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Kew Gardens Annual Report Accounts 2015-16 Royal Botanic Gardens, Kew Annual Report and Accounts for the year ended 31 March 2016 Royal Botanic Gardens, Kew Annual Report and Accounts for the year ended 31 March 2016 Presented to Parliament pursuant to Paragraphs 39(7) and 40(4) of Schedule 1 of the National Heritage Act 1983 Ordered by the House of Commons to be printed on 6th July 2016 HC233 © Board of Trustees of the Royal Botanic Gardens, Kew copyright 2016 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 Royal Botanic Gardens, Kew 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 https://www.gov.uk/government/publications Print ISBN: 9781474128438 Web ISBN: 9781474128445 ID: 130216 07/16 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty’s Stationery Office 2 Contents 4 Chairman’s letter 14 Statement of Trustees’ and Accounting Officer’s 5 Director’s (CEO) foreword responsibilities 6 Management commentary 6 History and statutory functions 15 Governance Statement 6 Business aims and outcomes 20 Sustainability Report 7 Performance targets and results 23 Remuneration Report 8 Commentary on performance against targets 26 Auditor’s Certificate and Report 9 Health and safety statement 27 Consolidated Statement of Financial Activities 9 Diversity and equality statement 28 Balance Sheets 9 Volunteering statement 29 Consolidated Cash Flow Statement 11 Board of Trustees 30 Notes to the accounts 12 Statutory information Annex RBG Kew five year financial summary Royal Botanic Gardens, Kew contact details The Director, Royal Botanic Gardens, Kew, Richmond, Surrey TW9 3AE United Kingdom email: [email protected] Tel: +44 (0) 20 8332 5000 Fax: +44 (0) 20 8332 5197 www.kew.org 3 Chairman’s letter 2015/16 has, I believe, marked a turning point in Kew’s recent Work on restoring the Temperate House, our largest capital history. project, continues with re-opening scheduled for summer 2018. In June this year I signed an agreement with Historic Royal The publication of our corporate strategy Unlocking why plants Places for the restoration of the Pagoda which will see it and fungi matter is a significant step in articulating why Kew restored to its former Georgian glory by spring 2018. matters and what role it needs to play in the critical challenges facing humanity. The strategy, which runs to 2020/21, is We also secured agreement to host The Hive, a wonderfully accompanied by an operational plan which translates strategic original and beautiful 17 metre high representation of a goals into tangible actions. beehive. The award-winning installation explores the relationship between bees and plants and, through I am delighted to report that we have secured a positive four- interpretation, explains the crucial role of bees as pollinators. year settlement from Defra. The funding represents a huge Following its successful debut at the Milan Expo, it will open to vote of confidence in Kew by the Government and will provide the public in summer 2016. us with a period of stability, reassure stakeholders and staff, and allow us to plan ahead. We have demonstrated we can At Wakehurst a new management team has been recruited and grow self-generated income and thus total resources should will bring forward plans for the Sussex site next year. The grow, allowing us to invest in strengthening RBG Kew’s future restoration of the wildflower meadow on Havelock Farm has sustainability. The settlement also provides valuable been underway this year and will open in summer 2016. leveraging opportunities for the Kew Foundation in their Beyond the garden walls, our flagship outreach programme fundraising efforts. The capital commitments will enable us to Grow Wild continues to build on its success having transformed address decades of underinvestment in our infrastructure. I 3.5 million square metres of urban space and enabled nearly believe this settlement will be transformational for RBG Kew two million more actions through online engagement as well as and will mark an enduring turning point in our financial health. youth and community led projects. A year into our science strategy we are making excellent None of this would be possible without the outstanding efforts progress, enabled by a record level of funds raised for science of staff and volunteers whose dedication and commitment projects. ensures that RBG Kew continues to go from strength to The first cohort of students for the Master of Science strength. programme joined in September 2015. The course, in Finally, I would like to thank the Trustees of RBG Kew for their partnership with Queen Mary University of London, aims to continued support during the year, in particular to Professor train the world’s next generation of plant and fungal scientists Jonathan Drori, Dr Geoffrey Hawtin, George Loudon and Sir and is recruiting a second intake for September 2016. Ralph Ferrers Vyvyan who stood down in 2015/16. Many We published 141 articles in high impact science journals, a thanks for their invaluable contributions. total that exceeds previous years and demonstrates the importance of our scientific research. Efforts continue to open up access to our unrivalled collections through digitisation, with an ambition to make 80% of our collections digitally available by 2020. In June the Plants of the World Online Portal (POWOP) was formally launched as a prototype portal, the first step in creating an online global resource for plant and fungal knowledge. This year we recruited two new science Trustees, Liam Dolan, the Sherardian Professor of Botany at Oxford, and Professor Sue Hartley, Director of the York Environmental Sustainability Institute. We have also recruited Catherine Dugmore, a highly experienced chartered accountant who has held a number of non-executive roles, and Nick Baird who brings considerable experience in corporate affairs to the Board. We also welcomed Mike McDonagh, an experienced auditor, as an independent member to the Audit and Risk Committee. 2015/16 has also seen significant improvements in the standards of horticulture in the gardens in order to inspire and Marcus Agius captivate our 1.6 million visitors. A major endeavour has been Chairman of the Board of Trustees the preparation of the Great Broad Walk Borders which will Royal Botanic Gardens, Kew open in summer 2016. The parallel herbaceous borders stretch more than 1,000 feet in length and illustrate the diversity of the plant kingdom. 4 Royal Botanic Gardens, Kew Annual Report and Accounts 2015/16 Director’s foreword 2015/16 has been an incredibly busy period during which we • we have ambition and will be bold enough to have made tremendous progress in many different areas. I had innovate and inspire. four personal priorities for 2015/16 and I would like to reflect on We have identified the behaviours expected from staff to reflect progress made: these values and have worked with all staff to embed both Securing sustainable financial health values and behaviours. In the spring we also ran a programme of leadership development for around 50 senior managers, For the first time in many years RBG Kew has delivered an aimed at raising the standard of leadership at RBG Kew, which operating surplus (£0.3m surplus on the unrestricted general has been extremely well received by those attending. other reserve in 2015/16 as compared with £0.6m deficit in 2014/15). It is tangible evidence of improved financial health Developing and communicating the narrative for RBG Kew and demonstrates how our Finance team has got the basics I am very proud of our corporate strategy Unlocking why plants right: a good budget, sound forecasting, reliable numbers and and fungi matter. Delivering this strategy will enable RBG Kew the prudent use of a contingency. to achieve its mission to be the global resource for plant and In terms of commercial activities, RBG Kew Enterprises Limited fungal knowledge, building an understanding of the world’s has reported a record profit of £2.0m; the figure is 18% up on plants and fungi upon which all our lives depend. last year. The biggest year-on-year growth came from The operational plan we have developed to accompany the commercial events with both Christmas at Kew (which sold strategy will hold Executive Board directors to account on their 173,000 tickets) and Kew the Music both excelling. Retail at performance and is a rolling three year plan that we will refresh both Wakehurst and Kew Gardens also performed strongly annually. The operational plan is underpinned by a financial with total sales exceeding £3m for the first time. Venue hire plan that details the income and expenditure targets that we and the Kew Explorer also did very well, with both exceeding have to achieve over the next five years. budget. As I hope this foreword reflects, RBG Kew is in a different place Looking further ahead, the Spending Review settlement compared with twelve months ago. To me, the theme that represents a positive outcome for RBG Kew and provides unifies all of this is ‘ambition’. RBG Kew is raising its game and stable and sustainable funding over the next four years. many people have played an important role in this. In particular Fundamentally, this enables us to develop long-term plans to I would like to thank Michael Murphy, former Chief Executive grow self-generated income from marketing the gardens and of the Foundation, who worked tirelessly to successfully deliver commercial events as well as leveraging philanthropic support the Breathing Planet campaign.
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