THE BRITISH NUTRITION FOUNDATION
(Limited by Guarantee)
Company Registration Number 898651
Charity Registration Number 251681
Scottish Charity Number SCO40061
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31st MAY 2011
The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
STRUCTURE, GOVERNANCE AND MANAGEMENT
Reference and Administrative Details
Charity Number:
251681
Scottish Charity Number: SCO40061
Company Number:
898651
Principal Office
High Holborn House, 52 – 54 High Holborn, London, WC1V 6RQ
Directors and Trustees
The Directors of the Foundation are its trustees for the purposes of charity law and throughout this
report are collectively referred to as the trustees.
The trustees during the year were:
rd
Professor J Blundell BSc PhD CPsychol FBPsS (joined w.e.f 23 November 2010)
Mr M Collyer FIFST
Mr RJ Fletcher BSc
Professor K Fox PhD
Mrs FCA Gallagher BA FRSA
rd
Professor AE de Looy BSc PhD SRD (left w.e.f 23 November 2010)
rd
Mr D Gregory CSci FIFST (Vice Chairman from 23 November 2010)
rd
Mr PE Hebblethwaite BSc MSc CSci CEng FIFST FIChemE (Chairman until 23 November 2010)
Miss A Heughan RD
rd
Professor ADB Malcolm MA DPhil CBiol FIBiol FIFST (Chairman from 23 November 2010)
th
Mr RA Marsh CSci BSc MSc FIFST (passed away on 28 December 2010)
Professor I Rowland BSc PhD R Nutr
Professor T Sanders BSc PhD DSc
rd
Professor C Williams BSc PhD (Vice Chairman until 23 November 2010, resigned thereafter)
rd
Professor MJ Wiseman MB BS MRCP (joined w.e.f 23 November 2010)
Senior Staff
Director General:
Professor JL Buttriss BSc PhD Dip.Diet RPHNutr
Deputy Director General:
Ms SJ Valentine MA DipEd DipAdDev FRSA
Company Secretary:
Mr T Barclay
Professional Advisors
Solicitors:
Richards Butler, Beaufort House, 15 St Botolph Street, London, EC3A 7EE
Auditors:
Kingston Smith LLP, Devonshire House, 60 Goswell Road, London, EC1M 7AD
Bankers:
Barclays Bank, Knightsbridge Business Centre, PO Box 32014, London, NW1 2ZG
Constitution and Objectives
Purpose
The British Nutrition Foundation (BNF) is a charity established in 1967 and exists to deliver
authoritative, evidence-based information on food and nutrition in the context of health and lifestyle. Its
registered office is at High Holborn House, 52-54 High Holborn, London WCIV 6RQ (Charity No.
251681), and it is registered as a company limited by guarantee (No. 898651).
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
Constitution
The British Nutrition Foundation (BNF) is constituted by the Memorandum and Articles of
Association of the Foundation dated February 1967, as altered by Special Resolutions passed in March
1973, November 1978 and November 2004.
The latest amendment to the Memorandum and
Articles of Association established a Board of Trustees of 12 members in place of the larger Council
of up to 34, which had previously been responsible for governance. The larger Council has been kept
in an advisory and audit role, and is responsible for appointing the Board of Trustees. The
opportunity was also taken to review the objects and to revise the wording of the Memorandum and
Articles of Association to modernise the documents and to give the trustees some additional powers,
including the power to purchase trustee indemnity insurance. The changes to the Memorandum and
Articles of Association were approved by the Charity Commission on 22nd November 2004 and by
the Members at the Foundation’s Annual General Meeting (AGM) on 23rd November 2004.
Statement of Corporate Governance
Policies
The British Nutrition Foundation is a registered charity established over 40 years ago. It attracts
funding from a variety of sources, including contracts with the European Commission, national
government departments and agencies; food producers and manufacturers, retailers and food service
companies; grant providing bodies, trusts and other charities. The Foundation exists to deliver
authoritative, evidence-based information on food and nutrition in the context of health and lifestyle.
The Foundation’s work is conducted and communicated through a unique blend of nutrition science,
education and media activities.
The principal activities of The British Nutrition Foundation fall under the broad headings of providing
scientifically based nutritional information and advice, supporting and encouraging excellence in all
aspects of food and nutrition education in schools and elsewhere, and disseminating current scientific
understanding through publications, its websites and through the high quality conferences and
seminars that it organises. Public interest in, and awareness of, the interactions between food, diet,
health and lifestyle continue to grow apace, and the Foundation’s staff are experienced in providing
balanced advice and impartial scientific interpretation, which is the bedrock of its existence. BNF’s
outputs are used by governments, the European Commission, healthcare professionals, educators, the
media, the food chain and the general public. The Foundation enjoys the active support of eminent
scientists, prominent individuals from the educational and medical worlds, as well as from consumer
organisations, the media, and organisations throughout the food chain. Its strong governance is broad
based but weighted towards the academic community, and the Foundation is honoured to have Her
Royal Highness The Princess Royal as our Patron.
Management
The Council consists of Scientific, Industrial and General Governors, and Council acts in an advisory
and audit role. Council is also responsible for appointing the 12-member Board of Trustees from
amongst the Members of Council. Members of the Board of Trustees are Directors and Trustees of
the Foundation. The Royal Society of London appoints one Scientific Governor. The Director
General and her staff are responsible for the day-to-day management and administration of the
Foundation.
Candidates for General and Scientific Governors can apply directly to the Foundation or may be
approached on the recommendation of Council should a vacancy arise. The Foundation’s industrial
members provide a source of candidates whenever a vacancy for an Industrial Governor arises.
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
All Council members are required to sign a Declaration of Interests form annually, in accordance with
the Foundation’s Conflict of Interests Policy. They are also obliged to sign a Trustees Declaration
Form, which obliges them to undertake their responsibilities in good faith and in accordance with the
law and to act within the Foundation’s strategic objectives, purposes and values.
The Council met four times as did the Board of Trustees. Meetings are conducted in accordance with
the Articles of Association. All policy decisions are recorded in the minutes.
The Foundation has a written Ethical Policy which sets out the Foundation’s values and lays down
specific policy guidelines to ensure that the Foundation adheres to its charitable objects, behaves
ethically and maintains its independence and scientific integrity.
Members of Council and members of the Board of Trustees have adopted a code of practice. This
code includes the role of Council and Board of Trustee members, handling conflicts of interest and
confidentiality.
A Scientific Advisory Committee and an Industrial Scientists Committee, which meet jointly, are also
established to advise the Foundation on scientific and technical issues. There is an Education Working
Group for each of the four UK regions to advise the Foundation on educational issues. An Editorial
Advisory Board exists to oversee the Foundation’s scientific and learned journal, Nutrition Bulletin.
Task Forces are established to prepare reports, which aim to gather the very latest scientific
consensus on specific topics, for publication.
Employee Involvement
Employees are kept informed on a regular basis through office meetings at which the work of the
Foundation and future plans are discussed. These meetings also provide a forum for employees to put
forward suggestions for improving the performance of the Foundation. Other channels are also
utilised, such as Programme Meetings, which enable staff to participate in decision making processes
including, for example, the development of workplans. Feedback from employees is additionally
received through the annual appraisal process.
Employment Policies
The Foundation is an equal opportunities employer and does not discriminate on the basis of age, sex,
religious beliefs or disability. Candidates for employment are considered on the basis of their ability,
experience and qualifications. During the year a thoroughly revised staff handbook was prepared by
external human resources consultants (BestStart Human Resources), which contains its employment
policies, together with its disciplinary and grievance procedures and other relevant information.
Public Benefit
The British Nutrition Foundation exists to deliver objective, evidence-based information on food and
nutrition in the context of health and lifestyle, for public benefit. BNF’s work is conducted and
communicated through a unique blend of nutrition science, education and media activities; accurate
interpretation of nutrition science is at the heart of all we do. To these ends, the Foundation
organises and hosts several regional conferences each year for school teachers, as well as other
conferences and events relating to specific nutrition topics and of interest to healthcare professionals,
industry personnel and the media. The BNF Team has extensive experience in the development,
design and launch of innovative teaching and learning materials for all types of school throughout the
UK. Also, throughout the year the Foundation produces a range of publications and materials of
interest to a wide spectrum of people. Furthermore, the Foundation’s websites, www.nutrition.org.uk
and www.foodafactoflife.org.uk, disseminate a great deal of up-to-date and free information to those
requiring it using a variety of media.
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
RISK ASSESSMENT
The major strategic business and operational risks to which the charity is exposed, as identified by the
Trustees, have been reviewed during the year and systems have been put in place to mitigate any
newly identified risks.
ACHIEVEMENTS AND PERFORMANCE
The key strategic objectives and associated measures of success established for the year were:
Strategic Objectives and associated Measures of Success
Nutrition Science: To promote and be recognised for the highest standards in the collation,
evaluation, interpretation and dissemination of scientific information concerning nutrition, diet and
lifestyle. To produce task force reports and reviews on key nutrition issues and to create innovative
targeted information for external dissemination that is accurate, consistent and meaningful to the
intended audience. To use the insight gained from this work to advise, influence, inspire and support
government and its policy development, the food industry and key opinion leaders including
journalists.
•
Secure inclusion of Nutrition Bulletin on Medline
•
Complete manuscript for the Task Force on developmental programming (and diet) in early life
by end of 2010 and develop plans for a launch in 2011
•
With Education, deliver the first phase of the European Food Framework project (Jan 2011),
and plan for Phase 2.
•
Plan for a project on physical activity (that could link with a conference) to coincide with runup to Olympics. Set up internal group to seek opportunities to include physical activity in
science and education resources.
•
Establish a BNF Forum on Sustainable diets.
•
Achieve deliverables & milestones for EuroFIR and ProSafeBeef and other contracts (e.g., UK
FoodComp).
•
Seek and pursue opportunities for inclusion in bids for involvement in further European Union
and national projects.
•
Expand activities relating to training, such as health professionals, staff health fairs, workshops
for those working in the food industry or the catering sector.
•
Continue the rolling programme for production of science resources (minimum 2 per year).
•
Review impact of revisions to publications portfolio.
•
Set up internal group to improve branding of science resources.
•
Produce a second virtual issue of Nutrition Bulletin.
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
Education: To inspire, develop and support excellence in all aspects of food and nutrition education
(with reference to lifestyle, especially physical activity) in schools and elsewhere, and principally to be
taking the lead for independent and accurate information on ‘food and nutrition in schools’.
•
Complete secondary area of the Food – a fact of life (FFL) website in readiness for increased
uptake of food education in 2011.
•
Launch 6 ‘nutrition basics’ podcasts.
•
Conduct a survey of teachers and others on FFL activities and resources to evaluate impact.
•
Investigate potential for FFL resources to feature on the Times Educational Supplement
Resources website.
•
Complete Department for Education Food in Schools contract and liaise on potential
continuation of project.
•
Review, update and relaunch all primary resources on FFL website.
•
Establish a lifelong learning area of the website for teachers (Subject to identified need/funding).
•
Meet with each of the Regional Education Working Groups.
•
Actively seek and tender for appropriate Department for Education, Department of Health and
Food Standards Agency programmes of work, as well as from other organisations, which are in
line with BNF’s themes and charitable objectives.
•
Launch new primary materials, supporting cross-curricular teaching approach.
•
Work with Science to deliver the European Food Framework (EFF) Project.
External communications: To be a primary and respected ‘one-stop-shop’ for those seeking
evidence-based, reliable and clearly presented information on nutrition, diet, food education and other
aspects of a healthy lifestyle, using a range of media that meet the needs of our full spectrum of
stakeholders, including the public.
•
Complete a review of the performance of new website.
•
Continuously maintain, expand and update the BNF website, including the consumer and media
sections.
•
Plan for launch of Task Force report on developmental programming ‘early development’ in
2011.
•
Liaise with the Awarding Bodies throughout the UK to provide awards for GCSE/ Standard
Grade and A-level/ Advanced Highers (awarded at the AGM).
•
Evaluate the implementation of the communications strategy.
•
Subject to continued funding, publicise Burkitt Awards.
•
Establish and publicise the new Award for new graduates in education and nutrition.
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
•
Consider producing a second leaflet about BNF’s activities of relevance to a broader audience.
•
Annual programme of conferences (science and education).
•
Plan for a major event/activity in 2012 to celebrate BNF’s 45th anniversary.
•
Have plans in place by May 2011 to optimise the investment in the BNF Annual Day (including
the Prize Giving and Annual Lecture).
Strategic partnerships: To inspire, seek and develop exemplary collaborations with individuals and
organisations who share our priorities but also those with different agendas, in order to extend our
influence, facilitate change and add value to our activities.
•
Review and improve packs sent to new members and streamline the associated procedures.
•
Continue and develop BNF Forums for membership.
•
Interaction with European Nutrition Foundations – monitor progress and consider joint event/
activity.
•
Seek to establish stronger EU links and promote nutrition education programme, sharing and
learning from each other.
•
Launch secure area of website in response to feedback. Monitor use and uptake.
•
Actively seek opportunities to work in partnership with membership, government departments
(within the new coalition government) and other organisations (including those linked with the
Olympics) on projects that are in line with BNF’s themes and charitable objectives.
Finance: To review and strengthen our membership and retention strategies, and explore new
funding streams. To secure a wide funding base that enables forward planning and protects BNF at
times of market instability. Complete a comprehensive review of BNF’s membership recruitment and
retention policy: revise as necessary.
•
Secure funding to sustain a rolling food and nutrition education programme.
•
Secure funding to sustain production of key resources such as Task Force reports and Briefing
Papers/ Reviews.
•
Recruit a minimum of 1 new sustaining member and 3 new ordinary members.
•
Revise reporting of financial information and develop ‘dashboard’ reporting system.
•
Explore new sources of funding through legacy/donations.
•
Continue to anticipate, prepare and plan for a possible office move within the 2010-12
timeframe.
•
Achieve a surplus to the projected budget, fuelled by new project income and membership
income.
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
Support and value the BNF team: To provide appropriate remuneration and a benefits package
that attracts and retains the highest calibre staff. To integrate this with a lifelong learning approach to
professional development. To make the most of the wealth of experience and skills represented
within our governance structure.
•
Undertake a thorough review of BNF’s human resources function (with external expert input),
to include Health & Safety matters, general terms & conditions of employment, contracts of
employment, staff recruitment processes, general HR policies, and to ensure that these are
consistent with legislation and good practice.
•
Complete evaluation of human resources review and sense check on ‘BNF values’.
•
Complete staff skills audit and establish a culture of skills sharing.
•
Appoint and induct new Chairman and Vice Chair for the Board of Trustees
•
Involve all staff in a review of progress towards achieving the objectives in the 5 year strategy.
•
Ensure Governance is a regular feature on Trustees and Council agendas.
The objectives for the year were largely achieved and in some cases exceeded. We have established a
forum for members on sustainable diets and now have a programme of activities underway in this
area. Work with our EU projects has proceeded as planned and we have pursued several
opportunities for inclusion in bids for similar work. Our rolling programme to develop resources to
compilation of a number of in-depth reviews published in Nutrition Bulletin, including our popular paper
on hydration and health, as well as the role of apple polyphenols in cardiovascular health and an
overview of the role of potatoes in the UK diet. Although our Medline application was rejected, we
have held a strategy meeting with the publishers and have a detailed plan in place for the final
submission.
The European Food Framework project progresses well, with Advisory Groups, communication
newsletters and a website being established. A consensus Framework has been agreed and is being
used as the basis of five pilot projects throughout Europe to engage with children and young people.
Work to maintain, promote and enhance the Foundation’s education programme, Food – a fact of life,
continues to be well received and successful. New resources have been developed, piloted and
launched. Our contractual commitments for Department for Education funded projects are now
complete, and we continue to work in collaboration with a number of other organisations to further
food and nutrition education in schools. Input and constructive feedback from teachers and others
involved in education formed an important element of our work to ensure quality, rigour and
credibility. This was achieved through meeting with our four regional Education Working Groups,
running school based pilots and conducting a survey with teachers about our education programme.
In relation to external communications, we carried out a detailed review of our proactive
communications activities since the implementation of the new strategy. We also gathered feedback
on the content and performance of the new website, which indicated that this has been very well
received. As well as continuing to offer our media service to journalists, we carried out a number of
proactive communications activities, for example holding a radio day to promote our healthy
hydration resources.
Together with partners in 12 countries across Europe, reinvigoration of the network of European
Nutrition Foundations continues and members will meet in Dublin in the Autumn. We have improved
our links with a number of relevant charities and Societies including the Arthritic Association, the
Vegan Society and the Royal College of Midwives.
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
Five new companies, including one Sustaining Member Company, were recruited during the year; new
membership income exceeded the target set.
A review of Human Resources procedures was undertaken and during the year a revised staff
handbook was produced. Coaching and mentoring to support BNF teams has continued.
FINANCIAL REVIEW
General
The Foundation’s year-end has closed with a deficit of £178,469. The key reasons are a reduction in
donations from several existing member companies directly associated with the economic climate, and
unbudgeted reorganisation costs relating to recent management and staff changes. There were also a
number of unforeseen issues in the accounting treatment of the latter phases of several long term
projects, but the substantial over-performance of current projects has offset these to bring the overall
figure for net project income for the year into surplus.
Reserves
The Trustees have reviewed the reserves and believe they remain in excess of the minimum necessary
to meet our legal responsibilities. During the coming financial year, as part of the annual review,
Trustees will consider the existing Reserves Policy in light of the current economic climate.
Internal Controls
The Board of Trustees reviews the management accounts at each meeting. The
written financial policy that sets out internal controls to counter the risk
inappropriate use of funds. An external independent accountant is responsible for
of month financial statements and carrying out a monthly check of the accounts.
audited at the end of the year by registered auditors.
Foundation has a
of fraudulent or
preparing the end
The accounts are
Budgets
Detailed annual budgets are prepared each year and approved by the Board of Trustees. For each
meeting of the Board, financial statements are prepared which show the budgeted expenditure on a
month by month basis, against the actual expenditure. Forecasts of the year-end position will be
prepared on a quarterly basis, starting Quarter1 2011-12.
The Board of Trustees also regularly reviews the investment policy.
The Future Operation of the Foundation
The Board of Trustees has reviewed the financial position of the Foundation and is satisfied that the
Foundation is able to continue to operate for the foreseeable future.
FUTURE PLANS
The Board of Trustees agreed the following objectives, which are in accord with the 5-year strategic
plan, for the financial year commencing 1st June 2011
BUSINESS OBJECTIVES 2011/12
The foci for the forthcoming year for the six strategic areas within the BNF 5-year workplan are
summarised below.
Nutrition Science:
Strategic Objective: To promote and be recognised for the highest standards in the collation,
evaluation, interpretation and dissemination of scientific information concerning nutrition, diet and
lifestyle. To produce task force reports and reviews on key nutrition issues and to create innovative
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
targeted information for external dissemination that is accurate, consistent and meaningful to the
intended audience. To use the insight gained from this work to advise, influence, inspire and support
government and its policy development, the food industry and key opinion leaders including
journalists.
Focus for 2011/12: Continue provision of evidence-based, targeted information about diet, physical
activity and health, with overall themes of (i) nutrition in the early years - developmental programming
and diet (in early life), diet in pregnancy; (ii) sustainability of the food supply from a public health
perspective (‘a diet fit for the future’); and (iii) physical activity in relation to nutrition and energy
balance.
During the year, a rolling programme of Science resources will continue. This will include the
publication of two new briefing papers on the diet and health of ethnic minority groups in the UK and
on nutrition and schoolchildren, a Task Force report on nutrition and development (short- and longterm consequences for health), and a themed issue of Nutrition Bulletin on healthy sustainable diets.
We shall develop further our new on-line information for pregnant women. For health professionals,
we shall publish a joint virtual issue of Nutrition Bulletin and the Journal of Maternal and Child
Nutrition on pregnancy and we shall produce an online training tool on nutrition for midwives. Work
with UK government departments and projects funded by the European Commission will continue.
Education:
Strategic Objective: To inspire, develop and support excellence in all aspects of food and nutrition
education (with reference to lifestyle, especially physical activity) in schools and elsewhere, and
principally to be taking the lead for independent and accurate information on ‘food and nutrition in
schools’.
Focus for 2011/12: Improve and sustain the Foundation's education programme, and effectively use
ICT to communicate with teachers and learners. Delivery of a web-based facility for delivering on-line
nutrition training.
In the forthcoming year, the Foundation’s Food – a fact of life website will be reviewed and updated.
New materials for primary and secondary schools will also be added, including resources in Welsh.
We shall continue our successful video podcast and eSeminar programmes, and consider the use of
social networking to promote our work further. In addition, we shall deliver on our current work
commitments, particularly the European Food Framework, and look to engage with others to support
excellence in food education. We also plan to develop and deliver a web-based facility through which
on-line nutrition training can be accessed by various target audiences.
External communications:
Strategic Objective: To be a primary and respected ‘one-stop-shop’ for those seeking evidencebased, reliable and clearly presented information on nutrition, diet, food education and other aspects
of a healthy lifestyle, using a range of media that meet the needs of our full spectrum of stakeholders,
including the public.
Focus for 2011/12: Promote BNF’s Education Programme and science resources on
www.foodafactoflife.org.uk and www.nutrition.org.uk, and to disseminate our work through
publications, conferences and media activities.
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
During the year, the Foundation will continue to expand the consumer and media sections of its main
website. An event will be organised to launch a new Task Force report and a conference will be
hosted on the effects of physical activity on energy balance and health. A programme of science
communications activities to showcase the Foundation’s Nutrition Science work and promote the
website will be delivered and evaluated. Further promotional activities will take place to communicate
the Foundation’s Education website, programme and events. Planning and preparation will take place
to celebrate the Foundation’s 45th Anniversary in 2012.
Strategic Partnerships:
Strategic Objective: To inspire, seek and develop exemplary collaborations with individuals and
organisations who share our priorities but also those with different agendas, in order to extend our
influence, facilitate change and add value to our activities.
Focus for 2011/12: Maximise opportunities afforded by BNF Day and awards; extend influence in
Europe; establish new partnerships and associated income streams; continue to bid for EU projects
with leading research & education establishments across Europe.
During the coming year the Foundation will continue to collaborate with partners in the European
Nutrition Foundations network. It will continue to seek opportunities to work in partnership with
member companies, government departments and other organisations (including those linked with the
Olympic Games) on projects that are in line with BNF’s themes and charitable objectives, as well as
actively seeking new funding streams and opportunities to collaborate in areas currently underrepresented in the Foundation’s portfolio.
Finance:
Strategic Objective: To review and strengthen our membership and retention strategies, and
explore new funding streams. To secure a wide funding base that enables forward planning and
protects BNF at times of market instability.
Focus for 2011/12: Secure funding and achieve a surplus to projected budget; tighten procedures
and working practices, including forecasting; enhance financial reporting internally and to Trustees.
During the year, financial reporting will be refined as required to support the need for comprehensive,
accurate and transparent information and to facilitate monitoring by the Management Committee,
Board of Trustees and Council.
Support and Value the BNF Team:
Strategic Objective: To provide appropriate remuneration and a benefits package that attracts and
retains the highest calibre staff. To integrate this with a lifelong learning approach to professional
development. To make the most of the wealth of experience and skills represented within our
governance structure.
Focus for 2011/12: Evaluation of the HR review and new staff handbook; involvement of staff
through office meetings and programme meetings; better utilise the wealth of experience that exists
amongst our Governors.
In the forthcoming year the Foundation will review HR arrangements and staff satisfaction with regard
to the new staff handbook. We shall continue to monitor arrangements put in place last year,
following the staff survey in early 2010, and the subsequent HR Review. BNF values/ways of working
will be reviewed to ensure that these have been integrated into daily working practices. The induction
packs for Governors and Trustees will be reviewed.
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The British Nutrition Foundation
Report of the Board of Trustees as at 31st May 2011
The Directors present the financial statements, which have been prepared in accordance with the
SORP (Revised 2005) and the Companies Act 2006.
Statement of Trustees’ Responsibilities
The trustees (who are also directors of The British Nutrition Foundation for the purposes of
company law) are responsible for preparing the Trustees’ Report and the financial statements in
accordance with applicable law and United Kingdom Accounting Standards (United Kingdom
Generally Accepted Accounting Practice).
Company law requires trustees to prepare financial statements for each financial year which give a
true and fair view of the state of the affairs of the charitable company and of the incoming resources
and application of resources, including the income and expenditure, of the charitable company for that
period. In preparing these financial statements, the trustees are required to:
•
select suitable accounting policies and then apply them consistently;
•
observe the methods and principles in the Charities SORP;
•
make judgements and estimates that are reasonable and prudent;
•
state whether applicable UK Accounting Standards have been followed, subject to any material
departures disclosed and explained in the financial statements;
•
prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable
accuracy at any time the financial position of the charitable company and enable them to ensure that
the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment
(Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also
responsible for safeguarding the assets of the charitable company and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
•
•
there is no relevant audit information of which the charitable company’s auditor is unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any
relevant audit information and to establish that the auditor is aware of that information.
Auditors
Kingston Smith LLP have expressed their willingness to remain in office as auditors of the charitable
company
This report was approved by the Board of Trustees on 27th July 2011 and signed on its behalf by:
ADB Malcolm
Chairman
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The British Nutrition Foundation
(Limited by Guarantee)
We have audited the financial statements of The British Nutrition Foundation for the year ended 31 May
2011 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes.
The financial reporting framework that has been applied in their preparation is applicable law and United
Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charitable company's members, as a body, in accordance with Chapter
3 of Part 16 of the Companies Act 2006 and to the charitable company's trustees, as a body, in
accordance with section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our
audit work has been undertaken for no purpose other than to draw to the attention of the charitable
company's trustees and members those matters which we are required to include in an auditor's report
addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to
any party other than the charitable company and the charitable company's trustees and members as a
body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of trustees and auditors
As explained more fully in the Trustees' Responsibilities Statement, the trustees (who are also the
directors of the charitable company for the purposes of company law) are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view.
We have been appointed auditors under section 44 (1)(c ) of the Charities and Trustee Investment
(Scotland) Act 2005 and under the Companies Act 2006 and report to you in accordance with those
Acts.
Our responsibility is to audit and express an opinion on the financial statements in accordance with
applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements
sufficient to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or error. This includes an assessment of: whether the
accounting policies are appropriate to the charitable company's circumstances and have been
consistently applied and adequately disclosed; the reasonableness of significant accounting estimates
made by the trustees; and the overall presentation of the financial statements. In addition we read all
the financial and non-financial information in the Trustees Annual Report to identify material
inconsistencies with the audited financial statements. If we become aware of any apparent material
misstatements or inconsistencies we consider the implications for our report.
Opinion on the financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the charitable company's affairs as at 31 May 2011 and of its
incoming resources and application of resources, including its income and expenditure, for the year then
ended; and
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
• have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment
(Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
Opinion on other matters prescribed by the Companies Act
In our opinion the information given in the Trustees' Annual Report for the financial year for which the
financial statements are prepared is consistent with the financial statements.
12
The British Nutrition Foundation
(Limited by Guarantee)
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 and the
Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our
opinion:
• the charitable company has not kept proper and adequate accounting records or returns
our audit have not been received from branches not visited by us; or
adequate for
• the financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of trustees' remunerations specified by law are not made; or
• we have not received all the information and explanations we require for our audit
Nicholas Brooks, Senior Statutory Auditor
for and on behalf of Kingston Smith LLP, Statutory Auditor
Date:
Devonshire House
60 Goswell Road
London EC1M 7AD
Kingston Smith LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
13
The British Nutrition Foundation
(Limited by Guarantee)
Statement of Financial Activities
(incorporating the Income and Expenditure Account)
For the year ended 31 May 2011
Note
Unrestricted
Funds
2011
£
Restricted
Funds
2011
£
Total
Funds
2011
£
Total
Funds
2010
£
733,873
8,089
13,500
-
747,373
8,089
804,288
4,306
755,684
36,099
17,276
1,551,021
13,500
755,684
36,099
17,276
1,564,521
539,615
108,650
22,900
1,479,759
111,107
-
111,107
98,823
Incoming Resources
Incoming resources from generated
funds:
Voluntary income:
Donations and subscriptions
Investment income
Incoming resources from charitable
activities:
Projects
Conferences
Publications
Total Incoming Resources
Resources Expended
Costs of generating funds:
Costs of generating voluntary income
Charitable activities
3
1,560,419
24,814
1,585,233
1,361,613
Governance costs
Total Resources Expended
4
46,650
1,718,176
24,814
46,650
1,742,990
42,181
1,502,617
(167,155)
(11,314)
(178,469)
(22,858)
(1,525)
1,525
-
-
(168,680)
(9,789)
(178,469)
(22,858)
Total funds brought forward
730,778
23,173
753,951
776,809
Total Funds Carried Forward
562,098
13,384
575,482
753,951
Net outgoing resources before
Transfers
Transfer between funds
Net Movement in Funds
The notes on pages 16 to 21 form part of these accounts.
All of the operations of the Foundation are continuing.
14
The British Nutrition Foundation
(Limited by Guarantee)
Balance Sheet as at 31 May 2011
Note
Fixed Assets
Tangible assets
2011
£
7
2010
£
2,945
Current Assets
Debtors:
VAT receivable
Prepayments and accrued income
Other debtors
Cash at bank and in hand
Creditors: Amounts falling due
within one year
PAYE and social security payable
Accruals and deferred income
Other creditors
2011
£
8
2010
£
5,092
1,709
109,577
125,538
236,824
4,182
108,406
106,602
219,190
884,117
1,120,941
1,154,640
1,373,830
24,341
454,077
69,986
548,404
25,029
565,416
34,526
624,971
Net Current Assets
572,537
748,859
Net Assets
575,482
753,951
9
13,384
23,173
10
11
75,087
487,011
75,087
655,691
575,482
753,951
Capital and Reserves
Restricted funds
Unrestricted funds
Designated funds
General funds
Total Funds Carried Forward
The financial statements on pages 14 to 21 were approved and authorised for
th
issue by the Council on 27 July 2011 and signed on its behalf by:
COMPANIES HOUSE NO.: 898651
Chairman of the Board of Trustees:
Governor:
15
The British Nutrition Foundation
(Limited by Guarantee)
Notes to the Accounts
For the year ended 31 May 2011
1.
Accounting Policies
The financial statements have been prepared in accordance with applicable accounting standards in the
United Kingdom. In particular, these financial statements have been drawn up in accordance with the
Statement of Recommended Practice 2005 (Revised SORP) 'Accounting and reporting by Charities'. A
summary of the more important accounting policies, which have been applied consistently, is set out below.
Basis of Accounting
The financial statements are prepared under the historical cost convention and in accordance with
applicable accounting standards. All incoming and outgoing resources are dealt with on the accruals basis
unless otherwise stated below.
Income
Income from member companies (including annual subscriptions) is accounted for on a receivable basis,
but on a received basis in the case of donations. Income received from the sale of education packs is
accounted for on a received basis. Government grants are accounted for on a receivable basis.
Expenditure Allocation
The directors have allocated office costs on the basis of the amount of time spent by each member of staff
in each of the six areas of activity of the Foundation. Staff costs have been similarly apportioned.
Governance Costs
Governance costs relate to the direct costs associated with the constitutional and statutory requirements of
the Foundation and include the costs of external audit, secretariat and other constitutional related costs.
Depreciation of Fixed Assets
Depreciation is provided on fixed assets on the straight line method at the following rates:
Fixtures and fittings
Computers and ancillary equipment
20% p.a.
33.33% p.a.
Items of expenditure which provide enduring benefit to the Foundation are capitalised as assets if the cost
(net of VAT) is more than £500. Expenditure of less than this amount are expensed through the Statement
of Financial Activities.
Operating Leases
Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred
over the term of the lease.
Publications
It is the Foundation's policy not to include as stock the by-products from funding projects as the use of
these is uncertain. When sales are made they are included in the SOFA on a receipts basis. The costs of
the Foundation's publications and education material are written off in the year in which they are incurred.
Prizes
Prizes are accounted for when paid.
16
The British Nutrition Foundation
(Limited by Guarantee)
Notes to the Accounts
For the year ended 31 May 2011
Pension Scheme Arrangements
The Foundation provides a percentage of employees' salaries which is paid into personal pension plans on
behalf of employees. The percentage paid ranges from 4% to 12% of basic salary and is accounted for on
an accruals basis.
Funds
Unrestricted Funds - These are donations and other incoming resources receivable or generated for the
objects of the charity without further specified purpose and are available as general funds.
Restricted Funds - These are funds which are to be used for specific purposes as laid down by the donor.
Foreign Currencies
Transactions in foreign currencies are recognised at the rate of exchange at the date of the transaction.
Monetary assets and liabilities are translated into sterling at the exchange rate on the balance sheet date.
Exchange differences are recognized through the statement of financial activities.
2. Allocation of Support Costs and Overheads
The breakdown of support costs and how these were allocated between Governance and Charitable
Activities is shown below. Costs are allocated on the basis of staff time.
Total
Allocated
Staff costs
General office costs
Depreciation
External audit
Governance
Fundraising
Charitable
Activities
£
1,073,508
219,047
3,210
8,460
£
20,826
17,302
62
8,460
£
51,167
9,865
153
-
£
1,001,515
191,880
2,995
-
1,304,225
46,650
61,185
1,196,390
Direct
Costs
£
285,321
78,616
92
24,814
Support
Costs
£
584,523
526,537
47,383
37,947
Total
2011
£
869,843
605,153
47,475
62,762
Total
2010
£
666,909
604,693
46,956
43,055
388,843
1,196,390
1,585,233
1,361,613
2011
£
23,423
14,767
6,360
2,100
2010
£
25,003
11,278
5,900
-
46,650
42,181
3. Charitable Activities
Projects (including Task Forces)
Science and Education services
Publications
Prizes and Awards
4. Governance Costs
Salaries and office costs
Legal and professional
Audit fees – Year end
- interim
17
The British Nutrition Foundation
(Limited by Guarantee)
Notes to the Accounts
For the year ended 31 May 2011
5. Staff Costs
2011
£
871,878
93,295
80,788
27,547
1,073,508
Wages and salaries
Social security costs
Pension costs
Other costs
(a)
2010
£
798,242
87,995
65,179
30,549
981,965
No emoluments are received by any member of the Council. The Foundation employed an average of 22
employees during the year (2010 – 23). The number of employees whose emoluments exceeded
£60,000 were:
2011
2010
No.
No.
£60,000 - £70,000
2
1
1
£80,000 - £90,000
£100,000 - £110,000
1
1
Pension contributions to the above individuals amounted to £35,232 (2010: £19,727).
(b) A total of £3,362 (2010 - £4,277) relating to travel expenditure was reimbursed to 10 trustees during the
year (2010 – 9).
6. Taxation
No taxation liability arises on the income of the Foundation as it is a registered charity.
7. Fixed Assets
Assets
Existing at
1 June
1993
Furniture
and
Fittings
Computers
and
ancillary
Equipment
Total
2011
£
£
£
£
Cost
At 1 June 2010
Additions
1,500
-
24,681
-
48,571
1,063
74,752
1,063
At 31 May 2011
1,500
24,681
49,634
75,815
Depreciation
At 1 June 2010
Charge for the year
1,500
-
22,756
917
45,404
2,293
69,660
3,210
At 31 May 2011
1,500
23,673
47,697
72,870
Net Book Value
At 31 May 2011
-
1,008
1,937
2,945
At 31 May 2010
-
1,925
3,167
5,092
18
The British Nutrition Foundation
(Limited by Guarantee)
Notes to the Accounts
For the year ended 31 May 2011
8. Deferred Income
Deferred income at 1 June 2010
Project income received in advance of completion of
work
Amounts released to the
accounts
Deferred income at 31 May 2011
Accruals
2011
£
555,171
2010
£
96,121
384,409
555,171
(555,171)
(96,121)
384,409
69,668
555,171
10,245
454,077
565,416
9. Restricted Funds
Balance
As at
1 June
2010
A-Level Fd Tech Prize
BNF Award
Burkitt Awards
BNF GCSE Fund
£
8,351
7,740
7,082
23,173
Incoming
Resources
£
Outgoing
Resources
Transfer
From/(to)
Unrestricted
Funds
Balance
As at
31 May
2011
£
(3,671)
(1,015)
(15,750)
(4,378)
£
7,500
6,000
1,015
510
-
£
4,680
8,704
13,500
(24,814)
1,525
13,384
The restricted funds are prize schemes. These are schemes awarding prizes to applicants who are
undertaking nutrition-related projects or have been studying nutrition-related subjects at school. They are
funded by donations from member companies and others.
The transfers in the year are in order to bring the BNF Award and Burkitt Awards funds balances back to
zero.
19
The British Nutrition Foundation
(Limited by Guarantee)
Notes to the Accounts
For the year ended 31 May 2011
10. Designated Funds
Website and software fund
Conference fund
Strategic contingency fund
Balance
As at
1 June
2010
£
Transfer
From
Unrestricted
Funds
£
Balance
As at
31 May
2011
£
Incoming
Resources
£
Outgoing
Resources
£
13,042
12,045
50,000
-
-
-
13,042
12,045
50,000
75,087
-
-
-
75,087
The website and software designated fund represents monies set aside by the Trustees to be used to
support the purchase of an accounts package and for the development of a new website.
The Conference fund represents a surplus from conference activities, to be re-invested in future
conferences.
The Strategic contingency fund is for the Director General to access for use on carefully considered projects,
such as those that would help the Foundation increase its impact, profile or capacity.
11. Analysis of Net Assets between Funds
Tangible
Fixed
Assets
£
Restricted funds
Unrestricted funds:
Designated funds
General funds
-
Net
Current
Assets
£
13,384
Total
£
13,384
2,945
75,087
484,066
75,087
487,011
2,945
572,537
575,482
12. Capital
The Foundation is limited by guarantee. In the event of a winding up of the Foundation the members’
liability is restricted to contributing an amount not exceeding £5 each. At 31 May 2011 there were 43
members (2010 – 50 members).
20
The British Nutrition Foundation
(Limited by Guarantee)
Notes to the Accounts
For the year ended 31 May 2011
13. Operating Leases
The charity’s annual commitments under operating leases as at 31 May 2011 were as follows:
2011
Land and
Buildings
£
Expiring within:
The second to fifth year
112,632
Other
£
17,370
2010
Land and
Buildings
£
113,952
The charity is also committed to paying service charges under the terms of the property lease.
These charges are uncapped as to amount.
The amount charged this year in respect of the leases was £130,741 (2010 - £100,421).
21
Other
£
14,275