SWALLOWTAIL AND BIRDWING BUTTERFLY TRUST
TRUSTEES’ REPORT AND FINANCIAL STATEMENT FOR THE PERIOD
04 AUGUST TO 31 DECEMBER 2017
Established 04 August 2017 as a Charitable Incorporated Organisation (CIO)
Registered Charity Number: 1174142
Charity Information 1
Trustees’ Report 2
Objectives and Activities 4
Financial Review 5
Risk Management 6
Plans for the Future Period 6
Statement of Financial Activities 7
Notes to the Financial Statements 8-10
Governing Document: CIO Constitution dated 09 May 2017
Charity Number: 1174142
HMRC Charities Reference: EW8083
Registered Address: Swallowtail and Birdwing Butterfly Trust, Hines Harvey Woods, Queens Head House, The Street, Acle, Norwich, UK, NR13 7DY
Independent Examiner None assigned
Accountants: None assigned
Solicitors: None assigned
Bankers: Barclays Bank PLC, Leicester, LE87 2BB
Social Media Advisor: PhaseThree Goods, Norwich
Public Relations Advisor: Holdsworth Associates, Cambridge
Telephone: 01493 750207 (registered address only)
The Swallowtail and Birdwing Butterfly Trust (SBBT) established its Constitution as a Charitable Incorporated Organisation on 09 May 2017 and was entered on the Register of Charities, number 1174142, on 04 August 2017. The Trustees have pleasure in presenting this, their first report and financial statement, covering the period from 04 August to 31 December 2017.
The financial statement has been prepared in accordance with the required “Accounting and Reporting by Charities: Statement of Recommended Practice, SORP (FRSSE), as amended for accounting periods commencing from 1 January 2016.
Annual reports will be published on the Charity Commission’s website as required in due course. The Trust’s reports are also published on its website www.sbbt.org.uk, and will provide a clear comparative of the activities and financial position with previous reporting periods as soon as these become available.
The Board of Trustees is responsible for approving the strategy and business plan for the Trust, approving the annual budget, grant-making, monitoring performance and for policies on investment, reserves, remuneration (if any) and risk management. The Board of Trustees normally meets three or four times a year. All Trustees give their time freely and no Trustee received remuneration in the period under report. Details of expenses reimbursed to Trustees are disclosed in the accounts. There are no related party transactions. The day to day operations of the charity, the implementation of the business plan and the processing and handling of grant applications prior to formal consideration by the Board are currently managed by the Trustees.
The Swallowtail and Birdwing Butterfly Trust is a charitable incorporated organisation limited by guarantee, governed by its Constitution. The members of the organisation, who have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities, are the Trustees, of whom there must be a minimum of three and a maximum of twelve. Decisions are made by a simple majority of votes at a meeting of Trustees or by resolution made in writing or in electronic form and agreed by all Trustees.
The Trustees are: Dr Nicholas Mark Collins – Chair, Charles Frederick Dewhurst – Secretary, Oliver Leigh-Wood
The Trust’s Patron is: Henry Sackville Barlow OBE
The Trustees are assisted by a number of Honorary Advisors. They are:
Honorary Advisor Finance: Rachel Shah FCA
Honorary Advisor Botany: Sara Oldfield OBE
Honorary Advisor Social Media: Alice Perkins
Honorary Advisor Insect Rearing: Bill Page
Honorary Advisor CITES: Jonathan Barzdo
The Trustees are appointed by the Members and normally serve for a period of three years from the AGM at which their appointment is confirmed, after which time they may be re-appointed. During the set-up phase it has been agreed to stagger the length of appointments as follows: Charles Frederick Dewhurst 4 years; Oliver Leigh-Wood three years; Nicholas Mark Collins two years.
The Board keeps the skill requirements for the Trustee body under review and in the event that a Trustee retires or additional new Trustees are required, the Board is responsible for an open and rigorous recruitment process which includes advertising on the website, on other appropriate appointments websites and wider media, as may be necessary. SBBT is committed to diversity and welcomes applicants irrespective of gender, sexual orientation, disability, religion, race or age. All new potential Trustees are interviewed, and if provisionally accepted, they are invited to attend a Trustee meeting before they are formally invited to join the Board. On joining, each Trustee is provided with an induction that includes full details of their roles and responsibilities and terms and conditions of service, plus information about the charity including our strategy and business plan.
The Board will in time adopt a process for periodically reviewing its effectiveness, including taking external advice as needed. The Swallowtail and Birdwing Butterfly Trust is satisfied that it has a capable and experienced Board of Trustees able to support the Trust’s objectives in the future.
The Key Management Personnel of the charity are the Trustees, and the Trust has no staff at present. The Trustees are committed to training and development to support the effective development of the Trust. The Trust relies heavily on the voluntary work of the Trustees and Honorary Advisors, who make a vital contribution to the Trust and for which the Trust is grateful.
In 1985 the International Union for the Conservation of Nature and Natural Resources (IUCN) published “Threatened Swallowtail Butterflies of the World: The IUCN Red Data Book” and identified a significant number of threatened species which were subsequently featured in a 1991 publication “Swallowtail Butterflies: An Action Plan for their Conservation”. One such species was the subject of a new book “Queen Alexandra’s Birdwing”, published in 2016, which concluded that “the many proposals for conservation work in relation to Ornithoptera alexandrae, have so far borne few practical results”, and proposed a new project to take place in Papua New Guinea, beginning in 2017. The Swallowtail and Birdwing Butterfly Trust was conceived in order to provide scientific, technical and financial support to this particular project and, furthermore, to extend the portfolio of practical work to the many other threatened species and habitats identified in the IUCN assessment, and in the many more detailed reports that followed in its wake.
The three future Trustees met on 22 March 2017 in Winchcombe, Gloucestershire, with the future Patron online, to agree the general principles and direction of the proposed charity. The first formal Board meeting was held on 12 October 2017, at which time the Constitution, honorary officers, mission, objectives, priority activities and general operating principles were agreed and confirmed.
Objectives and Activities
The formal objects of the Trust are “for the advancement of environmental protection and improvement, including preservation and conservation of the natural environment and the promotion of sustainable development, in particular for the protection of swallowtail and birdwing butterflies and other Lepidoptera, by means including but not restricted to education, scientific research, preservation, improvement and creation of habitat, captive breeding and sustainable management in the UK and worldwide.” The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.
The mission of the Swallowtail and Birdwing Butterfly Trust is to conserve and protect members of the Papilionidae, a worldwide family of more than 550 species of butterfly which includes the largest, most spectacular and most endangered species of butterfly on the planet.
This work is generally planned and executed in the context of the wider butterfly faunas, their foodplants, and the ecosystems of which they are a part.
The Trust addresses its objectives and measures the success of its activities in four ways:
- by identifying need and catalysing action;
- by raising financial resources for conservation activities;
- by convening networks and partnerships and
- by providing scientific and technical support.
During its first five months of operations the Trust initiated and implemented a number of activities.
- Queen Alexandra’s Birdwing Butterfly Project
The Trust helped prepare a framework, budget and plan for the project in Papua New Guinea and supported its presentation to funders, who agreed finance for the first three years, beginning in October 2017. The Trust executed a public relations campaign for the project, which saw coverage in many print and broadcast media. It also prepared a job description and recruitment/interview plan for the project entomologist, to be selected in January 2017, and expects to be associated with the project’s Scientific and Technical Advisory Committee in due course.
- Kinabalu Birdwing Project
The Kinabalu Birdwing, Troides andromache, is confined to an area of the Malaysian state of Sabah, northern Borneo. The Trust has committed to a grant to enable survey work in the Kinabalu National Park, with the aim of clarifying the distribution and conservation status of the species, and to develop local recognition of its significance as part of the natural heritage of the region. The Trust’s grant commitment has catalysed additional support from within the region.
- Richmond Birdwing Project
Ornithoptera richmondia is confined to patches of remaining habitat along Australia’s eastern seaboard. The Trust has offered a grant in support of the Wildlife Preservation Society of Queensland’s conservation efforts subject to the receipt of an acceptable project proposal , and has promoted the project on its website.
- Swallowtails in Britain
In 2017 the Trust entered into a partnership with the Royal Entomological Society of London and the Ted Ellis Trust to convene a one-day workshop in Norfolk, UK, on 27 June 2018. The workshop will examine the status of the two subspecies of Papilio machaon that occur in the UK, with a view to strengthening conservation planning and action.
- Fiji Swallowtail
In 2017 the Trust and its advisors commented on the identification of a previously unknown swallowtail photographed in the Fiji Islands by participants in a programme of Operation Wallacea. SBBT entered into discussions with Operation Wallacea with a view to putting a team of experts into the field for a butterfly survey on the Natewa Peninsula, Vanua Levu, in 2018.
- Other threatened species
In 2017 the Trust pursued correspondence with local experts in Sri Lanka and Jamaica with a view to defining opportunities for conservation action on behalf of the Ceylon Rose and Homer’s Swallowtail, both believed to be endangered in their natural habitats. This led to an agreement with the University of Colombo to prepare a joint submission for a Scoping Grant to the Darwin Initiative.
- Technical assessments
The Trust has advised IUCN and UNEP-WCMC on the taxonomic status of Papilio chikae and its subspecies in the Philippines and made recommendations for changes to its CITES listing. The Trust has also alerted CITES authorities about certain apparently illegal sales of Papilionidae.
To communicate and promote conservation of swallowtails and birdwings, the Trustees launched a successful website www.sbbt.org.uk on 30 August 2017, and a newsletter, Papilio!, in November 2017. The Trust has established a Facebook page, an Instagram account and a MailChimp account in order to support its communications and development strategy.
As the income for the Trust is below £25,000 an independent examination is not required under the Charities Act 2011 section 145.
The charity’s income for 2017 of £7489 was made up of some generous donations from supporters and small-scale sales of books on the Queen Alexandra’s Birdwing Butterfly (which are sold at £25 plus associated postage). There are no comparison figures for income as the charity was first registered during this financial year.
The charity’s expenses for 2017 of £2505 have been mainly set up fees such as legal fees, email and website set up and a small PR campaign. With the exception of renewing domain names these are not recurring expenses. The charity has also committed to paying a grant of £500 in the coming year to support the Kinabalu Birdwing Project in Borneo.
The charity runs on the goodwill of supporters, volunteer advisors and Trustees and has minimal running costs. This is expected to continue for the foreseeable future.
At 31 December 2017 SBBT carries forward unrestricted general funds of £4984. SBBT holds unrestricted reserves in order to mitigate against unexpected reductions in income, provide working capital and assist with cash flow. The unrestricted general funds are above the range of 3 months general fund expenditure which the Trustees would normally consider to be prudent. However, given the needs and challenges faced by the charity, its annual operating costs and the current heavy dependency upon voluntary work, which, in the event of unforeseen circumstances, might need to be paid for during an interim arrangement, the Board aims to hold a minimum reserve of £5000. This reserve policy is kept under review.
The Trustees have routinely examined the major strategic, business and operational risks which the Trust faces, and are satisfied that, with the regular reports they compile for meetings, they have been able to assess these risks and to put in hand on a timely basis any necessary actions (mainly in relation to the scale of the collaborative activities of the Trust) to lessen or avoid them.
The principal risk is that income from donors might turn out to be less than anticipated. The risk is mitigated by retaining sufficient reserves to meet current commitments. The assets of the Trust are sufficient to meet the commitments currently envisaged for 2018. We are committed to ensuring that there is robust assessment of impact in place for all projects undertaken.
In 2018 a formal risk register will be prepared and will be kept under regular review as part of the annual planning process. This will identify the major financial, operational, governance/compliance and external risks facing the Charity over the coming year. Each risk will be assessed according to its likelihood and potential impact, and systems and procedures will be agreed to manage those risks.
The organisation will continue to be prudent with expenditure. We are committed to ensuring that there is a robust assessment of impact in place for all the projects undertaken.
Plans for the Future Period
The Trust has prepared a Business Plan for 2018, which will be its first full year of operations, outlining the ways in which its aims will be operationally pursued. The Business Plan also outlines the Trust’s proposals for extending and strengthening its governance, communications and outreach.
STATEMENT OF FINANCIAL ACTIVITIES
|SWALLOWTAIL AND BIRDWING BUTTERFLY TRUST|
|STATEMENT OF FINANCIAL ACTIVITY|
|FOR THE PERIOD 04 AUGUST TO 31 DECEMBER 2017|
|Income||RESTRICTED FUNDS (£)||UNRESTRICTED FUNDS (£)||TOTAL (£)|
|Other trading activity||Note 3||nil||139||139|
|Grant payable||Note 4||nil||500||500|
|Direct charitable expense||Notes 5,6||nil||2005||2005|
|Net surplus/(deficit) carried forward at 31st December 2017||nil||4984||4984|
|STATEMENT OF ASSETS AND LIABILITIES|
|Cash at bank||5405|
|Creditors – amounts falling due within one year||521|
|Nicholas Mark Collins|
|Chair of Trustees|
|The notes on pages 8 to 10 form part of these accounts|
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2017
- ACCOUNTING POLICIES
Basis of Preparation
The Charitable Incorporated Organisation constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2015 and the Charities Act 2011.
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity.
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
Unrestricted funds represent funds which can be used in accordance with the charitable objects at the discretion of the Trustees. Designated funds are funds set aside by the Trustees out of unrestricted general funds for specific purposes or projects. Restricted funds represent funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when the funds are raised for specific restricted purposes.
All incoming resources are included in the accounts when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. Donations and legacies are recognised in the financial statements when the Trust is convinced that there is entitlement to the income, there is certainty of receipt and the amount in question is measurable. Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income may be received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds includes all costs in relation to generating voluntary income, fundraising events and fundraising trading;
- Expenditure on charitable activities includes costs in relation to all projects, programmes and activities.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such as upon receipt of a full and acceptable proposal in the Trust’s project format, or when awards are recognised as expenditure only when the conditions attached to the grants are fulfilled. Grants offered subject to conditions that have not been met at the year-end are noted as a commitment, but not accrued as expenditure.
Allocation of support and governance costs
Support costs are those that assist the work of the Trust but do not directly represent charitable activities and include governance costs, administrative costs, depreciation, recruitment, and other costs. They are incurred directly in support of expenditure on the objects of the charity.
Governance costs comprise all costs involving the public accountability of the Trust and its compliance with regulation and good practice. These costs include costs related to any independent examination, statutory audit and legal fees.
Support and Governance costs may be allocated across the charitable activities based on an analysis of the time spent on each project.
Tangible Fixed Assets and Depreciation
The Trust currently holds no fixed assets.
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Accrued income is measured at the amount due to be received.
Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Creditors and provisions
Creditors are recognised where the Trust has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Other creditors and accruals are recognised at their settlement amount due.
HMRC recognised the Swallowtail and Birdwing Butterfly Trust as a charitable incorporated organisation and a charity for tax purposes on 23 October 2017, charity Reference EW80803. SBBT is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part II Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Sale of Books
The trust holds a number of donated books on the Queen Alexandra’s Birdwing Butterfly which it sells to interested parties. Income from the sale of these books is accounted for when received and in order to be prudent, the stock of books is not included as an asset in the accounts as future sales are uncertain.
Unrestricted donations of £7350 include the cost of legal fees for setting up the trust of £1440 which was paid for directly by a donor. The equivalent cost is included in charitable expenses of £2005.
3. OTHER TRADING ACTIVITY
This relates to the sale of books on the Queen Alexandra’s Birdwing Butterfly.
4. GRANTS PAYABLE
- The Trust has committed to paying a grant of £500 to support the Kinabalu Birdwing Project in Borneo which will be paid in the 2018 financial year and is included in Creditors at the year-end
- The Trust has also offered a grant of £500 to support the Richmond Birdwing Project subject to the receipt of an acceptable proposal. This is not included in the accounts as the proposal has not yet been received.
5. DIRECT CHARITABLE EXPENSES
These relate to the set-up costs of the trust and include an amount of £1440 for legal fees which were paid for directly by a donor.
Two Trustees were reimbursed a total of £270.71 relating to early set up costs of the Trust and for postage of books sold.