The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2023 2023 Unrestricted funds Total funds Total funds 2022 Income and endowments Donations and legacies Investment income 540,092 14,469 540,092 14,469 832,118 15,545 Total income 554,561 554,561 847,663 Expenditure Expenditure on charitable activities Total expenditure 7.9 (1.140.109) (1.140.109) (350.405} (1,140,109) (1,140,109) (350,405) Net lossesl(gains) on investments 11 45,283 45,283 {11,471) Net (expenditure)lincovne and net movement in funds (830,831) (630,831) 506,729 Reconciliation of funds Total funds brought fotward Total funds carried forward 1.142,753 1.142,753 634,024 511,922 511,922 1,142.753 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 26 to 39 fo part of these financial statements. 23
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Statement of Financial Position 31 March 2023 2023 2022 Note Fixed assets Tangible fixed assets Investments 16 17 7.639 678,536 3.568 718,329 721,897 686,175 Current assets Debtors Cash at bank and in hand 18 234,659 457,581 327.843 533,918 692,240 861.761 Creditors: amounts falling due withln one year Net current assets 19 395,747 402,826 29fi,493 458.93S Total assets less current liabilities 982,668 1,180,832 Creditor5: amounts falllng due after more than one year Net assets 20 470,746 38,079 511,922 1,142.753 Funds of the charity Unrestricted funds 511,922 511,922 1,142.753 Total charity funds 1,142.753 These financial statements were approved by the board of trustees and authorised for issue on 28 November 2023, and are signed on behalf of the board by: Prof. G E Boyle Trustee Mr l G Mccluggage Trustee Mr J N Mcmordie Trustee The notes on pages 26 to 39 forni part of these financial statements.
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee statement of Cash Flows Year ended 31 March 2023 2023 2022 Cash flows from operating activities Net (expenditure)lincome (630.831) 508,729 Adjustments for Depreciation of tangible fixed assets Net {losses)Igains on investments Dividends, interest and rents from investments Other interest receivable and slmllar Income Accrued expensesl(income) 2,677 45,283 (13,776) (693) 1,078 1.813 (11,4721 (15,4471 {98) (72,298) Changes in." Trade and other debtors Trade and other creditors 93.184 424,510 (78,568) 98.892 {321,139) 188,980 Cash generated from opetionS Interest received 693 98 Net cash (used in)Ifrom operating activities (77.875) 189,078 Cash flows from investing activities Dividends, interest and rents from investments Purchase of tangible assets Purchases of other investments Proceeds from sale of other investments 13,776 (6,748) (196,020) 190,530 15,447 11,678} (446,168) 432,368 Net cash froml(used in) investing activities 1,538 {31) Net (decrease)lincrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (76.337) 533,918 189.047 344.871 457.581 533,918 The notes on pages 26 to 39 forni part of these financial statements. 25
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2023 General information The charity is a public benefrt entty and a private company limited by guarantee, registered in Northern Ireland and a registered charity in Northem Ireland. The address of the registered office is Innovation Centre, Large Park. Hillsborough. Co. Down, BT26 6DR. Northem Ireland. ststement of compliance These financial statements have been prepared in compliance with FRS 102, The Financial Reporting Standard applicable in the UK and the Republic of Ir8land', tha Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006. Accounting policies Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling. which is the functional currency of the entty. Going concern There are no material uncertainties about the chariws abilty to continue. Judgements and key sources of estimation uncertainty In the application of the Charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carying amount of assets and liabi5ities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period. or in the period of the revision and future periods were the revision affects both current and future periods. 26
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Ststements (continued) Year ended 31 March 2023 Accounting policies (contlnued) Fund accounting Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the twstees for particular future project or commitmenL Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of sub-classes: restricted income funds or endowment funds. Incoming resources Incoming is recognised when the Charty is legally entitled to it after any performance conditions have been met. the amounts can be measured reliably. and it is probable that income will be received. The levy rates charged to the producers are as follows: Milk Beef Sheep 0.02p per litre 30p per head 5p per head Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on reipl or otherwise if the Charity has been notified of an impending distribution. the amount is known and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. 27
The Northern Ireland Agricultural Research and Development Councll TIA Agrlsearch Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Accounting policies (coniinuerfj Resources expended All expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or conslructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Grants payablp. t() third parties are within charitable obj@ttives. Where unconditional grants are offered. this is accrued as soon as the recipient is notified of the grant. as this gives rise to a reasonable expectation that the recipient will receive grants. Expenditure on charitable activtties includes costs undertaken to further the purposes of the charity. Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, management charges and govemance costs which support the Council's activtiies. These costs have been allocated to charitable activities. Operating leases Lease payments are recognised as an expense over the lease temi on a straight-line basis. The aggregate benefit of lease inntiveS is recognised as a reduction to expense over the lease temi, on a straight-line basis. Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impaiment losses. Any tangible assets carried at valued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impaimient losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses. except to which it offsets any previous revaluation gain. in which case the loss is shown within other recognised gains and losses on the statement of financial activities. Depreciation Depreciation is calculated so as to wrtte off the cost or valuation of an asset, less its residual value. over the useful economic life of that asset as follows- Fixtures and fittings IT Equipment 200/0 Straight line 20 /0 Straight line 28
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements (a)ntinued) Year ended 31 March 2023 Accounting policies (continued) Investments Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Changes in fair value are recognised in net inGomel(expenditure)for the year. Transaction costs are expensed as incurred. Investments in associates Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance wtth the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value. with changes in fair value taken through income or expenditure_ Where it is impracticable to measure fair value reliably without undue cost or effort. the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profrts of the associate arising before or after the date of acquisition. Investments in joint ventures Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are Inltlally recorded at the transaction price. At each reporting date, the investments are measurecl at fair value, with changes in fairvalue taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition. Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. IAlhere the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impaiments are also reviewed for possible reversal at each reporting date. For the purposes of impaimient testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. 29
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Accountlng pollcles (continued) Impairment of fixed assets (conlinuedj For impairment testing of goodwill, the goodwill acquired in a business combination is. from the acquisition date, allocated to each of the cash-generating units that are expected to beneftt from the synergies of the combination. irrespective of whether other assets or liabilities of the charity are assigned to those units. Financial instruments A financial asset or a financial liability is recognised only when the charty becomes a paty to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount recesvable or payable including any related transaction costs. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Where investments in shares are publicly trade(J or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value wtth changes in fair value recognised in income and expenditure. All other such investments are subseqLfently measured at cost less impaimient. Other financial instruments, including derivatrves, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of Interest that is not a market rate. in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently rneasud at fair value, with any changes recognised in the statement of financial activities. with the extsption of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairmenl, an impairment loss is recognised under the appropriate heading in the statement of financial actbvities in which the initial gain was recognised. For all equity instruments regardless of significance, and other financial assets that are individualty significant, these are assessed individually for impaimient. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impaimient are recognised immediately. to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. 30
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Accounting policies (continued) Defined contribution plans Contributions to defined Contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly wÈthin 12 months of the end of the reporting date in which the employecs render the related service. the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employÈÈ's services are received. Termination benefits are recognised Immediate as an expense when the Charty is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Limited by guarantee The company, being a company limited by guarantee, does not have share capital. The liability of members of the company is limited to £1 per member. Donations and legacies Unrestricted Total Fund5 Unie5triGled Total Funds Funds 2023 Funds 2022 Donations Donations and gifts 476.040 476,040 502,779 502,779 Grants Grants receivable 64,052 64,052 329,339 329.339 540.092 540.092 832,118 832,118 31
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Donations and legacies (continued) 2023 2022 Donations and Gifts Milk Levy Beef Levy Sheep Levy AHWNI 316,053 128,106 22,586 9,296 335,117 114,474 22,595 30,593 476,040 502,779 Grants for Core Activities DAERA Research Challenge Fund EU Horizon 2020 64,052 275,473 53,8GG 64,052 329,339 Agrisearch collected funds for AHIIINI which were then paid across to AHVIINI. These funds have been included wtth income and expenditure in the financial statements. This agreement ended in March 2022 and the final payments We made during the year. The funds are now paid diiedSy to AHWNI from the Levy Bodies. Investment income Unrestricted Totsl Funds Unrestricted Total Funds Funds 2023 Funds 2022 Income from other investments Other interest receivable 13.776 693 13.776 693 15,447 98 15,447 98 14,469 14,469 15,545 15,545 32
The Northern Ireland Agricultural Research and Development Councll TIA Agrlsearch Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Expenditure on charitable activities by fund type Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Research and development in the agricultural industry. Support costs 1,068.389 71,720 1,068.389 71,720 294,112 56,293 294,112 56,293 1,140,109 1.140,109 350,405 350.405 2023 2022 Staff costs Legal and professional fees Dissemination costs AI IWNI funding 136,041 4,781 28,370 9,296 111,079 9.000 13,934 30,593 178,488 164,606 Grant funding actNlties 889,901 129,506 Share of support costs Share of govemance costs Unrestricted fund 56.565 15.156 49.198 7,095 1.140,109 350,405 Reconciliation of project commitments 2023 2022 Grants to institutions Opening commitments Agri-Food & Biosciences Instttute {Decreased)Ilncreased project in year Paid during the year 370,653 640,959 769,857 85,240 (14,684) (132,964) {291.8281 (222,582} 833,998 370,653 Expenditure on charitable activities by activity type Activities undertaken directly Support Total funds costs 2023 Total fund 2022 Research and development in the agricultural industry. Govemance costs 1,068,389 56.565 15.155 1.124,954 15,155 343,310 7,095 350,405 1.068,389 71.720 1.140.109 33
The Northern Ireland Agricultural Research and Development Council TIA Agri5earch Company Limited by Guarantee Notes to the Financial Ststements (continued) Year ended 31 March 2023 10. Analysis of support costs Analysis of support costs activity 1 Total 2023 Total 2022 Staff costs Premises Communications and IT G8n8ral officè Finance costs Governance costs Support costs - depreciation Support costs - other costs 35,278 5,938 2,235 2,578 4,276 15,156 2.677 3.582 35,278 5,938 2,235 2,578 4,276 15,156 2,677 3,582 28,939 6,003 2,860 1,571 5,263 7,095 1,813 2,749 71.720 71.720 56,293 11. Net (losses)Igains on Investments Unrestricted Totsl Funds Unrestricted Total Funds Funds 2023 Funds 2022 Gainsl(losses) on other investment assets (45,283) (45.283) 11,471 11,471 12. Net {expenditure)lincome Net (expendlture)Ilncome Is stated after charglngl(credlllng): 2023 2022 Depreciation of tangible fixed assets 2,677 1,813 13. Auditors remuneration 2023 2022 Fees payable for the audit of the financial statements 5.000 5,000 14. Staff Costs The total staff costs and employee benefits for the reporting period are analysed as follows: 2023 2022 Wages and salaries Social security costs Employer contributions to pension plans 158.158 9,928 3,233 130,058 7,347 2,613 171.319 140,018
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements {continuedJ Year ended 31 March 2023 14. Staff costs (continued) The average head count of employees during the year was 6 {2022'. 5). The average number of full-time equivalent employees during the year is analysed as foll0v. 2023 2022 General Manager Project Officer Finance Officer Reseaich Manager Field Officer Student Researcher No employee recelved employee Denellts of more than £60,000 during the year {2022: Nil). 15. Trustee remuneration and expenses None of the Trustee5 (or any persons connected with them) reiVed any remuneration during the year (2022." £Nil). Trustees were reimbursed travel expenditure totalling £2,036 {2022: £202) and in addition, one trustcc rcceivcd £2.500 {2022= £2.000) for takin9 part in projects including Grasscheck, Ecosward and Beacon Farm Network. 16. Tangible fixed assets Fixtures and fittings IT Equipment Total Cost At 1 April 2022 Additions 3,675 9.157 6,748 12,832 6,748 At 31 March 2023 3.675 15,905 19,580 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 2.530 469 6,734 2.208 9,264 2,677 2.999 8,942 11.941 Carrying amount At 31 March 2023 676 6,963 7,639 At 31 March 2022 1,145 2,423 3.568 35
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Lirnited by Guarantee Notes to the Financial Statements (conlinued) Year ended 31 March 2023 17. Investments Other investments Cost or valuation At 1 April 2022 Additions Disposals Fair value movements 718,329 196,020 (190,530) (45,283) 678,536 At 31 March 2023 Impairment At 1 April 2022 and 31 March 2023 Carrying amount At 31 March 2023 678,536 At 31 March 2022 718,329 All investments shown above are held at valuation. 18. Debtors 2023 2022 Trade debtors Prepayments and accrued income 153,657 81.002 154,350 173,493 234,659 327,843 19. Creditors: amounts falling due within one year 2023 2022 Trade creditors Accruals and deferred income Social security and other taxes other creditors 11,487 16,199 4,809 363,252 39,026 15.121 2,118 346,561 395,747 402,826 Other creditors relates to project expenditure commttted to by the charity. During the financial year the Trustees commissioned two new large projects ZeroNsile (a five year project) as well as approving funding for an enlarged Grasscheck project for the period 2023-2025. The budget allocations include provision for Agrisearch staff costs associated with these projects. 36
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements fcontinuedj Year ended 31 March 2023 20. Creditors: amounts falling due after more than one year 2023 2022 Other creditors 470,746 38,079 Other creditors relates to project expenditure committed to by the charity. During the financial year the Trustees commissioned two new large projects ZeroNsile (a five year project) as well as approving funding for an enlarged Grasscheck project for the period 2023-2025. The budget allocations include provision for Agrisearch staff costs associated with these projects. 21. Pensions and other post retirement benefits Defined contribution plans The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £3.233 (2022: £2,613). 22. Analysis of charitable funds Unrestricted funds At Gains and 31 March 20 losses 23 At 1 April 2022 Income Expenditure General funds 1.142.753 554,561 (1.140.109) (45,283) 511,922 At Gains and 31 March 20 losses 22 At 1 April 2021 Income Expenditure General funds 634,024 847,663 (350,405) 11,471 1,142,753 37
The Northern Ireland Agricultural Research and Development Councll TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements (conthued) Year ended 31 March 2023 23. Analysis of net assets between funds Unrestricted Total Funds Funds 2023 Tangible fixed assets Investments Current assets Creditors less than 1 year Creditors grcatcr than 1 year Net assets 7,638 7,638 678,536 678,536 692,240 692,240 (395,746) (395,746) (470,746) (470,746) 511.922 511.922 Unrestricted Total Funds Funds 2022 Tangible fixed assets Investments Current assets Creditors less than 1 year Creditors greater than 1 year Net assets 3,568 3.568 718.329 718,329 861,761 861,761 (402,826) {402,826) {38,079) (38,079) 1,142,753 1,142,753 24. Financial instruments The carying amount for each category of financial instrument is as follows: 2023 2022 Financial assets that are debt instruments measured at amortised cost Financial assets that are debt instruments measured at amortised cost 153,657 154,350 Financial assets that are equity instruments measured at cost less Impairnient Financial assets that are equity instruments measured at cost less impairment 678,536 718,329 Financial liabilities measured at amortised cost Financial liabilities measured at amortised cost 861,683 438,787 25. Analysis of changes in net debt At At 1 Apr 2022 Cash flows 31 Mar 2023 Cash at bank and in hand 533,918 (76,337) 457,581 38
The Northern Ireland Agricultural Research and Development Council TIA Agrisearch Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 26. Operating lease commitments The total future minimum lease payments under non-cancellable operating leases are as follows= 2023 2022 Not later than 1 year Later than 1 year and not later than 5 years 3.492 6,984 3,492 10,476 10,476 13,968 27. Limitation of auditors liability The company has entered into a liabilty limitation agreement with ils auditor, Aubrey Campbell and Company, on the following basis: {a) the maximum aggregate amount of the auditorfs liabilty to the company shall not exceed the sum of fwe times the fees payable (excluding expenses and value added tax) under the engagement letter agreed for the financial period, or £30.000, whichever is the lesser amount. (b) the agreement was passed by a resolution of the company's trustees on 05th September 2023. 28. RÈlatÈd partiÈs DLtring the yearthere were members oflheAgrisearch advisory committees and Board of Trustees who were involved as farmer co-researchers in projects which Agrisearch co-funded. The advisory committees are in place to review funding and expenditure proposals. A total of £7,000 {2022: £6.700} was paid out to Iwo members of the Beef advisory committee, three members of the Dairy advisory committee and members of the Sheep advisory committee. One trustee and one member of the Sheep advisory committee sit on the board of AHWNI.Agrisearch collected levies of £9,296 (2022". £35.089) on behalf of AHWNI and made payments of £9,296{2022: £35,089) to AHWNI during the year. The balance owing to AHWNI at the year end was £ nil (2022: £11,424). This levy agreement between Agrisearch and AHWNI ended during the year and the amount now goes directly to AHWNI. John Henning. Senior Vice-chaimian of Agrisearch is also a director CIELtvestock Limited, who provide services to the charity within the terms of their charitable activities. CIELivestock Limited was paid a total of £1,025 (2022.. £1,200). John Henning was also a director in Countryside Services Ltd until his resignation from this position on 26108122. A total of £446 (2022: £1,054) was paid to Countryside SeNices Ltd for services provided across charitable activities. 39