OCEANS & COASTS
CLIMATE CHANGE
WILDLIFE & HABITATS
FRESH WATER
CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR-ENDED 30 SEPTEMBER 2018
Company number: 4373313 Charity number: 1094467
1 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 OCEANS & COASTS
FRESH WATER
CLIMATE CHANGE
WILDLIFE & HABITATS
CONTENTS
Trustees’ annual report Welcome 3 Independent auditor’s report 21 Mission and vision 4 Consolidated statement of financial activities 24 Fundraising 5 Balance sheets 25 Objectives and achievements 6 Consolidated statement of cash flow 26 Our new strategy 11 Financial review 12 Notes to the financial statements 27 Administration and governance 16 Thank you to our supporters 41
2 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 “Earthwatch Europe is now embarking on a new five-year strategy, with greater impact delivery at its heart.” Lucian J. Hudson, Chair, Earthwatch Europe WELCOME
2018 was a successful and busy year for Earthwatch the next 50 years. We will be focussing on the Europe. Working in partnership with many key challenges where we can have most impact: different stakeholders, we have achieved much in reducing the pollution of our water bodies; the last 12 months as we seek to tackle complex enhancing the health of our coasts; promoting environmental issues. sustainable agriculture and creating thriving places to live and work. This year we have empowered many more people to protect the natural world. During 2018 over 4,600 As we move into this exciting new era for Earthwatchers were engaged in our projects from Earthwatch Europe, our Chief Executive of the last measuring the health of our rivers and coastlines, three years, Steve Gray, will be handing the reins to taking part in film and photography competitions. over to a new leader to propel the organisation towards future success. Steve will be moving on Our work on inspiring the next generation also to a new challenge as Delivery Director with the reached new heights, with hundreds of teachers Brecon Beacons National Park Authority. The and students participating in our education new Chief Executive will have a strong legacy to programmes. We have also continued to support build on and no doubt will continue to evolve our training opportunities for early career scientists approach, as we seek to maximise our impact on and were delighted to receive a grant from Neville the environmental challenges we all face. Shulman CBE to maintain this work for a further 10 years. Finally, we have sustained our long-term relationships with our corporate partners HSBC, Shell and Mitsubishi Corporation - engaging with them to further embed sustainability within their organisations.
Earthwatch Europe is now embarking on a new five-year strategy, which will have the delivery of greater impact at its heart. Whilst we have a proud history of creating knowledge around environmental issues, the ongoing impacts of climate change, wildlife loss and degradation of our habitats, requires us to have a greater emphasis on inspiring the action necessary to tackle these complex challenges.
During this new strategy, Earthwatch will celebrate Lucian J. Hudson its 50th year of bringing people, science and Chair, Earthwatch Europe nature together, and the strategy will ensure that Earthwatch Europe is the trading name of Conservation we continue and evolve this unique approach for Education and Research Trust
3 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 OCEANS & COASTS
HOW WE BENEFIT THE PUBLIC FRESH We create knowledge and inspire WATER action through hands-on science and environmental engagement. We address big challenges – such as climate change, loss of wildlife and habitats, provision of fresh water and ocean health – by working together with individuals, CLIMATE communities and organisations. CHANGE
WILDLIFE & HABITATS
MISSION AND VISION
OUR PURPOSE OUR VALUES We empower people to save our natural world Inclusive through rigorous and relevant science that We believe it is essential that people participate in addresses key environmental issues, and through solving the environmental challenges we face. engaging experiences that inform, connect and Objective inspire. This enables us to deliver solutions by Independent research is at the core of our work, and influencing policy and providing hands-on action. its outcomes determine our goals and priorities. OUR MISSION Passionate We are passionate about the opportunity we have Our mission is to engage people worldwide in to make a meaningful impact on people and the scientific field research and education, to promote natural world. the understanding and action necessary for a sustainable environment. Empowering We seek to inspire people, organisations and OUR VISION communities with experiences, knowledge and tools that enable them to take action. We envision a world in which we live within our means and in balance with nature. We believe that Responsible future decisions regarding the environment must We act in a manner that respects and protects be based on objective science and must engage the well-being of people and the environment, and empower people and organisations to act including our staff, researchers, volunteers and responsibly if they are to be sustainable. the places we work.
4 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 FUNDRAISERS RAISED MORE THAN £10,500 THIS YEAR We achieved significant success in trust fundraising during 2017-18. This included a National Lottery Heritage Fund grant for our Naturehood project
FUNDRAISING
Earthwatch is a member of the Fundraising Heritage Fund grant for our Naturehood project, Regulator. Our income is generated predominantly in partnership with colleagues from the Wiltshire thanks to the support of corporate partners funding Wildlife Trust. education and engagement programmes designed to embed sustainability in their businesses. Where we We have also maintained a steady income from partner with corporates, we conduct due diligence on individuals. Our fundraising policy clearly states all the organisations and set clear parameters, before the steps that should be followed in order to protect agreeing responsibilities between partners. vulnerable people when offering support to the charity, ensuring that they have the relevant capacity We achieved significant success in trust fundraising to enable them to make the decision to donate. during 2017-18. This included a National Lottery Our fundraising and partnership teams are internal, and the organisation does not use external professional fundraisers. We do not employ the services of any fundraising agencies or third parties, nor have we run a telephone or door-to-door fundraising campaign.
We have ensured we are in line with the GDPR data protection regulations. We received no complaints about our fundraising practices in 2018.
5 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 OBJECTIVES AND ACHIEVEMENTS
This was the final year of our three-year strategy which began in 2016. The aim of which was to broaden our beneficiaries, whilst focusing on increasing our impact on those beneficiaries and, by extension, on the environment.
Our strategic priorities to deliver on this aim were: • Create hands-on activities for individuals to take local actions that have a global impact and deliver science that matters.
• Work in partnership with global companies to help transform how they think and do business, enabling them to integrate sustainability into their organisations.
• Develop skills in young people through a range of immersive education programmes for teachers and students.
• Help scientists develop their careers and close the gap between scientific discovery and action, and enable them to actively engage with people, communities and business.
STRATEGIC 2018 2018 PRIORITIES OBJECTIVE KEY STATS
EMPOWER Launch the urban Over 4,600 wildlife project in at least Earthwatchers engaged PEOPLE two counties in our projects
ENGAGE Refine our 782 corporate employees approach to partnership participated in our BUSINESSES development programmes
INSPIRE THE NEXT Expand Discover & Teach Over 1,300 participants took Earth and develop our part in Discover Earth and GENERATION secondary school approach Teach Earth
ENABLE Develop a new 10 researchers programme for were supported SCIENTISTS young scientists with grants
6 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 Engaged people in citizen science thorough Capturing our Coast and FreshWater Watch
EMPOWERING PEOPLE
SPEND: £907K (2017: £802K) How did we empower people? Our work to empower people has continued apace in 2018. Our objective to launch the urban wildlife project Naturehood in two counties will be fulfilled shortly when the public phase of Naturehood gets underway in Swindon and Oxford in the spring. We have also: • Raised awareness of critical environmental issues through social media, e-campaigns and events; • Redeveloped the Earthwatch Europe website to improve information for our different audiences about our programmes and activities, making it easier to get involved; • Run interactive events including a young Earthwatcher film competition and held speaking engagements across the UK, with a specific focus on inspiring younger audiences to influence the behaviour of peers and other people; • Engaged people in citizen science thorough Capturing our Coast and FreshWater Watch.
7 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 Worked with HSBC to establish its new Sustainability Training Programme for employees
ENGAGE BUSINESSES
SPEND: £3,722K (2017:£2,206K) How did we engage businesses in sustainability? Our objective to refine our approach to partnership development was met through successful delivery in key programmes, establishing new ones, and through determining the areas where we believe we can have greater impact on business as part of the 2019-2023 strategy. Specifically, we have: • Engaged employees in a range of environmental projects, contributing to scientific research and developing leadership skills; • Worked with HSBC to establish its new Sustainability Training Programme for employees; • Marked 20 years of partnership with Shell, during which time we have built an integrated model of employee engagement, environmental science and community-based conservation initiatives; • Begun new research with Tate & Lyle on the supply chain sustainability of stevia, a natural sweetener; • Broadened the scope of our work on coral reefs with Mitsubishi Corporation to include innovative conservation interventions.
8 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 Added a new Teach Earth location in Scotland with programmes starting in 2019
INSPIRE THE NEXT GENERATION
SPEND: £193K (2017: £445K) How did we inspire the next generation? Our objective to expand Teach Earth and Discover Earth was fuelled by an internal funding injection to boost the power and reach of these education programmes. This has helped mitigate an overall reduction in external funds available under this area. In 2018, we have: • Taken 2,801 students, 133 teachers and 81 trainee teachers and informal educators, through Discover Earth and Teach Earth experiences; • Added a new Teach Earth location in Scotland, with programmes starting in 2019; • Established a relationship with London East Teacher Training Alliance (LETTA), and ran education events in the East London area.
9 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 Collaborated with partners to open up opportunities for people without scientific backgrounds to participate in research and be trained as citizen scientists
ENABLE SCIENTISTS
SPEND: £506K (2017: £281K) Our objective to develop a new programme for young scientists includes work into an enhanced grants programme for emerging scientists. We have continued to provide vital funding for this valuable work- made possible by our generous donors. We have: • Supported early career researchers in poorer countries with grants and opportunities to gain the skills and expertise required to set them off on an independent conservation research career; • Used online technology to provide decision makers at a river catchment level with access to cutting-edge information to help address urgent water resources challenges through the Catch X project; • Collaborated with partners to open up opportunities for people without scientific backgrounds to participate in research and be trained as citizen scientists.
10 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 OUR NEW STRATEGY
Enhancing the health Creating thriving Reducing pollution in Enabling sustainable agricultural of our coasts places to live and work our water bodies land management We partner with communities, We engage with global We enable communities, We work with businesses, farmers, academics, NGOs, business businesses and local business and water academics and policymakers to understand and governments to map communities to understand how managers across Europe the impact of agricultural production and to and understand how coastal urban green spaces, including and Africa to monitor and improve nature-based practices. biodiversity is changing, gardens and parks, can best be address nutrient pollution. especially in response to managed to increase climate climate change. resilience and biodiversity.
EDUCATE
ENGAGE RESEARCH UPSKILL ENABLE We educate EMPOWER teachers and students to use We engage leaders and We research We upskill the Earth as motivate employees to We enable environmental FACILITATE environmental their classroom We empower embed sustainability scientists to connect challenges to resource managers the public to in businesses with communities find solutions to increase the change their CONVENE behaviour positive impact of We facilitate their work environmental data PIONEER sharing to support We convene the decision-making diverse groups We pioneer ‘citizen needed to solve key science‘, improving environmental issues its reach and impact
We are focusing on key challenges where we can Our new strategy puts make the most difference: reducing the pollution of our water bodies; enhancing the health of our environmental impact coasts; increasing the sustainability of agricultural land management and creating thriving places to at the heart of what live and work. we do, building on half To achieve this impact we will use a variety of approaches: a century of bringing • Our solutions-focused science will help decision-makers find practical solutions people, science and to environmental issues; nature together to create • Our specialist engagement and learning will connect a diverse range of people with the environmental knowledge. environment, educating and energising them to achieve change; • We will continue pioneering citizen science as a tool for scientific research and broadening public understanding of the environment; • We will strive to improve access to sources of environmental data for all. Working together, we can create the knowledge and inspire the action needed to ensure we live within our means and in balance with nature. Never has this task been so important.
11 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 FINANCIAL REVIEW
SUMMARY INCOME
The financial results relate to the operations of Source of income 2018 2017 % Earthwatch Europe (Conservation Education & (£‘000) (£‘000) change Research Trust); please see below for the range of connected international charities within the Corporate 4,088 4,991 -18 Earthwatch family. Whilst our focus is on the UK, partnerships Europe, Africa, the Middle East and India, we have Trusts, 344 89 +287 many programmes that take us further afield and foundations a number of international programmes where we and EU collaborate with other Earthwatch charities. Individuals 66 68 -3 2018 was the final year of our three-year strategic plan. The key pillars of that plan were to: Investment 49 42 +17 income • increase our impact and monitor our progress; Other income 19 32 -41 • expand the range of free-to-access projects Total 4,566 5,222 -13 to enable more people to be involved with our work and learn and contribute to exceptional Income from corporate partnerships was slightly science; and, down from £4,991k to £4,088k, a decrease of 18%. Overall, income was limited to a 13% decrease • broaden our range of funding sources. as a result of a considerable increase (287%) in income from trusts, foundations and particularly Our corporate partnerships remain the driver of the EU (Horizon 2020). Individual and investment our income, with established and successful work income remained broadly level. These results in partnership with HSBC, Mitsubishi Corporation reflect the strategy of broadening our range of and Shell continuing. These partnerships have funding sources. had impacts on the organisations involved, and through their employees have contributed hugely to Earthwatch projects over many years. During 2018 we were also successful in securing funds from trusts, foundations and the EU, from both existing and new sources. Significant groundwork has also been undertaken to increase our chances of future success, with some new streams already being secured.
Our new strategy, as contained in the Objectives and Achievements section outlines our plans to grow the impact of Earthwatch and will also result in a steady investment of our excess reserves over the five-year period.
12 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 EXPENDITURE Enabling scientists - £506k (2017: £281k) Source of 2018 2017 % • Funding and supporting crucial research on: expenditure (£‘000) (£‘000) change coral reefs in the Seychelles; carbon capture in UK woodlands; climate change; tracking Cost of raising 437 375 +17 water quality in the Thames basin, and funds partnering on Ground Truth 2.0 working on Engaging 3,722 2,206 +69 pilot freshwater projects in Sweden amongst businesses a range of other initiatives.
Empowering 907 802 +13 Inspiring the next generation - people £193k (2017: £445k) Enabling 506 281 +80 • Engaging children and teachers in schools scientists with environmental science and nature through Inspiring the next 193 445 -57 Discover Earth, whilst helping teachers generation to establish environmental learning in the curriculum through Teach Earth. Total 5,766 4,108 +40 Earthwatch Ltd (registered in Hong Kong) is consolidated into the SOFA and in the group Total expenditure increased from £4,108k in 2017 to figures on the balance sheet. The impact of this £5,766k in 2018, an increase of 40%, mainly driven consolidation is minimal, as all the income for by our work with engaging businesses and the start Earthwatch Ltd is received from Conservation of the STP programme. Education & Research Trust for the implementation of activities under the Expenditure has been classified into our four key HSBC’s Water Programme partnership. strategic focus areas, along with fundraising on the Statement of Financial Activities (SOFA). Objectives RESERVES and achievements in each area are laid out above in the Trustees’ Report and a detailed analysis of General reserves expenditure is shown in Note 6 of the financial The Trustees continue to have a policy of statements below. maintaining six months cover for operating costs (target: £1.5m) in order to provide for the In summary, this is how we spent our funds: charity to meet its financial obligations arising from unforeseen events in the future and to Engaging Businesses - continue operations during such a period. As at 30 £3,722K (2017: £2,206K) September 2018, general funds for the company • Managing corporate partnerships such as stood at £4.4m (2017: £4.9m) which equates to HSBC, Shell, Mitsubishi Corporation, approximately 18 months’ operating costs. Tate & Lyle and PwC to engage employees in our research projects and develop sustainability The Trustees and the Executive agreed a spending leaders within organisations. plan in 2017, covering the six years to 2023, to bring the level of reserves down to the level stated in the Empowering people - policy above (£1.5m). Funds have not only been allocated to support the development and launch £907k (2017: £802k) of major new projects, including Naturehood, • Working with a variety of organisations across Teach Earth and Discover Earth, but also to a new Europe on FreshWater Watch; developing website and customer relationship management the concept for our urban wildlife project system. In addition, in October 2018 Trustees (Naturehood) which will be our flagship public approved additional expenditure on key new roles engagement project; continuing our work on identified as critical to the delivery of our new Capturing our Coast; and running a set of five-year strategy. engaging events in the UK and Europe.
13 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 Designated funds INVESTMENT STRATEGY The designated fund balance for the charity is a combination of two elements: firstly, the Capital Until 2017, the mix of general, designated, Fund which comprises unrestricted funds held as restricted and endowment funds were held across fixed assets, e.g. equipment (£85k); and secondly a wide range of banking institutions. This was to a set of funds that are committed to delivering reduce risk on any one investment and to take existing programmes across our priority audiences advantage of a range of competitive rates for from a variety of funders. These funds (£1.6m, different types of account. Following continuing 2017: £1.4m) are already allocated to be spent in cycles of low interest rates and falling returns future years. on fixed term deposit accounts, the Trustees approved a plan to invest cash reserves in a In the group accounts, there is a further fund which managed portfolio. represents the net current assets held in Hong Kong. They have been set aside as they must be The objective for the new portfolio assets was to used for expenditure within Hong Kong. generate a return at least in line with inflation (RPI), with shorter-term funds preserving their Restricted funds capital value with a minimum level of risk. This will ensure that the value of reserves is maintained and The restricted fund balance is made up of funds therefore future impact can be maximised. that have been received in advance, but that are committed to specific programmes for specific In August 2018 Earthwatch deposited a sum of donors who have requested restriction. At 30 £5.25m with Sarasin & Partners. This was divided September 2018, they stand at £3.9m (2017: £4.4m). into three portfolios: These funds, predominantly received through our partnerships with HSBC, will support a range • Short term (0 – 18 month) designed to improve of projects including FreshWater Watch and the the returns from cash deposits and to be Sustainability Leadership Programme (SLP). Funds invested in cash, certificates of deposit and short are also held for a long-term programme funded dated government bonds. by Neville Shulman, supporting training grants for scientists from less developed countries. This • Medium term (18 months to five-year) designed further includes our newly awarded EU grant to provide a return that at least matches inflation for MONOCLE. and would be predominately invested in bonds with some risk / equity assets. The decrease in funds is mainly due to the commencement of the HSBC Sustainability Training • Long term (over five years) designed to provide Programme which was pre-funded by an advance an above inflation return and predominately payment from HSBC in late 2017. invested in equities.
Endowment funds The funds are subject to positive screening to Earthwatch Europe holds a balance of £1.1m (2017: ensure that our investments match our £1.1m) in Endowment Funds; £1m of the total was charitable objectives. provided by the Sultanate of Oman and the interest that we earn on this was intended to enable us to Both the Finance Committee and the Board review field Omanis on our projects. The remainder was the performance of the funds on a quarterly basis provided by the States of Jersey. With low interest and meet regularly with Sarasin & Partners to rates, we entered into discussions with both discuss performance and investment. Earthwatch funders as to the best way to utilise these funds still holds a significant proportion of its funds in for impact. In particular, we are working with the interest bearing deposit accounts with various Sultanate to secure the release of the endowment banking institutions. to expendable project funds. Since the year-end, an agreement has been reached with the States of Jersey to spend the remainder of the fund over the next five years, with a particular focus on supporting education, teachers and emerging scientists. The first training using this fund will take place in February.
14 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 REMUNERATION POLICY STATEMENT OF GOING CONCERN
Our approach to remuneration is designed to The Trustees are satisfied that the charity is a ensure we can attract and retain the talented going concern and has the resources to deliver its and motivated people we need to achieve our strategic plan and operate indefinitely. Earthwatch mission and deliver our strategic goals. It is has a strong base of confirmed funding sources applied consistently across the organisation, for 2019 and beyond, with a strong strategic plan both in terms of how we set salaries and the in place to both increase the volume of the sources benefits we offer our employees. Pay is reviewed and the amount received from them. In addition, annually, and an increase amount (rather than a Earthwatch holds a minimum level of six months’ percentage increase) is agreed for all employees operating costs in reserves to ensure that the with over six months’ service, which is set by taking charity can continue to exist and have impact account of the market, cost of living increases even if some income sources cease. There are and the organisation’s ability to pay. We offer paid no post-balance sheet events which will require internships and review and maintain internal adjustments to the accounts. pay relativities; pay progression is linked to development in the role and growth of the role. Our salaries and benefits are compared to other similar not-for-profit organisations.
Gender pay gap At the end of our financial year, the average hourly salary for women in the organisation was 14% below the average hourly salary for men (2017: 14% below). In median pay the hourly figure for women was 16% below the median hourly pay for men (2017: 5% below).
During 2018, we had the following split of men and women in each pay quartile:
Lowest quartile: Men – 19% Women – 81% (2017: Men – 14% Women – 86%)
2nd quartile: Men – 37.5% Women – 62.5% (2017: Men – 36% Women – 64%)
3rd quartile: Men – 25% Women – 75% (2017: Men – 29% Women – 71%)
Top quartile: Men – 37.5% Women – 62.5% (2017: Men – 50% Women – 50%)
Females make up 70% of the workforce in 2018 with a higher proportion of females to males in all quartiles, particularly in the lowest quartile. We have a strong foundation of ensuring equivalent pay for equivalent roles and this will be built upon as we conduct more detailed analysis and embark on the new strategy period.
15 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 ADMINISTRATION AND GOVERNANCE
Other working names: The average age of our Trustees at 30 September Earthwatch Institute (Europe), Earthwatch (Europe), 2018 was 51 (2017: 49.8); this is significantly lower Earthwatch Institute than the average age of a Trustee across the Company number: 4373313 voluntary sector of 62 (2017: 57). Charity number: 1094467 Trustees are selected in a manner consistent Registered office and operational address: with the organisation’s recruitment and diversity Mayfield House, 256 Banbury Road, Oxford, OX2 7DE and equality policies, ensuring that the selection Country of registration: England & Wales process is time and cost effective. The Trustee Country of incorporation: United Kingdom recruitment and selection process is managed by the Nominations Committee. In addition to making TRUSTEES direct approaches to suitable candidates, Earthwatch The Trustees who were in office throughout the year, Europe may advertise for Trustees through networks unless otherwise stated, were as follows: or in the media and, where appropriate, an external agency may be used to facilitate Trustee recruitment. Lucian J. Hudson Chair The position of Chair of the Board will normally be Geoff Lane Vice-Chair advertised publicly. Superna Khosla Treasurer Judith Mosely Earthwatch provides Trustees with governance Dr Mark Collins (resigned November 2018) training when they join the organisation. As part of Iain Coucher their induction, Trustees will also spend time with Dorothee D’Herde the Chief Executive and relevant members of the Nick Dobson (resigned July 2018) Executive Management Team who will provide them Lisa King with an overview of Earthwatch Europe and its current Dax Lovegrove priorities and challenges. A Trustee handbook, which Ed Green contains all relevant background information and Adam Powell links to key documents, is also provided. Jack Matthews
16 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 KEY MANAGEMENT PERSONNEL AT END SEPT 2018
Steve Gray Chief Executive The total aggregated salary cost of management personnel in 2018 was £358k (2017: £356k). There Neil Bailey Head of Fundraising and have been three additions to the team in the 2018 Communications Financial Year: Phil Clarke, as Interim Director of Phil Clarke Interim Director of Corporate Partnerships providing maternity cover Corporate Partnerships for Victoria McMillan; Naomi Matthiessen and Isabella Murfin as Director of Strategy Planning (in Toos Van Nordwijk Director of Engagement a job-share). Steve Gray left the organisation on 14 and Science February 2019 and the search for his replacement Bella Murfin & Director of Strategic is fully underway. The Trustees have agreed that the Naomi Matthiessen Planning (job-share) Executive Team will collectively oversee the running Anna Shannon Head of HR of the charity until the new CEO is in post. Peter Stimpson Head of Finance and Operations
GOVERNANCE STRUCTURE
THE BOARD Governance, direction and fiscal responsibility
THE EXECUTIVE Strategy development and day-to-day management
FINANCE COMMITTEE NOMINATIONS AD-HOC WORKING Recommend decisions COMMITTEE GROUPS on financial risk and Recommend recruitment Examples include audit matters of new Trustees Investment Committee and Corporate Partnership Development Group
AUDITORS, BANKERS, AND SOLICITORS Auditor: Sayer Vincent LLP Bankers: Barclays Bank plc, Oxford; HSBC plc, Oxford; CAF Bank Limited; Scottish Widows Bank Limited; Nationwide plc; Nationwide International plc; Santander UK plc; Lloyds Bank plc. Solicitors: Blake Morgan LLP, Oxford; Stone King LLP, London
17 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 RISK MANAGEMENT
The Executive Team reviews risks regularly and produces a working document for discussion at least once a year at Board level. In addition, a summary of movements in impact or likelihood of risk is submitted to the Board for review each quarter. A key risk mitigation summary is included along with any details of further work to mitigate key risks.
Key risk Explanation Mitigation Brexit limits opportunities and The uncertainty over Brexit We are closely monitoring EWE workforce outcomes could result in difficulty developments and providing accessing EU grants, employing support and guidance to EWE EU nationals and retaining staff staff. We are using established already working in the UK from partner networks to seek other EU countries. intelligence relating to post- Brexit EU funding restrictions and opportunities. Unsuccessful strategy Internal and / or external factors Effective ways of working and implementation result in EWE failing to deliver the prioritisation processes are intended outcomes and impact of in place and a Board Strategy our new 2019-2023 strategy. Working Group has been established to support and guide strategy delivery. Failure to secure new revenue One of our major corporate We are actively pursuing new and meet financial targets partnerships is up for renewal in opportunities with our major 2019 and we have set challenging partner, engaging senior targets for the development of decision-makers at a high level new partnerships in the coming and investing in significant years. additional capacity to support business development activities. Reputational risk arising from As part of a family of Earthwatch Discussion on future international affiliate activity charities without a binding working and governance governance framework, our arrangements continue between reputation can be affected by the Chairs of EWE and EWUS. We the actions of other parts of the have good working relationships family. at executive level on projects and regular board level engagement.
18 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 CONNECTED CHARITIES
The Charity works in association with the following affiliated licensed charities who all have similar missions, and contribute to and participate in the same international programme of science and engagement activities.
Earthwatch Europe harnesses this network of connected charities to ensure global capability to deliver large-scale programmes and partnerships. The coverage across the Americas, Asia and Australia means that we can deliver globally whilst retaining a local focus.
Earthwatch Australia Instituto Earthwatch do Brasil Earthwatch Expeditions Inc. 126 Bank Street Rua Comendador Araujo 114 Western Avenue South Melbourne 499 Boston Victoria 3205 10 andar Centro MA 02134-1037 Australia Curitiba-PR – CEP USA Tel: +61 3 9682 6828 80.240-000 Tel: +1 800 776-0188 Brasil Tel: + 55 413077 0380 Earthwatch Ltd, Hong Kong Earthwatch Institute, India Earthwatch Institute, Japan Room 1402 Breakthrough Centre 459 Augusta Point Food Science Building 4F 191 Woosung Street Level 4 University of Tokyo 1-1-1 Jordan Sector 53 Yayoi Hong Kong Golf Course Road Bunkyo-ku Tel: +852 28381114 Gurgaon Tokyo 113-8657 122002 Japan India Tel: + 81-3-6686-0300 Tel: +91 124 4354160
* Note: Instituto Earthwatch do Brasil was closed in November 2018.
19 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees (who are also directors of In so far as the Trustees are aware: Conservation Education & Research Trust for the purposes of company law) are • there is no relevant audit information of which responsible for preparing the Trustees’ annual the charitable company’s auditor is unaware; report and the financial statements in accordance with applicable law and United Kingdom • The Trustees have taken all steps required to Accounting Standards (United Kingdom Generally make themselves aware of any relevant audit Accepted Accounting Practice). information and to establish that the auditor is aware of that information. Company law requires the Trustees to prepare financial statements for each financial year, which The Trustees are responsible for the maintenance give a true and fair view of the state of affairs of the and integrity of the corporate and financial charitable company and group. These statements information included on the charitable company’s cover the incoming resources and application of website. Legislation in the United Kingdom resources, including the income and expenditure governing the preparation and dissemination of of the group for that period. In preparing these financial statements may differ from legislation in financial statements, the Trustees are required to: other jurisdictions.
• select suitable accounting policies and then This Report was approved by the Trustees on apply them consistently; 10 June 2019 and signed on their behalf by:
• observe the methods and principles in the Charities SORP;
• make judgements and estimates that are reasonable and prudent; Lucian J. Hudson • state whether applicable UK Accounting Standards and statements of recommended Chair practice have been followed, subject to any material departures disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for the taking of reasonable steps for the prevention and detection of fraud and other irregularities.
20 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 INDEPENDENT AUDITOR’S TO THE MEMBERS OF CONSERVATION REPORT EDUCATION & RESEARCH TRUST
OPINION CONCLUSIONS RELATING TO GOING CONCERN We have audited the financial statements of Conservation Education & Research Trust (the We have nothing to report in respect of the ‘parent charitable company’) and its subsidiaries following matters in relation to which the ISAs (the ‘group’) for the year-ended September 2018 (UK) require us to report to you where: which comprise of the consolidated statement of financial activities, the group and parent charitable • The Trustees’ use of the going concern basis company balance sheets, the consolidated of accounting in the preparation of the group statement of cash flows and the notes to the financial statements is not appropriate; or financial statements, including a summary of significant accounting policies. The financial • The Trustees have not disclosed in the group reporting framework that has been applied in their financial statements any identified material preparation is applicable law and United Kingdom uncertainties that may cast significant doubt Accounting Standards, including Financial Reporting about the group’s or the parent charitable Standard 102 ‘The Financial Reporting Standard company’s ability to continue to adopt the going applicable in the UK and Republic of Ireland’ (United concern basis of accounting for a period of at Kingdom Generally Accepted Accounting Practice). least twelve months from the date when the financial statements are authorised for issue. In our opinion, the financial statements:
• Give a true and fair view of the state of the group’s OTHER INFORMATION and of the parent charitable company’s affairs as at 30 September 2018 and of the group’s The Trustees are responsible for the other incoming resources and application of resources, information. The other information comprises including its income and expenditure, for the year the information included in the Trustees’ then ended. annual report, other than the group financial statements and our auditor’s report thereon. • Have been properly prepared in accordance Our opinion on the group financial statements with United Kingdom Generally Accepted does not cover the other information and, except Accounting Practice. to the extent otherwise explicitly stated in our report, we do not express any form of assurance • Have been prepared in accordance with the conclusion thereon. requirements of the Companies Act 2006 and the Charities Act 2011. In connection with our audit of the group financial statements, our responsibility is to read BASIS FOR OPINION the other information and, in doing so, consider whether the other information is materially We conducted our audit in accordance with inconsistent with the group financial statements International Standards on Auditing (UK) (ISAs (UK)) or our knowledge obtained in the audit or and applicable law. Our responsibilities under those otherwise appears to be materially misstated. standards are further described in the Auditor’s If we identify such material inconsistencies responsibilities for the audit of the group financial or apparent material misstatements, we are statements section of our report. We are independent required to determine whether there is a of the group and parent charitable company, in material misstatement in the group financial accordance with the ethical requirements that are statements, or a material misstatement of the relevant to our audit of the financial statements in other information. If, based on the work we have the UK, including the FRC’s Ethical Standard, and performed, we conclude that there is a material we have fulfilled our other ethical responsibilities in misstatement of this other information, we are accordance with these requirements. We believe that required to report that fact. the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We have nothing to report in this regard.
21 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 Opinions on other matters prescribed by the RESPONSIBILITIES OF TRUSTEES Companies Act 2006. As explained more fully in the statement of In our opinion, based on the work undertaken in the Trustees’ responsibilities, set out in the Trustees’ course of the audit: annual report, the Trustees (who are also the directors of the parent charitable company for • The information given in the Trustees’ annual the purposes of company law) are responsible for report for the financial year for which the the preparation of the financial statements and financial statements are prepared is consistent for being satisfied that they give a true and fair with the financial statements view and for such internal control as the Trustees determine is necessary to enable the preparation • The Trustees’ annual report has been prepared of financial statements that are free from material in accordance with applicable legal requirements misstatement, whether due to fraud or error.
MATTERS ON WHICH WE ARE REQUIRED In preparing the financial statements, the Trustees TO REPORT BY EXCEPTION are responsible for assessing the group’s and the parent charitable company’s ability to continue as In the light of the knowledge and understanding of a going concern, disclosing as applicable, matters the group and the parent charitable company and related to going concern and using the going its environment obtained in the course of the audit, concern basis of accounting, unless the Trustees we have not identified material misstatements in either intend to liquidate the group or the parent the Trustees’ annual report. charitable company or to cease operations, or have no realistic alternative but to do so. We have nothing to report in respect of the following matters in relation to which the AUDITOR’S RESPONSIBILITIES FOR THE Companies Act 2006 and Charities Act 2011 AUDIT OF THE FINANCIAL STATEMENTS requires us to report to you if, in our opinion: We have been appointed auditor under the • Adequate accounting records have not been kept Companies Act 2006 and section 151 of the by the parent charitable company, or returns Charites Act 2011 and report in accordance with adequate for our audit have not been received those Acts. from branches not visited by us; or Our objectives are to obtain reasonable assurance • The parent charitable company financial about whether the financial statements as a whole statements are not in agreement with the are free from material misstatement, whether due accounting records and returns; or to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance • Certain disclosures of Trustees’ remuneration is a high level of assurance, but is not a guarantee specified by law are not made; or that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement • We have not received all the information and when it exists. Misstatements can arise from explanations we require for our audit; or fraud or error and are considered material if, individually or in the aggregate, they could • The Trustees were not entitled to prepare the reasonably be expected to influence the economic financial statements in accordance with the decisions of users taken on the basis of these small companies regime and take advantage of financial statements. the small companies’ exemptions in preparing the Trustees’ annual report and from the requirement to prepare a strategic report.
22 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 As part of an audit in accordance with ISAs (UK), • Obtain sufficient appropriate audit evidence we exercise professional judgment and maintain regarding the financial information of the entities professional scepticism throughout the audit. or business activities within the group We also: to express an opinion on the consolidated financial statements. We are responsible for the • Identify and assess the risks of material direction, supervision and performance of the misstatement of the financial statements, group audit. We remain solely responsible for whether due to fraud or error, design and our audit opinion. perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient We communicate with those charged with and appropriate to provide a basis for our governance regarding, among other matters, opinion. The risk of not detecting a material the planned scope and timing of the audit and misstatement resulting from fraud is higher significant audit findings, including any significant than for one resulting from error, as fraud may deficiencies in internal control that we identify involve collusion, forgery, intentional omissions, during our audit. misrepresentations, or the override of internal control. USE OF OUR REPORT
• Obtain an understanding of internal control This report is made solely to the charitable relevant to the audit in order to design company’s members as a body, in accordance with audit procedures that are appropriate in the Chapter 3 of Part 16 of the Companies Act 2006. circumstances, but not for the purpose of Our audit work has been undertaken so that we expressing an opinion on the effectiveness of might state to the charitable company’s members the group’s or the parent charitable company’s those matters we are required to state to them in internal control. an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept • Evaluate the appropriateness of accounting or assume responsibility to anyone other than the policies used and the reasonableness of charitable company and the charitable company’s accounting estimates and related disclosures members as a body, for our audit work, for this made by the Trustees. report, or for the opinions we have formed.
• Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent charitable Jonathan Orchard company’s ability to continue as a going concern. (Senior statutory auditor) If we conclude that a material uncertainty exists, we are required to draw attention in our 10 June 2019 auditor’s report to the related disclosures in the financial statements or, if such disclosures for and on behalf of Sayer Vincent LLP, are inadequate, to modify our opinion. Our Statutory Auditor conclusions are based on the audit evidence Invicta House, 108-114 Golden Lane, LONDON, obtained up to the date of our auditor’s report. EC1Y 0TL However, future events or conditions may cause the group or the parent charitable company to Sayer Vincent LLP is eligible to act as auditor in cease to continue as a going concern. terms of section 1212 of the Companies Act 2006
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
23 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
Conservation Education & Research Trust For the year ended 30 September 2018 Consolidated statement of financial activities (incorporating an income and expenditure account)
For the year ended 30 September 2018
2018 2017 Unrestricted Endowment Restricted Total Total Note £ £ £ £ £ Income from: Donations and legacies 3 66,292 - - 66,292 68,169 Charitable activities 4 1,647,429 - 2,784,640 4,432,069 5,078,944 Other trading activities 5 18,500 - - 18,500 32,088 Investments 32,718 4,538 11,430 48,686 42,311
Total income 1,764,939 4,538 2,796,070 4,565,547 5,221,512
Expenditure on: Raising funds 437,416 - - 437,416 375,286 Charitable activities Engaging businesses 645,051 - 3,077,229 3,722,280 2,205,707 Empowering people 906,779 - - 906,779 802,102 Enabling scientists 399,126 - 106,679 505,805 280,556 Inspiring the next generation 193,359 - - 193,359 444,555
Total expenditure 6a 2,581,731 - 3,183,908 5,765,639 4,108,206
Net income before net losses on investments (816,792) 4,538 (387,838) (1,200,092) 1,113,306
Net (losses)/gains on investments 13 (7,159) (316) - (7,475) 4,442
Net income for the year 7 (823,951) 4,222 (387,838) (1,207,567) 1,117,748
Transfers between funds 145,535 - (145,535) - -
Net income / (expenditure) before other recognised gains and losses (678,416) 4,222 (533,373) (1,207,567) 1,117,748
Gains on forward contracts 23 41,829 - - 41,829 - Gains / (losses) on foreign exchange 226,109 - (18,293) 207,816 95,010
Net movement in funds (410,478) 4,222 (551,666) (957,922) 1,212,758 Reconciliation of funds: 20b Total funds brought forward 6,613,558 1,112,864 4,434,269 12,160,691 10,947,933
Total funds carried forward 6,203,080 1,117,086 3,882,603 11,202,769 12,160,691
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 22 to the financial statements.
24 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018
28 BALANCE SHEETS
Conservation Education & Research Trust As at 30 September 2018 Company number: 4373313 Balance sheets Company no. 4373313 As at 30 September 2018
The group The charity 2018 2017 2018 2017 Note £ £ £ £ Fixed assets: Tangible assets 12 139,484 85,014 110,498 85,014 Investments 13 5,318,146 72,912 5,318,146 72,912
5,457,630 157,926 5,428,644 157,926 Current assets: Debtors 16 440,067 1,150,908 387,651 1,090,496 Cash at bank and in hand 6,047,178 11,628,073 5,977,223 11,396,084
6,487,245 12,778,981 6,364,874 12,486,580 Liabilities: Creditors: amounts falling due within one year 17 (742,106) (776,216) (831,622) (771,130)
Net current assets 5,745,139 12,002,765 5,533,252 11,715,450
Total net assets 19a 11,202,769 12,160,691 10,961,896 11,873,376
Funds: 20b Endowment funds 1,117,086 1,112,864 1,117,086 1,112,864 Restricted income funds 3,882,603 4,434,269 3,882,603 4,434,269 Unrestricted income funds: Designated funds 1,552,907 1,408,558 1,552,907 1,408,558 General funds 4,409,300 4,917,685 4,409,300 4,917,685 Non-charitable trading funds 240,873 287,315 - -
Total unrestricted funds 6,203,080- 6,613,558- 5,962,207 6,326,243 Total funds 11,202,769 12,160,691 10,961,896 11,873,376
Approved by the Trustees on 10 June 2019 and signed on their behalf by
Lucian J. Hudson Chair
29 25 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 CONSOLIDATED STATEMENT
OFConservatio n CASHEducation & Research Tr usFLOWSt Consolidated statement of cash flows
FForor tthehe y yearear e endednded 3 030 S eSeptemberptember 20 201818
Note 2018 2017 £ £ £ £
Net cash used by operating activities 21 (283,273) 1,267,260
Cash flows from investing activities: Dividends, interest and rents from investments 48,686 42,311 Proceeds from the sale of fixed and intangible assets 3,569 - Purchase of fixed assets (97,169) (12,196) Purchase of investments (5,252,709) -
Net cash used in investing activities (5,297,622) 30,115
Change in cash and cash equivalents in the year (5,580,896) 1,297,374
Cash and cash equivalents at the beginning of the year 11,628,073 10,330,699
Cash and cash equivalents at the end of the year 6,047,178 11,628,073
26 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018
30 NOTES TO THE FINANCIAL STATEMENTS Conservation Education & Research Trust
NAso tates 30to Septemberthe financia 2018l statements
For the year ended 30 September 2018
1 Accounting policies a) Statutory information Conservation Education & Research Trust is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is Mayfield House, 256 Banbury Road, Oxford, OX2 7DE. b) Basis of preparation 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) (effective 1 January 2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (September 2015) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary Earthwatch Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. c) Public benefit entity The charitable company meets the definition of a public benefit entity under FRS 102. d) Going concern The Trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.
The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. e) Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met. f) Donations of gifts, services and facilities Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the Trustees’ annual report for more information about their contribution.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
27 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 31 onser ation ucation esearch Trust
otes to the financial statements
or the ear en e eptember
ccountin policies continue
nterest recei able nterest on fun s hel on eposit is inclu e hen recei able an the amount can be measure reliabl b the charit this is normall upon notification of the interest pai or pa able b the ban . h un accountin n o ment fun s represent onations hich are treate as capital.
estricte fun s are to be use for specific purposes as lai o n b the onor. pen iture hich meets these criteria is char e to the fun .
nrestricte fun s are onations an other incomin resources recei e or enerate for the charitable purposes.
esi nate fun s are unrestricte fun s allocate b the Trustees for particular purposes. i pen iture an irreco erable T pen iture is reco nise once there is a le al or constructi e obli ation to ma e a pa ment to a thir part it is probable that settlement ill be re uire an the amount of the obli ation can be measure reliabl . pen iture is classifie un er the follo in acti it hea in s osts of raisin fun s relate to the costs incurre b the charitable compan in in ucin thir parties to ma e oluntar contributions to it as ell as the cost of an acti ities ith a fun raisin purpose pen iture on charitable acti ities inclu es the costs of eli erin ser ices an e ucational acti ities un erta en to further the purposes of the charit an their associate support costs ther e pen iture represents those items not fallin into an other hea in
rreco erable T is char e as a cost a ainst the acti it for hich the e pen iture as incurre .
rants pa able rants pa able are ma e to thir parties in furtherance of the charit s ob ects. in le or multi ear rants are accounte for hen either the recipient has a reasonable e pectation that the ill recei e a rant an the Trustees ha e a ree to pa the rant ithout con ition or the recipient has a reasonable e pectation that the ill recei e a rant an that an con ition attachin to the rant is outsi e of the control of the charit .
ro isions for rants are ma e hen the intention to ma e a rant has been communicate to the recipient but there is uncertaint about either the timin of the rant or the amount of rant pa able.
llocation of support costs esources e pen e are allocate to the particular acti it here the cost relates irectl to that acti it . o e er the cost of o erall irection an a ministration of each acti it comprisin the salar an o erhea costs of the central function is apportione on the follo in basis hich are an estimate base on staff time of the amount attributable to each acti it .
upport an o ernance costs are re allocate to each of the acti ities on the follo in basis hich is an estimate base on staff time of the amount attributable to each acti it n a in businesses mpo erin people nablin scientists nspirin the ne t eneration
o ernance costs are the costs associate ith the o ernance arran ements of the charit . These costs are associate ith constitutional an statutor re uirements an inclu e an costs associate ith the strate ic management of the charity’s activities.
28 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onservation cation esearch r st
otes to the financia statements
or the year en e e tem er
cco nting o icies contin e
erating eases enta charges are charge on a straight ine asis over the term of the ease. m angi e fi e assets tems of e i ment are ca ita ise here the rchase rice e cee s . e reciation costs are a ocate to activities on the asis of the se of the re ate assets in those activities. ssets are revie e for im airment if circ mstances in icate their carrying va e may e cee their net rea isa e va e an va e in se.
e reciation is rovi e at rates ca c ate to rite o n the cost of each asset to its estimate resi a va e over its e ecte sef ife. he sef economic ives are as fo o s
easeho im rovements ife of the ease rnit re an e i ment years om ter e i ment years otor vehic es years n iste investments nvestments are a form of asic financia instr ment an are initia y recognise at their transaction va e an s se ent y meas re at their fair va e as at the a ance sheet ate sing the c osing ote mar et rice. ny change in fair va e i e recognise in the statement of financia activities an any e cess of fair va e over the historic cost of the investments i e sho n as a fair va e reserve in the a ance sheet. nvestment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other com e financia instr ments. o e tors ra e an other e tors are recognise at the sett ement amo nt e after any tra e isco nt offere . re ayments are va e at the amo nt re ai net of any tra e isco nts e.
ash at an an in han ash at an an cash in han inc es cash an short term high y i i investments ith a short mat rity of three months or ess from the ate of ac isition or o ening of the e osit or simi ar acco nt.
re itors an rovisions re itors an rovisions are recognise here the charity has a resent o igation res ting from a ast event that i ro a y res t in the transfer of f n s to a thir arty an the amo nt e to sett e the o igation can e meas re or estimate re ia y. re itors an rovisions are norma y recognise at their sett ement amo nt after a o ing for any tra e isco nts e. r inancia instr ments he charity has oth asic an non asic financia assets an financia ia i ities. asic financia instr ments are initia y recognise at transaction va e an s se ent y meas re at their sett ement va e ith the e ce tion of an oans hich are s se ent y meas re at amortise cost sing the effective interest metho . on asic financia instr ments are meas re at fair va e ith any gain or oss going to the statement of financia activities. he on y non asic financia instr ments re ate to for ar contracts the etai s of hich are inc e in note . s oreign c rrency transactions onetary assets an ia i ities in foreign c rrencies are trans ate into ster ing at the rates of e change r ing at the a ance sheet ate ransactions in foreign c rrencies are trans ate into ster ing sing the rate of e change r ing at the ate of the transaction. change ifferences are ta en into acco nt in arriving at the net incoming reso rces for the year.
29 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onservation ducation esearch Trust
Notes to the financial statements
or the year ended eptember
ccounting policies (continued) t) ensions The charitable company operates a defined contribution pension scheme on behalf of its employees. The assets of this scheme is held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable by the charitable company to the fund. The charitable company has no liability other than for the payment of those contributions.
etailed comparatives for the statement of financial activities nrestricted ndowment estricted Total ncome from onations and legacies , , haritable activities , , , , , , ther trading activities , , nvestments , , , ,
Total income , , , , , , , penditure on aising funds , , haritable activities , , , , , ,
Total e penditure , , , , , ,
Net income/(e penditure) before gains on investments ( , ) , , , , , Net gains on investments , ,
Net income ( , ) , , , , , Transfers between funds , ( , )
Net income before other recognised gains and losses ( , ) , , , , , ains/(losses) on foreign e change translation , ( , ) ,
Net movement in funds , , , , , , Total funds brought forward , , , , , , , ,
Total funds carried forward , , , , , , , ,
ncome from donations and legacies Total Total
onations , ,
, ,
ll income from donations and legacies is unrestricted.
30 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onservation ducation esearch Trust
Notes to the financial statements
or the year ended eptember
ncome from charitable activities
nrestricted estricted Total nrestricted estricted Total
orporate donations , , , , , , , , , , , , ther grants and donations , , , , , , overnment grants , ,
Total , , , , , , , , , , , ,
ncome from other trading activities Total Total
quipment income , ental income , ,
, ,
ll income from other trading activities is unrestricted.
31 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onservation ducation esearch Trust
Notes to the financial statements
or the year ended eptember
a nalysis of e penditure (current year)
haritable activities nspiring the ost of ngaging mpowering nabling ne t overnance upport raising funds businesses people scientists generation costs costs Total Total
taff costs , , , , , , , , , , , esearch and field costs , , , , ngagement costs , , , , , , esearch engagement by affiliates , , , , , evelopment and fundraising , , , udit , , , Trustee costs , , , ffice costs , , , T costs , , , inance costs , , , ther costs , , , , , , ,
, , , , , , , , , , , ,
upport costs , , , , ( , )
overnance costs , , , , ( , )
Total e penditure , , , , , , , ,
Total e penditure , , , , , , , ,
32 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onservation ducation esearch Trust
Notes to the financial statements
or the year ended eptember
b nalysis of e penditure (prior year)
haritable activities nspiring the ost of ngaging mpowering nabling ne t overnance upport raising funds businesses people scientists generation costs costs Total Total
taff costs , , , , , , , , , , , esearch and field costs , , , , , , ngagement costs , , , , , , esearch engagement by affiliates , , , , , evelopment and fundraising , , , udit , , , Trustee costs , , , ffice costs , , , T costs , , , inance costs , , , ther costs , , , , , , , ,
, , , , , , , , , , , ,
upport costs , , , , ( , )
overnance costs , , , , ( , )
Total e penditure , , , , , , , ,
Total e penditure , , , , , , , ,
33 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onservation ducation esearch Trust
Notes to the financial statements
or the year ended eptember
Net income for the year
This is stated after charging / (crediting)
epreciation on tangible fi ed assets , , oss/(profit) on disposal of fi ed assets ( , ) , perating lease rentals roperty , , uditor s remuneration (e cluding T) udit , , nder/(over) accrual from prior year ther services , , oreign e change (gains) or losses ( , ) ( , )
nalysis of staff costs, Trustee remuneration and e penses, and the cost of ey management personnel
taff costs were as follows
alaries and wages , , , , ocial security costs , , Employer’s contribution to defined contribution pension schemes , ,
, , , ,
The following number of employees received employee benefits in e cess of , (e cluding employer national insurance and employer pension costs) during the year between No. No.
, , , ,
The total employee benefits (including employer national insurance and employer pension contributions) of the ey management personnel were , ( , ).
The charity Trustees were not paid or received any other benefits from employment with the charity in the year ( nil). No charity Trustee received payment for professional or other services supplied to the charity ( nil).
Trustees e penses represents the payment or reimbursement of travel and subsistence costs totalling , ( , ) incurred by ( ) members relating to attendance at meetings of the Trustees.
taff numbers
The average number of employees (head count based on number of staff employed) during the year was as follows
No. No.
. .
34 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onser tion Educ tion ese rch rust
otes to the fin nci l st tements
or the ye r ended eptember
el ted p rty tr ns ctions here re no rel ted p rty tr ns ctions to disclose for none
tion he ch rity is e empt from corpor tion t s ll its income is ch rit ble nd is pplied for ch rit ble purposes
n ible fi ed ssets
he roup e sehold urniture nd omputer otor impro ements e uipment e uipment ehicles ot l ost t the st rt of the ye r dditions in ye r ispos ls in ye r
t the end of the ye r
epreci tion t the st rt of the ye r h r e for the ye r Elimin ted on dispos l
t the end of the ye r et boo lue t the end of the ye r
t the st rt of the ye r
he ch rity e sehold urniture nd omputer otor impro ements e uipment e uipment ehicles ot l ost t the st rt of the ye r dditions in ye r ispos ls in ye r
t the end of the ye r
epreci tion t the st rt of the ye r h r e for the ye r Elimin ted on dispos l
t the end of the ye r et boo lue t the end of the ye r
t the st rt of the ye r
ll of the bo e ssets re used for ch rit ble purposes
35 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onser tion Educ tion ese rch rust
otes to the fin nci l st tements
or the ye r ended eptember
n estments
he roup nd ch rity
ir lue t the st rt of the ye r dditions t cost et loss in on ch n e in f ir lue
ir lue t the end of the ye r
n estments comprise
ommon in estment funds
urin the ye r ended eptember, s in ested in unds m n ed by r sin rtners to meet short term medium term nd lon term in estment ob ecti es
n the ye r ended eptember n e rlier don tion of from the t tes of ersey s in ested in t o common in estment funds e ch of hich re re istered ch rities constituted under schemes m de by the h rity ommission nd re in ested in fi ed interest securities nd sh res
ubsidi ry undert in he ch rity controls the subsidi ry E rth tch imited comp ny limited by u r ntee incorpor ted in on on by irtue of h in n employee ho is rustee of the subsidi ry ontrol s deemed to h e p ssed to the ch rity s of ctober he subsidi ry is en ed in the s me ch rit ble cti ities s the ch rity ll cti ities h e been consolid ted on line by line b sis in the st tement of fin nci l cti ities b sed on the udited fin nci l st tements s t eptember hich re prep red in on on doll rs he results h e been con erted t the ye r end e ch n e r te of per per
te e r y hief E ecuti e eter timpson e d of in nce nd per tions nd cott ni E of E rth tch E peditions our ffili te re lso directors of the subsidi ry
ncome nd e penditure ncomin resources ut oin ch rit ble resources
oss for the ye r
eser es brou ht for rd
eser es c rried for rd
l nce sheet he re te of the ssets li bilities nd funds s i ed ssets urrent ssets urrent li bilities
unds
36 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onser tion Educ tion ese rch rust
otes to the fin nci l st tements
or the ye r ended eptember
rent ch rity
he p rent ch rity s ross income nd the results for the ye r re disclosed s follo s
ross income esult for the ye r
ebtors he roup he ch rity
r de debtors ther debtors rep yments nd ccrued income
on term debtors he ffili te E rth tch E peditions b l nce hich s outst ndin t end of eptember h s been p id do n durin the ye r ith only one inst lment due to be rep id in e rly fter net off ith the recei ble due from E the net b l nce due from E rth tch E peditions is hich is sho n under r de ebtors
reditors mounts f llin due ithin one ye r he roup he ch rity
r de creditors tion nd soci l security mounts o ed to subsidi ry undert in s ccru ls nd other creditors eferred income note
eferred income
eferred income comprises p yments in d nce of olunteers p rticip tin in pro ects nd corpor te don tions recei ed here the pro ect ill not commence until the follo in fin nci l ye r
he roup he ch rity
l nce t the be innin of the ye r mount rele sed to income in the ye r mount deferred in the ye r
l nce t the end of the ye r
37 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onser tion Educ tion ese rch rust
otes to the fin nci l st tements
or the ye r ended eptember
n lysis of roup net ssets bet een funds current ye r
ener l unrestricted esi n ted Endo ment estricted funds funds funds funds ot l funds
n ible fi ed ssets i ed sset in estments et current ssets
et ssets t the end of the ye r
b n lysis of roup net ssets bet een funds prior ye r
ener l unrestricted esi n ted Endo ment estricted funds funds funds funds ot l funds
n ible fi ed ssets i ed sset in estments et current ssets
et ssets t the end of the ye r
o ements in funds current ye r t t ctober ncome E penditure eptember ins losses r nsfers Endo ment funds ersey th nni ers ry fello ship
ot l endo ment funds
estricted funds e ille hulm n E rth tch rd E E lim te rtnership ter ro r mme ro r mme
ot l restricted funds
nrestricted funds esi n ted funds pit l fund ther
ot l desi n ted funds
ener l funds on ch rit ble tr din funds
ot l unrestricted funds
ot l funds
38 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onser tion Educ tion ese rch rust
otes to the fin nci l st tements
or the ye r ended eptember
b o ements in funds prior ye r t t ctober ncome E penditure eptember ins losses r nsfers Endo ment funds ersey th nni ers ry fello ship
ot l endo ment funds
estricted funds e ille hulm n E rth tch rd rince lbert lim te rtnership ter ro r mme ro r mme
ot l restricted funds
nrestricted funds esi n ted funds pit l fund ther
ot l desi n ted funds
ener l funds on ch rit ble tr din funds
ot l unrestricted funds
ot l funds
urposes of endo ment funds t h s no been reed ith the t tes of ersey th t e c n spend the endo ment t h s been reed to spend the rem inder of the fund o er the ne t fi e ye rs ith p rticul r focus on supportin educ tion te chers nd emer in scientists he first tr inin usin this fund ill t e pl ce in ebru ry
b he th nni ers ry ello ship consists of don tion of from the m n o ernment to set up n endo ment fund t eptember there is unspent income from the fund of hich is included in the tot l e re currently ne oti tin ith the rele nt p rties to ree ob ecti es for the und oin for rd
he e ille hulm n E rth tch rd und is don tion from the uthor nd en ironment list e ille hulm n E set up to fund E rth tch fello s from de elopin countries ho re emer in le ders in conser tion o awards of £4,000 are given each year to fund a project in the fellow’s home country with a view to further enhance their professional skills in conservation. A further four awards of £500 are given each year to fund fellows’ p rticip tion in loc l or shop nd or conser tion conferences
2018 was the 10th year of Neville’s Awards programme, which was based on an investment of £150,000 in 2008. n e ille confirmed his ish to continue supportin E rth tch nd reed to continued support for n ddition l ye rs t le el of per ye r e ille h s so f r m de don tions hich tot l hese rds no better represent the E rth tch focus re s election criteri h s been d pted to ensure c ndid tes hose pro ects meet our ne str te y focus nd h e n imp ct on loc l communities nd st eholders re selected
he lim te rtnership s fi e ye r intern tion l rese rch nd en ement pro r mme on clim te ch n e funded by oldin s plc ollo in the completion of the pro r mme in reed th t the fund would be retained by Earthwatch to fund future projects or used to increase Earthwatch’s capacity to deliver future pro r mmes rom E rth tch be n to use these funds to support community en ement cti ities
39 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 onservation Education esearch rust
Notes to the financial statements
or the year ended 0 eptember 2018
20 ovements in funds continued
urposes of restricted funds he ater rogramme is an eight year programme designed to deliver research and engagement on freshwater sources and the ecosystems they support worldwide. he aim of the programme is education of staff and the local communities, about critical local and global freshwater challenges. he evolution of this programme led to the development of the ustainability raining rogramme in 201 . he programme focuses on regional scientific research projects, investigating nature based solutions for climate resilience, building understanding of these issues and how these connect internally to sustainability and the bank’s priorities.
he ustainability eadership rogramme is a residential programme for enior anagers within designed to deeply engage business leaders in climate change and sustainability issues leading to decisions and actions which make a more sustainable business. articipants work with Earthwatch scientists on a climate change related research project and take part in structured sustainability learning sessions relevant to the programme is co delivered by Earthwatch and .
urposes of designated funds he apital und is the funds of the group company which are represented by the net book value of tangible and intangible fi ed assets.
ther designated funds are monies received in advance for projects that are not restricted but have committed activities in future years. hese funds are not for general use.
21 econciliation of net income e penditure to net cash flow from operating activities 2018 201 £ £ Net income e penditure for the reporting period 5 , 22 1,212, 58 as per the statement of financial activities epreciation charges 42, 1 ,22 ains losses on investments ,4 5 4,442 ividends, interest and rent from investments 48, 8 42, 11 rofit loss on the disposal of fi ed assets ,5 8,54 ncrease decrease in debtors 10,841 2 2,5 5 ncrease decrease in creditors 4,111 48,081
Net cash used in provided by operating activities 28 ,2 1,2 ,2 1
22 perating lease commitments
he group s total future minimum lease payments under non cancellable operating leases is as follows for each of the following periods roperty 2018 201 £ £ ess than one year 8 ,400 8 ,400 ne to five years 45, 00 45, 00 ver five years 8 ,400 1 2,800
518,400 04,800
2 erivative financial instruments foreign e change contracts
he rust enters into foreign currency contracts to mitigate the e change risk for certain foreign currency transactions. At 0 eptember 2018 there were 1, 0,000 201 none open currency commitments. he unrealised forward foreign e change transaction was £41,82 201 £nil . he forward currency contracts are measured at fair value using uoted forward e change rates.
24 egal status of the charity
he charity is a company limited by guarantee and has no share capital. he liability of each member in the event of winding up is limited to £1. 44
40 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 THANK YOU TO OUR SUPPORTERS
CORPORATE PARTNERS EXPEDITION RESEARCH SCIENTISTS HSBC Holdings plc Dr Bernat Claramunt Lopez Mitsubishi Corporation Dr J. Clifton PwC Dr Eslam Osman Royal Dutch Shell plc Dr P.P. Dhyani Tate & Lyle plc Dr Leeann Fishback Thames Water Dr Russell Hill Dr Abraham Miller-Rushing TRUSTS AND FOUNDATIONS, Professor D. Smith GOVERNMENTAL AND RESEARCH GRANTS The Ernest Cook Trust SCIENCE & POLICY ADVISORS European Commission - Horizon 2020 Dr Mike Moorcroft National Lottery Heritage Fund Dr Anett Richter Kilpatrick Fraser Charitable Trust Camilla Morrison-Bell Mitsubishi Corporation Fund for Europe and Africa Brendan Costello NERC Dr Andrew Salisbury The Oakdale Trust Dr Helen Bostock Reed Educational Trust Dr Daniel Hayhow Robert and Margaret Moss Charitable Trust Professor René van der Wal States of Jersey Professor Dawn Scott The Waterloo Foundation Professor William Sutherland Dr Claire Wordley PARTNER INSTITUTIONS Professor Kevin Gaston The Birmingham Institute of Forest Research Dr Michael Pocock (BIFoR) Professor Philip James High Life Highland countryside Rangers IHE Delft and all other Ground Truth 2.0 partners SUPPORTERS Imperial College London Neville Shulman CBE Nanjing Agricultural University Nigel and Shane Winser The Natural History Museum A gift to remember Dr Kate Barlow Newcastle University and all other Capturing our Edward Hoare Coast partners Michael Parkes Plymouth Marine Laboratory and all other Peter Harney MONOCLE partners The late Mrs Eileen J. Drury Rivers Trusts and all other organisations The late Hannes Hatje participating in FreshWater Watch Oxford High School (fundraisers) Scripps Institution of Oceanography Virginia Wernham Bourke SCS Global Services (London marathon fundraiser) Seychelles National Park Authority Robert Lagden (London Marathon fundraiser) University College London Megan Rothery (Reading Half fundraiser) University of Birmingham and all other Natasha Muldoon (Thames Trek fundraiser) ENCOMPASS partners All our Young Earthwatcher Film University of Leeds and all other CatchX partners Competition entrants University of Oxford Kayaking the Continent (Anna and Kate) University of Reading and all other OPENER RowZambezi team partners Wiltshire Wildlife Trust
41 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 THANK YOU TO OUR SUPPORTERS
TRUSTEES Mark Collins (retired November 2018) Iain Coucher (and fundraiser) Dorothee D’Herde (and Science & Policy Advisor) Nick Dobson (retired June 2018) Ed Green Lucian J. Hudson – Chair Lisa King Superna Khosla – Treasurer Geoff Lane – Vice-Chair Dax Lovegrove Dr Jack Matthews (and Science & Policy Advisor) Judith Mosely Adam Powell
SPEAKERS Ben Pope Duncan Wisbey Helen Duff Lizzie Daly Matt Highton Natalie Fee Naomi Wilkinson Rachel Wheeley Simon King OBE Simon Watt Sam Barcroft Tony Juniper CBE Wendy Darke
VOLUNTEERS Paul Baker Tony Strong Lynda Thompson
A special thanks to the 4,673 Earthwatchers who have contributed to our projects, research and events
42 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 Earthwatch Europe Mayfield House, 256 Banbury Road Oxford, OX2 7DE, United Kingdom www.earthwatch.org.uk
@Earthwatch_Eur www.facebook.com/EarthwatchEurope earthwatcheurope
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43 CONSERVATION EDUCATION & RESEARCH TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018