Welcome to the 2021-22 Annual Report and Financial Statements of the National Biodiversity Network Trust. This document fulfils the Trust’s statutory reporting requirements as a charity registered in England and Wales and a company limited by guarantee.
The National Biodiversity Network Trust (‘NBN Trust’ or ‘Trust’) is the UK charity dedicated to biodiversity data. Our vision is of nature thriving, in all its diversity, and our mission is making data work for nature.
Our biodiversity data portal, the NBN Atlas, is one of the world’s largest publicly accessible sources of biodiversity data, bringing together information from more than 160 data partners. The NBN Atlas is a unique resource, accessed and valued by a fast-growing community of conservation organisations, government agencies, businesses, researchers, teachers, journalists and members of the public.
The NBN Trust also manages the UK’s largest partnership for nature, the National Biodiversity Network, made up of more than 200 organisations with a common interest in collecting, sharing, accessing and utilising biodiversity data. Together we create, curate and harness the evidence needed for nature’s recovery.
A more detailed review of the NBN Trust’s activity and achievements through the year can be found in our Annual Impact Report 2021-22
The NBN Trust’s strategic ambitions and objectives are presented in its 2022-27 Strategy, ‘Making data work for nature’
The Trustees present their annual report and financial statements for the year ended 31 March 2022.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document s , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) .
The National Biodiversity Network Trust is the UK charity dedicated to biodiversity data. Our vision is of nature thriving everywhere, in all its diversity. We passionately believe that, together, we can reverse the biodiversity crisis. Our sights are set on a future in which the natural world has bounced back to health. In which nature is sharing with us its many gifts – from clean air and water to food and flood-prevention. And in which wildlife is bringing joy, hope and inspiration to our daily lives.
The Trust’s mission, and our contribution to achieving this vision, is “making data work for nature”. We provide vital evidence for nature’s recovery, and we build partnerships to meet the needs of those who require biodiversity data – for policies, planning, research and conservation – and to connect people and communities with nature. We provide an important service for the conservation and research communities, as well as improving public access to biodiversity data.
Selected examples of our progress against key objectives, during the reporting period, are set out below. Please note that the five key objectives relate to our 2015-2020 Strategy. In May 2022 we published a new Strategy setting out our strategic ambitions and objectives for 2022-2027.
1. Record, collect, diversify, enhance and mobilise biological data.
We made significant progress in 2021-22 working with data partners to mobilise their data and make it publicly accessible. The number of organisations sharing data via the NBN Atlas grew from 157 in April 2021 to 166 at the end of March 2022. We set up a regular transfer of new and updated UK-based datasets from the Marine Biological Association’s data portal (DASSH) to the NBN Atlas. We continued to secure datasets from natural history collections, including new datasets from the Natural History Museum in London, the Leeds Museums and Galleries, and National Museums Liverpool. We also received new datasets from five Wildlife Trusts as part of their Nature Counts project.
2. Make biological data and information available to everyone.
The NBN Atlas , our biodiversity data portal, remains the UK’s largest publicly accessible source of biodiversity data. The number of registered users continued to grow in 2021-22, exceeding 13,000 by April 2022. There was steady growth across all categories of users, with the greatest increases in the education and research communities. In 2021-22, more than 400 million records were downloaded from the NBN Atlas.
3. Captivate and engage people about wildlife.
In April 2021 we launched iNaturalistUK , the UK platform of the global nature recording website and app, with the aim of increasing public participation in wildlife recording. By the end of March 2022, more than 74,000 observers had participated, sharing 2,259,496 observations across 16,725 species on iNaturalistUK. A daily upload of records from iNaturalistUK to iRecord was set up to better mobilise iNaturalistUK records within the UK recording community, including sharing verified iNaturalistUK records with the NBN Atlas.
4. Provide the best biological information management infrastructure.
In 2020-21, a major project was initiated to upgrade the NBN Atlas platform. The upgrade, which will take place incrementally over 12-18 months, will improve the performance and stability of the NBN Atlas and provide a more secure and robust platform for its longer-term evolution and development.
5. Support the development of the NBN Trust, its Board and its members.
Five new Trustees joined the Board in 2021-22, following an open recruitment, and were taken through a comprehensive induction programme. Lisa Chilton joined the Trust as Chief Executive in April 2021 and worked with the Board, staff and stakeholders to develop a new five-year strategy. The strategy, entitled “ Making data work for nature ” was published in May 2022.
Public benefit
We have referred to the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
The significance of the COVID-19 pandemic in 2021-22
The entire Trust team continued to work remotely in 2021-22, only visiting the office for specific tasks. This was generally a successful strategy which minimised the COVID-related risks, particularly for those staff who would otherwise have commuted on public transport. Support for staff mental health and wellbeing was enhanced, recognising the potential impacts of prolonged home working. Board and Committee meetings were also held online until late 2021, when face-to-face meetings recommenced.
The only direct impact of the pandemic on the Trust’s funding and financials in 2021-22 was a small reduction in grant income from the National Lottery Heritage Fund, due to non-completion of a project that was unable to proceed during lockdown. However, the purpose of the stalled project was to develop a new income stream to support the Trust’s financial sustainability, so there was also a knock-on impact. This work will now be advanced in 2022-23.
The role of volunteers
The Trust benefits enormously from the support of its Trustees, who are unpaid volunteers. In 2020-21 the Trust also took on a part-time volunteer, for a three-month period, to support the NBN Atlas team.
The National Biodiversity Network places great value in volunteers. The majority of wildlife recorders are volunteers who collect and share their data on the basis of goodwill and for the common cause. Sincere thanks are given to them for their time and contribution towards the Network.
Please refer to the objective and activities section above for details of the Trust's main achievements.
In 2021-22, the Trust received £315,533 in unrestricted funds in the form of grants, membership subscriptions, donations and NBN Conference ticket sales.
A final payment of restricted funds was received from the National Heritage Lottery Fund to deliver a project to build the Trust’s resilience. Unrestricted funds of £130,000 were received from the Esmée Fairbairn Foundation in the period. These funds have been used to support NBN Trust core expenditure, including progressing the outcomes from a project to improve the Trust's resilience and sustainability.
The Trust’s net expenditure was greater than incoming resources, resulting in a negative in-year balance of £24,892. The Trust’s total fund balance at 31 March 2022 was £157,900, which will be carried forward into 2022-23.
The Trust is forecasting a balanced year-end position for 2023-24. This is dependent upon securing additional income across restricted and unrestricted funding sources. As usual, the Trust is engaging with numerous potential funders, in line with a detailed fundraising plan. As such, the Board of Trustees has a reasonable level of confidence that the income target will be met. Should income fall short of the target, the Trust will adjust expenditure accordingly.
Trust reserves
The unrestricted funds not committed or invested in tangible fixed assets ('the free reserve') held by the charity amount to £155,798.
Annually, the Finance and Management Committee (FMC) reviews the free reserve figure and the amount required to meet the reserve policy (set at three months’ running costs) to ensure that adequate reserves are maintained.
As at October 2022, the amount required to run the Trust for three months is £137,050 resulting in a surplus of £18,748.
Risk management
A Risk Register is maintained to facilitate the management of all significant risks to the Trust, including those pertaining to Finance, Technology, Staffing and Stakeholders. The Risk Register tracks changes in the risk level for each risk and documents mitigation.
The FMC reviews the Risk Register on a quarterly basis and ensures that the Trust has systems designed to manage all risks. The Risk Register is also presented at each Board meeting and updated as required.
The main internal financial risks are minimised through the consistent application of procedures for financial delegation and appropriate authorisation of all transactions.
Plans for future periods
A work plan for 2022-23 setting out the priority activities for the year has been shared with the major funders.
Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity will have the adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
The Trust is a charitable company limited by guarantee, incorporated on 3 April 2000 and registered as a charity on 25 August 2000. The company was set up under a Memorandum of Association, which established its objectives and powers, and is governed under its Articles of Association (updated November 2018). As set out in the Articles of Association, the charitable Object (purpose) of the NBN Trust is:
To advance, formally and informally, public participation in and public understanding and enjoyment of the conservation of biological resources, together with their sustainable and wise use, by providing public access to biological records, data or information pertaining to the UK, the Channel Islands and the Isle of Man .
The Trust has power to do anything which is calculated to further its Object or is conducive or incidental to doing so. For example, the Trust has power to undertake the following activities (selected articles only, for the full list please refer to the Articles of Association):
To facilitate, promote and co-ordinate the collection, compilation, collation, interpretation, pooling and dissemination of biological records;
To promote and facilitate the survey and study of biodiversity through biological recording and both disseminate and promote the dissemination of the results of such study and research;
Through the provision of services, advice, guidance or other means, develop understanding of how biological data and information can be used to aid decisions taken by others consistent with the Object.
The terms of reference for the Board of Trustees are laid out in the Trust’s Rules and Standing Orders. The Board meets four times a year to monitor the Trust’s performance, agree the strategy and take decisions regarding governance issues and significant strategic matters.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Trustees are appointed via open application and a competency-based selection process. Trustees may serve a three-year term, with the potential for a further three years at the discretion of the Board.
The AGM is held at the annual NBN Conference in November.
The Finance and Management Committee (FMC) is the only permanent sub-committee of the Board and is chaired by the Treasurer of the Trust. The terms of reference for the FMC are laid out in the Trust’s Rules and Standing Orders. The FMC meets four times a year, in advance of the Board meetings, to monitor the Trust’s financial and business progress, review risk management, and approve significant financial undertakings. Other ad hoc sub-committees may be convened as needed, on a ‘task and finish’ basis, to ensure adequate oversight of significant matters.
The Chief Executive Officer is appointed by the Board of Trustees and is responsible for the daily operation of the Trust, including (but not restricted to) the development and implementation of strategic and operational plans, financial and team management, stakeholder relations, advocacy and fundraising.
The Board of Trustees intends to complete a self-assessment against the Charity Governance Code for Small Charities. This assessment will be reported on in the 2022-23 Trustee Report.
Arrangements for setting pay and remuneration of key management personnel
All Trustees give their time freely and have not received remuneration for time devoted to Trust business in the year. Remuneration of Trustee expenses is detailed within the financial accounts.
Staff pay increases are presented to the Board of Trustees for approval within the annual budget.
Relationships with related parties and any other charities and organisations
All Trustees and senior members of staff such as the Chief Executive Officer and the Finance and Business Manager annually update the Declaration of Interest form to notify the Trust of any relationships with related parties.
Donated Services and Facilities
To calculate donated services, the main consideration was whether the Trust would have paid for the work or services had it not been carried out by another party. Based on these criteria, donated services during 2021-22 totalled £16,580. This includes room hire and the average cost for unclaimed Trustee travel in relation to attending Board of Trustee and Finance and Management Committee meetings. This also includes £7,700 for Amazon Web Services to carry out a Well Architected Hosting Review on the NBN Atlas and £8,000 for NatureScot to carry out Penetration Testing on the NBN Atlas.
The Trustees' r eport was approved by the Board of Trustees.
The trustees, who are also the directors of National Biodiversity Network Trust (the charity) for the purpose 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 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 incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the trustees on my examination of the financial statements of National Biodiversity Network Trust (the charity) for the year ended 31 March 2022.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
National Biodiversity Network Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Unit F, 14-18 St Mary's Gate, Lace Market, Nottingham, NG1 1PF.
The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
All income is included in the statement of financial activities when the charity is entitled to the income, any performance related conditions attached have been met or are fully within the control of the charity, the income is considered probable and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Donations and legacy income is received by way of donations, grants and gifts and is included in full in the statement of financial activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Donated services and facilities are included at the value to the charity, being the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market.
Investment income is included when receivable.
Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
All costs are allocated between the expenditure categories of the sofa on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, as set out in the notes to the accounts.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act
1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these applied to its charitable objects.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Pension costs
The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charitable company. The annual contributions payable are charged to the statement of financial activities.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities 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 where the revision affects both current and future periods.
Grants receivable
Subscriptions
Donated services and facilities
Conference income
Project income
Donated services and facilities
Project costs
Website development
NBN Atlas Project
Premises
Insurance
Travelling expenses
Legal & professional
Communications & IT
Postage, printing & stationery
Meeting & conference costs
Finance costs
Accountancy
Auditors remuneration
Trustees expenses
Board meeting expenses
Governance costs includes payments to the examiners of £ 2,100 (2021- £ 2,100 ) for examination fees.
None of the trustees (or any persons connected with them) received any remuneration from the charity during the year.
During the year, expenses totalling £1,155 were reimbursed to five trustees (2021: no expenses were incurred by the trustees).
The average monthly number of employees during the year was:
To calculate donated services, the main consideration was whether the Trust would have paid for the work or services had it not been carried out by another party. Based on these criteria, donated services during 2021-22 totalled £16,580. This includes room hire and the average cost for unclaimed Trustee travel in relation to attending Board of Trustee and Finance and Management Committee meetings. This also includes £7,700 for Amazon Web Services to carry out a Well Architected Hosting Review on the NBN Atlas and £8,000 for NatureScot to carry out Penetration Testing on the NBN Atlas.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £14,798 (2021: £17,739).
NBN Atlas Project
These figures relate to contributions from the respective countries to the annual running costs of the NBN Atlas (see expanded list on page 15).
Resilience Fund
The NBN Trust was awarded a total of £190,500 from the Heritage Lottery fund in February 2019 to be used for building resilience and sustainability for the NBN Trust. A large proportion of the funding received in 18-19 was expended in 19-20. The carry over amount of £48,680 from 19-20 has been fully expended in the 20-21 financial year. During the 21-22 financial year a final payment of £5,487 was received from the Heritage Lottery fund. This has been expended in full during the financial year.
Unrestricted funds
Restricted funds
Unrestricted funds
Restricted funds
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Lease payments recognised as an expense during the year amounted to £6,000 (2021: £6,000).
The Trustees believe there is no controlling party of the charitable company.
BioD Services Limited is a 100% subsidiary of National Biodiversity Network Trust. It is a company limited by shares incorporated in England and Wales, company number 04178674.
During the year, company expenses were paid by BioD Services Limited amounting to £ nil (20 21 : £ nil ). As at 31 March 20 22 a balance of £ 4 (20 21 : £ 4 ) remained outstanding to BioD Services Limited and is included within other creditors.
National Biodiversity Network Trust is a company limited by guarantee and accordingly does not have a share capital. There were 7 members of the company at the year end (20 20 : 9 members). Every member promises, if the charitable company is dissolved while he or she remains a member or within 12 months afterwards, to pay up to £10 towards the cost of dissolution and the liabilities incurred by the Charity while the contributor was a member.
These financial statements are separate charity financial statements for National Biodiversity Network Trust.
Details of the charity's subsidiaries at 31 March 2022 are as follows:
The NBN Trust is the agent for the Recorder 6 consortium.
During the year income totalling £11,250 (2021: £10,575) was received in respect of software licences and expenditure totalling £2,886 (2021: £86) has been incurred.
At 31 March 2022 the balance owing to the Recorder 6 consortium was £29,453 (2021: £21,089).