Annual Accounts 2011-2012 (pdf - 973 kB) - Royal Botanic Garden ...

The Royal Botanic Garden Edinburgh - Annual Report and Accounts for the year to 31 March 2012
The investment in the Centre for Middle Eastern Plants Ltd. represented a loan of £120,000.
Funding to cover this and the accumulated losses was allocated as a grant from the Board
Reserve when the company was put into a dormant phase from 1 January 2012.
Listed investments
Listed company investments form part of the Ferguson Bequest and the Education Endowment.
The investment portfolio is invested in a range of securities. As at 31 March 2012 the portfolio
was made up of 14% fixed interest, 5% index linked, 73% equities, 2% alternative and 6% cash.
The corresponding figures for 2010/11 were 14% fixed interest securities, 5% index linked, 76%
equities, 2% alternative and 3% cash.
The only Investment Holdings which are over 5% of the Portfolio Value are Treasury Stock (5.09%).
b) Current asset investments
As at 31 March 2012 £1,090,000 of cash was held in term deposit accounts (2011 £1,079,000).
RBGE Group
2011/12 2010/11 2011/12 2010/11
£000 £000 £000 £000
Term deposits 1,090 1,079 1,090 1,079
Current asset investments represent term deposits held with commercial banks in line with the
credit risk policy. The deposits relate to deferred VAT on the John Hope Gateway retained under
the Lennartz Mechanism and Board Reserve funds.
c) Financial instruments disclosures
i) Credit risk
Credit risk arises from the short-term lending of surplus funds to banks, building societies and other
third parties as well as credit exposures to RBGE’s customers. RBGE restricts deposits to the
following banks (HSBC, Royal Bank of Scotland, Barclays, Lloyds TSB, Bank of Scotland, Co-
Operative and Clydesdale) to a maximum counterparty limit of £300k. The treasury management
policy is reviewed annually.
RBGE reviews the credit risk associated with financial institutions on a monthly basis and more
regularly if market conditions are volatile or other information is made available on the financial
security of UK banks and building societies.
ii) Liquidity Risk
RBGE does not have any external borrowings.
iii) Market risk
Changes in market interest rates influence the interest payable on borrowings and on interest
receivable on surplus funds invested. RBGE is not considered dependent on interest receivable.
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