrual of income in the prior year. Further details are set out in note 24 to the accounts.

19

Progressive Farming Trust Limited

Balance sheet

As at 31 October 2021

Note
Fixed assets
Tangible assets
12
Social investments
13
Investments
14
Current assets
Stock
15
Debtors
16
Current asset investments
23
Cash at bank and in hand
23
Liabilities
Creditors: amounts falling due within 1 year
17
Net current assets
Net assets
18
Funds
19
Restricted income funds
Dean Organic Fund
Other restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds		 £
-
162,411
375,186
325,458
863,055
(95,218)		 2021
£
8,319
156,647
1,242,656
1,407,622
767,837
2,175,459
538,848
364,885
-
1,271,726
2,175,459		 Restated
2020
£
431,265
237,300
529,138
1,197,703
375
142,904
300,464
685,908
1,129,651
(122,407)
1,007,244
2,204,947
538,848
268,724
82,406
1,314,969
2,204,947

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 18 March 2022 and signed on their behalf by

Tim Bennett- trustee and chair

20

Progressive Farming Trust Limited

Statement of cash flows

As at 31 October 2021

Note
Net movement in funds
Adjustments for:
Depreciation charges
(Gains) / losses on investments
Interest paid
(Increase) / decrease in social investments
Dividends, interest and rents from investments
Loss / (profit) on the sale of fixed assets
Decrease / (increase) in stock
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Proceeds from disposal of investments
Proceeds from disposal of fixed assets
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Purchase of investments
Net cash provided by / (used in) investing activities
Cash flows from financing activities:
Repayment of borrowing
Net cash provided in / (used in) financing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
23		 2021
£
(29,488)
9,687
(221,270)
-
80,653
(23,578)
(217,962)
375
(19,507)
(27,189)
(448,279)
251,822
631,824
23,578
(603)
(744,070)
162,551
-
-
(285,728)
986,372
700,644		 Restated
2020
£
683,270
28,455
20,867
7,967
81,431
(1,120)
(1,612,909)
6,780
83,164
(302,225)
(1,004,320)
1,515
3,358,993
1,120
(21,120)
(550,005)
2,790,503
(883,248)
(883,248)
902,935
83,437
986,372

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

21

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in 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.

Progressive Farming Trust Limited 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 note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the 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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

22

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

1. Accounting policies (continued)

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. Where these costs are not directly attributable to charitable activities, they have been allocated between cost of raising funds and expenditure on charitable activities on the basis of staff time as follows:

llows:
2021 2020
Raising funds: fundraising 9.6% 6.0%
Charitable activities: Research 75.1% 67.7%
Charitable activities: Information services 15.3% 26.3%

23

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

1. Accounting policies (continued) i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Fixture, fittings and equipment 33% on cost

j) Social investments

Social investments are concessionary loans made to third parties that directly further the charitable purposes of the charity. The loans are recognised as the amount paid, less cumulative repayments. They are reviewed annually for impairment.

k) Investments

Investments held at the year end are valued at the current market value at that date. Investment income from dividends is included in incoming resources while realised and unrealised losses and gains on investments are shown separately on the statement of financial activities (SOFA). Realised gains and losses are calculated on investment disposals during the year as the difference between the opening market value and the proceeds received on sale. Unrealised gains and losses are calculated on investment holdings at the year end as the difference between the closing market value and the opening market value or purchase value during the year.

l) Stock

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Current asset investments

Current asset investments are cash held on deposit that will be used to fund social investments. Current asset investments are measured at cost.

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

p) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

24

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

1. Accounting policies (continued)

q) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

r) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

s) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.

t) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1i to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

25

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Charitable activities
Research and projects
Information services
Other trading activities
Investments
Other income
Gain on disposal of fixed asset
Total income
Expenditure on:
Raising funds:
Fundraising
Charitable activities:
Research and projects
Information services
Total expenditure
Net losses on investments
Net income / (expenditure)
Transfers between funds
Net movement in funds		 Restricted
£
£
40,730
103,028
195,542
11,939
102,635
4,662
-
24,274
-
1,120
-
804
-
1,612,909
338,907
1,758,736
18,076
82,509
428,134
540,617
155,599
168,571
601,809
791,697
-
(20,867)
(262,902)
946,172
81,177
(81,177)
(181,725)
864,995
Unrestricted		 Restated
2020
Total
£
143,758
207,481
107,297
24,274
1,120
804
1,612,909
2,097,643
100,585
968,751
324,170
1,393,506
(20,867)
683,270
-
683,270

26

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

3. Income from donations and legacies

Income from donations and legacies
Other donations < £15k
Yarrow Trust
Garfield Weston
John Ellerman Foundation
Boltini Trust
Legacies
Total		 Restricted
£
£
40,623
52,826
-
30,000
-
25,000
39,580
-
15,000
-
-
-
95,203
107,826
Unrestricted		 2021
Total
£
93,449
30,000
25,000
39,580
15,000
-
203,029		 2020
Total
£
30,028
-
-
40,730
-
73,000
143,758

All income from donations and legacies in the prior year was unrestricted.

4. Income from charitable activities: research and projects

Biotechnology and Biological Sciences Research Council
Campaign to Protect Rural England
Defra
Ekhaga Foundation
European Commission
Rural Payments Agency
Welsh European Innovation Partnership
Other project income
Total research and project income
Prior period comparative:
Defra
Ekhaga Foundation
European Commission
Rural Payments Agency
Welsh European Innovation Partnership
Other project income
Total research and project income		 Restricted
£
£
33,867
-
20,960
157,161
-
(3,888)
-
212,918
-
29,487
-
13,575
-
11,713
-
475,793
-
Restricted
£
£
91,857
-
18,210
-
24,813
-
49,187
-
5,940
-
5,535
11,939
195,542
11,939
Unrestricted
Unrestricted		 2021
Total
£
33,867
20,960
157,161
(3,888)
212,918
29,487
13,575
11,713
475,793
Restated
2020
Total
£
91,857
18,210
24,813
49,187
5,940
17,474
207,481

27

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

5. Income from charitable activities: information services

Daylesford Foundation
Prince of Wales' Charitable Foundation
Total information services income
Prior period comparative:
Daylesford Foundation
Defra
European Commission
Prince of Wales' Charitable Foundation
Other project income
Total information services income		 Restricted
£
£
31,873
-
10,322
-
42,195
-
Restricted
£
£
73,624
-
(1,622)
-
(5,220)
-
35,853
-
-
4,662
102,635
4,662
Unrestricted
Unrestricted		 2021
Total
£
31,873
10,322
42,195
2020
Total
£
73,624
(1,622)
(5,220)
35,853
4,662
107,297

Negative figures in income represent accrued income balances which had to be written back after they were found to be irrecoverable.

6. Income from other trading activities

Other estate income
Total		 Restricted
£
£
-
5,255
-
5,255
Unrestricted		 2021
2020
Total
Total
£
£
5,255
24,274
5,255
24,274

All income from other trading activities in the prior year was unrestricted.

7. Government grants

The charitable company receives government grants, defined as funding from Defra and the Welsh Government, to fund charitable activities. The total value of such grants in the period ending 31 October 2021 was £170,736 (2020: £96,175). There are no unfulfilled conditions or contingencies attaching to these grants.

28

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

Total expenditure
Staff costs (note 10)
Activity delivery costs
Office/facility operation & maintenance
Other office costs
Computing and IT support
Bank charges/interest
Insurance
Audit and accountancy
Governance costs
Legal and professional fees
Investment manager fees
Depreciation
Miscellaneous costs
Sub-total
Total expenditure
Allocation of support and governance costs
Farm tenancy and sharefarming expenditure		 £
55,217
4,990
-
-
-
-
-
-
-
36,408
9,821
-
-
-
106,436
39,118
145,554
Raising funds:
fundraising		 £
431,897
127,226
-
-
-
-
-
-
-
-
-
-
-
-
559,123
305,975
865,098
Charitable
activities:
research		 £
88,180
59,794
-
-
-
-
-
-
-
-
-
-
-
-
147,974
62,470
210,444
Charitable
activities:
information
services		 Support and
governance
costs
£
208,895
12,094
33,852
4,083
43,402
1,212
9,576
16,425
923
54,254
-
9,687
(1,800)
14,960
407,563
(407,563)
-		 2021 Total
£
784,189
204,104
33,852
4,083
43,402
1,212
9,576
16,425
923
90,662
9,821
9,687
(1,800)
14,960
1,221,096
-
1,221,096

8. Total expenditure

Total governance costs were £9,563.

29

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

8. Total expenditure Prior period comparative

Total expenditure
Prior period comparative
Staff costs (note 10)
Activity delivery costs
Office/facility operation & maintenance
Other office costs
Computing and IT support
Bank charges/interest
Insurance
Audit and accountancy
Governance costs
Legal and professional fees
Depreciation
Miscellaneous costs
Sub-total
Total expenditure
Farm tenancy and sharefarming expenditure
Allocation of support and governance costs		 £
60,416
5,461
-
-
-
-
-
-
-
-
-
-
-
65,877
34,708
100,585
Raising funds:
fundraising		 £
484,819
89,763
-
-
-
-
-
-
-
-
-
-
-
574,582
394,169
968,751
Charitable
activities:
research		 Charitable
activities:
information
services
£
107,687
63,061
-
-
-
-
-
-
-
-
-
-
-
170,748
153,422
324,170		 Support and
governance
costs
£
206,741
4,032
75,725
37,479
44,976
9,658
6,743
13,240
1,026
93,913
28,455
38,573
21,738
582,299
(582,299)
-		 2020 Total
£
859,663
162,317
75,725
37,479
44,976
9,658
6,743
13,240
1,026
93,913
28,455
38,573
21,738
1,393,506
-
1,393,506

Total governance costs were £10,386.

30

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

9. Net movement in funds

This is stated after charging:
Depreciation
Trustees' indemnity insurance
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
▪Consultancy (including VAT)
▪Statutory audit (including VAT)		 2021
£
9,687
Nil
Nil
44
-
8,640		 2020
£
28,455
Nil
Nil
360
560
8,880

Trustees expenses comprise amounts relating to 1 trustee for travel and subsistence costs (2020: 1 trustee).

10. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2021
2020
£
£
659,810
706,427
50,255
69,514
74,124
83,722
784,189
859,663

No employees earned between £60,000 and £70,000 during the year (2020: one employee).

The key management personnel of the charitable company comprise the senior management team. Total employee benefits paid to the key management personnel were £223,208 (2020: £219,786).

During the year, there were no redundancy payments made (2020: total of £12,543 was paid to 3 members of staff).

The average staff head count during the year was:
Administration
Research / project staff
Average full-time equivalents (all staff)		 2021
No.
12.0
10.3
22.3
20.5		 2020
No.
7.1
15.8
22.9
20.4

11. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

31

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

12. Tangible fixed assets

Cost
At 1 November 2020
Additions
Disposals
At 31 October 2021
Depreciation
At 1 November 2020
Charge for the year
On disposal
At 31 October 2021
Net book value
At 31 October 2021
At 31 October 2020
13. Social investments
Concessionary loans		 Freehold
land
£
159,841
-
(159,841)
-
-
-
-
-
-
159,841		 Buildings
£
333,889
-
(333,889)
-
79,868
-
(79,868)
-
-
254,021		 Fixtures,
fittings and
equipment
£
42,821
603
(806)
42,618
25,418
9,687
(806)
34,299
8,319
17,403
2021
£
156,647		 Total
£
536,551
603
(494,536)
42,618
105,286
9,687
(80,674)
34,299
8,319
431,265
2020
£
237,300

Concessionary loans

Concessionary social investment loans comprise interest-free loans of up to £25,000 made to fund the purchase of equipment, stock or similar items to enable the borrower to carry out certified or closely aligned organic/agroecological farming and/or food business activities. They are repayable in monthly installments beginning 12 months after the loan was agreed. Amounts receivable within one year is £77,883 and amounts receivable in more than one year is £78,764 (2020: £82,915 receivable within one year, £154,385 receivable in more than one year).

32

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

14. Investments

Market value at 1 November 2020
Additions
Disposals proceeds
Realised gains / (losses)
Unrealised gains / (losses)
Market value at 31 October 2021
Historic cost:		 £
529,138
744,070
(251,822)
41,535
179,735
1,242,656
1,101,945
Listed
investments		 2021
£
529,138
744,070
(251,822)
41,535
179,735
1,242,656
1,101,945		 2020
£
1,515
550,005
(1,515)
-
(20,867)
529,138
550,005

Listed investments comprise funds held by Rathbones, which are shown at the market value at the balance sheet date.

15. Stock

Goods for resale
Debtors
Trade debtors
Prepayments
Accrued income
Creditors : amounts due within 1 year
Trade creditors
Other creditors
Accruals		 2021
£
-
2021
£
81,059
11,089
70,263
162,411
2021
£
23,645
30,838
40,735
95,218		 2020
£
375
Restated
2020
£
18,211
5,549
119,144
142,904
2020
£
33,692
25,833
62,882
122,407

16. Debtors

17. Creditors : amounts due within 1 year

33

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

18. Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Social investments
Investments
Net current assets
Net assets at 31 October 2021
Prior period comparative
Tangible fixed assets
Social investments
Investments
Net current assets
Net assets at 31 October 2020		 £
-
156,647
-
747,086
903,733
£
-
237,300
-
570,272
807,572
Restricted
funds
Restricted
funds		 £
-
-
-
-
-
£
-
-
-
82,406
82,406
Designated
funds
Designated
funds		 General
funds
£
8,319
-
1,242,656
20,751
1,271,726
General
funds
£
431,265
-
529,138
354,566
1,314,969		 Total funds
£
8,319
156,647
1,242,656
767,837
2,175,459
Total funds
£
431,265
237,300
529,138
1,007,244
2,204,947

34

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

19. Movements in funds

Restricted funds
EU funded projects
UK statutory funded projects
Foundation funded projects
Other projects
Dean Organic Fund
Total restricted funds
Unrestricted funds
Designated funds:
Total designated funds
General funds
Total unrestricted funds
Total funds
M Langman: Food quality and health bequest
Farm and Food Society: Animal health and welfare		 At 1
November
2020
£
166,556
33,802
34,404
33,962
538,848
807,572
38,305
44,101
82,406
1,314,969
1,397,375
2,204,947		 Income
£
212,918
260,550
38,307
101,416
-
613,191
-
-
-
357,147
357,147
970,338		 £
(254,813)
(205,701)
(141,277)
(52,809)
-
(654,600)
-
-
-
(566,496)
(566,496)
(1,221,096)
Expenditure		 £
-
-
-
-
-
-
-
-
-
221,270
221,270
221,270
Net gains on
investments		 Transfers
between
funds
£
36,419
6,692
93,016
1,443
-
137,570
(38,305)
(44,101)
(82,406)
(55,164)
(137,570)
-		 At 31
October
2021
£
161,080
95,343
24,450
84,012
538,848
903,733
-
-
-
1,271,726
1,271,726
2,175,459

35

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

19. Movements in funds (continued) Purposes of restricted funds

EU funded projects

EU-Funded projects are part of international framework programmes (Horizon 2020, Horizon Europe) and typically are large collaborative international projects, of a 3 to 5 years duration, where typically ORC partners with more than 10 partners, both scientific and stakeholder, according to a ‘multi-actor approach’, from different EU or associated countries. Such projects cover all ORC thematic areas and can be of three types: ‘Research and Innovation Action’, mostly aimed at producing original knowledge, ‘Innovation Actions’, mostly aimed at bringing innovative practices closer to market readiness on an international scale, and ‘Thematic Network’, mostly focused on knowledge exchange on an international scale.

UK statutory funded projects

UK Statutory projects are a wide array of activities funded directly or indirectly by UK governmental bodies and typically are aimed at a regional-to-national scale. They can take the shape of high-consultancy contracts, like with DEFRA or other public and private bodies, or subcontracts to a university or public research centre (like those funded by the UKRI), or grants from various organisations and programmes e.g. the Innovative Farmers programme.

Foundation funded projects

Foundation funded projects support specific programmes of work identified by the research team with funding sourced from Foundations. Projects cover a variety of activities such as the Systems Health project, a project to promote health at all levels in the farming system, funded by Ekhaga Foundation.

Other projects

This funding stream covers a variety of programmes of work identified by ORC whereby funding is received from multiple sources including individuals. This covers internal programmes such as the development of our fundraising capabilities and the implementation of a CRM system supported by The John Ellerman Foundation, or improving our community engagement which has been supported by the Boltini Trust.

Dean Organic Fund

The Dean Organic Fund was established following a major bequest from the late Jennie Bone to ORC, along with the transfer of funds from the former Dean Organic Trust which she established in 1993. Her idea was to support the conservation of wildlife in the farmed environment by providing interest free loans to organic producers. ORC is committed to continuing this process and launched a third round of funding in January 2022.

36

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

Transfers between funds

Transfers between funds have taken place during the year. All transfers, except the transfers out of designated funds, represent the use of unrestricted funds to cover overspends or the reversal of small accrued income balances which were deemed during the year to be irrecoverable.

The funds included in the 'M Langman: Food quality and health bequest' and 'Farm and Food Society: Animal health and welfare' designated funds were originally designated by the trustees several years ago. The trustees reviewed the treatment of these funds and agreed to transfer the remaining balance into general unrestricted funds as these projects finished several years ago.

37

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

19. Movements in funds (continued) - prior period comparative

Movements in funds (continued) - prior period comparative
Restricted funds
EU Funding
UK Statutory Funding
Foundation funding
Other projects
Dean Organic Fund
Total restricted funds
Unrestricted funds
Designated funds:
M Langman: Food quality and health bequest
Farm and Food Society: Animal health and welfare
Total designated funds
General funds
Total unrestricted funds
Total funds
FIBL: SMART, Publications, Project Acquisition		 At 1
November
2019
£
356,871
5,260
80,404
7,912
538,848
989,295
1,885
38,305
44,101
84,291
448,091
532,382
1,521,677		 Restated
income
£
19,593
144,799
127,687
46,828
-
338,907
-
-
-
-
1,758,736
1,758,736
2,097,643		 £
(282,823)
(124,521)
(173,687)
(20,778)
-
(601,809)
(1,885)
-
-
(1,885)
(789,812)
(791,697)
(1,393,506)
Expenditure		 £
-
-
-
-
-
-
-
-
-
-
(20,867)
(20,867)
(20,867)
Net gains on
investments		 Restated
£
72,915
8,264
-
-
-
81,179
-
-
-
-
(81,179)
(81,179)
-
Transfers
between
funds		 Restated
At 31
October
2020
£
166,556
33,802
34,404
33,962
538,848
807,572
-
38,305
44,101
82,406
1,314,969
1,397,375
2,204,947

38

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

20. Related party transactions

Trustees donated a total of £10,160 (2020: £400) (including £160 (2020: £nil) travel and subsistence expenses not claimed) to Organic Research Centre during the year.

In the prior year, D Peck, trustee, was paid £735 in interest on loans made to Organic Research Centre made between 2014/15 and 2019/20.

Organic Research Centre paid £10,290 (2020: paid £1,578 in membership fees) to IFOAM during the year. Roger Kerr is a trustee of Organic Research Centre and IFOAM.

21. Financial instruments at fair value

2021 2020
£ £
Financial assets measured at fair value 1,242,656 529,138

Financial assets measured at fair value comprise listed investments.

22. Operating lease commitments

The charity had operating leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year
Within 1 - 5 years		 2021
£
37,200
80,600
117,800		 2020
£
37,200
176,700
213,900

23. Cash and cash equivalents

Current asset investments
Cash at bank
Total		 2021
£
375,186
325,458
700,644		 2020
£
300,464
685,908
986,372

39

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2021

24. Prior period restatement

The following changes have been made to restate the prior year figures. These changes have been made to reverse the over-accrual of income in the prior year.

Debtors
Total debtor balance per original accounts
Restatement to reverse over accrual of income in 2020
Total debtor balance after restatement
Income from charitable activities: research and projects
Restricted
£
£
261,802
11,939
(66,260)
-
195,542
11,939
Unrestricted
Income from charitable activities: research and
projects in original accounts
Restatement of income from European
Commission
Total research and project income after
restatement		 2020
£
185,404
(66,260)
119,144
2020
Total
£
273,741
(66,260)
207,481

40

Alison Godfrey Godfrey Wilson Limited Chartered Accountants & Statutory Auditors 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD

18 March 2022

Dear Alison

Letter of Representations on the Financial Statements for the Year Ended 31 October 2021

This representation letter is provided in connection with your audit of the financial statements of the charity for the year ended 31 October 2021.

We confirm that the following representations are made on the basis of enquiries of the trustees, management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you:

  1. We have fulfilled our responsibilities as trustees, as set out in the terms of your engagement letter dated 18 February 2020, under the Companies Act 2006 for preparing financial statements, in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We confirm that in our opinion the financial statements give a true and fair view and in particular that where any additional information must be disclosed in order to give a true and fair view that information has in fact been disclosed. We confirm that the selection and application of the accounting policies used in the preparation of the financial statements are appropriate, and we approve these accounts for the year ended 31 October 2021.

  1. We confirm that all accounting records have been made available to you for the purpose of your audit, in accordance with your terms of engagement, and that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management, trustees’ and members’ meetings, have been made available to you. We have given you unrestricted access to persons within the charity in order to obtain audit evidence and have provided any additional information that you have requested for the purposes of your audit.

  2. We acknowledge that it is a criminal offence to make a false statement in this regard, and where any director either makes a false statement; is aware that the statement is false; is reckless in preventing this statement; or fails to take reasonable steps to prevent the trustees’ report from being approved, we acknowledge that each director will be guilty of a criminal offence.

  3. We confirm the charity has satisfactory title to all assets and there are no liens or encumbrances on the assets, except for those disclosed in the financial statements.

Organic Research Centre, Trent Lodge, Stroud Road, Cirencester GL7 6JN

T 01488 658 298 E hello@organicresearchcentre.com W organicresearchcentre.com

Patrons: The Duchess of Richmond and Gordon, Yvonne Pye, Christopher Bielenberg, Juliet Kindersley, Peter Kindersley and Jan Sundt. The Progressive Farming Trust Ltd, trading as the Organic Research Centre, is a charity registered in England and Wales (281276). A company limited by guarantee (1513190). Registered office: Trent Lodge, Stroud Road, Cirencester GL7 6JN.

  1. We confirm that significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. We confirm that we have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.

  2. We confirm that the charity has no liabilities or contingent liabilities other than those disclosed in the financial statements.

  3. We confirm that all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with the applicable financial reporting framework.

  4. We confirm that there have been no events since the balance sheet date which require disclosing or which would materially affect the amounts in the financial statements, other than those already disclosed or included in the financial statements.

  5. We confirm that we are aware that a related party of the charity is a person or organisation which either (directly or indirectly) controls, has joint control of, or significantly influences the charity or vice versa and as a result will include: trustees/directors, other key management, close family and other business interests of the previous. We confirm that the related party relationships and transactions set out in appendix 1 are a complete list of such relationships and transactions and that we are not aware of any further related parties or transactions.

  6. We confirm that the charity neither had, at any time during the year, any arrangement, transaction or agreement to provide credit facilities (including advances and credits granted by the charity) for trustees, nor provided guarantees of any kind on behalf of the trustees except as disclosed in the financial statements.

  7. We confirm that the charity has not contracted for any capital expenditure other than as disclosed in the financial statements.

  8. We confirm that the charity has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.

  9. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charity conducts its activities and which are central to the charity’s ability to conduct its activities, except as explained to you and as disclosed in the financial statements.

  10. We acknowledge our responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud. We confirm that we have disclosed to you the results of our risk assessment of the risk of fraud in the organisation. There have been no deficiencies in internal control of which we are aware.

  11. We confirm that there have been no actual or suspected instances of fraud involving trustees, management or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by trustees, former trustees, employees, former employees, regulators or others.

Organic Research Centre, Trent Lodge, Stroud Road, Cirencester GL7 6JN

T 01488 658 298 E hello@organicresearchcentre.com W organicresearchcentre.com

Patrons: The Duchess of Richmond and Gordon, Yvonne Pye, Christopher Bielenberg, Juliet Kindersley, Peter Kindersley and Jan Sundt. The Progressive Farming Trust Ltd, trading as the Organic Research Centre, is a charity registered in England and Wales (281276). A company limited by guarantee (1513190). Registered office: Trent Lodge, Stroud Road, Cirencester GL7 6JN.

  1. We confirm that, in our opinion, the charity’s financial statements should be prepared on the going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity’s needs. In reaching this conclusion, we have taken into account all relevant matters of which we are aware, and have considered a period of at least one year from the date on which the financial statements will be approved.

  2. We confirm that in our opinion the effects of uncorrected misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is set out in the management letter.

  3. We confirm that, in respect of the restatement to correct a misstatement in prior period financial statements that affects the comparative information (and any other period covered by your work), the adjustment relates to the correction of a fundamental error which has no bearing on the results of the current period, and accordingly, should be accounted for by restating prior periods.

  4. We confirm that we are not aware of any matters of material significance that should be reported to regulators. We confirm that all correspondence with the Charity Commission has been made available to you.

  5. We confirm that all grants, donations and other income, including those subject to special terms or conditions or received for restricted purposes, have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income.

  6. We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that: (a) so far as each trustee is aware, there is no relevant audit information of which you as auditors are unaware; and (b) each trustee has taken all the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that you are aware of that information.

  7. We acknowledge that it is a criminal offence to knowingly or recklessly make you as an auditor, a statement (oral or written) that conveys, or purports to convey, information or explanations that you require in your capacity as auditor, or are entitled to require, that is misleading, false or deceptive in a material particular.

Yours sincerely

Tim Bennett – trustee and chair

Organic Research Centre, Trent Lodge, Stroud Road, Cirencester GL7 6JN T 01488 658 298 E hello@organicresearchcentre.com W organicresearchcentre.com

Patrons: The Duchess of Richmond and Gordon, Yvonne Pye, Christopher Bielenberg, Juliet Kindersley, Peter Kindersley and Jan Sundt. The Progressive Farming Trust Ltd, trading as the Organic Research Centre, is a charity registered in England and Wales (281276). A company limited by guarantee (1513190). Registered office: Trent Lodge, Stroud Road, Cirencester GL7 6JN.

Appendix 1: Summary of Related Parties

Connected Organisation Name Nature of Connection
Council of IFOAM EU Roger Kerr UK Representative

Organic Research Centre, Trent Lodge, Stroud Road, Cirencester GL7 6JN

T 01488 658 298 E hello@organicresearchcentre.com W organicresearchcentre.com

Patrons: The Duchess of Richmond and Gordon, Yvonne Pye, Christopher Bielenberg, Juliet Kindersley, Peter Kindersley and Jan Sundt. The Progressive Farming Trust Ltd, trading as the Organic Research Centre, is a charity registered in England and Wales (281276). A company limited by guarantee (1513190). Registered office: Trent Lodge, Stroud Road, Cirencester GL7 6JN.