Natural Environment Research Council Annual Report and Accounts 2016-17

HC 129 Blank page Natural Environment Research Council Annual Report and Accounts 2016-17

Presented to Parliament pursuant to Schedule 1 of the Science and Technology Act 1965 Ordered by the House of Commons to be printed on 13 July 2017

HC 129 © Natural Environment Research Council (2017) The text of this document (this excludes, where present, the Royal Arms and all departmental or agency logos) may be reproduced free of charge in any format or medium provided that it is reproduced accurately and not in a misleading context.

The material must be acknowledged as Natural Environment Research Council copyright and the document title specified. Where third party material has been identified, permission from the respective copyright holder must be sought.

Any enquiries related to this publication should be sent to us at [email protected] This publication is available at www.gov.uk/government/publications

Print ISBN 9781474145336 Web ISBN 9781474145343 ID 18051709 07/17

Printed on paper containing 75% recycled fibre content minimum. Printed in the UK on behalf of the Controller of Her Majesty’s Stationery Office. Contents

Performance Report

Overview 4

Performance Analysis 15

Accountability Report

Corporate Governance Report 26

Remuneration and Staff Report 43

Parliamentary Accountability and Audit Report 52

Financial Statements

Statement of Comprehensive Net Expenditure 56

Statement of Financial Position 57

Statement of Cash Flows 58

Statement of Changes in Taxpayers’ Equity 59

Notes to the Accounts 60

Images: NERC/Marks&Spencer/Shutterstock/istockphoto/Fotolia 4 NERC Annual Report and Accounts 2016-17 P erformance Report Performance Report sciences. We fund centres and universities to carry carry to universities and centres We fund sciences. environmental the across capability international and UK developing to committed is NERC partners. in national collaboration with and international delivered and designed and multidisciplinary often is research Our community. science environmental the for focus provide that priorities the develop we stakeholders, and researchers our With • • us: helps that science environmental To excellent, fund Our goals challenges. tomorrow’s for prepare better us help to environment, of the management responsible economy, with the across growth clean and innovation deliver to generated knowledge the weuse and policymakers with and business UK with disciplines, science other with We collaborate breakthroughs. scientific valuable deliver to training and innovation infrastructure, research, new by commissioning science of environmental frontiers the advances NERC prosperity. economic and well-being future our to fundamental is planet changing our Understanding space. and atmosphere the to and oceans, and Earth deep the to pole, to pole –from depends planet our on life which on processes biological and chemical physical, the monitor and study centres research our and universities in Scientists science. environmental UK in investment for force driving the is Council Research Environment Natural The world changing our of science The Overview and growing economies. poverty escaping business, doing of living, ways new we pursue as responsibly environment our manage works; planet our how predict and understand which keeps this capability at the cutting edge. edge. cutting the at capability this keeps which and includes development activities It the research emergencies. to respond and needs, strategic national science, support environmental deliver world-leading to UK the (see 17) page allows capability national This scale. aglobal on change environmental monitor to technology satellite in weinvest and environments hostile most world’s of the some in We work aircraft. and ships of research afleet operates NERC scientists. of environmental community aworld-class support and train to and research out been abbreviated. have they report, this in appear names their Where National Oceanography (NOC) Centre (NCEO) Observation Earth for Centre National (NCAS) Science Atmospheric for Centre National (CEH) & Hydrology Ecology for Centre GeologicalBritish Survey (BGS) (BAS) Survey Antarctic British are: centres research environmental six NERC’s competition. open to subject be rarely will and term, long the over place take often that investments strategic are These UK. the for capability this delivering and managing in role aleading play providers facilities and service other and centres research NERC UK by helping to strengthen regulation in the water water the in regulation strengthen to by helping UK the for benefits environmental and economic to led has research NERC that shows first The research. our of impact economic ongoing of the evidence specific provide year the during by Deloitte Two analyses of science. users and scientists between and nations between disciplines, science between collaboration promotes and science, environmental of UK best the funds NERC challenges. societal and economic environmental, complex tackle to knowledge and scientists best world’s the –weharness collaborative highly and world-leading is science environmental Our world. secure more and wealthier asafer, building while competiveness and productivity UK –driving benefits societal and economic term long- large, generates partnership and investment NERC sustained that confirmed 2016-17 further of ourThe economic research impact planet. of our management of responsible heart the at remains UK the in science of environmental strength and relevance the ensure to so do to continue will and community our We engaged have opportunities. these from benefit and navigate effectively to position asound in is 2018. NERC We sure April made have in existence into come will that Innovation and Research UK called organisation funding research of anew announcement the and Strategy, Industrial the Fund, Research Challenges Global the with opportunities new some seen has year past The economy. whole the across costs reducing and beyond, and UK the in of people well-being the science, to contributing prosperity, environmental UK of frontier the advancing research, environmental 2016-17,During world-leading fund to wecontinued Introduction cleaner water. from £5.5bn worth UK the to benefits net additional delivering currently is WFD of the implementation the means also savings these Achieving requirements. expensive whileregulation avoiding disproportionately strengthen to by helping accrued to led this savings The science. reliable robust, on based was revision every ensured which 2000, in introduced was directive the after and before standards quality water Directive Framework Water the setting in impact NERC’s 2015 2051. and between highlights It businesses UK for savings cost in £7bn to up generate will area this in research NERC estimates report The requirements. expensive while avoiding disproportionately industry economic incentive to protect them. In addition, the the addition, In them. protect to incentive economic apowerful others and communities rural landowners, give to services the from benefit who those enabling by ecosystems of valuable use unsustainable and degradation the prevent help schemes These world. the around schemes Services Ecosystem for Payments improving and evaluating implementing, of designing, heart the at been have researchers NERC-funded services. nature’s safeguard helps science our how reveals also 2016 Report Our Impact science. NERC to attributable specifically are benefits £173m of those £236m and 2014. to up Between £908m worth benefits social these bans economic, generated and environmental of damaged The analysis ecosystems. estimates recovery the accelerated which regulation, based evidence- to way the opened insights UK-specific crucial and chemicals of anti-fouling effects negative of studies the Ground-breaking production. shellfish UK in asurge enabling pollutants, marine harmful banning successfully UK the to contribution afundamental to led scientists by NERC-funded of research decades that revealed analysis A second

5 NERC Annual Report and Accounts 2016-17 6 NERC Annual Report and Accounts 2016-17 reduce ozone-depleting emissions. Early analyses analyses Early emissions. ozone-depleting reduce to agreements international to led which discovery, that to thanks possible only was recovery new This dropping. was continent the ozone over total October the that noticed BAS from scientists mid-1980s, the In colleagues. and of NCAS RNeely Ryan by Dr authored astudy in heal to starting is above ozone layer the in thinning the that evidence clear first the found 2016, June researchers In all. us touches how science environmental demonstrating clearly citizens, UK all to relevant are which discoveries 2016-17,In significant to led investments NERC discoveries scientific Major function. not could business their saying one-fifth with impact, significant or abusiness-critical sustaining mean would graduates doctoral their losing surveyed, of employers quarters involveddirectly in innovation. According to three- are of these most –and academia outside work graduates of doctoral cent per 50 over graduation, after years nine to seven that highlight findings Survey skills. and talent top by delivering innovative and competitive UK the keep to helps PhDs in investment economy, NERC’s UK of the areas other In • • • helped: scientists NERC-funded how shows it particular, In economies. boosting and prosperity, promoting lives, by saving countries developing in people andthe world’s vulnerable most poorest helps capability and science our how describes report reduce the risk of landslides. of landslides. risk the reduce to how by showing Caribbean the in lives save system; forecasting and weather innovative an developing by Africa in economies protect and lives save irrigation; for used be safely can groundwater that by showing Bangladesh in security food maintain in 2017. 2017. in announced be to due are by CEH study causation of a separate results The of these substances. impacts long-term the at look to studies first of the one is this but of neonicotinoids, use the from bumblebees and honeybees on effect a negative identified have field the in and laboratory the in conducted studies recent Several chemicals. of these use the to due is bees wild in decline total of the half that report scientists The neonicotinoids. with treated widely crop a rape, oilseed on heavily forage that bees analysed researchers 18 Over years, insecticides. neonicotinoid of use the to linked was England across bees wild in decline long-term 2016, large-scale, the August in published by CEH conducted study acorrelation In of Protocol.implementation the Montreal early the to thanks UK, the for year £1.3 every billion of savings to leading prices, food lower to led and of lives thousands spared has ozone research NERC’s that 2015 in by NERC demonstrate commissioned the wettest three months in records dating back to to back dating records in months three wettest the 2016 2015 was November January to from period The least. at years 100 last of the events flood largest of 1947 of the one as floods the alongside ranks 2015-16 winter the that episode recognises Society, Hydrological British the with collaboration in CEH from by scientists out carried study, The years. 100 in episodes flood severe and extreme most of the one 2015-16 were Winter UK the that floods confirmed 2016 December in published report centre A NERC negative’. ‘overwhelmingly been had it –and decades four last the over wildlife on impact amajor had have techniques agricultural modern that found report The organisations. other 50 than more with along 2016 of Nature report, State the to contributed CEH extinction. facing species seven in one with world’ the in countries natural ‘least of the one is UK the that 2016, showed September in published study, Another and will be used by oceanographers to measure measure to by oceanographers used be will and by NOC operated is vehicle underwater autonomous Range Long Autosub The Name Our Ship campaign. our during proposed name of the popularity the of McBoatface Boaty recognition in named was vehicle a subsea event, same At the workforce. Laird Cammell entire the and BAS and NERC BEIS, communities, science and Antarctic marine, from guests included that event an in Laird Cammell at process laying keel the started officially David Sir keel. of her laying 2016 ceremonial the with October in milestone construction first her reached ship The issues facing humanity. environmental important most of the some tackle will scientists which from platform aresearch providing science, ocean and polar of climate, forefront the at position Britain’s maintain help will vessel £200m the by BAS, Operated stakeholders. private and public to innovation and transfer technology knowledge, enable and scientists, of generation environmental thehelp next train strategy, science and science of UK positioning international the to contribute strategies, NERC and government of UK support in science system Earth and polar world-class deliver will ship new The capability. research polar UK’s the transform to set is ship the Birkenhead, in shipyard Laird Cammell at built being Currently broadcaster. and naturalist renowned the , after Sir Attenborough David RRS called be would ship 2019. new the announced 2016, May In was it in operational become to due ship, research polar state-of-the-art new UK’s the for aname for ideas wesought which in 2016, acampaign in weran Early science. excellent environmental UK sustain to purpose for fit remains capability national through support our year, sure the wemade During funding and capital Investing capability in national UK. the in record on warmest the average, on and, wettest the both 1910, was December while problems. problems. environmental global critical to solutions at looking already is scientists and academics by world-leading Lyell at way. underway Work asustainable in security and supply energy and resource of natural issues major of the some tackling is facility research based this Scottish- innovation, collaboration and enterprise, championing Through world. the facing challenges technology and science global the of meeting capable and equipped are of researchers generations future ensure will and of Heriot-Watt, innovation academic the with of BGS expertise the together brings technology and science marine and Earth for centre research global pioneering The Swinney. John of Scotland, Minister First by Deputy University Heriot-Watt at Centre Lyell of the opening the was 2016 October in development important Another science. polar and Sir Attenborough David RRS the with citizens and engineers of scientists, generation an educational initiative that aims to inspire the next Programme, Explorer Polar £1m government-funded of anew point afocal be McBoatfaceBoaty also will over oceanicocean scales. and properties help meet UK energy needs. The funds will build the the build will funds The needs. energy UK meet help to technologies of geoenergy use the on data critical gather 2017, April in scientists UK see announced will facilities, £31m new research UK, the for afirst In programme. Ocean Arctic Changing the as such programmes research marine major of upcoming anumber including science, deep-ocean and under-ice future support will This Range. Long Autosub an including vehicles, underwater autonomous by developing innovation technology and science marine of global forefront the at remains UK the ensure to NOC through made be will A£10m investment period. five-year a over sensors and Systems Autonomous Marine in a£15m weannounced year investment the in Earlier

7 NERC Annual Report and Accounts 2016-17 8 NERC Annual Report and Accounts 2016-17 provide. The new approach to allocating this funding funding this allocating to approach new The provide. could organisation research single any than science ambitious more facilitate to designed funding capability national of allocating way of anew result first the is This challenges. societal and scientific major tackle to together closely work to centres research our enable will that £34m, worth programmes, research ambitious highly five 2016, in wecommissioned Early Yorkshire. to £50m worth impacts economic generate to aims of Leeds, University the from led and years five over £4.7m worth Programme, Solutions Catchment Integrated Yorkshire UK. West of South prosperity economic the improve significantly to aims of Exeter, University the from led and years £4m five over worth for Environment & Economic Prosperity, Partnership West South growth. local support and sustainability, and resilience performance, improve that policies or actions into research NERC-funded excellent translate to is aim The benefits. societal and economic of arange generate to area their in policymakers and businesses with working universities top UK’s of the two see will projects two The research. science environmental world-class its from benefit UK, West South and Yorkshire regions, UK two help will that £9m nearly worth projects ambitious highly of two 2016, end Towards the wefunded science environmental world-leading research. in by investing all, us affect that issues environmental major solve to helping science, environmental of frontier the 2016 push to continue us saw initiatives innovation and research significant most Our it. on effect significant a have technologies energy underground if determine and environment current of the state the establish to observation and monitoring scientific out carry will UK Observatories, Geoenergy where researchers Met Office. Office. Met UK’s the and MoES Fund, Newton the NERC, from received combined funding of approximately £8m project The by farming. dominated is economy, which region’s the to vital is rains of the location and timing precise the before; ever than accurately more monsoon Indian of the arrival the forecast help could Findings it. drive which processes the and monsoon Asian south the investigate to India to aircraft research Measurements Atmospheric for Airborne Facility the wetook Sciences, of Earth Ministry Indian the with of 2016, collaboration in summer the In activities. NERC-funded other for foundation the by providing investments of these value the maximise to intended also is It collaboration. through science ambitious more drive to centres of the capabilities the refocuses and realigns money, but new use not does Humanities Research Council and the Economic Economic the and Council Research Humanities & Arts the with 2016, wepartnered November In international climateultimately help define policy. which and evolution, its predict change, climate understand to aim that models of computer heel Achilles’ the as out singled often is sink carbon Ocean Southern so-called this But date. to carbon derived human- of all half captured having dioxide, carbon of atmospheric quantities vast absorbs seawater of body huge This climate. Earth’s shapes Ocean Southern the how understand to programme research five-year System Earth the in Ocean Southern of the Role The 2016, weannounced October In Goals. Global ambitious the fulfil to necessary research and knowledge in gaps identify will collaboration The 15 years. next the over change climate fight help and hunger and poverty eliminate to aim which Goals, 17 Nation’s Global United the support to Foundation Rockefeller US’s the with collaborating We are facilities, enabling British scientists to continue continue to scientists British enabling facilities, research other and Antarctic UK modernise to BAS with partner to chosen was BAM expert construction continent, same the In level. sea global affect glacier whose collapse couldAntarctic significantly amassive understand to support, logistical associated for funding additional available make and years, five next the over research in £20m) (approx. $25m around fund jointly to Foundation Science National US’s the with up teamed NERC regions, polar the In India. Sciences, &Earth &Technology Science of Minister Union Vardhan, Harsh Dr and Johnson Jo Minister, Science UK by the announced were £80m to up worth initiatives research UK-India of joint series A collaboration. of India-UK future the explore and connect to businesses and experts technology and science Indian and British together brought summit The Modi. Narendra and May Theresa ministers, prime Indian and by UK of 2016, end the attended at Delhi New in Summit TECH India-UK the during made were Two announcements nationwide. quality water improved secure help and Delhi in pollution air tackle to scientists country’s the and government Indian the with forces We joined also have countries. by developing faced challenges addresses that research cutting-edge support to 2015 Review the in Spending government by the unveiled was £1.5bn GCRF The cope. countries help to preparedness in build and flooding, and earthquakes volcanoes, degradation, land , like dangers environmental causes what approach to understanding inter-disciplinary an take will and Fund, Research Challenges Global the under funded is programme research Resilience Building The hazards. environmental man-made and of natural arange manage and for prepare understand, world of the regions poorest of the some in communities help will that £3.5m over just worth projects fund to Council Research & Social before the Antarctic winter began. began. winter Antarctic the before people its removed BAS measure, aprecautionary As winter. Antarctic the during shelf ice the to happen would what certainty with predict to unable were scientists BAS that meant complex glaciological picture a presented crack, of anew growth the particularly ice, the to Changes winter. 2017 the Antarctic during down shut Antarctica, in Shelf Ice Brunt floating the on located is which station, The reasons. safety for station research the at winter to not decision the 2017, 2012. in early In of growth made signs BAS show to began that chasm ice dormant of apreviously upstream it putting site, present its from 23km station research VI of Halley relocation the we completed 2017 February in developments, Antarctic other In planet. our facing issues important most of the some into research world-class delivering event, around 1,300 people visited the ship, including including ship, the visited people 1,300 around event, the During Waterfront. Liverpool at moored days several spend and Liverpool to sail to of port home her , left Discovery RRS the vessel, research oceanographic advanced most and newest UK’s The • • • included: events three The science. environmental world-class in investment and leadership NERC’s of showcase abroad-based through of England north the in 2016 key audiences our engage to October during events showcase three We ran all. us to relevant is science environmental how demonstrated wehave work, communications and engagement public our year, the through During and communications Public engagement Measurements research aircraft to Manchester. aircraft research Measurements Atmospheric Airborne for Facility Taking the ; Attenborough David Sir of RRS keel of the laying ceremonial The Liverpool; to Discovery RRS Taking the

9 NERC Annual Report and Accounts 2016-17 10 NERC Annual Report and Accounts 2016-17 reputation as a as science. leader in environmental reputation our build and science, of NERC impact and value the of awareness driving by successfully influence and profile our build significantly NERC, for position and identity aclear articulate us helping in invaluable were events showcase Manchester and Liverpool the Both . and platforms, media social on high also was key stakeholders with Engagement Sky. and Breakfast BBC programme, Today BBC’s the as such key outlets in of coverage 55 pieces over achieving coverage, media broadcast national and local attracted Manchester into arrival aircraft’s the and flight the on conducted science The cities. our from of emissions of tonnes number the into research of cutting-edge methods by honing come to years the in UK the in quality of air understanding our enhance to used be will flight the during gathered Information of England. north the over ground the from coming of pollutants concentrations of the measurements took NCAS from scientists Airport, Manchester to Airport Midlands East from journey aircraft’s the On day.per people of 1,050 average an received exhibitions and aircraft the Manchester, in While breathe. and we live science environmental the life to bring to designed several days alongside approximately exhibitions 40 for show on was aircraft FAAM The airport. main city’s the at aircraft research scientific advanced most UK’s of the arrival the with began showcase 2016, Manchester the of October end At the engagement. online strong achieved and coverage, of media pieces 60 over attracted event The Councillors. City Liverpool and of Liverpool, MP, Mayor Lord Eagle the Angela stakeholders, Merseyside and marine schools, relevant to society. society. to relevant decisions make to NERC allow and inform to activities dialogue public convene wewill ahead, Looking year. the throughout activities engagement public our inform help to science environmental towards specifically attitudes, of public a survey commissioned 2017, in Early we ambitions. these on build further 2017 in calls to engagement public further plan We events. showcase annual through and Centres Discovery and of Science Association the as such engagement, public in record track strong and profile ahigh with organisations by reputable externally supported be will area this in activities of our Much 2017. January in started that projects pilot focused, short, with science, of environmental issues big the with public UK 2016: in the call Engaging engagement public first our We launched researchers. and science environmental public, UK of the members between engagement strong building engagement, public to commitment long-term our support to infrastructure and programme capacity, dedicated with together stream funding £500k anew with presence and ambition engagement public our We increased have the Act will revoke NERC’s Royal Charter and and Charter Royal NERC’s revoke will Act the 2018 (2016). Economy April From a Knowledge as Success Paper (2015) White Review HMG and Nurse the (2017) enact Act will Research and Education Higher The apace. continues landscape funding innovation and research UK of the Reform ahead Looking Tony Juniper. Prince of Wales environmentalist and leading British The Highness Royal His are co-authors Her series. Expert Ladybird new of the part as change climate on abook co-authored OBE Shuckburgh Emily Dr 2017, January scientist in BAS developments other In environmental scienceenvironmental community. world-leading UK’s of the impact and health the sustain to years, across continuity with strategy, investment own its deliver and plan will NERC time, same At the organisation. new the into transition asuccessful for of working ways and frameworks delegation governance, new establish to Innovation and Research of UK leaders shadow and BEIS with work will NERC year coming the In domain. science environmental own its in autonomy with operate will and budgets allocated directly receive to continue will NERC engagement. public and training postgraduate innovation, institutes, of research, environmental funder UK leading the as identity and role unique its retain will NERC organisation new the Within interest. national the in challenges multidisciplinary to contribute to for researchers environmental opportunities significant create to and investment, new this prioritise and plan to organisation new the across partners with work will NERC year coming the In Fund. Challenge Strategy Challenges Fund Research and the £4.7bn Industrial 2021, to £1.5bn Global the Innovation including and Research by UK administered be to funding additional allocated already has Government investments. multi-disciplinary or of cross-cutting delivery effective more and investment, of public prioritisation better strategy, national coherent more ecosystem, innovation and research UK the for voice a unified promises Innovation and Research of UK creation The Innovation. and Research body, UK public non-departmental of anew bodies constituent as England Research and UK Innovate Councils, Research seven all establish Professor Duncan Wingham Wingham Professor Duncan and facilities provision. services of our aspects some improve and commission to continue will directorate Innovation and Research NERC’s while centres, research of our future the securing to committed weare of this, part As Chairman Cleaver Anthony Sir 2017 June 21 Officer Accounting and Executive Chief

11 NERC Annual Report and Accounts 2016-17 12 NERC Annual Report and Accounts 2016-17 Table 2016-17 1: outturn NERC 2015-16 and 1. Note: excluding non-cash Variance (%) excludingnon-cash Surplus Variance (%) (Deficit)/Surplus Expenditure Total funding income Earned Other BEISfunding Science budget Statements. Financial the in concern 1.3 Going Note in found be can details Further basis. concern agoing on prepared been thus have statements 2019-20. to levels financial The funding indicative 2017-18 for BEIS from further allocation with budget its received has NERC of State. Secretary by the issued 2016-17 for direction (FReM) accounts the and Manual Reporting Financial Government’s UK the with accordance in accounting accruals using prepared been have statements financial statutory NERC’s Going assessment concern comparison comparison Innovation and Skills to form the new Department for Business, Energy Strategy Energy and Industrial Business, for Department new the form to Skills and Innovation Business, for Department the with merger its following funding BEIS other as Change Climate and Energy of Department former the from received income treat to re-presented been have 2015-16 figures 507,676 502,730 416,109 2016-17 (4,946) 70,356 16,265 -1.0% £000 0% 33 Re-presented 471,037 473,086 390,523 2015-16 69,674 12,889 2,049 0.1% 0.4% £000 478 1 5. 5. 4. 3. 2. 1. Notes: Net expenditure 2016-17reconciliation accounts annual and Table outturn NERC 2: Reported surplus Reported Science budget (DEL) Outturn NBV capitaldisposals Direct Capital Other BEISfunding AME changes Annual Accounts for 2016-17 for Accounts Table in Annual 2. shown is its with outturn NERC’s between reconciliation The Table in 1.shown is period accounting previous the with comparison A of £5m. deficit anon-cash is There capital. and cash near for budget available to compared variance a0.0% with position financial balanced a with period accounting the concludes NERC Financial summary £4,979k non-cash deficit. non-cash £4,979k and surplus cash near £33k of comprises £4,946k of deficit Reported Manual. Reporting Financial with accordance In £5,950k. of costs notional BEIS and £1,724k of Change Climate and Energy of Department former the from funding £8,034k, of funding Newton Includes 11 Note Provisions. and &equipment plant 7Property, Note professional taken Figures from (Provision valuations. SoCNE first Expense), upon impairments and investments in movements price are as DEL, of scope the outside are and AME as score factor discount in change and discount of unwinding movements, utilisation, Provision 2017.31 March ended year the for expenditure net of Statement the from Taken 2 1 5 3 4 (16,265) (10,266) 416,109 421,055 381,283 2016-17 2016-17 (4,946) (5,624) 71,927 £000

Forward Look coming year. coming the in fund of this opportunity the maximise to partners our with engage to We continue will UK. the in growth driving challenges, key industrial addressing to approaches multi-disciplinary truly develop to UK, Innovate and councils research other with working NERC, for opportunity asignificant provides 2016. This Statement Autumn the in announced by 2020-21 also was annum per £2bn additional an worth Fund, Challenge Strategy Industrial The developing countries. of welfare and development economic the promote and challenges societal global complex address that activities interdisciplinary undertake to community science UK the for opportunities new provide will years, £1.5bn five over GCRF, worth The emerge. Fund Research Challenges Global of the implications the as allocations and processes budget its evolve and review will NERC balances, To these achieve • • • • science that base balances:environmental an support to budgets its manage will NERC countries. Asian East South and Africa South India, Colombia, China, with partnerships innovation and research collaborative support to funding of Newton £32m commit will NERC years, three next the Over objectives. Assistance Development Official UK’s the of delivery to contributing further and economies knowledge emerging with partnerships bilateral our expanding and strengthening include These NERC. for opportunities many provides years seven over £735m to Fund Newton of the expansion and extension The manner. cross-cutting a in themed becoming are budget of the elements Significant changing. is UK the in funding of scientific nature the 2015 Review, of the outcome Spending the and 2016 the Statement, Following Autumn and globally. UK the in wellbeing and security prosperity, enhances science environmental where investment our focus We infrastructure. research large in capital additional plus laboratories, world-class in capital £34m and resource in £290m around invests NERC year Each sectors and research centres. centres. and research sectors disciplines, science of environmental diversity the research; directed strategically and science discovery research; single and multi-disciplinary priorities; andUK international driven approach. approach. driven outcome- and systemic aholistic, take will It solutions. and policies innovative pioneer and decisions inform to challenges these address help can knowledge and interdisciplinary landscape research environmental wider the in investments NERC where identify will It base. evidence science environmental the in gaps knowledge long-term to medium the address and prioritise define, will programme this requirements, short-term on is focus air. when and At atime water of our quality the and ecosystems of our resilience the and management ensuring environmental sustainable leavingUK the including European Union, optimising the from present that opportunities and challenges addressing to way the pave will of activity programme This future. the for evidence environmental prioritise and define to initiative anew developing include plans Specific Trust. National the and Governments Scottish and Welsh the Defra, including organisations society civil and bodies key government with relationships strengthen to continue will NERC sectors. energy renewable and risk, insurance, on afocus with innovation programmes and industry-led partnerships strategic-level through businesses sector private with will includeInnovation building activities relationships will be called UK Research and Innovation and is due due is and Innovation and Research UK called be will body new This England. for Council Funding Education Higher the from funding research the and UK Innovate councils, research seven the together bring will that body of a new, strategic creation the announced for. 2016, May In compete to Government the position astrong in is community science environmental UK the afund research; Assistance Development Official termed development, international for research to allocated be will funding more progressively years, four next the over that 2015 Statement the Autumn in news the include year. These this announcements of important anumber to We responded Government. by the science in investment unprecedented by this created opportunities of the some taking in role full its plays science environmental that ensure to agile remain to have of course we will and challenges, these We meet will Union. European the from exit of an shape final the in instance for environment, by presented our external opportunities and challenges the meet to well-placed is NERC Fund. Challenge Strategy Industrial of the introduction GCRF, and of the evolution Fund, Newton the of expansion announcement, Statement Autumn of the opportunities and uplift the We welcome

13 NERC Annual Report and Accounts 2016-17 14 NERC Annual Report and Accounts 2016-17 UK. the across growth and jobs productivity, deliver strategy industrial amodern ensure will science environmental how considering consultation, the to responded economy. NERC UK the for challenges long-term address to how on aconsultation launching 2017, as time same February the in at Strategy, Industrial our paper, Building green its announced Government the 2016 Statement, the in Autumn Fund Challenge Strategy Industrial the announcing 2018. after Finally, 1April on existence into come to Performance Analysis 1 South West Partnership for Environment & Economic Prosperity (SWEEP), worth £4m over five years is led by University of Exeter. Yorkshire Integrated Integrated Yorkshire Exeter. of University by led is years five over £4m worth (SWEEP), Prosperity &Economic Environment for Partnership West South 1 CO in increases future to be will oceans the susceptible how shown has work This dioxide. carbon atmospheric by increasing driven system chemistry carbonate marine of the components other and pH seawater in change long-term the is acidification Ocean Defra. and DECC with partnership in acidification ocean on programme amajor completed year this has NERC wellbeing. societal and growth economic jobs, innovation, UK drive and knowledge; scientific existing apply and find science; environmental new co-deliver and design of managing co- the environment; opportunities and challenges the address to together work can society civil and government, business, scientists, that so partnerships international and UK fosters NERC for science a changingworld Environmental / reporting/reports/impactreport2016 at available Report, 2016 the in Impact published are funding of our impact of the Details development. sustainable promote and knowledge, new discover change, environment manage hazards, environmental to resilience build resources, natural from benefit to citizens and government business, UK enables that innovation by and investing skills in research, world-leading priorities strategic its deliver will NERC period, this 2016 During period 2020. to the for priorities investment and budgets out lays plan delivery The internationally. and UK the in both contributions social and economic make to efficiently and effectively funds public investing weare demonstrates and decision-making our informs This plan. delivery and strategy Charter, Royal NERC the against progress on reports and evaluates monitors, regularly NERC environmental impacts of a 1.5°C temperature rise rise of a1.5°C temperature impacts environmental the study will Research target. this achieve to needed steps the on policy inform to evidence timely provide to programme aresearch funding jointly are BEIS and NERC 1.5°C, to increase temperature the limit to efforts pursue to agreed 2015 195 countries where December in Agreement Paris the to response In 2017. March in session evidence oral an attending of Research Director Associate NERC’s and topic the on researchers top of our four with acidification, ocean into inquiry Committee Technology and Science of Commons House the to evidence 2017, January submitted In NERC communities. Catchment Solutions Programme (Yorkshire iCASP), worth £4·7m is led by University of Leeds Leeds of £4·7m University by led is worth iCASP), (Yorkshire Programme Solutions Catchment 2 and the particular vulnerability of coastal of coastal vulnerability particular the and www.nerc.ac.uk/about/perform/ www.nerc.ac.uk/about/perform/ sustainability, and support local, place-based growth. growth. place-based local, and support sustainability, and resilience performance, improve will that benefits societal and of economic arange generate to UK of the regions west south and east north the in policymakers and businesses with directly working Development Assistance list. We have developed our our We developed have list. Assistance Development Official the on countries in development activity future and building network development, relationship of £1m pump-prime investment to have innovationInternational included activities options for the oil and gas sector. sector. gas and oil the for options comparative of assessment pipeline decommissioning the for framework of astrategic development the as such issues tackling projects innovation in £500k invested wehave programme, innovation gas and oil our through Similarly, Energy. EDF with facilities power nuclear coastal UK for blooms jellyfish for system warning early of an development the include Projects UK. the in owners asset infrastructure leading of the £1.2m some with invested Programme Innovation Infrastructure to Risks Environmental the example, For sectors. energy and infrastructure, leading food businesses in sustainable production, UK’s of 50 the over with engaging actively is NERC programmes, innovation 2016. four Across November in gas, and of oil topic the on programme, innovation fourth our launched and programmes innovation led challenge- industry in invest to We continued have M&S. and WWF with chains supply food global in risk water on focused projects innovations three in invested NERC production. food of sustainable future the shape to aims that apartnership in Spencer & Marks with forces 2016, joined NERC April In regulation. and policy-making business, UK for solutions and tools approaches, value-adding innovative into community of our skills and capabilities data, knowledge, the transforming research, of our impact the enhance to ecosystem innovation the across work to continued has NERC Innovation and impact 1.5°C. to warming limit would that of actions feasibility the and 2°C, with compared science-base. The projects will see top universities top see will projects The science-base. environmental world-class their from benefit regions UK two help will that £9m nearly worth projects ambitious two awarded programme Environment the of Science from Impact 2016, Regional the October In 1

15 NERC Annual Report and Accounts 2016-17 16 NERC Annual Report and Accounts 2016-17 This year NERC has co-funded dedicated fellowships fellowships dedicated co-funded has NERC year This audiences. and policy commissioning evaluations, those evaluators, for toolkits and guides publishing and policymakers; and academics practitioners, for educational programmes organising projects; of evaluation arange on methods these piloting network, environment-food-energy the across settings complex in of policies evaluation the for methods improving and developing is centre This FSA). EA, Defra, DECC, with partnership (in Nexus the Across of Complexity Evaluation for Centre pound million multi- the Council, Research &Social Economic the with co-funded, wehave example, for councils, research other with co-funding and work continued also has NERC Assessment. Risk Change Climate 2017 the Government inform UK directly will report 2016. July in This published change climate from UK the to opportunities and risks of the report evidence independent the to directly delivered that research t and governments devolved the Defra, with Working change. environmental by presented opportunities and challenges the to respond to need they knowledge the decision-makers give to funds of public use their in efficient more be can members duplication, avoiding and resources leveraging value, adding By activities. strategic co-ordinate to members by enabling innovation and evidence research, change environmental funded publicly- UK’s of the impact the enhance to aims and governments, devolved and Defra Office, Met the Innovate-UK, councils, research the all including partners sector 20 public over together brings Forum RIDE The Forum. RIDE the Environment, f aforum 2016, up May in To set NERC end, this • • • • through: regulation and policy-making into science of NERC take-up and impact societal and economic p and efficiently working to committed has NERC Development Goals. Sustainable of the support in agenda translation research and innovation aresearch, articulating Foundation, Rockefeller US’s the and ESRC the with partnership or Research and Innovation for our Dynamic Dynamic our for Innovation and Research or he Environment Agency, NERC co-funded £350k of £350k co-funded NERC Agency, Environment he roductively across the public sector to increase the the increase to sector public the across roductively sc coordinated of independent, asource as acting research; dingfun user-relevant more use of needs/engagement of user consideration more intermediaries; g to science of NERC communication better overnment, parliament, the private sector, and and sector, private the parliament, overnment, ientific advice. advice. ientific rs in research; in research; rs NERC, the Engineering & Physical Sciences Research Research Sciences &Physical Engineering the NERC, by both supported is programme The approaches. of such aspects societal wider the and governance including technical,problem economic, environmental, of this of aspects range awide covers programme the at atmosphere a climatically-relevant The scale. a public with partnership in up set placements and k provides research the Strategically-directed programmes Strategic research challenges. development approaches todisciplinary addressing environmental inter- and ideas innovative of new testing enabled have they Furthermore, agenda. development of the forefront the at organisations user and beneficiaries with collaborations effective more and deeper of broader, development enabling communities, research international the creation of inter-disciplinary disease calls. These foundation calls have stimulated globalMRC-led infections and non-communicable the and call systems food and agriculture global led BBSRC- the call, resilience building GCRF NERC-led the through £3.2m GCRF. Weof the committed have N councils, research the across partnership in Working 2017. in published be will that Policy Resources Natural National Government’s Welsh of the development inform to advice scientific brokering and evidence-base the enhancing example, for on, collaboration to led and partners our and NERC between relationships strengthened to led have placements of these All level. highest the at policymaking with science NERC link to remit important an with Governments, Welsh and Scottish the with work to fellowships senior NERC two appointed also has NERC Trust. National Management Organisation, GO-Science, and the to remove CO remove to of techniques knowledge our improve to research fund will that Atmosphere the from Removal Gas Greenhouse on programme a£8.3m launched NERC n numerous launched has year, NERC past the Over base. researcher UK of the creativity and excellence leading world- the upon drawing funding, additional leverage and needs stakeholder UK meet that programmes co-deliver and co-fund co-design, to partners international and national with works NERC change. environmental manage and hazards environmental build resilience to services, andresources ecosystem natural from benefit society and government business, help that programmes funds NERC society. facing nd civil society organisations such as the Marine Marine the as such organisations society civil nd nowledge needed to meet the greatest challenges challenges greatest the meet to needed nowledge ew research initiatives. For example, in late 2016 late in example, For initiatives. research ew ERC has played a key role in delivery of the first year year first of the delivery in akey role played has ERC 2 and other greenhouse gases from from gases greenhouse other and comprises: NC-science, which integrates over at least least at over integrates which NC-science, comprises: NC option. practical only the procurement direct makes that budget and of size mass acritical with provision NC for aneed in result features These complexity. and scale of its acombination to due by NERC procured directly activity NERC-funded of element the describes funding capability National National capability Asia. South-East in wildfires and Africa southern in droughts and floods including disease in Peru, the of spread waterborne of impacts arange at looking supported been have projects Fourteen data. novel collect to need urgent an was there where projects of research arange fund to process commissioning astreamlined undertook Development, International for Department the with together funding, GCRF through 1950.since NERC, recorded been have that strongest three of the one 2015-16 The was event Niño El America. South and Africa Eastern in rainfall enhanced and Asia Southeast and Africa Southern in conditions in results typically and patterns weather on impact a global with Ocean Pacific the in cycle aclimate is Niño El Brazil. in welfare and development economic promote can this how and restoration, and management for options of change, impacts and drivers the of ecosystems, functioning the in of biodiversity role of the understanding our improve to seeks and Fund Newton the through supported been has programme Resources Biome Brazilian &Sustaining Understanding The countries. developing in, research in engage and with, partnerships develop to community science UK the for opportunities new provided have Fund Newton the and GCRF The future. the into and now requirements policy and science of meeting capable are which observations integrated and efficient more deliver to technologies new of using challenges technical and scientific the address will that aprogramme undertaking are UK WWF- and Defra NERC, area, this in investments capital major on Building pressures. other and change climate to response its and function ecosystem of marine understanding our accelerating while cost-effective, more observation marine make will technologies Autonomous Areas. Protected Marine of management effective enable and ecosystems of marine health the show will that data collect to arequirement is there means This sea. of the state the obligations for monitoring statutory fulfil must The UK Council. Facilities &Technology Science the and Centre Hadley Office Met the from contributions in-kind with BEIS, and Council, Research &Social Economic the Council, • • Achievements in 2016-17 include: strategy. NERC’s deliver to planning business of its part as Council NERC by determined are categories NC four these for Budgets large. at public the to information wider and departments government to advice comprise which activities, good public and NC-national delivering and community; research science environmental the to aservice provide that data and facilities NC-services, smaller-scale ships; as such infrastructure research national and decadal time-scales; NC-large-scale • • • communities. communities. of coastal challenges addressing and development; economic support and health human improve to resource use sustainable for hazards; atmospheric systems warning early developing include: These problems. country developing on focus and need, adevelopment address to designed challenges societal and scientific major tackle centres the see will which total, in £26m worth programmes, science NC new ambitious of six commissioning the to led This commitments. Assistance Development Official NERC’s against deliver will that of programmes aset develop to centres 2016-17, research During its challenged NERC climate. global the in role Ocean’s of Southern understanding our improving and sustainable more agriculture making as such challenges societal and scientific major tackle to together working centres the see 2016. will These 1April on started which £34m worth programmes new ambitious five commissioned NERC of the new £20m Lyell Centre at Heriot-Watt Heriot-Watt at Centre Lyell £20m new of the ceremony opening 2016 official the saw October workforce. Laird Cammell entire the and BAS NERC, BEIS, communities, science and Antarctic marine, from guests included that event an in Birkenhead in shipbuilder the at process laying keel the started officially David Sir keel. of her laying ceremonial 2016 the with October in milestone construction first her reached ship . The Attenborough David Sir RRS the vessel, research polar new UK’s the building started Laird Cammell Shipbuilder on board. people five of the repatriation and rescue successful the in resulting coast, African West North the off yacht sunken anearby from call a Mayday to responded also cruise latter The of Portugal. coast southwest the off deposits mineral seafloor assessing other the and of UK, northwest Trough, Rockall the in connectivity population deep-sea investigating one technology; mooring and Autosub ROV Isis, the including systems, autonomous using James Cook multiple RRS the on cruises infrastructure heavy large two deployed NERC

17 NERC Annual Report and Accounts 2016-17 18 NERC Annual Report and Accounts 2016-17 and industrial partners. partners. industrial and institutes research universities, in time any at students 1,300 over with funding, training postgraduate in ayear £26m around invests economy. NERC of the science, across business and government all sectors UK for skills and knowledge essential with researchers of generation equips training the next Doctoral training Postgraduate change. climate to phytoplankton ocean of southern response evolutionary the and fluxes carbon in microbes and of termites role the include route this through funded of projects Examples led. 11 has and NSF agency lead where the been has NERC where awarded been have grants six time that 2015 July since in and running been has scheme The jeopardy’. ‘double avoiding and process the simplifying greatly once, reviewed be only will proposal the that means agreement NSF. or The NERC either to proposal collaborative UK-US asingle submit to researchers allows Foundation Science National US the and NERC between Agreement Agency Lead The sheet. ice Greenland of the melting the on particulates and of microbes impacts and vulnerability, individual’s an determines what and environment the in diseases Valley, infectious Rift African the in of volcanism studies include examples Recent opportunities. funding NERC other through addressed be cannot that questions science big tackling £3.7m to up costing projects research complex and scale large- adventurous, support grants large NERC’s began. research the when unforeseen were that wellbeing and economy, society our to benefits lasting delivered repeatedly has It science. environmental of UK position world-leading the underpins – and future and present –past, works Earth the of how knowledge our in advances fundamental to – leads priorities strategic by high-level than rather curiosity by driven is that –research science Discovery science Discovery • data, and commission the new portfolio in 2017-18. in portfolio new the commission and data, and facilities service, for need strategic the identify to begun has NERC evaluations, the Following 2011-15. during community wider and scientific the to aservice providing in centres data six and facilities and 26 services of NERC’s performance the evaluate to asked were who panels, expert by independent conducted were evaluations The £19m worth ayear. portfolio, data and facilities services, NERC the on out carried were Evaluations budget. within and time on delivered been has staff of BGS relocation The sciences. marine and petroleum geological, for centre research Watt BGS/Heriot- joint amajor is centre The University. research leaders. leaders. research as themselves establish to and programmes research their develop to time sufficient them allow will which support, years’ five fellows all gives It scientists. environmental early-career promising most the among leadership scientific develop to designed is scheme This competition. Fellowships Research Independent 2016 the through funded were fellowships Thirteen academic and non-academic organisations. partner between collaboration of amutually-beneficial context in challenging the experience training rate, research afirst- with students doctoral provide studentships CASE remit. science NERC the within training and skills specialist particular, with individuals providing at aimed training postgraduate support former The competitions. 2016 the through funded were students 36 CASE and Courses Short Training Advanced Forty-two core. its at modelling with prediction, and visualisation, leading to interpretation analysis, collection, data assimilation, with linking theory processes, evolutionary and relevant ecosystems on afocus with offered be will Training relevance. of inference and analysis statistical modelling, collection, of data aspects various in scientists environmental of UK generation next the train will CDT The evolution. and ecology in skills quantitative and modelling in training Doctoral for aCentre in investment 2016, announced NERC October In intent, and discussion. resolve issues through intent, and messages our share we can which from position a create help and key audiences, among advocacy and support webuild ensure to targeted, more been have activities Our of initiatives. arange through key audiences with influence and profile NERC’s raising in forward strides 2016,In major wemade Communications and public engagement Bill. Research and Education Higher by the indicated of travel direction the with aligned are programmes change and proposals projects, that ensure to partners other and BEIS councils, research other with work to continues also NERC holds. future that of what regardless future, the for fit is organisation our that ensure to helped has mechanisms, funding our to structures organisational internal our from ranging themes assessed has which programme, year.the That and continuous self-assessment during improvement of aprogramme undertaken has NERC efficiency, and impact excellence, for goals strategic To our deliver change Enabling with the big issues of environmental science. Short, Short, science. of environmental issues big the with public UK 2016: in the call Engaging engagement public first our We launched infrastructure. and programme capacity, dedicated with together stream funding £500k anew with presence and ambition our increased wehave engagement, public In well. working is approach new the indicates feedback and improvement, for area an as communications feedback which highlighted internal survey staff to responded we have NERC Across organisation. the across messaging clear with approach new this embed to underway is Work centres. NERC’s and office head NERC across engagement with brand, and identity NERC’s developed further wehave communications, internal to commitment aclear demonstrated and introduced Having campaign. this following media social on and media mainstream in both markedly increased funding of NERC mentions Unprompted us. with work to appetite agrowing expressed have and us with opportunities sharing groups increasingly are Both centres. research our from and researchers NERC-funded from contact greater seen have we campaign, Name Ship our the from particularly year, past the over activities of our aresult As Manchester. to aircraft Measurements Atmospheric Airborne for Facilities the wetook and Laird, Cammell at laid was keel Attenborough’s David Sir RRS the mid-October, In Waterfront. Liverpool visit Discovery RRS saw month the in Early science. environmental UK in enthusiasm and pride build and science, its and of NERC awareness build to of amonth period the over events high-profile ambitious, 2016, three weran autumn In change. climate affect they how –and Water Bottom Antarctic as –known Earth on waters ocean abyssal coldest and deepest of the some study to expedition of an part was sortie . The Ross James Clark RRS the ship research 2017 BAS April in from Islands, Orkney South the near Sea Weddell the deployedtechnicians, in Boaty and engineers NOC and BAS, and of Southampton University the from Researchers Ocean. Southern of the waves the beneath sortie Antarctic first its completed by NOC, operated submersible Range Long McBoatface Boaty Autosub , the out. carry will ship the research the for science, world-leading its and NERC with unfamiliar audiences and stakeholders, key among support and understanding build to in way a provided It attention. global widespread, gained ship research polar new our naming in stakeholders key engage to 2016, campaign our spring In management. management. of demand impacts the monitor to continue will NERC submissions. of low-quality number the in decrease of alarge because 10% 20% to from risen have rates success that found has measures of the review Arecent taxpayer. the for money for and value excellence, research efficiency ensuring rates, success grant the raise to and organisations research from of proposals size and number the reduce to designed are These grants. standard science discovery its for measures management demand new 2015In implemented NERC FellowshipsGrants, and studentships society. to relevant decisions make to NERC allow and inform to activities dialogue public convene wewill ahead, Looking year. the throughout activities engagement public our inform help to science environmental towards specifically attitudes, of public a survey commissioned 2017. in calls 2017, in engagement Early public we We further plan events. showcase annual future through and engagement, public in record track strong and profile ahigh with organisations by reputable externally supported be will area this in activities our 2017. January in of Much started projects pilot focused, effectiveness of our approaches to funding. to approaches of our effectiveness overall the review to We continue will soon. available made be will which community review peer the for tool training bias unconscious Council cross-Research of development the in involved are and staff own our to training bias unconscious offer to continues NERC female. are students PhD of current 51% females. to awarded are of studentships 50% average on fluctuations, yearly are there Although applicants. fellowship male to compared female for rate success better aslightly and grants, research for applicants male to compared applicants female for rate success reduced aslightly shows 17 overleaf 2016- for data The gender. one for worse or better consistently not are rates success but fluctuations yearly are There constant. relatively remain rate, success and subsequent their for grants, research applying of women proportion the that shown have Trend data fairness. ensure to applications fellowship and of grant rates success the monitor to We continue

19 NERC Annual Report and Accounts 2016-17 20 NERC Annual Report and Accounts 2016-17 Success rate % rate Success of grants Number % Number of proposals Number Directly employed staff employed Directly 31 2017 March at as by gender staff employed Directly by gender fellowships for rates Success by gender grants for rates Success rates success and applications grant science Discovery Number of grants Number of proposals Number Success rate % rate Success of grants Number of proposals Number Success rate % rate Success £k Total 2016-17 47,301 1,501 1,245 Men Men Men 511 113 100 380 22 60 31 8 8 Women Women Women Women Women Women 2015-16 2015-16 41,320 41,320 432 432 740 740 995 995 115 115 110 110 27 40 45 15 11 5

organisations research in Staff staff employed Directly 2. 2. 1. PhD Fellows fellows and students Staff, schemes conclude. training old as year each mechanisms these through funded students of being number increasing the and training postgraduate delivering for models Training Doctoral for Centre and Partnership Training Doctoral the of adoption the following studentships numbers co-funded of increased the reflects this years; previous for those than higher 2016/17 for are figures The publication. of time the at holders, by award system, the into entered been previously not had that studentships include to annually recast are data PhD award. the administers funder another where studentships co-funded include not do These NERC. by funded directly students of number on based is data PhD year. financial the of end the at active were that grants research on named staff research and academic all of Headcount 2 1 2016-17 3,501 1,346 2,496 84 2015-16 2015-16 3,002 3,002 2,505 2,505 1,310 1,310 84 Science budget expenditure in research organisations (£000) (£000) organisations research in expenditure budget Science Total Research Centreawards Other researchorganisations ofStrathclyde University ofDundee University ofStirling University University Aberystwyth Medical ResearchCouncil ofEssex University Royal Holloway, ofLondon University Research Wyke North ofBath University ofSussex University ofLondon University Queen Mary ofNottingham University King's CollegeLondon ofHull University of Warwick University University WattHeriot ofSt University Andrews ofPlymouth University Met Office Museum History Natural ofGlasgow University Cardiff University Bangor University University Cranfield The Scottish Science(SAMSGroup) Association for Marine clg Laboratory Plymouth Marine ofDurham University ofNewcastle Upon University Tyne &Physical SciencesResearchCouncil Engineering Science & Technology FacilitiesCouncil ofLiverpool University ofYork University of Aberdeen University ofSheffield University Lancaster University Biotechnology andBiologicalSciencesResearchCouncil(BBSRC) ofEast University Anglia ofBirmingham University ofCambridge University ofSouthamptonGRANT University ofManchester The University ofLeicester University CollegeLondon Imperial CollegeLondon University ofEdinburgh University ofExeter University ofReading University ofBristol University ofOxford University ofLeeds University 190,519 19,153 14,338 13,472 2,646 2,928 3,423 3,527 3,530 3,748 4,180 4,414 4,645 4,645 4,963 5,287 5,522 5,619 6,052 6,103 6,778 6,780 7,091 8,025 8,955 1,108 1,179 1,200 1,246 1,282 1,308 1,338 1,722 1,748 1,848 1,875 2,075 2,407 2,558 2,617 Total 554 567 638 660 682 684 692 710 718 730 790 855 904

21 NERC Annual Report and Accounts 2016-17 22 NERC Annual Report and Accounts 2016-17 NationalCapability Environmental DNA El Nino Ecology ofInfectious Diseases of Drivers Variability in Circulation Atmospheric Coastal Morphology Cycle Changing Water Carbon Capture&Storage Building ResilienceinDeveloping Countries Biosphere Evolution, Transitions andResilience Sustainability &Ecosystem Service Biodiversity Indian Mega-City PollutionAtmospheric andHumanHealthinan Chinese Mega-City PollutionAtmospheric &HumanHealthina Arctic Programme Analytical Science& Technology PhDStudentships 1.5°C Pathways andImpacts Funding Activities Other Grants Large Standard Grants Grants International ResearchInfrastructure Large Activities Corporate NERC OtherSubscriptions Integr Subscriptions International Long Term ScienceMultidiscplinary Science Long Term National Public Good Services, Facilities&Data Facilities NationalMarine Facilityfor Airborne Measurement Atmospheric ResearchInfrastructure Large How we spent the science budget (£000)* budget science the weHow spent Strategic Research Discovery Science Infrastructure (ALI) National Capability– Antarctic Logisticsand Long Term Science National Public Good Analysis Institutefor International Applied Systems ated Ocean Drilling Programme ated OceanDrilling Sub-total Sub-total Sub-total 32,658 52,461 94,054 40,228 33,321 10,341 18,108 13,968 30,779 1,235 1,182 1,044 1,760 1,061 1,969 8,798 1,466 4,497 6,723 3,527 1,425 2,600 454 800 768 175 756 227 885 201 713 626 109 300 378 591 UKERC III UK IODPPhase3 UK Droughts Trends inSurface Temperature Tree Health Technologies ProofofConceptPhase2 ResearchDevelopment Fund Strategic Monsoon South Asian Soil Security Shelf SeasBiogeochemistry from Resource recovery Waste Circulation) Overturning RAPID-AMOC (AtlanticMeridional Radioactivity andtheEnvironment Probability, Uncertainty, Risk Resilience (SHEAR) and Emergencies Science for Humanitarian context Resilience oftheUKfood systeminaglobal Future Climatefor Africa Climate PredictabilityandInter-RegionalLinkages Aquaculture AMR intheEnvironment Ice SheetStability Human modified Tropical forests Greenhouse GasEmissions Freshwater Ecosystems Flooding fromintenserainfall BioticResponse Evolutionary implementation ESM Strategy Environmental Nanomaterials Environmental MicrobiologyandHumanHealth Pollutant Exposures&HumanHealth ODA India Water Resources ODA CZO(SustainingSoils) Ocean Shelf-EdgeExchange vehicles unmanned aerial Next Generation Hazards Natural Resources Mineral Methane Budget for 'omics Mathematics andInformatics Ecosystems Marine Macron Scales ConvectionUnderstanding Atmospheric utrient Cycles utrient acros s 1,990 1,792 1,679 1,689 1,664 1,351 1,017 1,920 1,257 1,827 1,154 1,645 1,049 2,029 2,355 460 918 897 806 598 339 873 139 337 196 900 955 457 308 745 780 126 845 198 781 110 294 243 230 105 988 889 * This table shows how much of the BEIS science allocation has been spent directly by the NERC Centres. All figures are net of other income received. income other of net are figures All Centres. NERC the by directly spent been has allocation science BEIS the of much how shows table * This (£000)* by Centre budget science the weHow spent Funding Activities Other on theHabitab Volatiles, Controls GeodynamicsandSolidEarth Valuing Nature Foreign ExchangeGains Impairments Amortisation Depreciation Funding Activities Other Innovation Programmes Enabling ResearchOrganisations Fellowships Funding Activities Other SkillsTraining Advanced Studentships CASE Centres for Doctoral Training Partnerships TrainingDoctoral Grants TrainingDoctoral Capital Resource Total Administration costs Capital Grants Non-Cash Enabling Change Public Engagement Innovation Fellowships Graduate TrainingPost le Planet 80,032 80,032 48,454 48,454 31,578 31,578 ALI ALI 12,627 12,627 6,498 6,498 6,129 6,129 BAS BAS Sub-total Sub-total Sub-total Sub-total Sub-total Sub-total 25,052 21,287 21,287 3,765 3,765 BGS BGS 12,279 56,309 24,882 13,941 18,697 48,129 40,778 4,423 7,619 -1,087 2,567 1,113 1,852 6,898 1,273 2,582 1,549 4,881 7,768 6,132 9,508 3,057 714 656 670 15,575 15,575 17,468 17,468

1,893 1,893 CEH CEH Total Capital Resource ** 421,055 Comprises: TOTAL NERC EXPENDITURE Asset Disposals Equipment, well found labs, ResearchCentres, Halley VI Relocation Projects RRSSir Partition Antarctic LogisticsandInfrastructure Capital income-NERCother Partition Antarctic LogisticsandInfrastructure AME changeinprovisions reversals andimpairment AME impairments financing Other fundingreceived fromBEISrecordedas y fromthenetexpenditure for the ** Resourcefigurediffers allocation. * This table shows how NERChasspenttheBEISscience Notes Capital Capital Income ear by £26,531k, whichisbroken down asfollows: 38,533 38,533 26,949 26,949 11, 58 4 4 58 11, All figuresarenetofotherincomereceived. NOC NOC NCAS NCAS 9,143 9,143 9,143 9,143 and Associated

- NCEO NCEO 4,188 4,188 4,188 4,188 Sub-Total Sub-total

- 421,055 187,043 187,043 115 , 218 218 , 115 71,825 71,825 354,752 26,531 66,303 66,303 23,473 42,841 16,265 Total Total -4,372 -5,624 -3,292 -1,080 1,105 4,508 4,161 6,105 £000

23 NERC Annual Report and Accounts 2016-17 24 NERC Annual Report and Accounts 2016-17 certification runs until April 2018. All NERC Research Centres hold certification to to certification hold Centres 2018. Research NERC All April until runs certification 2010 current since the and Standard Trust Carbon the held has NERC impacts environmental managing to commitment its of demonstrating part As management. environmental for responsibility level board has Officer Operating Chief NERC The Governance and certification • • • • • • is: years two first the in targets year five these towards progress NERC • • • • 2019-20 to 2014-15 the period against baseline: year five the over achievement for targets sustainability following the set has NERC 2019-20 targets towards Progress produced. waste 18% total and in consumed water in of 22% areduction also was There of 7%. factors conversion in changes to due areduction and of 2% emissions other and related travel business UK in increase an Loanhead, and House of Murchison closure the to due reduction a2% of 4%, estate UK the in consumption energy in of adecrease composed was CO of of 1,365 tonnes equivalent by the emissions carbon its reduced and activities UK of its performance environmental the improved 2016-17In further NERC 2016-17 in performance of Summary wellbeing. global to contribution valuable its inhibiting unnecessarily without change climate and issues environmental by addressing generated value environmental the against work of its impact environmental the balances NERC issues. environmental vital other investigating and change of climate basis scientific the establish helping in critical also is research our but environment the on research of its impact adverse the minimise to strives NERC aircraft. research and ships of research fleet UK the runs and locations diverse many in globe the around works Arctic, the and Antarctica in bases research operates also NERC sites. multiple have of which all UK, the across located centres research four operates and Swindon in based is NERC Overview Sustainability Report in 2016-17 at 18% and the proportion recycled at 60%. 60%. at recycled 2016-17in proportion 18% the at and landfill to going proportion the with generation waste overall in 26% reduction of 0.5% reduction asmall show flights excluding travel UK from emissions gas Greenhouse flights of domestic number in 47% reduction consumption water in 21% reduction estate UK the on usage energy in 6% reduction factors conversion carbon in changes 11% of which measure) this advantageous to due is on Commitment Government Greening 2020 the meet to by NERC required of that excess in already is (which emissions gas greenhouse in 17% reduction produced. of total use) 60% to (and re- recycling for sent of waste proportion increase and tonnage waste total 5% to of landfill to going of waste proportion –reduce estate UK from Waste flights excluding 10% travel in least of at reduction –a taxi) and bus (train, transport public business), NERC on vehicles own their using (staff fleet ‘grey’ vehicles, hire vehicles, fleet including travel Business 10% least of at –areduction estate UK the on usage Water 10% least of at –areduction estate UK the on usage Energy 2 , an 11% reduction over 2015-16. This reduction in emissions emissions gas greenhouse in 11%, an 2015-16. over reduction This reduction 21 June 2017 June 21 Officer Accounting and Executive Chief Wingham Professor Duncan • • • • include: performance environmental our improve to investment continued of NERC’s examples Recent target. our meeting towards contribution asignificant made has which usage, energy reduce to technologies and buildings new in invest to continues NERC Investment in sustainability BEIS. to quarterly performance sustainability its reports NERC year) last renewed was (which Commitment Government Greening of the part As Scheme. Efficiency Energy Commitment Reduction Carbon Government the in participates NERC and Management Environmental for 14001 Standard ISO the 4. 4. 3. 2. 1. Notes: Waste Waste Travel Travel Energy Energy (tCO (scopes 1, 3) 2and emissions gas Greenhouse Area Water Water Consists of water consumption for the whole UK – predominantly specialist non-office – estate. –estate. non-office specialist –predominantly UK whole the for consumption water of Consists waste. hazardous of incinerated/ of 18 76 tonnes tonnes and waste landfill, of from tonnes 78 energy waste, reused/recycled tonnes 257 of consists generation Waste 15.4 of kWh consumption 2). (scope electricity 1) and (scope kWh 16.0 of consumption included. not gas are Includes travel overseas consumption and Energy airplanes ships, from Emissions 3). (scope and transport buildings UK related from business 2) emissions (scope indirect 1) and (scope direct include emissions gas Greenhouse

‘Very Good’ standard. BREEAM to BAS at Centre Innovation Aurora of the Construction Southampton NOC at circulation water hot for pumps controlled inverter New Wallingford CEH at Building Maclean the on array generating electricity solar of 50kw Installation Keyworth BGS at store sample radioactive occurring naturally new for pump heat source Air 2 e) 4 1 Generation (tonnes)Generation Expenditure UK business travel (£m) travel business UK Expenditure Generation Generation Consumption (in million kWh) Expenditure (£k) Expenditure (£k) Consumption – whole estate (m estate –whole Consumption Expenditure (£m) (tCO 2 e) 3 2 3 ) 35,598 35,598 2016-17 2016-17 10,907 10,907 31.7 255 949 106 429 2.2 2.3 45,667 45,667 12,272 12,272 2015-16 2015-16 33.7 33.7 522 522 357 357 827 827 134 134 2.2 2.2 2.0 2.0 45,346 13,094 13,094 2014-15 2014-15 33.8 33.8 579 579 287 287 137 137 917 917 2.4 2.4 2.1 2.1

25 NERC Annual Report and Accounts 2016-17 26 NERC Annual Report and Accounts 2016-17 days for the period are 29 days (re-presented 2015-16: (re-presented 24 29 days days). are period the for days 1997/571, creditor Instrument trade Statutory of the guidance the with accordance 2015-16) (79.7% days (98.1% days 30 working 97.5% 2015-16). and within five In 2016-17, During within made were dictate. 77.6% of payments terms suppliers if earlier or invoice of avalid of receipt days five within suppliers its paying to committed is direction, Government the with accordance in and payment, prompt regarding of Practice Code Industry of British Confederation the observes NERC Payment policy 2005. Regulations Information Sector of Public Re-use of The requirements the from exempt is but guidance, Information Sector Public and Treasury HM in out set requirements charging and allocation cost the with complied has NERC Information Public Sector 2016-17. during work of non-audit respect in auditors internal the to paid was 2016-17during £212k. remuneration was No undertaken audits of internal cost total The Service. Audit Internal Government the by thereafter and months six first the for Group Services Assurance and Audit the by provided was audit 2016-17. in work internal of non-audit Independent respect in auditors external the to paid was remuneration No £80,000. was audit statutory of the cost The Parliament. to responsible is and statute under appointed been has who General Auditor and Comptroller by the audited are accounts NERC’s Auditors Arctic. the in one and Antarctic the in bases several operates BAS centre research its although UK, the outside branches no has itself NERC operations Overseas interests-register/ website NERC’s on available is which of Interests aRegister manages Secretariat Council NERC’s materialised. have responsibilities managerial their with conflict regarding issues No Accounts. 13 Note in Annual and the to accounts main the to Report Staff and Remuneration the in presented are organisations other to affiliated are they where members Council of NERC’s interests significant relevant Potentially Significant interests Instruments. Financial 1.6 Policy Accounting in disclosed is risk on policy NERC The Accounts. Annual the within Statement Governance and Report Staff and Remuneration the in included are risk and governance board, management directors, of NERC details Full risk and governance Directors, Report. Staff and Remuneration the in in discussed are schemes pension NERC’s Pensions 2016-17: period accounting the for presented are disclosures statutory following the 2006, Act Companies the with accordance In disclosures Statutory Report Directors Corporate GovernanceReport Accountability Report www.nerc.ac.uk/about/organisation/boards/council/membership/ leading to one to three days off work compared to three in 2015-16. in were three to There compared work off days three to one to leading 2016-17 in injuries time lost non-RIDDOR three were There samples. digest to used powder washing abiological with contact through irritation skin a severe to due injury time lost over-seven-day an was event reportable RIDDOR The 2015-16. in reported 226 the to identical 2016-17 almost 228, was in system management safety our follow which institutes research associated closely its and NERC within staff to reported health ill work-related and of injuries number total The overseas. occurrences serious other three were there year. addition, In previous the in two to compared events reportable (MAIB) Board Investigation Accident Marine four were There 19 years. last the in recorded events reportable of RIDDOR number lowest the is year. This 2013, previous the in as (RIDDOR) Regulations Occurrences Dangerous and Diseases of Injuries, Reporting the under operations UK NERC’s within event 2016-17 reportable one was During there safety and Health Personal information Funding applications outputs Research operations and policy Business Contracts operations and policy Research 2016. in Regulations Information Act/Environmental Information of Freedom the under made requests of Categories at: scheme publication our see details / www.nerc.ac.uk/about/policy/foi/publication For request. Act Information of Freedom a making without available readily is information of our Much limits. time statutory the within ranging, wide and complex were of which some requests, all We answered contracts. to operations and policy research from of subjects, variety abroad covered requests The legislation. the under specifically information for 52 2016 requests During weanswered 2004. Regulations Information Environmental the and 2000 Act of Information Freedom the to subject is NERC Openness and transparency necessary. was action further no that decided Office Commissioner’s Information The loss. data of the notified were affected individuals the and Office Commissioner’s Information The future. in happening incidents of similar risk the reduce to taken been have steps and procedure response incident security information our with line in promptly to responded was This incident. 2016-17in such one was there and recorded is incidents loss data of personal number The progress. in currently is for responsible training forof all training staff information refresher e-learning out Roll Committee. Assurance &Risk Audit NERC the to provided are assurance information and security cyber on reports six-monthly Regular Centres. Research the at staff all to out rolled 2016-17, sessions during continued awareness with has rights and obligations protection of data awareness staff Raising security. information on annually reports and risk, information manage to procedures and policies place in put has NERC Office. Cabinet to report check health annual an submit to departments requires Framework Policy Security government’s The and security assurance Information 22 22 26 2 0 0 2

27 NERC Annual Report and Accounts 2016-17 28 NERC Annual Report and Accounts 2016-17 employees respectively. 1000 per 0.57 0.47 and were figures the which for activities, technical and scientific professional other and R&D scientific for being work NERC’s to comparable most the rates, frequency injury RIDDOR sector publish also HSE The published). are statistics of 2.74 national 2015-16 in UK all which for year across last employees (the 1000 per rate injury reportable RIDDOR average HSE’s the with compares This 0.42. was employees 1000 per rate injury 2016-17In RIDDOR NERC the year. successive fifth the for culture, safety and health of good indicator an health, ill work-related or injuries to misses near or incidents between ratio the in increase acontinued was There reporting. on systems of electronic effect beneficial the demonstrate to continue and safety and health to approach apositive show statistics miss near or incident and accident the Overall fourth. aclose transport based land or vehicles of road use and third faults equipment second, boats or of ships use with faults, or 2016-17 conditions in NERC workplace within was harm potential of cause major the show reported misses near and incidents 361The reported improvement. for scope limited only with acceptable was workplace the within stress managing to support and approach its that NERC reassured outcome audit The of Acas. assistance the with undertaken was and NERC across management pressure work examined programme audit safety and 2016-17 health The corporate NERC handling. and lifting 2016-17 in whilst seen injured health ill was related work or of injury type common most fourth The object. asharp with stabbed or cut and object falling or flying by amoving, hit health: ill work-related or of injury type common most second the as equal were Two of injury level. types same on falls and trips slips, was health ill work-related or of injury type 2016-17In frequent most the weeks. two within provided was of compliance evidence which for requirements statutory on of observations anumber made They by Road). Goods Dangerous Carriage (International ADR under material of radioactive transport for requirements the with compliance assess to Wallingford CEH visited and time first the for NERC inspected ONR the year This UK. the within goods material of radioactive transport the for responsibility has (ONR) Regulation Nuclear for Office The overseas. and UK the in aircraft our on safety after look International Support Safety Air subsidiary their and Authority Aviation Civil The ships. on work our regulate Agency Coastguard and Maritime The UK. the in materials radioactive with of work aspects certain for responsibility has Agency Environment The activities. UK land-based for safety and health after look Executive Safety and Health The authorities. of regulatory by anumber scrutiny to subject are NERC in protection radiation and safety and health for requirements legal The test. under when winch lifeboat of a failure the was occurrence fourth The atrip. from ankle adamaged third the and injuries handling and lifting involving two injuries, time lost over-three-day three were there law maritime under MAIB the to reportable occurrences four the Of acable. over tripping when knee abroken and feet the to injury cold of non-freezing case health ill related awork surgery; and evacuation in a working remote junglewhilst leading emergency to requiring injuries multiple afall were: overseas occurrences serious three year. The previous the case the also was as work off days seven and four of between injuries recordable time lost no required for determining that it is fair, balanced and understandable. and fair, is balanced it that determining for required judgements the and accounts and report annual the for responsibility personal taken has and understandable and fair, is balanced awhole as accounts and report annual the that ensure to steps reasonable all taken has Officer Accounting The unaware. are auditors Council’s the of which information audit relevant no is there aware, is Officer Accounting the as far As information. of that aware are auditors Council’s the that ensure to and information audit relevant any of aware is he that ensure to steps reasonable all taken has Officer Accounting The Treasury. by HM published Money’ Public ‘Managing in out set are assets, Council’s Research Environment Natural the safeguarding for and records of proper keeping for answerable, is Officer Accounting the which for finances public of the regularity and propriety the Council. of The responsibilities an Accounting Officer, including for responsibility Research Environment Natural of the Officer Accounting as Executive Chief the appointed has Strategy Industrial and Energy Business, for Department The • • • • to: particular in and Manual Reporting Financial Government of the requirements the with comply to required is Officer Accounting the as Executive Chief the accounts the preparing In year. financial the for flows cash and equity taxpayer’s expenditure, net comprehensive of its and Council Research Environment Natural of the affairs of state of the view fair and atrue give must and basis accruals an on prepared are accounts The Direction. Accounts the in out set basis the on and form the in of accounts astatement year financial each for prepare to Council the directed has Strategy Industrial and Energy Business, for Department the for of State Secretary 1965, Act the Technology and Science the 1to 3of Schedule Paragraph Under Statements Financial the to Respect of Chief Executive’sStatement Responsibilities with

prepare the financial statements on a going concern basis. basis. concern agoing on statements financial the prepare and statements; financial the in departures material any explain and disclose and followed, been have Manual Reporting Financial Government the in out set as standards accounting applicable whether state basis; areasonable on estimates and judgements make basis; aconsistent on policies accounting suitable apply and requirements, Strategy, including accounting relevant and and Industrial disclosure Energy Business, for Department by the issued Direction Accounts the observe

29 NERC Annual Report and Accounts 2016-17 30 NERC Annual Report and Accounts 2016-17 Office and national capability delivery partners. partners. Office andnationalcapabilitydelivery relationship managementbetween NERCHead Provides engagementand collective strategic Facilities. Money inrespectofNERCowned Centres& to fulfilhisresponsibilitiesunderManagingPublic totheNERCaccountingofficer Provide assurance and 2levels. bonuses forperformance NERC’s staffatBand1 basepay movementDetermines andannual systems. review theeffectiveness ofNERC’s control internal to ensurethattheyreflectbestpractice, andto financialstatementsandreports and external toCouncilonNERC’sproviding assurance internal itrequiresfromNERCstaff.information Primarily ofreference andtoseekanywithin itsterms powers. toinvestigate Itisauthorised any activity A mandatory, bodywithnoexecutive advisory investment.direction andsuccessofNERCtraining A key sourceofadvicetoNERConthestrategic investments. societal benefitsfromitsresearchandinnovation ofeconomicgrowth andother the delivery for strengthening Advises NERConitsstrategy andinitiatives. and thefundingofnewprogrammes development ofNERC’s sciencestrategy integrated NERCCouncilby advisingonthe Supports (CABs). Further details can be found in the key governance activities section. section. activities key governance the in found be can details (CABs). Further Boards Assurance Centre the and (NCPF) Forum Partners’ Capability National the (NMB), Board Management NERC the bodies: three through requirements capability national its including science, of environmental a commissioner as of NERC management deliver to need the meets structure revised The framework. governance our to 2016-17,In revisions some agreed Council NERC Life. of Public 7Principles the with accordance in times all at interest public the in acting while works, planet the how predict and understand us helps that science environmental peer-reviewed excellent, funds that organisation T *Established inSeptember2016toreplace theNERCExecutive Board Framework Governance NERC guidance. Treasury HM with accords and Accounts, and Report Annual of the 201731 approval March the and 2016 1April the to year financial the to applies It NERC. for arrangements control internal and risk governance, the out sets statement governance This objectives. and aims policies, of NERC’s achievement the enables turn, in which management, financial sound and decision-making effective supports that framework governance arobust established has NERC of propriety. standard ahigh with and effectively operates NERC that ensure to (BEIS), Strategy Industrial & Energy Business, for Department The department, sponsor by our me to delegated authority the within acting for responsibility Ihave Officer, Accounting As Introduction Governance Statement he design of the NERC’s governance framework enables us to efficiently run an an run efficiently to us enables framework governance NERC’s of the design he National Capability Partners’ Forum*National Capability Partners’ Innovation Advisory Board Innovation Advisory Centre Assurance Boards* Centre Assurance Remuneration Committee Training Advisory BoardTraining Advisory Audit &Risk Assurance Senior StaffSalaries Science Board Committee Management Board* NERC Council NERC Office plan and delivery plan. Office plananddelivery of theNERCstrategy, Head successful implementation NMB shouldensurethe NERC asacommissioner. the ChiefExecutive on andchallenging supporting Responsible for advising, decisions. and majorresource objectives andtargets including strategy, key decides allmajorissues, decision makingbody. It This isourtop-level interest which may, or may be reasonably perceived (by a member of the public) to, to, public) of the amember (by perceived may, reasonably may be or which interest business or personal any declare to required are members committee and Council members. of Board circumstances in changes capture and identify to process improved an 2016-17, In website. introduced NERC Appointments Public Office Cabinet the through centrally positions advertises NERC Affairs. Public for Commissioner of the Office of the guidelines the with line in competition open and of fair aprocess through directors non-executive and members board appoints NERC bases. Antarctic and aircraft ships, of operating requirements safety & health complex the and environment control NERC’s into specifically exercises, of deep-dive anumber completed has ARAC Report. Annual ARAC’s considered has and ARAC from updates regular receive Council NERC management. risk and structures governance arrangements, audit accounts, consolidated of NERC’s quality the on assurance providing times four met year, the ARAC During (ARAC). Committee Assurance Risk and Audit by the work its in supported is Council NERC www.nerc.ac.uk/about/organisation/boards/council/meetings/ here: published are summaries meeting and agendas Council NERC • • • • • • • • • • • • • • 2016-17 in Topics discussed included: priorities. of NERC range a on advice and input strategic provided and times five met year, the Council During and operations. indicators performance resources, human finances, on data including of NERC, performance the monitor to information of management arange use sub-committees its and Council Committee Remuneration Salaries Staff Senior and Committee Assurance Audit Risk and Council, science. of environmental funder public leading the as role our in portfolio entire the across decisions funding balanced and objective makes NERC ensure to Executive Chief the challenging and supporting advising, on focus solely now can NMB that means This partners. delivery Capability National our and NERC between relationship strategic the supporting on focusses NCPF The safety. and health and HR risk, finance, to relating issues address to Money Public Managing under obligations NERC’s fulfils and Centres Research the with relationship of our nature interdependent long-term the in Officer Accounting the to assurance provides CABs of the introduction The Commissioning national capability services and facilities facilities and services capability national Commissioning management of demand Review management Environmental engagement Public (UKGEOS) Observatories Geo-Energy UK Marine National Capability programmes strategic for Funding vessel research polar New UKRI to transition the Managing changes governance Executive NERC (GCRF) Fund Research Challenges Global (GRO) programme Ownership and Responsibility Governance, station research Antarctic VI Halley of the Relocation 2016-20 period review spending for Planning

31 NERC Annual Report and Accounts 2016-17 32 NERC Annual Report and Accounts 2016-17 1 April 20161 April 31 to 2017 March year financial the for attendance Committee and Board at: found be can committees these for of reference terms and of membership Details 2levels. 1and Band at staff NERC’s for bonuses performance annual and pay movement 2016 base the review to October in once met SSSRC The ARAC. from updates regular receives Council arrangements. management risk and structures governance arrangements, audit accounts, consolidated of NERC’s quality the on assurance provided NERC across risk and of finance key aspects scrutinised ARAC year, the During work. its in Council support (SSSRC) Committee Remuneration Salaries Staff Senior the and (ARAC) Committee Assurance Risk and Audit The meetings. at conflict apotential declares member committee or aCouncil if record minutes The declarations. these record to of interests a register and obligations. NERC their functions holds their judgement ininfluence performing Management Management Independent Member Members Council Folland Nick Mr Professor Louise Heathwaite of Willis Lord Knaresborough DBE Slingo Julia Dame Professor DBE Mace Georgina Dame Professor Sir Anthony Cleaver * Ms Christine Tacon CBE Christine Ms Simm Ian Mr Mr Nigel Sully Nigel Mr Fox Paul Mr Professor Wingham Duncan Gledhill Richard Mr Turner Steve Mr Professor Paul Professor Lesley Yellowlees Professor Orpen Guy Khan Imran Mr CBE Heasman Leslie Ms OBE Davenport Juliet Ms Board Member Professor Ian Poll OBE Poll OBE Ian Professor www.nerc.ac.uk/about/organisation/boards/ www.nerc.ac.uk/about/organisation/boards/ Monks ** ***

***Also member ARAC **Chair of ARAC Chairman * NERC Notes: member of meetings eligible to to eligible meetings of member Council Meeting attendance per board board per attendance Meeting 2/5 2/5 4/5 4/5 4/5 4/5 4/5 3/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 3/4 3/4 attend attend ARAC 3/3 3/3 4/4 4/4 4/4 3/4 3/4 3/4 3/4 SSSRC 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 Council receives reports on a six-monthly basis. asix-monthly on reports receives Council area. this in commitment and approach of our staff, our including stakeholders, our with confidence build to and activity of NERC breadth the across management our responsible approach toto responsibility demonstrate a implement corporate was aim The website. NERC the on Business’ ‘Responsible Statement Responsibility Corporate first its launched NERC agreement, 2016, Council May In with issues. reputation to relevant where input and sight early effective have (e.g. BEIS) organisations partner its and NERC across people right the that and managed proactively are these ensure to issues or risks reputational capturing to approach anew introduced also NERC 2017-18. in work this on build to plans NERC and strategy new the embed to helped have workshops These practice. good sharing of importance the emphasised and risks, new identify to scanning horizon included workshops These teams. individual with sessions training and of workshops number a ran NERC implementation, the During practice. best Treasury HM with line in NERC bring to strategy management 2016-17,In risk anew implemented NERC process. management risk the into back fed is reviews these from feedback and Organisations of Partner assessment quarterly of their part as BEIS, and ARAC Council, with risks top-level the shares NERC meetings. CAB of the part as registers risk Centre of Research areview conducts NERC and basis amonthly on register risk top-level our updates and reviews Board Management NERC The management. to appropriate, where of risks, escalation the with meetings departmental at encouraged is registers of risk discussion The key areas. of these any in tolerance organisation’s of the outside being as identified risks reviews Board Management NERC The Reputation. and People Resource, Purpose, key areas: four in risks its assesses NERC risks. manage to action take and identify to responsibility the have staff All strategy. of the delivery the in arise may that risks those as well as strategy, its deliver to ability our may affect that risks manages actively NERC management. risk to approach arobust requires it, for accounting safeguarding, also whilst effectively, and efficient economically, money spending science, of environmental funder public leading UK’s the Being management risk to Approach effectively. responsibilities their discharge to them enable to of NERC knowledge and independence experience, of skills, balance appropriate the have SSSRC the and ARAC Council, NERC that satisfied I am practice. good and requirements current with line in operating and effective is ARAC the that 2017-18. confirmed during review of this this outcome complete will The NAO and by the proposed plan 2017, action the discussed February ARAC In communication. and of work scope skills, understanding, and objectivity independence, membership, committee, audit of the role the considered assessment This practice. best against performance of ARAC aself-assessment 2016, NAO facilitated December In issues. identified all address to plan action an drafted has Council 2017 2March the Council. on at session briefing Chair’s the during appraisals and self-assessment the summarised 2015. in Anthony of Council Sir review external the during completed originally work the further will exercise self-assessment The performance. of Council self-assessment the complement to process members of Board appraisal annual the began Cleaver 2016, Anthony Sir December In effectiveness and performance Council &ARAC

33 NERC Annual Report and Accounts 2016-17 34 NERC Annual Report and Accounts 2016-17 Significant risks and in issues 2016-17 risks Significant in 2017.in law become to are which requirements, pay reporting gender of the light in helpful also was it intervals, regular at audit an such out carry to practice good being as well As pay system. 3-9 Band of its Pay Audit Equal an 2016,In undertook NERC and diversity Equality actively mitigate any risks. and identify to BEIS with collaboratively working are and levels operational and strategic both at Programme Transition Innovation and Research UK the in engaged fully is NERC place. in are mitigations unless structure new the to leading transition the in usual” as “business maintain to difficult more it make turn may in This resource. on demands additional place and staff may affect uncertainty that remains risk the and Councils Research of the all to challenges governance significant present will Innovation and Research of UK 2017.Act creation anticipated The Research Education Higher of the impact the being of these significant most the with Councils, Research by all faced agenda change wider of the context the in seen be must objectives and aims its deliver to continue to of NERC ability The 2017 Act Research Education Higher of funding processes. our overseas robustness the increase to Councils Research other the with collaboratively working again, is, NERC and funding this govern that rules the with compliance ensure to place in put been have of processes GCRF, anumber to respect In Fund. Challenge Strategy Industrial new the to fashion asimilar in respond to need will NERC funds; GCRF central of the call Building’ ‘Capacity the and Resilience’, ‘Building on call joint AHRC and ESRC NERC, the to responses community NERC of the strength the see to heartening very been has It opportunities. the to respond to collaborations scientific of broader think to community scientific the in preparedness a new require will streams funding new of these challenges the meet To successfully (ODA) fund. Assistance Development Official the and (GCRF) Fund Research Challenges Global the with changing, is UK the in funding of scientific nature The Global Challenges Research Fund BIS. under begun had that initiatives change many the review to opportunity an provided have BEIS at changes The team. management and General Director anew it with bringing BEIS, become to (DECC) Change Climate and of Energy Department the with merged (BIS) Skills and Innovation Business, for 2016In department the changes Government of Machinery science. of international engagement the encouraging and mitigations, and key risks about Government the advise to Councils Research other the with work valuable in involved been has NERC world. the around from scientists excellent maintaining and attracting on have will this impact future the as well as students and staff EU current our on Brexit, post immigration, affecting of decisions impact the understand to needs also NERC Centres. our on have will funding this losing impact the monitor to wecontinue research; our to makes funding EU contribution the underestimate not does NERC EU. of the outside sit of which majority the collaborations, global many has NERC such, as and global, is environment of the science The students. and of staff recruitment the and funding EU to relation in including NERC, to risks long-term some in may result EU the from Withdrawal Brexit these circumstances. these circumstances. in capture data scientific of long-term continuity the ensure to effort every made has NERC plans. operational its change to BAS for enough was winter the during ice the to happen could what in of uncertainty level however, the itself, station the to or station, the at people the to risk immediate no was There began. winter Antarctic the before people its removed BAS measure, precautionary a further as winter, Antarctic the during shelf ice the to happen would what certainty with predict to unable were scientists BAS However, as cracks. ice of these by one posed risk the mitigate to by 23km VI 2016-17, Halley relocate to able were BAS During picture. glaciological acomplex present bigger, getting are which chasms ice of two discovery the particularly Antarctic, the in ice the to changes On-going VI Halley experiment. GM regarding their work for congratulated widely were they as engagement public on BBSRC with closely working been has NERC environment. of the management responsible promoting and impacts environmental the determining as role its defining thoughtfully, itself position to careful is NERC project, (UKGEOS) Observatories Geo-Energy UK the or bees, on of Neonicotinoids effects the on Syngenta with work CEH’s as such of work, areas controversial potentially any with engages NERC Whenever research. and data based science objective, providing as role its seeing policy, in involved get not and industries, by these generated needs the to source responsible and objective an as responds it ensure must NERC industry, farming or gas and oil the as such areas, contested in operate that businesses with dealing When process. peer-review the to subject are outputs these that vital more even it make which produce, contracts these science the around risk reputational additional manage to having NERC in result often can research way. This usual the in publication scientific peer-reviewed to open are outputs research all where research, contracted includes This decision-making. inform to evidence scientific high-quality independent, with them provide –to business –including partners with working to commitment our outlines strategy NERC’s Reputation UK. the to services geological providing of role its clearly more reflect that BGS and NERC between arrangements place in put to completed and undertaken be will work interim, the During formed. is it once by UKRI considered be will of BGS independence future the about decision A status. independent to NOC and of CEH transfer the considering in step next the take wewill Innovation, and Science Universities, for Minister the Johnson, Jo by consideration and autumn, last BEIS with discussions Following NERC. to risk the increasing without scientists, renowned attract to continue to and of funding sources their diversify to them enabling flexibility, and freedom greater providing while science world-class Centres’ our protect to be to continues aim Our Governance, Responsibilities Programme and Ownership • • • steps: following the taken has NERC finding these to response In by gender. differences significant statistically were there that highlighted examinations these from findings The date. that to up 12-month period the in made payments bonus at looked also 2016. audit The 29 February at as allowances and salary) pay (FTE basic allowances), plus salary pay (FTE total ethnicity, and gender with associated of differences evidence statistical for looked audit The proposals in the action plan. plan. action the in proposals of the costs pay-related of the account taking BEIS to apay remit Submitted Trade Unions. and ARAC staff, with plan action and audit the from key findings the Shared audit. of the findings the address to plan action an Agreed

35 NERC Annual Report and Accounts 2016-17 36 NERC Annual Report and Accounts 2016-17 Green Paper. Strategy Industrial Modern government’s the into consultation NERC’s towards input provided and service data environmental funding, science Capability National 2016 2017. were March November in and discussed key issues formally The met forum The partners. delivery capability national and Office Head NERC between management relationship and engagement strategic collective provides forum The National Capability Partner’s Forum • • • • following areas: the in team my executive and myself to assurance 2016-17The provided meetings of responsibility. areas their within control of internal effectiveness the and strategy NERC with alignment planning, financial concerning assurance provides examination The years. three next the for plans development workforce and activity business plans, financial their explain and document to Directors the Iask process, CARP of the part As discussion. for raise Centres the issues any and performance &Safety Health their maps, assurance and registers risk top-level their (CARP), Plans Resource and Activity Centre Research their examine to team, my executive and me, allow meetings These meetings. CAB the during Director Centre Research each with formally Imeet months six Every Boards Centre Assurance safety. and health and economy effectiveness, of efficiency, standards high achieving propriety, and regularity of accountability, standards required the with accordance in is of NERC management the that ensure to meetings monthly at issues risk high specific, examined, bodies these Both • • • • • topics discussed included: where NEB, replaced (NMB) Board Management 2016, NERC the September In • • • • • • • including; of topics number a discuss to met (NEB) Board Executive 2016, NERC July the and April Between Board Management NERC Key governance activities The existence of well-managed capital and workforce plans plans workforce and capital of well-managed existence The set been have budgets based Evidence managed appropriately being were risks top-level Centre’s The facilities) aircraft our regarding NCAS at (particularly arrangements safety and health of the robustness The management Reputation &facilities of services evaluation The integrity Research systems replacement grants and Oracle register risk top The engagement. Public planes and ships of NERC’s management environmental The GCRF, and Fund Newton the around challenges The arrangements governance Future commissioningNational capability responsibility Corporate register risk top NERC’s assurance from a range of sources. of sources. arange from assurance collating and of funding receipt in Organisation Research the within accountability is appropriate on predicated establishing This framework implemented. been (IFA) has Assurance Funding Integrated arevised and framework the review to (FAWG) up set was Group Working Assurance aFunding year the During partnerships. £43m) strategic (NERC including system Siebel the outside distributed Funding 2. (ROs); Organisations Research £148m) eligible to (NERC awarded and system Siebel the through administered 1. Grants streams: funding major two has landscape funding The by NERC. £191m of which issued £2.9Bn grants to relates totals funding research community (RCUK) UK Councils Research the Across funding assurance grant Research ARAC. to reported been have results the and investigate to taken were Actions ARAC. to reported and identified fraud level of low case one was year, the there During Pay Guidance. Service Civil with compliance allow to pay bill NERC of the 2016-17 monitoring regular include to in environment control this widened NERC activity. business reflects accurately data accounting our that and controls and of policies adherence the to assurance provide to controls retrospective and preventative of both a system operate NERC staff. remaining to training 2017-18, this During out roll will guidance. NERC other and controls Office Cabinet policies, various the within operate to responsibilities of their awareness an is there 2016-17, in that training ensuring Controls thus Organisational Maintaining received of NERC behalf on procure or budgets manage who staff and management Senior • • • • are: key policies The corruption. and/or bribery of fraud, form any tolerate not does NERC behaviours; and This includes developing cultures and maintaining standards. appropriate propriety and regularity appropriate applying and establishing to committed is NERC Regularity and propriety safety. and operations Antarctic on assurance and advice independent with me provide to Group &Advisory Assurance Safety and Operations NERC/BAS the Iestablished Antarctica, in of operating risk inherent the 2016,In recognising by NERC. than rather by BEIS, priorities budget science other against tensioned is this that so logistics, and infrastructure of Antarctic of costs respect in BEIS from budget) science the (within line funding a separate 2015, received Since has NERC Office. Cabinet and FCO, MOD the NERC/BAS, from representation containing but BEIS by chaired committee, ajoint via activity of this oversight exercises government The years. 60 over for Antarctic the in presence ascience operated has UK The Antarctic operations Research Council Code of Conduct Policy Policy of Conduct Code Council Research Research Council Policy Whistleblowing Policy Hospitality and Gifts NERC Policy Fraud NERC

37 NERC Annual Report and Accounts 2016-17 38 NERC Annual Report and Accounts 2016-17 Research Centres and a number of business critical projects. projects. critical of business anumber and Centres Research our process, planning strategic our to related These ratings. assurance moderate received plan core NERC the for undertaken work audit of internal pieces of individual majority The control. and management risk of governance, framework of the effectiveness and adequacy the enhance to required are improvements Some assurance’. ‘moderate is classification opinion audit internal annual the work, of programme agreed of the delivery the on Based (GIAA). Agency Audit Internal a internal provided (AASG) Group Service 2016-17,In Assurance and Audit the auditInternal review reference here. m being are they that here described mechanisms the through reassured I am • • • p in frameworks governance the through primarily activities these on assurance I take i an provide to used is route contract The contract. under awarded is Funding • • • Major components include: parties. third to funding non-Siebel of NERC’s part major the represent partnerships Strategic awards/funding Non-Siebel compliance. our evidence clearly wecan that framework assurance this through demonstrated have and procedures and policies current against standards Office Cabinet the mapped have councils research The these. embedding t Standards Grant of Minimum aset launched Office 2016, Cabinet the December In sub-contracting. and funding of international aspects all reviewing is AFAWG sub-group expenditure. Council’s Research the of all part o overseas to grants Fund Newton and GCRF ODA, through forward, Going work undertaken. of programme the upon based Assurance Moderate provides Assurance Funding of Head the report his in particular In Councils. all for errors historic and current of level low avery indicates framework this through provided assurance The Siebel grants ncreased level of assurance over key research activity. activity. key research over of assurance level ncreased o promote effective grant making, with 2017 being viewed as a pilot year for for year apilot 2017 as with viewed being making, grant effective o promote udit services until 1st October 2016 when they became part of the Government Government of the part 2016 became they 1st when October until services udit lace, including: rganisations will increase and they have the potential to become a significant asignificant become to potential the have they and increase will rganisations anaged in an appropriate manner and that there are no major issues that warrant warrant that issues major no are there that and manner appropriate an in anaged Centres. Centres. f of £12.2m. includes This Centres Research by NERC awarded funding Contract C Research of £13m. £10.8m other to includes This non-HEIs to funding Contract f of Leeds £9.1m of £15.4m. HEIs includes to This University to funding Contract sustainability activities. activities. sustainability s and organisations of these Accounts Annual the from assurance We take C Finance Bodies, (e.g. Governing key organisations the within roles Representative needs for funding these Centres of my assurance all encompasses CAB of the scope The statements. financial o reliability and comprehensiveness the review to a forum provides CAB The or NCAS and £4.2m to University of Leicester for NCEO. NCEO. for of Leicester University to £4.2m and NCAS or unding awarded to marine delivery partners and services and facilities run by run facilities and services and partners delivery marine to awarded unding ome cases we have been engaged in specific funding assurance and Centre Centre and assurance funding specific in engaged been wehave cases ome ouncils. ouncils. f assurances on governance, risk management, the control environment and and environment control the management, risk governance, on f assurances ommittee, etc.)ommittee, procedures. Data protection awareness sessions held at Head Office in 2015-16 in Office Head at held sessions awareness protection Data procedures. and policies related protected data its reviewed 2018, May in has NERC operation into comes which Regulation, Protection Data General new the for preparation In Committee. Assurance Risk and Audit NERC the to provided were security cyber and assurance information on reports monthly six Regular management. risk information and security information coordinate to meet to continued (IASG) Group & Security Assurance 2016-17During Information NERC the security Information of cyber-attacks. risk the reduce to controls procedural and policy with together Essentials Cyber uses NERC of cyber-attacks. 80% preventing at aimed controls technical 2017-18. five in on focusses accreditation Essentials Cyber achieve to expected are SBS UK The accreditation. Essentials Cyber achieved Services Technology Research and NOC CEH, BAS, and accreditation, Plus 2016-17. during Essentials Cyber threat; renewed BGS security cyber increased the to response in accreditation Essentials Cyber its extending to committed is NERC Cyber security review. first the since made progress significant the on remarked review the and assessment confidence delivery the for rating Amber/Green an received project The completed. successfully was review OGC 2016 2of the gateway when September in assurance independent received facilities these develop to project The technologies. of energy range awide to applicable knowledge generate will which facilities, research subsurface world-class new two develop to BGS for funding £31m announced of capital 2014,In Government model. operating future ship’s of the development the accelerate to activity the is of which, significant most the programme, the strengthen to designed of recommendations anumber implementing is NERC probable’. appears delivery ‘Successful i.e. rating (Amber/Green) ahigh offer to 2016, continued December in review, recent most The Authority. Project Infrastructure Office Cabinet the through provided is assurance project Independent capability. logistics Antarctic with platform research scientific acutting-edge combine will vessel The works. associated and vessel research polar anew in £225m investing is NERC Major project assurance 2017-18 of the part as programme. audit effectiveness their test will and 2016-17 during made recommendations of the implementation monitor will GIAA • • • • assurance: limited 4reflected NERC, to relevant out carried audits 24 cross-client the Of processing. transactional Council Research cross other and Programme Change RCUK the to related These assurance. in moderate rated also were by GIAA undertaken work audit of cross-client majority The area. this in control and management risk governance, the on improve to report this in outlined recommendations the implementing be will NERC • area: following the in received was ratings assurance limited one completed, audits 18 core the NERC Of Procurement Procurement Grant Block Access Open Engagement Public and Communication RCUK Management: Change Programme Change RCUK Management: Change Equipment Small Capital

39 NERC Annual Report and Accounts 2016-17 40 NERC Annual Report and Accounts 2016-17 UK SBS Ltd provides processing services in HR, procurement, payroll, finance and and finance payroll, procurement, HR, in services processing provides Ltd SBS UK processing transactional office back to relating Assurance critical. business be to considered were that any 2016-17 in modelling identified not have and of analytical use their reviewed have NERC requirements BEIS the and review this To with comply Bodies. Length Arm’s their and departments government for of recommendations a number 2013 March in made Treasury by HM published and Macpherson Nicholas by Sir undertaken models analytical of Government assurance of quality review The modelling Assurance Quality / publications at: found be can that data assurance tax of BEIS summary of their part forms which basis, ayearly on evidence assurance tax with BEIS provide NERC appointees. in-year other cover to place in are arrangements tax appropriate that BEIS to assurance provide to place in are arrangements that and payroll the through paid all are staff senior NERC’s that confirm can I avoidance. tax enable to arrangements artificial for possibility the highlighted appointees sector of public arrangements of tax review Governments The appointees sector public of Tax arrangements policy. this under of whistleblowing instances no had 2015-16 in both policy 2016-17 of this in and awareness has NERC raising Despite guidance. other and controls Office Cabinet policies, various the within operate to responsibilities of their awareness staff increase to aimed which training Controls Organisational Maintaining of the part as staff NERC to available arrangements the and Whistleblowing 2016-17, about During information included NERC ofEffectiveness whistleblowing arrangements • • • • • • following: the on based is assurance My handling. of data respect in awareness staff and assets of information handling NERC’s assure to able I am to and continuous challenge. subject assessment is threats, security cyber and incidents security of information review the including performance, and audits regular to subject are These SBS. UK from services key business of common support in services infrastructure IT receives NERC Council project. Research by ajoint forward taken being are Regulation new the for preparations Further Centres. the across out rolled been now have these and received well were incident reporting system and robust procedures are in place to handle incidents. incidents. handle to place in are procedures robust and system reporting incident accessible easily an using promptly losses data report to required are Staff project. Council ajoint through collectively forward taken being is Regulation Protection Data General of the implementation for Planning year. this later for planned are staff all for sessions awareness security information face to Face statement. responsibility personal NERC the to up sign reconfirm to asked being also are Staff progress. in currently is staff all for training e-learning Classifications Security with Working and Information for Responsible Office Cabinet of refresher out Roll Committee. Assurance Risk and Audit the by review regular under kept is approach security and assurance information Our NERC. across initiatives related security of information range a support to available made is funding and level management senior at security data and information of good importance of the recognition aclear is There https://www.gov.uk/government/ on hold (grants and HR/finance system replacement), and to maintain UK SBS as as SBS UK maintain to and replacement), system HR/finance and (grants hold on programmes Digital remaining their put to decision 2016 the took December BEIS In 18 requirements. months’ next the on focusing Project Technology and Digital Business RCUK the restart to elected Councils Research the technology common on case business 2016 their revise to October in decision BEIS the Following • • • • on the following Councils directly working streams: work Research the with Programme Implementation UKRI the leading been have BEIS of UKRI. Designate Executive Chief as appointed was Walport 2017 Mark Sir February In of UKRI. creation the in result will which (HERB) Bill Research and Education Higher the to given was 2017 27 April Assent the Royal On Programme Transition (UKRI) Innovation and Research UK capability. and capacity on dependent highly be will 2-3 years next the over services transfer and for prepare delivery, service maintain to ability SBS’ UK service. provide to capability and capacity resilience, continued as key risks its highlights SBS UK direction. future on adecision pending UKRI and Councils Research the for provision service ongoing for contingency significant providing and required if upgrades and improvements further for 2021, door the until opening support full into back be will stack application full and platform the both that mean will this completed, 12.1.3 Once underway. is to 12.0.6 from upgrade Oracle proposed the for Planning threshold. practise best the within well were systems the that indicating transfer the after undertaken assessment security the with resilience and security the to are benefits notable of 2016; end the at environment anew to applications and of databases transfer and update successful the saw 12.0.6 Oracle for programme Resilience and Security The 2019-20. until form some in of services anumber delivering be to likely is SBS UK that and desirable necessarily or 2018 achievable by April not now is bodies other to SBS UK from of services transfer planned the that agreed been has It evolving. still is UKRI, for of services provision the including services, shared for strategy BEIS The 2017-18. in forward taken be will areas these in recommendations audit accepted The • • • • were: of which outcomes the controls, additional the examined had AASG controls. supplementary of anumber operating been had NERC assurance To additional provide operations. facing customer its for and SBS UK within operations internal the both for assurance of Moderate opinion an provided had Audit Internal of Head their that stating me to written has SBS of UK Director Executive The back in house. these services transferred Councils 2016 Research the 2016,1 April point 31 to which at December from services processing grants provided SBS UK Councils. Research seven all to IT Procurement Procurement Legal Finance, governance and assurance HR and People assurance –Limited Procurement assurance –Moderate processing payment and Order assurance –Moderate iExpenses and (GPC) Card Procurement Government assurance –Moderate Payroll

41 NERC Annual Report and Accounts 2016-17 42 NERC Annual Report and Accounts 2016-17 risk management systems. management risk and governance satisfactory has NERC that Iconclude Committee. Risk and Audit by the provided assurance and advice independent and Statement Governance Annual of the production the regarding provided evidence the considered I have Conclusion above. described changes the throughout advice and challenge provided has Board This Councils. Research of the Committees of Audit Chairs the from drawn 2016 membership April in with established was Board Assurance A Change Board. Oversight Campus Council cross by the led project change estates office of the part as SBS UK and UK of Innovate 2016-17 House Also, Polaris into moves the saw systems. SBS UK current upgrade and secure to work and Programme Transition UKRI the with closely working service agrants for and service finance and HR for phase requirements the 2017 start to February in agreed therefore Councils 2019-20. to Research through The provider service a shared Standard fees (£ annum) fees per Standard Professor Dame JuliaSlingoDBE Professor Lesley Yellowlees CBE Lord Willis ofKnaresborough Ms Christine Tacon CBE Mr IanSimm Professor IanPoll OBE Professor GuyOrpen MaceDBE Professor DameGeorgina Khan Mr Imran Mr NickFolland OBE Ms JulietDavenport Professor LouiseHeathwaite Ms LeslieHeasman Professor Duncan Wingham Professor Sir Anthony Cleaver (Chair) f compensation to entitlement no is there and non-pensionable are Appointments October. in implemented is change agreed the and Councils Research the with consults BEIS service. civil senior the to given increase the account into may take BEIS rates, new the considering In (BEIS). Strategy Industrial and Energy Business, for Department by the year each reviewed are rates The Councils. Research the across same the are rates Remuneration Professor IanBoyd (Chief Executive andDeputyChair) Remuneration Report Honoraria are not payable to members who are civil servants, employees of NERC or full time employees of organisations whose funds are derived from from derived are funds whose organisations of employees time full or NERC of employees servants, civil are who members to payable not are Honoraria 1 Notes: Policy (unauditedRemuneration information) (except Remuneration Council and Committee Chief Executive) Membership of NERC Council 2016-17 Council NERC of Membership Remuneration andStaffReport or loss of office. of office. loss or Science Board and Audit & Risk Assurance Committee Chairs Committee Assurance &Risk Audit and Board Science Directors Non-Executive Council Chair Council Peer Review College Chairs V otes of Parliament. of otes Members 1 1 1 1

1 01/08/15 –31/07/19 01/08/11 –31/07/19 01/08/13 –31/07/17 01/08/13 –31/07/17 23/09/14 –22/09/18 01/08/15 –31/07/19 01/08/11 –31/07/18 01/08/15 –31/07/19 01/08/15 –31/07/19 01/05/09 –13/12/16 17/12/12 –31/08/17 01/08/13 –31/07/17 01/02/13 –31/08/17 01/08/15 –31/07/19 01/01/14 –31/12/17 01/01/12 –31/12/17 Appointment Period of Rem 2016-17 15 -20 5 -10 5 -10 5 -10 5 -10 5 -10 5 -10 5 -10 5 -10 5 -10 5 -10 uneration £000 0 0 0 0 0 10,000 2016-17 16,430 16,430 6,850 6,850 1,000 9,110 9,110 Remuneration 2015-16 15 -20 5 -10 5 -10 5 -10 5 -10 5 -10 5 -10 0 -5 0 -5 0 -5 0 -5 0 -5 £000 0 0 0 0 10,000 2015-16 2015-16 16,430 16,430 6,850 6,850 1,000 9,110 9,110

43 NERC Annual Report and Accounts 2016-17 44 NERC Annual Report and Accounts 2016-17 consulted. consulted. is Council of NERC Chair The Councils. of Research General Director by the Committee rates (£ day) per rates Committee at 31 as 2017 by gender Council March NERC of Membership It should be noted that no other senior staff are on a service contract. contract. aservice on are staff senior other no that noted be should It months. of three periods notice with open-ended are that appointments hold Executive, Chief the from apart report, by this covered officers senior All years. of two period afurther for extended been has and years of four aperiod for was contract 2012. initial His 1January on tenure his started Wingham Professor Policy Contractual manager. individual’s by the assessed as objectives against performance of level of the basis the on bonus, performance anon-consolidated for eligible were staff of 25% senior that and of 1% average award on ageneral for eligible were staff of senior 90% pay. 2016-17, that In staff stipulated senior on policy this policy sector public the with accordance in works Committee Remuneration The Remuneration Policy Accounts. the in Statement Governance the within listed are Committee Remuneration of the Members Members. Council two and Executive Chief the comprises membership other and of Council Chair by the chaired is committee The Committee. Remuneration Council by the annually adjusted and reviewed is Directors Executive of NERC remuneration The NERC Remuneration Committee chaired Committee by aRemuneration advised is Secretary Permanent The BEIS. of Secretary Permanent by the determined is remuneration Executive’s Chief The RemunerationBEIS Committee information) (audited Chief and Executive NERC Directors Executive Peer Review College Members Committee Members Committee % of members Number of Members Committee Chair Committee 2016-17 200 200 230 230 Male 60% 170 170 9 2015-16 2015-16 Female Female 200 200 230 230 40% 40% 170 170 6 3 2 1 Notes: information) (audited Employees Senior of Remuneration at 31 as 2017 by gender March NMB of Membership information) (unaudited (NMB) Board Management NERC Wheeler Wheeler Tim Professor Mr Paul Fox Paul Mr Wingham Professor Duncan Members NMB Number of Members Turner Claire Ms Ms Alison Robinson Heads Phil Dr Fox Paul Mr Professor Wingham Duncan 201731 March at as NMB of Membership Mr Nigel Bird Bird Nigel Mr % of Members Professor Tim Wheeler Dr Phil Heads Phil Dr Mr Paul Hayden Paul Mr Gledhill Richard Mr Ms Alison Robinson Ms Claire Turner Turner Claire Ms Pension benefits include the transfer in of funds from another pension scheme. pension another from funds of in transfer the include benefits Pension £70-75,000. is salary £75-80,000. equivalent year Full salary equivalent year full 2016, 31st July effective Finance Director, as down Stood 3 1 2 100 - 105 105 - 100 130 - 135 135 - 130 110 - 115 - 110 2016-17 25 -30 25 85 -90 85 45 -50 65 -70 65 Salary (£’000) 100 - 105 105 - 100 130 - 135 - 130 2015-16 80 -85 80 85 -90 85 65 -70 65 Position Director, Finance Management and Change Affairs Director, Corporate Impact and Strategy Director, Associate Officer Chief Operating Off &Accounting Executive Chief Director, Science & Innovation Non-Executive Director Director Non-Executive Director Non-Executive - - Single total figure of remuneration remuneration of figure total Single 2016-17 10 -15 10 -15 5-10 5 -10 0 -5 Bonus Payments Payments Bonus - - (£’000) 2015-16 10 -15 10 -15 - - - - - 2016-17 2016-17 1,051 1,051 Pension Benefits Benefits Pension 39 39 63 63 52 52 18 18 15 15 4 icer icer (£’000) 2015-16 49 49 36 36 28 28 26 26 42 42 - - Notes Notes 1 August 20161 August effective Appointed 1 April 20161 April effective Appointed Male 75% 160 - 165 165 - 160 190 - 195 195 - 190 150 - 155 155 - 150 2016-17 60 -65 60 80 -85 80 35 -40 1,160 1,165 1,165 6 Total - (£’000) 190 - 195 195 - 190 150 - 155 155 - 150 120 - 125 125 - 120 105 - 110 - 105 95 -100 2015-16 2015-16 Female Female - - 25% 25% 2

45 NERC Annual Report and Accounts 2016-17 46 NERC Annual Report and Accounts 2016-17 2 1 Notes: information) (audited Benefits Pension of pensions. (CETV) Value Transfer Equivalent Cash the and contributions pension employer payments, severance include not does It benefits-in-kind. and Total includes pay salary, remuneration non-consolidated performance-related £116,149). to £12,415 £10,680 £111,057 to 2016-17 from ranged 2015-16. or Remuneration (2015-16: in director highest-paid of the excess in remuneration received employees No £30,612 was (2015-16: which £30,600). workforce, the of remuneration (2015-16: median times 4.7 the was 4.7) This £140,000-£145,000). (2015-16: 2016-17 year £140,000-£145,000 financial was the in Executive) Chief (the NERC in director paid highest of the remuneration banded The of the organisation’sremuneration workforce. median the and organisation their in director paid highest of the remuneration the between relationship the disclose to required are bodies Reporting Fair Pay (audited Disclosure information) employment. during occurred table remuneration the in detailed payments 2016-17 in 2015-16. or directors past to All payments no been have There Directors to Past Payments 2016-17 2015-16. or in managers of senior of office loss for payments compensation no been have There Office of Loss for Compensation year. the during out paid those are figures Bonus of pensions. value transfer equivalent cash the and contributions pension employer payments, severance include not does It benefits. pension bonuses related and performance and Allowances include gross salaries, Salary and AllowancesSalary Ms Alison Robinson Heads Phil Dr Fox Paul Mr Wingham Professor Duncan Members NMB Professor Tim Wheeler Wheeler Tim Professor Turner Claire Ms Mr Nigel Bird Bird Nigel Mr Includes the transfer in of funds from another pension scheme. pension another from funds of in transfer the date. this at Includes as are shown figures 2016, 31st July effective Finance Director, as down Stood 1 2 pension age as at at as age pension Accrued pension and lump sum at at sum lump and 31/03/17 31/03/17 20 -25 85 -90 85 50 -5550 70 -75 15 -20 15 -20 10 -15 £000 in pension and and pension in Real increase lump sum at at sum lump pension age age pension 52.5 -55 52.5 0 -2.5 -5 2.5 0 -2.5 0 -2.5 0 -2.5 2.5 -5 2.5 £000 transfer value value transfer as at 01/04/16 at as equivalent equivalent £000 Cash Cash 687 687 263 263 140 140 201 201 242 242 92 92 - Cash equivalent equivalent Cash transfer value value transfer as at 31/03/17 31/03/17 at as £000 646 646 738 738 255 255 268 268 278 278 103 103 183 183 Real increase in cash equivalent equivalent cash transfer value value transfer £000 163 163 23 23 38 38 23 23 14 14 2 7 factors for the start and end of the period. period. of the end and start the for factors valuation market common uses and scheme) pension another from transferred benefits of any value the (including employee by the paid contributions and inflation to due pension accrued in increase of the account takes It employer. by the funded effectively increase the reflects CETV of the value the in increase real The CETV the of value the in increase Real taken. are benefits pension when due may be which Tax Allowance Lifetime from resulting benefits to reduction potential or actual of any account take not do and 2008 Regulations Values) (Amendment) (Transfer Schemes Pension Occupational The with accordance in calculated are CETVs cost. own their at pension additional and years additional purchasing of their aresult as member the to accrued benefit pension additional any include also They on. taken being liabilities pension additional the with commensurate payment atransfer received has RCPS the which for and arrangement pension Councils’ Research the to transferred has individual the which scheme another in benefit pension of any value the include figures CETV The applies. disclosure which to capacity senior a in service their just not scheme, pension of the membership of their consequence a as accrued has individual the that benefits the to relate shown figures pension The accrued. benefits the transfer to chooses and ascheme leaves member the when scheme by apension paid be would that amount the is ACETV scheme. the from benefits partner’s or spouse’s contingent any and benefits accrued member’s the are valued benefits The time. in point aparticular at by amember accrued benefits scheme pension of the value capitalised assessed actuarially the is A CETV Cash Equivalent Transfer Value Report. Staff the in below found be can scheme Alpha new the and RCPS the about details Further age. retirement state members’ the and of 65 later the is scheme Alpha new the for age Pensionable of Nuvos. members for 65 and Premium and Plus Classic of Classic, members for 60 is age Pensionable age. pensionable over or at already are they if scheme of the member active an be to ceasing on immediately or age pension reach they when receive to entitled is member the pension the is quoted pension accrued The by grant-in-aid. covered balance the and basis apay-as-you-go on contributions employee and employer from met costs pension with scheme benefit defined service public unfunded an is which (RCPS) Scheme Pension Councils’ Research of the members ordinary are employees senior All scheme pension of Details

47 NERC Annual Report and Accounts 2016-17 48 NERC Annual Report and Accounts 2016-17 Sick absence per full-time employee equivalent i Note: by gender composition Staff i Note: by band staff Senior year. the for FTEs average are 2017, 31at figures above March the whereas as count head on based is Report Annual the in reported of staff number total The numbers Staff (unaudited Report information)Staff Equivalent in days rate absence Sick employees Other staff senior Other Directors 1 Band Agency secondment/loan inward on Staff staff contract and Temporary staff Permanent Band 2 Band hscvr ad . NERC In services. civil 1&2. senior the of bands covers this members to equivalent those as defined is staff senior 5.3.27, FReM per As Re-presented to reflect reconstitution of NERC Executive Board as NERC Management Board. Board. Management NERC as Board Executive NERC of reconstitution reflect to Re-presented

i Female 897 891 2016-17 2016-17 4 2 No. No. 1,468 1,452 Male 10 6 2015-16 (Re-presented) 2015-16 2016-17 2016-17 2016-17 2016-17 2016-17 Female 2,365 1,966 1.8% No. No. 382 No. No. 4.5 22 16 915 910 6 8 9 3 2 No. No. 1,472 1,472 1,455 1,455 Male Male 2015-16 2015-16 2015-16 2015-16 2015-16 2015-16 2,387 2,387 2,031 2,031 11 1.8% 1.8% 6 347 347 No. No. No. No. 4.4 22 16 5 6 4 i completed in 2008-09. 2008-09. in completed earnings pensionable Annualised of £19,679k year the in costs paid (2015-16: NERC below). (see table £20,030k). earnings pensionable annual and scheme on depending 8.05% and 3.80% between varied rates 2016-17 pay. During contribution of employee pensionable 26.0% at set is (GAD) and Department Actuary’s Government of the recommendation the on of Management Board RCPS by the agreed is rate contribution employer The 2015. April is’ beyond ‘as continue to RCPS for permission given have BEIS) (now BIS 2018. meantime the In April in implemented be to expected and progress in are plans Reform this. permit not does legislation the as scheme Alpha the to by analogy operate cannot RCPS age. pension state the to aligned age retirement the with but scheme average career Nuvos the to similar is scheme This Alpha. called scheme pension anew launched Pensions 2015 Service 1April On Civil (CPI). Index Prices Consumer the in changes with line in annually increased are payable Pensions (Nuvos). scheme average acareer or Premium); or Plus Classic (Classic, scheme salary’ ‘final a either arrangements; scheme benefit defined of four one in may be Employees by BBSRC. managed grant-in-aid associated the with Service Superannuation Joint Councils’ Research by the administered is scheme The Council. by the funded and administered are benefits injury and Redundancy emoluments. average or final on based benefits related and retirement provides scheme The separately. determined is contribution employer’s the that except (PCSPS), Scheme Pension Service Civil Principal the with ‘by-analogy’ respects all in is RCPS The grant-in-aid. annual by an covered balance the and basis apay-as-you-go on contributions employee and employer from met costs funded pension with scheme benefit defined service public unfunded an is which (RCPS), Scheme Pension Councils’ Research of the members are of NERC employees Most ofDetails pension scheme costs. of staff details for Accounts Annual 3of the note See costs Staff The l The Over £150,000 Over £150,000 - £48,472 £48,471 - £21,211 £21,210 - £15,001 £15,000 to Up ast actuarial valuation undertaken for RCPS was at 31 March 2006 and was was and 2006 31 at was March RCPS for undertaken valuation actuarial ast Classic Scheme contribution contribution Scheme Classic 3.80 8.05 4.60 5.45 7.35 % Classic Plus, Premium Premium Plus, Classic & NUVOS Scheme Scheme & NUVOS contribution % contribution 8.05 8.05 4.60 4.60 5.45 5.45 7.35 7.35

49 NERC Annual Report and Accounts 2016-17 50 NERC Annual Report and Accounts 2016-17 the transformation of future UKRI corporate services. corporate UKRI of future transformation the to and UKRI to staff NERC all for arrangements transition the to a key contributor is and Plan Diversity and Equality two-year its in identified actions of the delivery against progress monitoring actively is NERC key initiatives, these to addition In • • • • 2016-17 in NERC across include: implemented initiatives Key people and communication initiatives Staff £13k). (2015-16: £59k totalled consultancy strategic on expenditure NERC year the During consultancy on strategic Expenditure i below: shown are schemes of these Details of employees. groups specific for schemes pension employer multi- of other anumber to year the during contributions paid also Council The provider. pension private employee’s the to contribution related age pay an employers The benefits. ill-health and service in death cover pay to of pensionable 0.8% RCPS pay the employers The scheme. contribution adefined is 2001.in This Government by the introduced Pension Stakeholder portable the on based 2002, 1October from recruits new to available made was Account Pension A Partnership website the at found be can arrangements pension Scheme Pension Councils Research the about details further For transfer. RCPS of the time the at scheme Alpha the to transfer will members other All 2022. 1February and transfer RCPS of the time the between occurring this with scheme Alpha average career new the in enrolment tapered to 2012 subject 1April be at will as age pension scheme their to 10 13.5 years and between with Those section. scheme current their in remain will and 2012 protected fully 1April at are as age pension scheme their to 10 years than less had who members RCPS Active arrangements. pension Service Civil to in transfer 2018 will RCPS April in the that expected is It Merchant Navy Ratings Group Personal Pension Plan Plan Pension Personal Group Ratings Navy Merchant Fund Pension Ratings’ Navy Merchant Fund Pension Officers’ Navy Merchant Scheme A rate of 2% is applicable for employees who are also members of the MNRPF scheme. scheme. MNRPF the of members also are who employees for applicable is 2% of A rate (GRO) programme programme (GRO) Ownership and Responsibilities Governance, NERC’s with associated changes for preparation in schemes) promotion future and programmes development leadership in (for example, centres research NERC’s to responsibility HR of delegation 2015-16, in further reported progress the upon building years three another for accreditation People in Investors regaining Office Head NERC 2017-18 during apprenticeship starts of number the for target sector public the meet to of plans development the findings the address to steps take to plan action of an development the and Pay system 3-9 Band of NERC’s Pay Audit Equal of an undertaking the http://jsspensions.nerc.ac.uk/ i contribution contribution Rate of of Rate 20% 2% 4% Year of last Year last of valuation valuation 2014 2014 2015 n/a n/a iii iii ii i Notes: exits Staff appointees. in-year all cover to place in (2012), review are Alexander by the out set as arrangements, tax appropriate that assurance provide to place in are Processes years. four and three between existed that engagement one and years three and two between existed that engagement one of reporting, time the at years two and one between existed that engagement 2016 2017, 31 1April and March between one duration months six reached that engagement one included This months. six than longer for lasting and day per £220 than more costing engagements At 2017 31 off-payroll March four had NERC Off-payroll engagements potential. full their to develop to employees all encouraging to and a disability develop they if employment in continue to staff existing enabling to adisability, with applicants for adjustments and promotion,to reasonable making in recruitment criteria discriminatory non- and transparent objective, of using principle the to committed is NERC benchmarking. effective enable to data publishes and Policy &Diversity Equality Council Research the applies NERC opportunities – policies equal Staff staff. NERC representing unions trade the with meetings consultative regular for place in also are Arrangements by 11%. average Survey People Service Civil of the that exceeded (70%) index engagement staff overall the that note to pleased particularly wewere and positive generally were results the improvement, for room 2016-17. in still time is there first Although the for Survey People Service Civil the in participated Office Head NERC instance, for surveys, employee regular through particularly thoughts, and views their share to opportunity the have Staff newsletters. regular and updates intranet executive, chief the and directors from hear to opportunity the briefings, hoc ad meetings, staff regular include These organisation. the affecting factors economic and financial including them, to of concern matters on informed staff keep to of approaches arange uses NERC Total exit packages agreed packages Total exit Total costs of exit packages agreed packages exit of Total costs 4 3 2 1 band package Exit was for £4k. The median of all exit packages agreed was £13k. was year agreed the packages during exit all of agreed median package The £4k. exit for was lowest The £95k. for was year the during agreed package exit highest The the for charged amount total the year. from differ therefore will costs provisions of These release the by Accounts. 11 covered Annual Note the of were per as that costs including year, the year. the during during agreed exits packages exit all of compulsory no costs were Full There entitlement. contracted within were payments All

ii, iii £10k-£25k <£10k £50k-£100k £25k-50k cost band band cost package Exit packages by cost band band by cost packages Total number of exit exit of Total number £000 2017 738 12 12 26 6 5 3 2,996 2,996 £000 2016 2016 88 88 25 19 31 13 i

51 NERC Annual Report and Accounts 2016-17 52 NERC Annual Report and Accounts 2016-17 Claims abandoned consist of 8 bad debts and administrative losses written off as unrecoverable. unrecoverable. as off written losses administrative and operations. debts 8bad normal of during consist lost abandoned asset an of iii Claims recovery the for costs salvage were payments Fruitless ii i Notes: year: the during payments special and losses following the incurred has NERC Losses and special payments 2017. 31 at as March report to liabilities contingent material no has NERC liabilities Contingent 2016-2017. to relating transactions repercussive or contentious novel, all for obtained been has approval Treasury that Money, and Public Managing in out set as of regularity requirements the infringe au 2017, 31 ended March my staff Inor year neither financial the for that confirm I can ofRegularity expenditure Report (auditedinformation) and Audit Parliamentary Accountability Ex-gratia payments consist of settlements of 7 legal claims. 7legal of settlements of consist payments i Ex-gratia Note: paymentsSpecial Losses statement Total number of losses Total of value losses Claims abandoned Total number of special payments special of Total number Total value payments of special paymentsEx-gratia Type payments Fruitless Stores losses Type Constructive losses losses Constructive Store losses consist of 4 assets lost during normal operations and 2 thefts. 2thefts. and operations normal during lost 4assets of consist losses Store thorised a course of action, the financial impact of which is that transactions transactions that is of which impact financial the of action, acourse thorised

i ii i iii 31 March 201731 March 201731 March £000 £000 205 199 19 13 72 15

2 7 9 1 - 31 March 201631 March 201631 March £000 £000 278 278 160 160 11 94 94 33 2 4 4 - 21 June 2017 June 21 Officer Accounting and Executive Chief Wingham Professor Duncan (in £000) (in £000) investment and expenditure Trends annual NERC in 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 50,000 011 021 031 2014-15 2013-14 2012-13 2011-12 Net expenditureforthey ear Capital investment 051 2016-17 2015-16

53 NERC Annual Report and Accounts 2016-17 54 NERC Annual Report and Accounts 2016-17 Opinion on Financial Statements Statements Opinion on Financial them. govern which authorities the to conform a been have income and expenditure the respects material all in my opinion, In Opinion on Regularity them. govern which authorities the to conform transactions financial the and by Parliament intended purposes the e the that assurance reasonable give to sufficient evidence obtain to required I am report. and my certificate for implications the Iconsider inconsistencies or misstatements material apparent of any aware Ibecome If audit. the performing of course the in by me acquired knowledge the with, inconsistent materially or on, based incorrect materially apparently is that information any identify to and statements financial audited the with inconsistencies material identify to Report Accountability and Report Performance the in information non-financial and financial the all Iread addition In statements. financial of the presentation overall the and Council; Research Environment Natural by the made estimates accounting of significant reasonableness the disclosed; adequately and applied consistently been have and circumstances Council’s Research Environment Natural the to appropriate are policies accounting the whether of: assessment an includes This error. or by fraud caused whether misstatement, material from free are statements f the in disclosures and amounts the about evidence obtaining involves audit An Statements Financial the of Audit the of Scope Auditors. for Standards Ethical Board’s Practices Auditing the with comply to my staff and me require standards Those Ireland). and (UK Auditing on Standards International with accordance in my audit 1965. Act Iconducted Technology and Science the with accordance in statements financial the on report and certify audit, to is responsibility My view. fair and a true give they that satisfied being for and statements financial of the preparation the for responsible are Officer, Accounting w Responsibilities Executive’s of Chief Statement the in fully more explained As Auditor and Officer Accounting Council, the of Responsibilities Respective having as disclosures audited. Accountability described been Parliamentary the and Reports Staff and Remuneration the in information the audited also Ihave them. within out set policies accounting the under prepared been have statements financial These notes. related the and Equity, Taxpayers’ in Changes Flows, Cash Position, Financial Expenditure, Net Comprehensive of Statements comprise: statements 1965. financial Act The Technology and 2017 31 Science the ended March year under the for Council Research Environment Natural of the statements financial the audited Ihave that I certify General totheHousesofParliament oftheComptrollerThe Certificate and Auditor • • my opinion: In inancial statements sufficient to give reasonable assurance that the financial financial the that assurance reasonable give to sufficient statements inancial pplied to the purposes intended by Parliament and the financial transactions transactions financial the and by Parliament intended purposes the to pplied xpenditure and income reported in the financial statements have been applied to to applied been have statements financial the in reported income and xpenditure ith Respect to the Financial Statements, the Council and the Chief Executive, as as Executive, Chief the and Council the Statements, Financial the to Respect ith thereunder. S the with accordance in prepared properly been have statements financial the and ended; then year the for expenditure E Natural of the state of the view fair and atrue give statements financial the cience and Technology Act 1965 and Secretary of State directions issued issued directions of State 1965 Secretary Act and Technology and cience nvironment Research Council’s affairs as at 31 March 2017 31 at as net March the and affairs Council’s Research nvironment 10 July 2017 July 10 9SP SW1W V 157-197 Palace Road Buckingham National Audit Office andComptroller Auditor General CEMorse Amyas Sir statements. financial these on make to observations no I have Report • • • • i if, you to Ireport which matters following of the respect in report to nothing I have by exception Ireport which on Matters • • myIn opinion: matters other on Opinion n my opinion:

ictoria ictoria g Treasury’s HM with compliance reflect not does Statement Governance the or my audit; for Irequire explanations and information of the all received not I have the accounting or records or returns; t and Report Staff and Remuneration of the part the and statements financial the a my for adequate returns or kept been not have records accounting adequate the financial statements. statements. the financial f the for Report Accountability and Report Performance in given information the 1965; Act and Technology and Science the under made directions of State Secretary with accordance A Parliamentary the and Report Staff and of Remuneration parts the he Parliament Accountability disclosure to be audited are not in agreement with with agreement in not are audited be to disclosure Accountability Parliament he inancial year for which the financial statements are prepared is consistent with with consistent is prepared are statements financial the which for year inancial udit have not been received from branches not visited by my staff; or or by my staff; visited not branches from received been not have udit uidance. uidance. ccountability disclosures to be audited have been properly prepared in in prepared properly been have audited be to disclosures ccountability

55 NERC Annual Report and Accounts 2016-17 56 NERC Annual Report and Accounts 2016-17 Financial statements for the period ended 31 ended period for the 2017 March of comprehensiveStatement expenditure net i Note: The notes on page 60 to 75 form part of these accounts. of these part 75 form to 60 page on notes The continuing. are All activities Operating income Operating Depreciation, amortisation and impairments Depreciation, amortisation ofPurchase goods and services costs Staff expenditure Operating Notional service charge andResearch development grants Provision expense Comprehensive net expenditure for the year year the for expenditure net Comprehensive expenditure comprehensive Other year the for expenditure Net Finance expense Finance income Net operating expenditure Total expenditure operating expenditure operating Other the Accounts Preparation and Advice Centre (APAC) to be consistent with those of the other Research Councils. Councils. Research other the of those of with format new consistent the be in to (APAC) Centre Advice re-presented and been have they Preparation addition In Accounts the Strategy. Industrial and Energy Business, for Department Climate and Energy of Department former C the from received income treat to re-presented been have accounts The hange as financing following its merger with the Department for Business, Innovation and Skills to form the new new the form to Skills and Innovation Business, for Department the with merger its following financing as hange Notes Notes 4.2 4.1 6 3 5 (70,356) 452,487 381,283 381,590 382,131 190,519 1 ,961 112 2016-17 2016-17 (1,869) 84,821 (1,102) 55,321 5,950 5,950 4,784 £000 254 307 Re-presented Re-presented 428,304 428,304 358,630 (12,866) (12,866) (69,674) 358,818 358,818 345,952 345,952 1 05 50 , 115 174,766 174,766 2015-16 2015-16 38,922 38,922 89,598 89,598 5,536 5,536 4,018 4,018 £000 (41) (41) 189 189 (1) i 31 2017 March at position as of financial Statement The notes on page 60 to 75 form part of these accounts. accounts. of these part 75 form to 60 page on notes The 21 June 2017 June 21 Officer Accounting and Executive Chief Wingham Professor Duncan Total non-current liabilities Total non-current Provisions liabilities current less Total assets Provisions payables other Trade and Current liabilities assets Total assets Total current Total equity Revaluation reserve fund General Taxpayers' equity Total assets less liabilities payables other Trade and liabilities Non-current liabilities Total current andCash cash equivalents receivables other Trade and sale for held Assets assets Current assets Total non-current Trade and other receivables other Trade and assets Financial assets Intangible Property, plant and equipment Property, assets Non-current Notes Notes 10 10 11 11 9 8 8 7 31 March March 31 (57,388) (16,185) 495,792 (57,993) 469,330 467,540 103,532 437,799 318,082 (14,178) 421,614 421,614 (2,007) 26,462 24,785 1,677 1,638 (605) £000 2017 2017 94 58

- 31 March March 31 (60,075) (60,075) (61,083) (61,083) 456,256 456,256 408,981 408,981 408,981 294,794 483,199 483,199 (13,135) (13,135) 454,321 454,321 422 ,116 ,116 422 114,187 114,187 (3,374) (3,374) (1,008) (1,008) 26,943 26,943 24,064 24,064 (9,761) (9,761) 2,801 2,801 1,770 1,770 £000 2016 2016 94 78 71

57 NERC Annual Report and Accounts 2016-17 58 NERC Annual Report and Accounts 2016-17 31 2017 March ended period for the flows of cash Statement The notes on page 60 to 75 form part of these accounts. of these part 75 form to 60 page on notes The i Note: p of the beginning the at equivalents cash and Cash period the of end the at equivalents cash and Cash e cash and cash in (decrease)/increase Net Net cash inflow from financing activities lease of finance element Capital Notional service charge e and plant of property, of disposal Proceeds ofPurchase assets intangible plant and equipment ofPurchase property, Cash flows from investing activities Net cash outflow from operating activities in provisionsIncrease payables other and trade in Decrease receivables other and trade in Increase Funding received from BEIS activities financing from flows Cash Net cash outflow from investing activities Adjustments for non-cash transactions non-cash for Adjustments Net expenditure for the year year the for expenditure Net activities operating from flows Cash The accounts have been re-presented to treat income received from the former Department of Energy and Climate Climate and Energy of Department former C the from received income treat to re-presented been have accounts The the Accounts Preparation and Advice Centre (APAC) to be consistent with those of the other Research Councils. Councils. Research other the of those of with format new consistent the be in to (APAC) Centre Advice re-presented and been have they Preparation addition In Accounts the Strategy. Industrial and Energy Business, for Department quivalents in period this quivalents quipment, intangible assets and investments assets intangible quipment, eriod hange as financing following its merger with the Department for Business, Innovation and Skills to form the new new the form to Skills and Innovation Business, for Department the with merger its following financing as hange Notes Notes 10 11 7 8 (381,283) (327,321) (66,768) (71,583) 392,965 388,273 2016-17 2016-17 (2,796) (1,258) (1,124) 53,452 2,801 (344) (708) 1,677 5,950 4,014 5,159 £000 Re-presented Re-presented (320,680) (358,818) (45,866) (45,866) 366,748 366,748 (45,531) (45,531) 362,370 362,370 2015-16 2015-16 (2,797) (2,797) (1,225) (1,225) 38,881 (1,158) (1,158) 2,801 2,801 2,599 2,599 3,279 3,279 5,536 5,536 (511) (511) £000 202 202 176 176 i for the period ended 31 ended period for the 2017 March equity in of changes taxpayers’ Statement The notes on page 60 to 75 form part of these accounts. of these part 75 form to 60 page on notes The i Note: Balance at 31 at 2017 March Balance reserves between Transfers Revaluation in year Notional charge Notional reserves: in Movements year the for expenditure Net f BEIS other and costs notional Grant-in-aid, 2016 1April at Balance Transfers between reserves between Transfers Revaluation in year Notional charge Notional reserves: in Movements year the for expenditure Net funding BEIS other and Grant-in-aid 2015 1April at as Balance Re-presented unding The accounts have been re-presented to treat income received from the former Department of Energy and Climate Climate and Energy of Department former C the from received income treat to re-presented been have accounts The the Accounts Preparation and Advice Centre (APAC) to be consistent with those of the other Research Councils. Councils. Research other the of those of with format new consistent the be in to (APAC) Centre Advice re-presented and been have they Preparation addition In Accounts the Strategy. Industrial and Energy Business, for Department hange as financing following its merger with the Department for Business, Innovation and Skills to form the new new the form to Skills and Innovation Business, for Department the with merger its following financing as hange i (358,818) (381,283) 294,794 388,273 318,082 362,370 274,781 General General 10,348 10,925 5,536 5,950 £000 fund fund

- - Revaluation (10,348) (10,925) 103,532 1 ,246 112 114,187 reserve reserve 12,866 (307) £000

------(358,818) (381,283) (381,283) 408,981 408,981 388,273 388,273 362,370 362,370 387,027 387,027 421,614 421,614 12,866 12,866 5,950 5,950 equity equity (307) (307) 5,536 5,536 £000 Total - -

59 NERC Annual Report and Accounts 2016-17 60 NERC Annual Report and Accounts 2016-17 at current value in existing use. Property, plant and equipment recently held for for held recently equipment and plant Property, use. existing in value current at carried are use in and potential service their for held equipment and plant Property, equipment and plant Property, assets 1.4 Non-current basis. concern agoing on prepared been have accounts the information, of this 2017. 27 on April strength assent the On royal received bill The protections. of other anumber amongst retained be will UK Innovate and Councils Research of the brands and names The funding. research HEFCE’s and UK, Innovate Councils, Research seven of the functions and liabilities assets, the incorporate will Innovation and Research UK that and leadership, autonomous and strong have to continue areas discipline research seven the ensure will Government the states Bill The Innovation. and Research –UK Government from length arm’s at operating body public non-department executive of asingle creation the with future, council’s research the regarding intention government’s the out 2016 May in reading setting first its received Bill &Research Education Higher The budgets. ring-fenced NERC 2017 the March in detailing BEIS 2017-18 from of the received was Confirmation allocation basis. concern going a on produced are accounts the therefore and forthcoming be not will funding future that believe to reason no has NERC publication, of this basis the On period. this for 2016-17 NERC for Funding funding 2019-20, to continued shows which Research and of Science Allocation The 2016 published March In BEIS years. future within due falling liabilities meet to BEIS from funding on dependent is NERC concern Going 1.3 accountingrelevant policies. the in out set as IFRS under permitted or required extent the to inventories and assets intangible equipment, and plant of property, valuation fair the include to modified convention cost historical the under prepared been have accounts These convention 1.2 Accounting (£000). pounds thousand nearest the to rounded been have and currency, functional NERC’s sterling, pounds in presented are statements financial These accounts. the to material considered are that items with dealing in consistently applied been have They below. described are policy, accounting the selecting in judgement exercised has management where or transactions material for by NERC adopted policies particular The selected. been has view fair and true a of giving purpose the for (NERC) Council Research Environment Natural the of circumstances particular the to appropriate most be to judged is which policy accounting the policy, of accounting achoice permits FReM the Where context. sector public the for interpreted or adapted as (IFRS) Standards Reporting Financial International apply FReM the in contained policies accounting The FReM. the with accordance in appropriate are requirements these as far as in Board Standards Accounting by the adopted or issued standards accounting and 2006 Act Companies of the requirements disclosure and accounting the meet They of State. Secretary by the made directions with and Treasury by HM issued (FReM) Manual Reporting 1965, 2016-17 Financial the Act Technology Government and Science The with accordance in prepared been have accounts These accounting of 1.1 Basis policies accounting of 1. Statement Notes tothe Accounts costs to sell and value in use. Impairment losses are charged to the statement of statement the to charged are losses Impairment use. in value and sell to costs less value of fair higher the is amount recoverable The loss. impairment of any extent the determine to order in estimated is asset of the amount recoverable the equipment, or plant of property, item any in exists of impairment indication any If Impairments reserve. expenditure and income the to directly transferred is aresult as realised becomes which reserve revaluation of the element that asset, of arevalued disposal the On reserve. expenditure and income the to reserve revaluation the from transfers depreciationIncreased charges arising from the revaluation matched are by annual 36. IAS per as recognised is it which in year the in expenditure net of comprehensive statement the in reflected also is this value, in diminution of the reversal complete or apartial suggests evidence subsequent Where recognised. is it which in year the in expenditure net of comprehensive statement the to charged is value in diminution permanent any that except reserve, arevaluation to taken is revaluation on deficit or surplus Any indices. relevant using revalued are transport and equipment plant, other All Limited. Group of Aviation Bureau 2013-14 in revalued also International were by the aircraft All Ltd. Shipbrokers 2013-14 in Gibson revalued , were James Cook by E.A. RRS and Shackleton Ernest , RRS Ross James Clark , RRS Discovery RRS ships, research four The market value. valued are at assets valued at depreciated replacement Non–operational cost. assets operational specialist with use, existing for value market as interpreted value, fair to assessed been have properties operational 2014). Non-specialist (January Standards –Professional Valuation RICS the and policies accounting NERC’s with accordance in completed and valuers external as acting valuers registered by RICS prepared by GVA Hughes, Powis and jointly undertaken were valuations 2016-17. in revaluation to The subject were assets building and land UK The 2014).Standards (January –Professional Valuation RICS the with accordance in Hughes Powis and by BAS adjusted &Townsend by Turner and calculated were costs reinstatement The cost. replacement of depreciated basis the on valuers, external as acting MRICS MLE (Hons) MA Bugge Jenefer and 2016-17 (Hons), MRICS BSc Staples by Rafe in valued were Stations Research Antarctic (BAS) Survey Antarctic British The completed. not is revaluation afull when indexation annual to subject are assets These years. five every revalued professionally and independently are aircraft and ships Antarctica, in stations ice buildings, Land, Revaluation equipment. and projects, services and construction buildings, and of land purchase the includes This £10,000. is equipment and plant property, for threshold capitalisation The . Properties Investment 40 IAS or Sale for held 5Assets IFR with accordance in valued are potential service their for held not equipment and plant Fair Value. Property, Measurement 13 IFRS using value fair at held are sale, on restrictions any without but surplus, are that equipment and plant Property, use; existing in value current at carried be to continue will sale, on restrictions with and surplus but potential, service their

61 NERC Annual Report and Accounts 2016-17 62 NERC Annual Report and Accounts 2016-17 Trade receivables are carried at original invoice amount less allowance for for allowance less amount invoice original at carried are Trade receivables Trade receivables expires. or cancelled discharged, is obligation the when derecognised are liabilities Financial of ownership. rewards and risks the all substantially transferred has NERC and transferred are or expired have flows cash future receive to rights the when derecognised are assets Financial costs. operating to charged are costs transaction case which in loss, or profit through value fair at carried are they unless costs, transaction plus value fair at measured initially are liabilities and assets Financial FReM. by the interpreted as Measurement and Recognition Instruments: Financial 39 IAS with accordance in instruments financial measures and recognises NERC instruments 1.6 Financial repayable on demand. are which deposits and balances cash comprise equivalents cash and Cash equivalents cash and Cash 1.5 is depreciated separately. item of the cost total the to relation in significant is that acost with equipment and plant of property, item of an 16 part of IAS each provisions the with accordance In lives. useful different with parts may have equipment and plant Property, accounting Component vehicles Motor equipment computing major and office Scientific, aircraft and Ships machinery and Plant stations ice Antarctic buildings leasehold Short buildings leasehold Long buildings Freehold land Leasehold periods: following the over depreciated normally are assets equipment and plant property, other and depreciated not is land Freehold into use. brought is asset the until depreciated not are construction under Assets lives. useful estimated the over basis line astraight on values residual estimated the to down them write to calculated rates at depreciated are equipment and plant Property, Depreciation recognised reserve. in the revaluation amount remaining any with recognised, previously was depreciation, subsequent for adjusted charge, original the that extent the to expenditure net comprehensive of statement the in recognised is charge impairment of an reversal Any comprehensive net expenditure. 3-10 years 3-10 years 3-10 years aircraft for 15 years ships, for of 20 years minimum 5-15 years useful life of remaining estimates valuer’s or 35 years to up lease of the length the over less) if lease of the (or length the years 50 to up life of economic estimates valuer’s or years 50 to up lease of the terms the over disposal proceeds are to be utilised. be to are proceeds disposal any how and equipment of such disposal the determine to right the reserves NERC funded, institutions to applied of grant conditions the Through equipment. and plant property, NERC’s in included not are and institution the to belong NERC, by supplied funds grant research with institution by an purchased Equipment grants NERC with purchased 1.11 equipment of Ownership statements. 12 Note in financial of the disclosed are date sheet balance the at commitments Future statements. financial the in basis accruals an on for accounted are arrears in or advance in made grants training and Research institute. research the to directly advance in basis instalment aquarterly on paid are payments of studentship majority The profile. payment agreed an with accordance in arrears in basis instalment an on Council by the paid are fellowships and grants of research majority The payable awards training 1.10. and Grant taxes. other and tax added value discounts, of trade net recorded is It receivable. or received of consideration value fair the at measured is and NERC of activities operating the to directly relates that income is income Operating 1.9 income Operating expenditure. net of comprehensive statement the in income as recognised being than rather fund, general the to credited are BEIS from received funding other and grant-in-aid aresult, As body. the in interest afinancial to rise giving parties controlling from contributions as purposes revenue for received funding other and grant-in-aid regard (NDPBs) Bodies Public Non-Departmental FReM, the Under funding BEIS other and 1.8 Grant-in-aid -0.80%. -1.95% long-term and medium-term -2.70%, short-term provisions: other all for and provisions pension for +0.24% currently rates, discount real Treasury’s HM using value present to discounted are provisions material, is of money value time the . Where Assets and Contingent Liabilities Contingent , 37 Provisions IAS with accordance in measured and recognised are Provisions 1.7 Provisions by NERC. managed actively not and level low is risk The transactions. overseas day to day with deal to USD) the and EUR the (predominantly currencies foreign in accounts of bank maintenance the through risk currency foreign to subject is NERC activities. its undertaking in NERC facing risks the change to held not are and activities operational day by to day generated are liabilities and assets Financial funds. surplus invest or borrow to powers limited very has NERC entities. sector by non-public faced risk of financial degree the to exposed not is NERC financed, is NERC which in way the and activities of its nature non-trading the to Due Risk recognised. are expenses or assets corresponding the when or established is NERC against claim enforceable alegally when or received are services or goods money, related which in period the in recognised are payables other Trade and Trade payables and other comprehensive net expenditure. of statement the in recognised is and amount recoverable and amount carrying the between difference the is of provision amount The receivable. of the terms original the to according due amounts all collect to able be not will NERC that evidence objective is there when established is impairment for Provision impairment.

63 NERC Annual Report and Accounts 2016-17 64 NERC Annual Report and Accounts 2016-17 likelihood of an outflow is remote. is outflow of an likelihood the unless ensure, will outflow an that probable deemed not is it where or estimate of areliable lack the to due confirmed be to yet has obligation the but arisen have to deemed is liability apotential where , e.g. Assets and Contingent Liabilities Contingent 37 Provisions, IAS with accordance in disclosed are liabilities Contingent 1.17 liabilities Contingent • • of:comprehensive in net respect expenditure of statement the to made are Charges payables. in lessor the to obligations as shown are commitments leasing corresponding The lease. of the period the during payable rentals total of the value present the at outright purchased been had they if as treated are assets the Council, the to transferred are asset of the rewards and risks all substantially which for of aship use the has NERC where leases ship For appropriate. more is basis systematic another unless basis astraight-line on term lease the over expenditure net of comprehensive statement the to charged are incentive lease any and lease of the cost The leases. operating as classified are lessor by the retained are of ownership rewards and risks of the portion asignificant which in Leases 17 IAS . Leases with accordance in recognised are Leases Leases 1.16 VAT purposes. for status of VAT. net charitable stated has are NERC amounts the recoverable is tax input or charged is tax output Where equipment. and plant of property, cost purchase capitalised the in included or category expenditure relevant the VAT to charged is irrecoverable VAT for exempt purposes, partially is NERC As 1.15 Tax Value Added accrual. leave annual employee the is of this example An benefits. those for exchange in service rendered has employee an when benefits employee term short recognise to required is , NERC 19 benefits IAS Employee with accordance In 1.14 benefits Employee costs. restructuring staff annual against offset and accounts these in receivables as recognised are amounts Recoverable age. retirement normal achieve recipients when Scheme Pension Councils’ Research the from recoverable are sums lump retirement of early Council by the Payments recognised. liabilities and staff release to taken is decision binding the which in year the in accounts NERC’s to charged are retirements of early costs The 1.13 Early retirements Plans. and Funds Pensions Ratings’ and Officers’ Navy Merchant the as such of employees, groups specific for schemes pensions multi-employer of other anumber to contributions pays also Council the addition In staff. Council for benefits superannuation of respect in Scheme Pension Councils’ Research the to made are Payments Pensions 1.12 with the interest rate within the contract. contract. the within rate interest the with accordance in lease of the period the over allocated are which charges, Finance period lease the or life economic useful of its shorter the over basis line astraight on charged is which Depreciation, have been adopted in in adopted been have 41 IAS Agriculture and Intangible Assets 38 , IAS Equipment and Plant 16, IAS of Statements Financial Property, 1Presentation IAS to Amendments FReM. the in included adaptations and interpretations specific the account into taking statements, financial these 2017 31 in at adopted March been have effective are which standards published to Amendments and Interpretations Standards, Reporting International All 1.19 IFRS to Changes above. shown are assets, ofinclude estimates useful economic lives and decommissioning of costs Antarctic which provisions, as such areas judgemental for policies Specific conditions. and assumptions different under may these estimates from differ results Actual events. expected and experience on based expenditure and income and liabilities and of assets amounts reported the affect that assumptions and estimates judgements, key make to management requires statements financial of the preparation The 1.18 Accounting estimates and judgements and the outcome of this work is currently not known. The potential effects of effects potential The known. not currently is work of this outcome the and determined being currently is FReM the into standards of these interpretation The 2018. 1January is of implementation date Effective liability. income deferred or asset prepayment non-monetary of the recognition of initial date the is rate, exchange the of determining purpose the for transaction, of the date the that requires It income. or expense asset, related the recognises entity the before consideration of advance receipt or payment the from arising liability non-monetary or asset a non-monetary recognises entity an when transactions currency foreign covers standard new The Transactions and Advance Consideration. Currency Foreign 22 IFRIC 2019.1 January is of implementation date Effective sheet). (on-balance lease afinance as recognised 12 over be to months) last (which leases of all recognition requires standard new The financing). sheet (on-balance lease afinance and financing) sheet (off-balance lease operating an recognising between distinction the removing lessees, for accounting the amends standard 17 new IAS The 16 replace Leases. will Leases IFRS 2018. 1January is of implementation date Effective satisfied. is acontract under obligation aperformance as revenue recognise to model single a into standards two these in concepts the unifying s, 11 Contract IAS Construction 18 IAS Revenue and replace will Customers with 15 Contracts RevenueIFRS from 2018. 1January is of implementation date 39. IAS Effective under than earlier recognised being impairments in result will This model. loss expected an to loss incurred an from moving reported, and calculated are impairments how and when amending as well as assets of financial measurement and classification the simplifies standard new . The Measurement and Recognition Instruments: Financial 39 IAS replace to introduced being is 9Financial Instruments IFRS adopted at date. the effective be will . These Transactions and Advance Consideration Currency Foreign 22 IFRIC 16 and Leases , IFRS Customers with 15 Contracts Revenue, IFRS from Instruments 9Financial IFRS are NERC to relevant most standards The statements. financial these to applied been not have which statements, financial these after date effective an with interpretations and standards certain issued have IFRIC and IASB The statements. financial NERC’s on 2016-17, impact material no with

65 NERC Annual Report and Accounts 2016-17 66 NERC Annual Report and Accounts 2016-17 ii ii i Notes: 2016-17 stream by funding expenditure net of Analysis segment by operating expenditure net of Analysis 2. of in the comprehensive statement expenditure operating net expenditure. de and research classify not does NERC research, in engaged wholly organisation an As development and Research 1.20 determined. be to 16 still is IFRS adopting of effect potential The statements. financial NERC the on impact a significant have to anticipated not are 22, 15 9, IFRIC and IFRS IFRS standards, new the separ not therefore and streams funding all across shared are liabilities and assets NERC’s Board. Management NERC maker, the decision operating chief by the regularly evaluated is and available is information financial separate which about streams funding are segments . Operating segments Operating 8 IFRS with accordance in by segment expenditure and income reports NERC Net operating expenditure Total expenditure Staff costs Staff Expenditure Internal transfers transfers Internal Operating Income Operating and im Depreciation, amortisation servic and ofgoods Purchase Provision expense Notional service charge Notional service Grants andGrants training awards Other operating expenditure operating Other Business units receive external funding for research from the UK public sector, European Commission and private sector. In addition they receive other other receive they addition In sector. private and Commission European sector, public UK oper the from research for funding the on external impact receive net units overall The Business streams. funding between awards internal and trading orga internal resources, of sharing from result transfers Internal

nisation nisation is zero. tn noe uha otaeaddt ae n oate n ies esfo nelculpoet. property. intellectual from fees license and royalties and sales data and software as such income, ating ately identified and disclosed. ately identified es velopment expenditure separately in the accounts. It is reported under under reported is It accounts. the in separately expenditure velopment pairments i

ii 100,087 100,087

(3,080) (3,080)

66, £000 97,007 97,007 18,449 13,140 13,140 2,275 2,275 Capability National 223

- - - -

(2,448) (2,448) Partition structure a Infr £000

34,688 32,240 32,240 15,084 19,591 A ntarctic Logistics and and Logistics ntarctic A 13 - - - - -

£000 52,592 52,246 52,246 44,677 (346) (346) Science Discovery 7,787 106 22 - - - -

(14,818) £000

84,024 84,024 68,285 68,285 14,630 69,206 69,206 Strategic Research Research Strategic 570 570 539 539 - - - -

£000

24,564 24,564 25,165 25,165 24,932 24,932 (233) Post-Graduate Training Training Post-Graduate 543 55 3 - - - -

£000

6,898 6,898 6,898 6,898 6,715 6,715 Fellowships 176 176

7 ------

£000 (1,101) (1,101) 12,395 18,714 18,714 19,815 6,054 6,054 Innovation 877 877 489 - - - - (102,623) (48,378)

£000

(2,065) (2,065) 86,386 86,386 46,313 46,313 Centres Research 14,339 8,211 , 48 - - - -

£000 82,905 82,905 82,953 82,953 (1,869) (1,869) 55,321 4,784 Other 5,950 1,095 1,095 7,660 2,767 2,767 7,197 48 (70,356) (70,356) 452,487 452,487 382,131 382,131 190,519 190,519

£000 112 ,961 ,961 112

(1,869) (1,869) 84,821 84,821 55,321 55,321 4,784 4,784 Total 5,950 5,950 - Wages and salaries includes £738k of exit costs (2015-16: £3,011k), £534k (2015-16: £289k) for temporary, co temporary, for (2015-16: £289k) (2015-16: £3,011k), £534k costs exit of £738k includes salaries and i Wages Note: 3. Staff costs costs Staff 3. building of assets. building or management project in engaged those as such assets, to value adding are who (2015-16: FTE) staff 8.6 equivalent full-time 16.5 estimated an to relates This 2016-17 in costs £1,176k is staff for capitalised (2015-16: amount total The £641k). Analysis of net expenditure by funding stream 2015-16 stream by funding expenditure (re-presented) net of Analysis and Depreciation, amortisation ser and ofgoods Purchase costs Staff Expenditure Social Security costs Security Social salaries Wages and Operating incomeOperating Total costs Pension Provision expense Notional service charge Notional service andGrants training awards Other operating expenditure operating Other Total expenditure Internal transfers Net operating expenditure ntracted and seconded staff and £583k (2015-16: £827k) for Agency Staff. Staff. Agency for (2015-16: £827k) £583k and staff seconded and ntracted vices impairments i

(1,348) (1,348) 92,889 92,889 94,237 94,237 22,252 £000 64,378 7,214 7,214 Capability National 393 393

- - - -

£000 Partition Infrastructure

(3,929) 33,239 33,239 29,310 29,310 18,976 14,163 Antarctic Logistics and and Logistics Antarctic 96 4 - - - -

£000 58,364

49,327 59,127 (763) (763) Science Discovery 9,747 (45) 98 - - - -

(14,492)

£000 72,107 72,107 56,241 56,241 13,192 13,192 57,615 57,615 Research Strategic 2,026 2,026 648 648 112 ,961 ,961 112 2016-17 2016-17 8 19,893 19,893 4,236 8,832 - - - - £000

£000

23,315 23,315 21,577 21,577 23,193 23,193 1,748 Training Post-Graduate (122) (13) 3 - - - - Re-presented Re-presented

£000

6,770 6,770 6,770 6,770 6,590 6,590 Fellowships Fellowships 180 180 115,505 20 88,056 88,056 20,235 20,235

------15-16 15-16 7,214 7,214 £000

£000 15,674 16,129 16,129 6,454 Innovation 7,546 7,546 (455) (455) 1,152 977

- - - - (101,813)

(47,006) (47,006) £000

50,689 50,689 52,590 Centres Research 12,485 87,427 87,427 3,683 3,683 - - - -

£000 (1,559) (1,559)

38,922 38,922 72,691 72,691 71,132 71,132 11, 621 621 11, 5,536 Other 4,926 7,873 4,018 (164) (164) (41) 428,304 358,630 358,630 (69,674)

1 05 50 , 115 174,766 174,766 £000

38,922 38,922 89,598 89,598 5,536 5,536 Total 4,018 4,018 (41) (41) -

67 NERC Annual Report and Accounts 2016-17 68 NERC Annual Report and Accounts 2016-17 4.2 Depreciation, amortisation and impairments impairments and amortisation Depreciation, 4.2 (2015-16: £80k). £80k of fee audit statutory NAO include fees i Audit Note: services and goods of 4.1 Purchase Advertising and publicity and Advertising Telecommunications cost subsistence Travel and costs staff other and Training Depreciation Total consumables and spares Materials, operations Ships and aircraft equipment ofPurchase scientific costs audit Other Losses and compensation sold of goods Cost Miscellaneous other costs subscriptions International fees Audit Media and design services costs /support costs IT Accommodation leases operating under Rentals Impairment of property, plant and equipment and plant of property, Impairment of assets intangible Amortisation services management programme Outsourced services Catering facilities of conference Hire freight and Postage Professional subscriptions Finance and services HR Professional services Bank charges Total i 55,321 55,321 2016-17 2016-17 2016-17 2016-17 84,821 40,778 10,039 18,334 10,261 13,873 3,800 6,097 3,323 9,592 6,107 1,793 1,693 1,076 1,721 7,242 £000 £000 922 10 436 861 130 491 670 212 411 68 66 35 2 9 Re-presented Re-presented 38,922 37,577 37,577 2015-16 2015-16 20 89,598 89,598 12,564 12,564 18,106 18,106 10,818 10,818 1 38 23 11, 6,029 6,029 8,224 8,224 3,268 3,268 1,007 1,007 1,583 1,583 5,955 5,955 1,488 1,488 1,301 1,301 3,715 3,715 1,518 1,518 15-16 15-16 £000 £000 824 824 521 521 905 387 387 507 507 596 596 168 168 40 34 39 91 13 4 ii ii i Notes: income Operating 6. (2015-16: £0.6m). training doctoral for Centres for £1.8m iii 2016-17 includes NCAS for £1.2m of funding capital additional 2016-17 includes ii £7.5m and (2015-16: nil) round grant p capital strategic the through funded grants capital of £3.3m 2016-17 includes i Notes: 5. Research and development grants Research contracts Research Post graduate training awards awards training graduate Post Miscellaneous income and Income from other governmental departments Commission European from grants Current grants Research Total services and of goods Sales income Rental Total Income from private sector –companies sector private from Income Miscellaneous income includes £2,549k (2015-16: £2,756k) of monies from the University of Southampton paid to to paid Southampton of th University the from monies of (2015-16: £2,756k) £2,549k £1,488k. of includes income income accrued and Miscellaneous £7,056k of receipts cash of consists Commission European the from Income the Indian Institute of Tropical Meteorology for their contribution to the FAAM 2016 Monsoon aircraft campaign. campaign. aircraft 2016 Monsoon FAAM the to contribution their for Meteorology Tropical of Institute Indian the aid out of Newton funds (2015-16: £3.8m). (2015-16: £3.8m). funds Newton of out aid e National Oceanography Centre concerning their joint occupation of the Waterfront Campus and £800k from from £800k and Campus Waterfront the of occupation joint their concerning Centre Oceanography e National public sector i ii ii iii i 190,519 123,612 2016-17 2016-17 2016-17 26,002 70,356 40,905 20,328 29,780 8 4,236 6,276 1,192 £000 £000 ,544 Re-presented Re-presented Re-presented 174,766 174,766 112 ,998 ,998 112 20 20 20,302 20,302 22,616 22,616 69,674 69,674 29,071 29,071 39,152 39,152 3,469 3,469 7,403 7,403 7,678 7,678 1,751 1,751 15-16 15-16 15-16 £000 £000

69 NERC Annual Report and Accounts 2016-17 70 NERC Annual Report and Accounts 2016-17 The impairment of Transport Equipment wholly relates to the reduction of the RRS James Ross Clark RRS the of reduction the to relates wholly Equipment Transport of impairment The lost. be to deemed not now are does 2015-16 which which and and year the during lost was contact which for package sensor underwater an for revaluation. £36k include professional &Machinery subsequent to due Plant of reversed impairments The partially impairments year prior (-£2,551k) Keyworth and (-£266k) -Bush (£1,376k) properties Centre Lyell Edinburgh and (£695k) Wallingford (£322k), Bangor (£577k), (£7,281k), Lancaster Base Research Antarctic VI -Halley follows: as reversals are costs impairment the cost, impairment net The historic depreciated their below to properties of revaluation to relate Stations Antarctic and Buildings of impairments The Plant iv the within recognised were £38k to amounting losses aresult As damaged. or lost been either had which identified were 4assets year the During iii £3, ii i Notes: equipment and 7. plant Property, v) Disposals Disposals year in Charged 2016At 1April Depreciation At 31At 2017 March Revaluations At 31At 2017 March Revaluations Reclassifications Reclassifications Reclassifications Net Book Value Book Net Disposals Disposals 2016At 1April Cost or valuation valuation or Cost Impairments At 1 April 2016At 1April Additions Additions Impairments Impairments currently deliver economic benefits; as well as the reversal of impairments for three underwater sensor packages for which contact was lost during during lost was contact which for packages sensor underwater three for impairments of reversal the as well as benefits; economic deliver currently being impaired to their professionally revalued amounts. valuations. previous of aresult as impaired been had properties these where cost historic depreciated their above properties of revaluation the reflect costs impairment previous of reversal the less £16,963k of costs amo impairment of consist 4.2 note in shown to as £13,873k of made is costs effort impairment every net The Whilst eliminated. not globe. the across minimised, be only can loss of environments risk the extreme most assets, the of some in safeguard activity research conducts NERC category. Machinery and properties net) (£3,550k House (£1,311k Murchison Loanhead and net) fol Edinburgh the of sale the include year the during &Buildings Land of Disposals (2015-16: £3,930k is lease finance the under held asset this on charge depreciation (2015-16: £12,991k). annual £9,484k The is ship (2015-16: £22,081k). leased the of NBV depreciated not The is which land freehold of respect in £18,605k includes valuation or Cost Reclassifications relate to bringing into service of assets under the course of construction along with the delayed recognition of equipment elements of of elements equipment of recognition delayed the with along construction of course the under maj assets of base. service into capital bringing to Antarctic relate NERC’s of review awider of Reclassifications part as out carried vessels Antarctic of review impairment lowing the relocation of BGS’s Edinburgh operations to the new Lyell Centre on the campus of Heriot Watt University. University. Watt Heriot of campus the on Centre Lyell new the to operations Edinburgh BGS’s of relocation the lowing 576k). 576k). or building projects after the buildings have come into service and some small misclassifications of Intangible assets as IT Equipment. IT as assets Intangible of misclassifications small some and service into come have buildings the after projects building or unting to £3,090k. These costs are included in the expenditure for the year in the statement of changes in taxpayer equity. equity. taxpayer in changes of statement the in year the for expenditure the in included are costs These £3,090k. to unting iii iii iv iv v v (2,699) (1,040) (1,029) (6,049) (6,049) (6,179) (6,179) 40,995 34,946 37,256 31,077

1,261 1,261

(362) £000

Land Land i i

- - - - - (150,215) (150,215) (143,941) (143,941) 190,977 326,145 175,930 (6,403) 334,918 (

(9,939)

4,926 4,926 (375) 2,981 2,981 7,434)

£000 stations Antarctic

513 513 684

ldings and and ldings Bui - - (4,865) (4,865) (4,070) (4,070) (1,461) (747) (167)

9,384 1, 611 611 1, 4,448 4,519 8,518

£000 (92) 169 169 717 equipment IT 41 41

- - (38,557) (44,453) (10,030) (5,259) 82,044 86,073 41,620 43,487 2,390 2,390 1,540 1,540 (793)

5,121 5,121 4,922

£000 237 237 Plant and machinery machinery and Plant 5 - (400) (400) 1,013 1,013 to its open market value following an an following value market open its to vessel research (190)

(199) (199) £000

750 949 (5) 613 613 fittings and Fixtures (6) 39 39 19 19 6

- - - - (177,551) (160,159)

(18,796) 320,637 143,086 318,086 (10,170) 157,927 (2,649) 5,569 5,569 3,533 3,533 4,498 4,498 (879) 3,494

£000

559 Transport Transport ii ii - (10,925)

70,695 70,695 70,695 70,695 59,834 21,786 21,786 21,786 21,786

£000 construction under Assets - - - - -

- - - - - (383,663) (383,663) (352,975)

(4 (15,987) 467,540 (17,367) (17,367) 851,203 851,203 454,321 454,321 807,296 (3,885) (3,885) 10,440 10,440 71,583 71,583 0,778) 0,778) (204) (204)

5,882 5,882 3,494 3,494

£000 41 41 Total Re-presented Re-presented At 1 April 2015At 1April Depreciation 31At 2016 March Revaluations Reclassifications Charged in year in Charged Impairments 2015At 1April Cost or valuation valuation or Cost 31 M at Value as Book Net 31At 2016 March Reclassifications Impairments Disposals Disposals Additions At 1 April 2015At 1April Revaluations a rch 2016rch

(6,049) (6,049) (5,429) (5,429) 40,995 34,946 39,300 33,871 33,871

(358) 1,695 (262) £000 Land Land

------(127,057) (127,057) (143,941) (143,941) 302,337 190,977 175,280 334,918 (7,575) (9,309) (9,309)

12,874 17,458

2,249

£000 s on ti a st c cti Antar - d n a s g ldin ui B

- - - - (3,863) (4,070) (4,070) (1,398) (1,398) (1,218) 4,448 8,098 4,235 8,518 1,539 1,218

£000

(62) 104 (5) equipment IT 35 - - (38,557) (10,609) (36,071) 82,044 (8,758) 46,725 43,487 82,796

3,350 4,488 (824) (489) 8,612

£000 992 992 Plant and machinery machinery and Plant - - (259) (259) (199) (199)

(119) £000

(57) (57) 949 706 750 102 102 361 119 fittings and Fixtures (2)

- - 1 - - (144,090) (160,159) (15,846) 318,086 307,563 163,473 157,927 2,293 (505) 1,501 (282)

7, 011 011 7, £000

282 Transport Transport - - - (23,885)

34,256

21,786 21,786 21,786 21,786 11,415 11,415 11,415

£000 construction under Assets

------(352,975) (352,975) (316,769) (316,769) (37,577) (37,577) (10,377) (10,377) 454,321 454,321 807,296 807,296 751,870 751,870 435,101 (8,895) 45,531 10,231 10,231 21,751 21,751

(655) (655) (824) (824)

£000 35 Total -

71 NERC Annual Report and Accounts 2016-17 72 NERC Annual Report and Accounts 2016-17 10. Payables Payables 10. Commission European party 3rd of behalf on (2015-16: £4,745k) £2,746k holds NERC above the i to addition In Note: 9. and equivalents Cash cash i are duePrepayments to obligations, such license contractual subscriptions, as international and maintenance costs, Note: Receivables8. VAT payable year: one within due falling Amounts hand in cash and banks Commercial Government Banking Service 31 at held were March: balances following The date end period at as Balance balances equivalent cash and cash in change Net 1April at as Balance Total receivables Staff year: one than more after due falling Amounts income accrued and Prepayments receivables Staff receivables Other Trade receivables year: one within due falling Amounts Total Finance lease year: one than more after due falling Amounts Finance lease income deferred and Accruals payables Other Trade payables security social and taxation Other Total pr m any of which are due to be paid at the beginning of a calendar year. year. acalendar of beginning the at paid be to due are which of any ogramme collaborators. collaborators. ogramme i i 31 March 201731 March 2016-17 2016-17 2016-17 2016-17 24,843 24,785 44,324 57,388 59,395 15,316 2,007 8,576 1,367 9,203 (1,124) ,114 2 £000 2,801 1,677 1,677 1,072 205 106 901 £000 58 605 61 3 Re-presented Re-presented Re-presented Re-presented Re-presented Re-presented 1 March 2016 1 March 2 2 24,064 24,064 63,449 60,075 48,096 48,096 13,990 13,990 24,135 24,135 015-16 015-16 015-16 015-16 2,599 2,599 2,801 2,801 2,801 1,848 1,848 2,037 2,037 1,258 1,258 1,056 1,056 3,374 3,374 9,879 9,879 7,520 7,520 £000 £000 202 202 108 108 109 109 953 953 86 71 Analysis of expected timing of discounted cashflows cashflows discounted of timing expected of Analysis ii -1.00% years, 0-5 for (2015-16:-1.55% 10 years over for -0.80% and years 6-10 -1.95% for years, 0-5 for -2.70% is i Notes: 11. charges and liabilities for Provisions Total years ten than Later years ten and five Between years five and one Between Provision one due year within Balance at 1 April 1April at Balance Balance at reporting date reporting at Balance Unwinding of discount level price in Changes year the in utilised Provision year the in Provided o -0 er n 08%froe 0yas. 10 years). over for -0.80% and years 6-10 for rate discount the provisions other all For (2015-16: 1.37%). provisions pension for 0.24% is used rate discount The Includes provisions for Antarctic Treaty costs representing the Council’s liability to remove any items from the the from items any remove to liability Council’s no longer the used.Antarctic representing costs Treaty Antarctic for provisions Includes

ii

i 31 March 201731 March 31 March 201731 March 14,783 10,769 10,769 14,783 4,580 4,580 (539) 9,884 1,679 2,615 (84) £000 £000 605 57 57 31 March 201631 March 31 March 201631 March Re-presented Re-presented Re-presented Re-presented 10,769 10,769 10,769 4,026 4,026 7,490 7,490 (761) (761) 1,008 1,008 8,454 8,454 1,267 1,267 (80) (80) £000 £000 94 94 40

73 NERC Annual Report and Accounts 2016-17 74 NERC Annual Report and Accounts 2016-17 customers. by external borne are guarantees and bonds of these costs The Bank. Lloyds with £1,139k to amounting 2017 31 at March (2015-16: lodged are £1,094k). These contracts, overseas to relating guarantees and of bonds anumber has Council The 12.6. Bonds and guarantees 2017. 31 to March period the for Analysis Systems Applied for Institute International the for £672k and Programme Drilling Ocean £1,950k Integrated includes the for which costs, subscription of £3,221k international for commitments has NERC 12.5. International subscriptions 2019-20. in completed be to due Vessel Research Polar £92.1m New the for includes which contracts, capital of major respect in of £93.2m asum to committed is NERC accounts, of these date the at As 12.4. commitments Capital commitments lease Operating 12.3 obligations lease Finance 12.2 a contracts grants, research approved on commitments 12.1 Forward 12. Commitments Total years five than Later years five and one Between one yearWithin Total years five and one Between one yearWithin Total years five than Later years five and one Between one yearWithin nd training awards nd training

31 March 201731 March 201731 March 31 March 201731 March 359,735 170,586 189,118 2,007 3,374 8,930 9,531 1,367 £000 £000 £000 286 315 31 31 March 201631 March 201631 March 31 March 201631 March 321,365 321,365 159,388 159,388 161,774 161,774 4,632 4,632 1,258 1,258 9,765 9,765 3,374 3,374 9,019 9,019 £000 £000 £000 327 327 203 203 419 419 Financial Position events between the balance sheet date and this date. this and date sheet balance the between events Position Financial of Statement post other no are There Innovation. and Research of UK formation the of basis the forms This assent. royal received Bill Research 2017 Education Higher the 27 April On General. Auditor and Comptroller of the Report and Certificate of the date the as date same the as interpreted is This issue. for authorised are Accounts the which on date the to up considered are events Position of Financial Statement Period Reporting the 10 after of Events IAS requirements the with accordance In period reporting the 14. after Events of staff. member asenior is he/she where Co No staff. o awards funded of NERC respect in payments aggregated following the made NERC C of partners or spouses children, any with transactions material no been have There members. Council to payments grant research no made NERC year the During bodies. transactions with other Government and departments other central Government various had has NERC SBS. UK and Agency Space UK England, for Council Funding Education Higher UK, Innovate Council, Research Humanities and Arts Council, Facilities Council, Council, Research Medical Economic and Social Research Technology and Science Council, Research Sciences Biological and Biotechnology Council, Research Sciences Physical and Engineering viz: Department, parent t material various had has year, the NERC During party. arelated as regarded is BEIS by BEIS. sponsored body public anon-departmental is NERC transactions 13. party Related ransactions with BEIS and with other entities for which BEIS is regarded as the the as regarded is BEIS which for entities other with and BEIS with ransactions Met Office Met University Cranfield of Bristol University College London University Lancaster University of St Andrews University Institution University of Edinburgh University r contracts to Institutions where Council members are also senior members of members senior also are members Council where Institutions to r contracts ouncil that disclosure. require members u ncil members were involved in the approval of awards to the institution institution the to of awards approval the in involved were members ncil Amount 8,025 6,778 6,778 1,308 1,308 1,875 1,875 1,246 1,246 4,180 4,180 6,103 6,103 £000 Related party party Related Professor Ian Poll OBE Poll OBE Ian Professor Professor Orpen Guy Professor Louise Heathwaite Boyd Ian Professor Professor Dame Georgina Mace DBE DBE Mace Georgina Dame Professor Professor Dame Julia Slingo DBE DBE Slingo Julia Dame Professor Professor Lesley Yellowlees CBE , post , post

75 NERC Annual Report and Accounts 2016-17 76 NERC Annual Report and Accounts 2016-17 Blank page Blank page Natural Environment Research Council Polaris House North Star Avenue Swindon SN2 1EU

Telephone: 01793 411500 Fax: 01793 411501 www.nerc.ac.uk