TRUSTEES’ ANNUAL REPORT

THE BORN FREE FOUNDATION LIMITED TRUSTEES’ ANNUAL REPORT & AUDITED GROUP FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010 The Born Free Foundation is a Charity Number 1070906 Company Number 3603432 Charitable Company Limited by Guarantee REFERENCE INFORMATION Name The Born Free Foundation Limited

Status Born Free is a charitable company limited by guarantee. Its governing document is a Memorandum and Articles of Association

Charity Registration Number 1070906

Company Registration Number 3603432

Principal Office and Registered Address 3 Grove House, Foundry Lane, Horsham, West Sussex, RH13 5PL

Website www.bornfree.org.uk

Trustees Michael Reyner (Chair from February 2010; appointed a Trustee September 2009) Virginia McKenna OBE (Chair until February 2010) Rosamund Kidman Cox Michael Drake (appointed December 2009) Peter Ellis (appointed December 2009) Andrew Newton Jenny Seagrove Dianne Thompson CBE Ronnie Wilkie (retired June 2010) David Wynne-Morgan (appointed December 2009)

Officers Chief Executive: Will Travers Secretary & Treasurer: Brian Bergin ACIS

Advisers Auditor: Spofforths LLP, Comewell House, North Street, Horsham, RH12 1RD

Bankers: HSBC, 67 West Street, Dorking, Surrey, RH4 1BW

Financial: R K Shipman, The Lodge, 10a Southerhays West, Cathedral Close, Exeter, EX1 1QW

Legal: Coole & Haddock, 14 Carfax, Horsham, RH12 1DZ

Cover Photo © George Logan CONTENTS

Trustees’ Annual Report

Chair’s Introduction 3-4 Strategy and Plans 5-7 Chief Executive’s Report and Review of Activities 8–18 Governance 19-20 Financial Review 21 Trustees’ Responsibilities 22

Independent Auditor’s Report 23

Financial Statements

Group Statement of Financial Activities 24 Group Balance Sheet 25 Company Balance Sheet 26 Group Cash Flow Statement 27 Notes to the Financial Statements 28-37 CHAIR’S C INTRODUCTION

It gives me great pleasure for the first time to introduce the Born Free Foundation’s Trustees’ Annual Report, which sets out for our supporters and the general public what our charity has achieved in the past twelve months, and some of our future plans.

I took up my role towards the end of the last financial year and will therefore confine myself to general matters, but have invited my immediate predecessor, Virginia McKenna, who my colleagues and I are delighted will be staying on as a Trustee for the time being, to add her comments.

It has been a very eventful year, with many important developments in terms of our charitable work, completion of a major review of our long term strategy and some significant changes affecting our board of Trustees.

The section covering the charity’s Strategy and Plans on pages 5 to 7 highlights how we are delivering our charitable objects and our Chief Executive and his team comment in detail on our projects and key achievements on pages 8 to 20 and summarise our animal welfare, conservation and education work.

During the year we were very fortunate to recruit three new Trustees (in addition to myself). I should like to welcome Michael Drake, Peter Ellis and David Wynne-Morgan. This gets us to the size of Board we feel is appropriate for a charity of our complexity. On a sadder note, we accepted the retirement of Ronnie Wilkie who had served since 1999 and made an outstanding contribution.

I should like to pay tribute to Virginia’s work for the charity over the 26 years since its formation and especially for her long service as Chair of Trustees until earlier this year. She has led us through some exceptional challenging times, from the early days when our mission was little more than gleam in her eye to our current position of considerable international influence. Although she is far too modest to admit it, she bequeaths to her successors an organisation with an outstanding portfolio of charitable projects, in good financial health, well-governed and with a top class executive team.

Virginia McKenna OBE, who stood down as Chair of Trustees in February 2010, writes:

It was with some sadness that I stepped down as Chair of Trustees because for the past 26 years Born Free has been my life. However, I felt it was time to hand over the baton and I am happy to be able to remain on the Trustee Board for a while longer. I believe we have chosen wisely in my successor, Michael Reyner, and am confident that the future management of our affairs is in very safe and sympathetic hands.

I would like to express my personal thanks to Ronnie Wilkie, retiring from our Board after eleven years. His wise coun- selling has been invaluable and I am delighted he will remain Chair of the Born Free USA Board.

Also, I am extremely grateful to Brian Bergin, Secretary to the Trustees, whose unfailing guidance and expertise has been a huge support to me.

Turning to our charitable projects, there have been many highlights to report on this year. 2009 was the 25th anniversary of the Born Free Foundation (founded as Zoo Check in 1984). From small beginnings we have grown into an organisation that, I believe, has opened many eyes to the issues of captive wild animal exploitation, conservation and protection of habi- tat, wildlife trade and ‘sport hunting’. Yes, zoos and circuses still exist but I hope people visit them with a more critical eye and with increased understanding of what they are looking at.

After many many months we have finally begun work on the biggest project we have ever undertaken. Ethiopia will be host to a wildlife rescue and education centre and veterinary clinic and, already, there is a queue of animals awaiting their new home. Ethiopian President Girma Wolde Giorgis has been an unflinching supporter of this initiative from the start, and joined our CEO Will Travers and the Born Free team at the inaugural launch in early 2010.

As always the issue of captivity has been high on our agenda. The end to ‘wild animals in circuses’ is a commitment made by the Labour Party. The Liberal Democrats hold the same view, but the Coalition perspective may be less certain. We will continue to strive for the ban.

3 CHAIR’S INTRODUCTION

Our developing relationship with the travel industry is proving exciting and most encouraging. Animal ‘attractions’ for holiday makers often involve those animals leading deprived and unhappy lives. Some of the most progressive, leading tour operators are already removing certain venues from their itineraries.

And then – the wild itself. The drastic reduction of lion numbers in Africa has shocked many people. In Kenya there are as few as 2,000. Something has to be done. In September 2009 we joined with the Kenya Wildlife Service to launch ‘Pride of Kenya’ – and in November, 50 life-size decorated lions were auctioned to raise funds for lion conservation. Work has already started and the ongoing construction of lion-proof bomas is receiving strong support from the local communities.

On a personal level I had two unforgettable journeys. One to Malawi accompanying Bella, the one-eyed lioness, to her new home at the Lilongwe Wildlife Centre - far from her bleak compound in a Romanian Zoo. We never forget the individual.

The second, accompanying the 25th Anniversary Safari to Kenya in October 2009. Old and new friends shared this memorable trip ending, as always, at Elsa’s Kopje in Meru; the birthplace of the Born Free story. A story to which we have been privileged to add new and unexpected chapters, and I hope will continue to do so for many years to come.

My gratitude, as always, to our Born Free team; here in the UK, in Nairobi, South Africa, Sri Lanka, Ethiopia and in the USA. And, of course, to our loyal volunteers.

Finally I wish to pay a personal tribute to our supporters and donors, whose continuing generosity allows us to help the animals who have no voice and are at our mercy.

Echoing Virginia’s words I can, of course, confirm that none of our achievements would have been possible without our loyal and generous members, adopters and donors, and our many sponsors.

Finally, I would like to thank our staff and our excellent volunteers for their continuing hard work and dedication. Will Travers and his senior team – Alison Hood (Campaigns Director), Anne Tudor (Marketing Director), Shirley Galligan (PR Director), Simon Allen (Operations Director), Stephen Chandler (Finance Manager) and Jo Wakefield (Office Operations Manager) – provide first class leadership. But we are exceptionally fortunate that we have so many long-service employees, and that our new recruits have blended in so well.

I feel confident that their experience and enthusiasm will stand Born Free in good stead in the years to come.

Michael Reyner Born Free team outside the Horsham office Chair of Trustees 14 September 2010 © M Dooley Photo Photo

4 STRATEGY AND S PLANS

The charity’s mission is very well described in our formal Objects as set out below:

• To preserve and conserve animal species in their natural habitat on an international basis and to undertake all relevant research activities in connection therewith or ancillary thereto, and to publish the useful results of such research, and to provide relevant educational materials and equipment and other support to communities in areas where preservation and conservation are undertaken

• To prevent all types of cruelty and abuse of animals and wildlife, particularly in zoos and other places where animals are kept in captivity

• To educate the public and to advance the education of natural history, environmental studies, ecology, and resource conservation in industrial, urban, natural and marine environments

• To relieve the suffering of animals of any species which are in need of care and attention and (where appropriate) assist in the provision of improved facilities for the care of animals in captivity

We seek to fulfil our mission in five main ways:

• By conceiving and implementing animal welfare and wildlife conservation projects under our own management

• By supporting such projects managed by other organisations

• By constantly developing our own competencies in animal welfare and wildlife conservation and helping like-minded people to do the same

• By carrying out and financing research to enable us to act as a thought-leader in animal welfare and wildlife conservation to influence public opinion and decision-makers

• By providing educational materials and opportunities for young people and adults in the UK and around the world

In developing these objectives the Trustees have had regard to the Charity Commission’s guidance on public benefit.

Our work benefits the many millions of people in the UK and around the world who have a respect for animals in general and wildlife in particular. Through our conservation projects we also benefit the environment which is to everyone’s advantage. Our education activities are valued by young people in the UK, and those we undertake in the developing world are of the most direct and practical benefit to young people and their communities. The academic research we sponsor advances our understanding of wildlife and the environment worldwide. The results of our work are freely available to all members of the public via our website and various publications. We also have a large and growing group of active supporters who receive additional communications and play an important role in championing our cause through our Activate programme.

In pursuit of our Objects and in order to deliver our vision we have a well-defined campaign structure refined over the years:

• Marine • Primate • Carnivore • Elephants • Zoo Check • Global Initiatives and Education

5 STRATEGY AND PLANS

As part of well-established planning process we identify a number of Key Objectives. Our start point each year is to aim to at least maintain our support for our existing, on-going projects.

Set out below are the outcomes of work on our Key Objectives identified in last year’s Report:

Objectives Outcomes

To review our existing programmes and projects with a Although there was a 5% fall in total programme expendi- view to maintenance and, where possible, growth in the ture in 2009/10 compared to the previous year we were context of the continuing downturn in the global economy able to maintain our level of activity in our core projects and were in a position to carry out the Limassol Leopard rescue despite this not being originally budgeted for.

To complete a 5 Year Plan (2010 – 2014) The 5 Year Plan and the corresponding budget forecasts have been submitted to and approved by the Trustees.

To maintain income against target through the recession We succeeded in achieving a nearly 18% growth in income over the year thanks, in part, to a number of exceptionally generous legacies.

To recruit an Operational Director (internal position) The Operations Director was successfully recruited and started in March 2010.

To successfully put on all the planned promotional and A successful programme of events culminated in a high media events, including those relating to Born Free’s 25th profile and very worthwhile 25th Anniversary celebration at Anniversary the Royal Albert Hall in October 2009.

Prepare for and attend the March 2010 CITES1 conference in We attended the 2010 CITES conference as planned and Qatar, both representing Born Free and as part of the achieved many of our aims. This is reported on in more Species Survival Network (SSN) detail elsewhere in this report. 1The UN’s Convention on International Trade in Endangered Species.

6 STRATEGY AND PLANS

Future Plans

It is clear that with the new Coalition Government prioritising the elimination of the United Kingdom’s structural deficit and the likelihood of a slow economic recovery, there will be a continuing background of austerity which will undoubtedly affect the charitable sector for some time to come. For this reason we will be strengthening our fundraising capability in order to maintain our existing programme activity and to enhance our programme expertise in the short term with a view to continued growth as conditions improve.

With this in mind, our ANNUAL PLAN Key Objectives for the coming year (2010/11) are set out below:

• Maintain our portfolio of programmes and projects despite the period of austerity that is likely to prevail throughout 2011 and 2012.

• To jointly host, with WildCRU, a ground-breaking international symposium at Oxford University, entitled Compassionate Conservation.

• To complete and submit Country Reports for over 20 EU countries relating to standards in zoos and the effective application of the terms of the EU Zoos’ Directive.

• To commence the building of the Wildlife Rescue, Conservation and Education Centre, Ensessakotteh, 30km from Ethiopia’s capital city, Addis Ababa, following Presidential sign-off in March 2010.

• To put on, with Wildlife in Art, a number of high-profile public art displays involving life-size animals, in the UK, as a public awareness and fundraising effort for our wildlife conservation work.

• To roll out the Lion-proof Boma building programme in Kenya, supported by funds raised during Pride of Kenya (2009).

• To attend and participate in the Global Tiger Summit scheduled for November 2010 in St Petersburg.

• To participate as a key player in a major fund-raising ball, hosted by Asia House, for tigers.

• To increase the Foundation’s membership levels and social networking capacity and outreach, through recruitment of specialist in-house membership expertise and the application of increased IT resources.

• To enhance the administrative capacity of the Foundation including the introduction of Paperless Direct Debit and IT systems integration.

• To increase the profile of the Foundation through PR activities relating to the 50th anniversary of the publication of the book, Born Free (1960) and the films to be shown on BBC4 and BBC2 relating to this due to be broadcast in 2010/11.

7 CHIEF EXECUTIVE’S REPORT

Despite a global economic environment that would challenge even the stoutest of hearts, the Born Free Foundation made significant progress and achieved some outstanding successes this year.

The celebrations and events relating to our 25th anniversary drew widespread public recognition. Together with the generosity of our supporters, the extensive and increasing participation of our commercial partners and the hard work of all the team, we are well-placed as we head into 2010/11 which I predict will be just as tough.

Of course, at the top of our list of priorities are the animals and this report sets out, in some detail, the efforts we have made across a suite of activities to help alleviate wild animal suffering, deliver effective wildlife conservation and support local communities

who live alongside wild animals around the world. © M Daines Will Travers, Chief Executive Photo Photo Our plans for the year ahead, as detailed in this report, are as ambitious as ever but, at this point, I want to salute my colleagues at Born Free, a small and dedicated band of creative, imaginative, passionate and committed individuals, without whom we would not be able to deliver such outstanding results, be it in Campaigns, Marketing, PR, Administration, Finance or at Board level. I could not ask for more.

Will Travers Chief Executive Born Free Foundation

14 September 2010

Born Free Programmes

Zoo Check Programme

Zoo Check, and its central message, remain at the core of Born Free.

The Programme: • Promotes Born Free’s core aim to keep wildlife in the wild • Challenges the multi-million pound global zoo industry • Investigates neglect and cruelty and exposes suffering and exploitation

• Campaigns for tighter legislation © • Responds to public concerns about captive wild animals • Engages the travel industry with the aim of phasing-out bad practice Photo

Annual Highlights • On behalf of the European coalition to end captivity, ENDCAP, we are investigating the implementation and enforcement of European Council Directive 1999/22, relating to the keeping of wild animals in zoos. This involved visits to 21 EU countries and assessment of over 200 zoos. Preliminary findings revealed significant inconsistencies in application and enforcement, with many unlicensed and unregulated zoos. A series of reports will be produced in 2010/11. • Together with Spanish NGOs1 FAADA2 and Libera!, Born Free successfully lobbied the Barcelona City Council and local politicians to end the sale of animals in the kiosks in Las Ramblas from 1 September 2010. Thousands of dead and dying animals had been discovered in rubbish bins over a 20-day period.

1Non Governmental Organisations 2Fundación para la adopción, apadrinamiento y defensa de los animals 8 CHIEF EXECUTIVE’S C REPORT

• Our consultancy work has helped UK tour operators and consortiums develop their policies, discouraging bad practices involving animals in resorts globally. Born Free trained Destination and Sustainable Business staff for TUI Travel plc, Virgin Holidays plc, and Responsibletravel.com. We have continued to work with the Federation of Tour Operators and ABTA (Association of British Travel Agents) in the application of the Travelife Animal Attractions Handbook and the establishment of ABTA’s Animal Welfare Sub-group. • Born Free hosted an evening at the Royal Geographical Society concerning the negative impact tourism can have on wildlife, both in the wild and in captivity. Speakers included the Director of TUI UK & Ireland; the Travel Editor for The Independent; Virginia McKenna OBE and Daniel Turner (Born Free Senior Programme Officer). The event was accompanied by a week-long public exhibition. • Just prior to the General Election, the then Minister for animal welfare gave a clear commitment to end the use of wild animals in circuses, following overwhelming support for this measure from respondents to a public consultation. The change in Government leaves the issue unresolved and the current Minister is deliberating. We continue to work for a ban along with Royal Society for the Prevention of Cruelty to Animals, the Captive Animals Protection Society and Animal Defenders International. • Chris Draper (Born Free Scientific Researcher) has completed the first year of his PhD, with a paper on zoo animal welfare inspection. This study indicates deficiencies in current practices and in the system of inspections by Government-appointed inspectors. This is intended to be published in a peer-reviewed journal. • Born Free was present at two international meetings on elephants: the International Elephant Foundation conference in South Africa in January 2010, which provided an understanding of plans within the zoo and elephant-back safari industries; and the Performing Animal Welfare Society’s Summit for the Elephants in March 2010, where Chris Draper gave a short presentation to elephant experts and activists. • We continued to maintain accurate and up-to-date information on UK zoos. This enables us to maintain our position as a zoo watchdog, to challenge the zoo industry on matters of licensing, welfare and conservation. • Almost 700 captive wild animal reports received from members of the public via our Travellers’ Animal Alert initiative.

“The numerous reports Born Free receives highlights that public attitudes are changing with regards to how people see wildlife, particularly the animals that are affected by tourism. Our work with the Travel Industry aims to try and phase-out these activities. Wild animal circuses continue to attract huge public concern, as proved by the results of the public consultation undertaken by the previous Labour government. If we all speak up, then change can happen.” Sarah Jefferson, Zoo Check Assistant

Carnivore Programme

Big Cat Projects

This project combines conservation initiatives, trade investigations and individual rescue and care.

The Project • Rescues big cats from appalling captive conditions • Supports big cat conservation in the wild

• Develops humane solutions to mitigate human/big cat conflict © BFF • Responds to public concerns about wild big cats Photo Photo

Annual Highlights • Rescue of three leopards from Limassol Zoo in Cyprus, with our colleagues from Animal Responsibility Cyprus. Leopards arrived at our rescue centre in Shamwari, South Africa on 1st June, 2009. • Sadly, Sarnia, a young lioness at Shamwari, rescued from Romania, died on 25.1.10 as a result of complications following a blockage in her intestines. • Another sad death to report: Harak the tiger died at Bannerghatta on 23.2.10. He was rescued from an Italian circus in 1997. • As part of the Pride of Kenya initiative, ‘Lion-proof bomas’ have been constructed by Born Free in Amboseli, Kenya, in collaboration with the Kenya Wildlife Service, Living with Lions and the Kenya Wildlife Trust. These bomas protect livestock from lion attacks, and as a result the communities do not kill lions in retaliation. It’s a win-win solution to the problem, which 9 CHIEF EXECUTIVE’S REPORT

has supported 300 community members and had a 100% success rate so far. • Tiger conservation. A significant proportion of the world’s remaining 3,200 wild tigers can be found across the Central Indian hills where, for a fifth year, Born Free has supported the Satpuda Landscape Tiger Programme to: successfully oppose mining concessions threatening tiger habitat; organise a law enforcement training workshop for forest department staff; gather essential data on tiger distribution and conflict around Protected Areas; and involve over 10,000 people in environmental education programmes. • Born Free attended the Kathmandu Global Tiger Workshop in October 2009, convened by the World Bank inspired Global Tiger Initiative. Working alongside 250+ tiger experts from across the globe, we helped to develop a set of recommendations that will form the basis of a Global Tiger Recovery Program to be adopted by Heads of State at an unprecedented Global Tiger Summit to be held in late 2010.

“Our rescue of the three leopards from Limassol was a bitter-sweet experience. Our Founders Bill and Virginia had started investigating this squalid zoo over 20 years ago, and never gave up on their efforts to shut it down and re-home the animals; it was pneumonia contracted during Bill’s investigation of the zoo in 1993 that led to his untimely death. With some of our rescues we have managed to swing into action within months of the complaint; others have taken years to achieve, but the plight of the individual animal remains in our hearts and is at the heart of all we do at Born Free. We don’t give up either.” Tricia Holford, Rescue Programme/Activate Co-ordinator

“With no more than 1,400 wild tigers remaining in India, the application of the term ‘crisis’ to describe their plight can no longer be disputed, nor the seriousness of the situation ignored. As world leaders stand on the precipice of signing an unprecedented global pledge to save the wild tiger, Born Free hopes that it will bring about positive change, marking the turning point when the species decline can be reversed.” Chris Wright, Senior Programmes Officer

Ethiopian Wolf Conservation Programme

This project has been established to help protect the world’s rarest canid together with the environment it inhabits, one of Ethiopia’s main water-catchment areas.

The Project • Protects endangered Ethiopian wolves throughout the Afroalpine highlands

of Ethiopia © M Daines • Builds capacity to strengthen wildlife conservation and protected areas in Ethiopia Photo • Implements domestic dog vaccination campaigns to reduce risk of rabies being transmitted to wild relatives • Campaigns to educate younger generations and thereby encourage them to value and protect Afroalpine biodiversity

Annual Highlights • Dealt with a rabies epidemic by vaccinating 98 wolves in 16 packs in the Web Valley and Sanetti Plateau. • Undertook three dog vaccination trips to North Ethiopia, effectively increasing rabies immunity rates in domestic dogs, while educating isolated communities on the value of the Afroalpine habitat. • Secured support from the Ethiopian wildlife department to undertake trials for the oral vaccination of the wolves. • Celebrated our 12th successful Wolf day in Bale and 2nd Wolf Day in Arsi, with record attendances. • Increased our education and monitoring activities in North Wollo and Simien. • Implemented a community survey to identify issues of conservation concern.

"The Ethiopian Wolf Conservation Programme is a referent for wildlife conservation in Ethiopia. Our work and partnerships have given us a reputation as an efficient, multi-disciplinary, conservation operation delivering good value for money. Our work, aimed chiefly at protecting endangered Ethiopian wolves, also has a positive impact on the rural communities living hand-in-hand with these handsome highland wolves." Prof Claudio Sillero, Head of Conservation, Born Free Foundation 10 CHIEF EXECUTIVE’S C REPORT R

Bear Project

The Project • Campaigns to prevent wild bear exploitation • Coordinates a unique polar bear surrogacy initiative • Campaigns against the illegal trade in bear gallbladders • Supports the work of Animals Asia and their rescue of bears from bear farms

• Responds to public concerns about wild bears © Animals Asia

Annual Highlights Photo • Legislation has again been introduced in the United States Congress to stop the import, export, and interstate trade in bear gallbladders and bile. The ‘Bear Protection Act’ seeks to eliminate the current state to state legal discrepancies which complicate wildlife law enforcement and facilitate the fraudulent commercialisation of bear parts. • Recognising the need to also work at State level, Born Free USA, our partner organisation, has begun campaigning in those few remaining states that allow bear gallbladder trade to prohibit bear organ sales. • Born Free is focusing on bear–human conflict and advocating sensible, humane solutions that do not involve trophy hunts or other lethal measures. • The Polar Bear Surrogacy Programme studied the effectiveness of introducing orphaned cubs to wild surrogate mothers over the last ten years. Sadly, and working within limitations, the results have not been good. The programme is therefore suspended. • Schnute and Maxi, two European brown bears housed in a pit in Berlin since the 1980s, have little room to roam and limited enrichment. The pit is a listed building that cannot be improved. Working with German NGO animal public, Born Free campaigns to relocate the bears to a suitable sanctuary.

“Protecting many bear species is a difficult task because in significant portions of their range – especially for the American black bear – they are not yet on the brink of extinction. Over the past century the world watched as conflict with humans, poaching, habitat encroachment, and breeding for their body parts decimated the wild tiger and caused suffering to thousands of individual animals. The situation facing bears is a mirror of the tiger’s plight and we must act now before the bear meets the same tragic fate.” Adam M. Roberts, Executive Vice-President, Born Free USA

Elephant Programme

Wild elephant protection was the first species-specific conservation work undertaken by Born Free and it continues as a main focus for the organisation.

The Programme • Protects wild elephants and their habitat

• Fights the brutal ivory trade © G Chandranswana • Helps care for rescued elephants • Responds to public concerns about wild elephants Photo

Annual Highlights • In partnership with HSI1 Australia, Born Free continues to support the Maasai fieldmen patrolling the West Kilimanjaro area in Tanzania. Their presence and determination have led to significant decreases in poaching in the area. Born Free further supported the fieldmen by securing a first grant on their behalf from the Taiwanese Forestry Bureau. 1Humane Society International • Continued support for the Amboseli Elephant Research Project. Amboseli’s elephants suffered greatly during the recent drought. Sadly the veteran matriarch Echo didn’t survive and her EB family split into smaller groups. • Developed and launched the www.bloodyivory.org website to raise awareness of ivory trade issues on the agenda for the CITES CoP15 meeting. The website included a petition against ivory trade – which led to a further petition by Avaaz.org. 11 CHIEF EXECUTIVE’S REPORT

Half a million signatures were secured and presented by Born Free to the African Elephant Coalition. • Continued support for the African Elephant Coalition (AEC) group of 23 countries. Thanks to the efforts of the AEC, proposals to reduce protection for Tanzania and Zambia’s elephant populations and to permit trade in ivory were quashed at the CITES meeting in March. • Human-Elephant Conflict mitigation activities around Amboseli, co-ordinated by our consultant Winnie Kiiru including co-ordination of community meetings and purchase of elephant deterrents (such as ropes smothered in chilli). • Support for Interpol’s Operation Mogatle, which resulted in the seizure of 400kg ivory and rhino horn, the arrest of 41 people across southern Africa, and the closure of an illegal ivory carving factory. • The Elephant Transit Home in Sri Lanka successfully released four juvenile elephants, the first for some time. We supplied tracking collars, radios and other equipment and our Country Representative attended conferences in Singapore and Beijing as well as pursuing Global Friends and other activities.

“It is hard to believe that 1.3 million elephants used to roam across Africa in the 1970’s. Today, primarily due to poaching for ivory, elephant populations in many parts of Africa are perilously small. In Tchad, Central Africa, populations are plummeting at an alarming rate due to ivory poaching – down from 3,880 elephants in 2005 to just 617 in 2009. Unless urgent action is taken, many elephant populations will disappear entirely. Other threats, particularly Human Elephant Conflict and shrinking habitats, are also playing their part. This is why the African Elephant Range States have developed an African Elephant Action Plan, which prioritises the most urgent activities needed in order to protect elephants across Africa. It is critical that major donors, such as the US and EU, contribute funding towards the application of the Action Plan if we are to stand a chance of protecting these fragile elephant populations.” Shelley Waterland, Programmes Manager

Primate Programme

The Programme • Supports the global conservation of wild apes through UNEP’s ‘GRASP’ initiative (Great Ape Survival Partnership) • Investigates and campaigns against the illegal bushmeat trade • Funds sanctuaries for rescued great apes and monkeys • Supports primate habitat protection, for example Eastern Lowland Gorilla

conservation in Kahuzi-Biega National Park, DRCongo © LWC • Responds to public concerns about wild primates Photo Photo Annual Highlights • Born Free continued to provide the Technical Support Team for GRASP under an EC grant until December 2009 and subsequently, under a UNEP contract. This included attending international meetings, provision of equipment to range State wildlife authorities and conservation NGOs, support for a workshop for GRASP Focal Points from West African range States, and wildlife law enforcement activities. Assisted with aspects of the Conservation on Migratory Species’ Gorilla Agreement and the 2009 UN International Year of the Gorilla campaign, both through GRASP and by supporting Born Free’s Ian Redmond OBE as the Ambassador for the campaign. • Kahuzi-Biega National Park – long-term support for the courageous rangers who patrol this World Heritage Site, and for the education of children in the nearby Batwa (pygmy) community. Also supported the Pole-Pole Foundation, a local NGO working with the local communities. • Born Free continues to contribute two grants each year to The Primate Society of Great Britain Conservation Grants scheme. This year they were given to the study of People-Wildlife Interactions in Southern Guinea-Bissau and a study on reconciling community livelihoods and conservation in the proposed Bechati gorilla sanctuary, South West Cameroon. • Born Free provides administrative assistance to the Ape Alliance – an international coalition of 80 NGOs concerned with ape conservation and welfare; this included assisting independent film-maker Steve O Taylor in making ‘Earth’s Green Heart’ - a trilogy of educational documentaries about deforestation and its impact on people and wildlife in Africa (especially gorillas), Latin America and South-east Asia (especially orangutans).

“There are many reasons we seek to protect other primates – not least because we see so much of ourselves in them. Born Free’s work goes beyond a concern for the welfare of individual monkeys and apes, important though that is, and is 12 CHIEF EXECUTIVE’S C REPORT R

helping to secure healthy forest ecosystems. Climate scientists consider the fate of the world’s tropical forests to be a critical component of efforts to prevent dangerous climate change. Primates are keystone species in tropical forests. Ergo, protecting primates and their habitat is essential for all life on Earth.” Ian Redmond, Senior Scientific Advisor

Marine Programme

The Programme • Funds the conservation of marine turtles, dugongs, sharks and dolphins • Helps rescue stranded marine mammals • Educates people about the conservation and protection of marine species and their environment • Responds to public concerns about wild marine species © P Richardson/MCS Annual Highlights • A leaking oil barge in Robson Bight, Canada removed by authorities Photo following over a year of campaigning by Born Free and others • More than 5,000 eggs rescued from overdeveloped beaches on Bali, Indonesia and hatchlings successfully returned to the sea • With protection from Sea Sense's community conservation teams, involving criminal proceedings being brought against illegal poachers, over 4,000 turtle hatchlings successfully reached the sea in Tanzania • Sea Sense secured important funding from the EU to further develop ecotourism in Mafia and Temeka District, not only for turtles but also the elusive and endangered dugong once again sighted in Tanzania's waters by Sea Sense staff in 2009

“By providing targeted support to flagship marine species we raise awareness of the critical issues facing them and their environments, whilst enabling and promoting practical and compassionate approaches to their conservation.” David Jay, Field Projects Coordinator

Global Initiatives and Education Programme

The Programme • Seeks to respond to emergency situations around the world • Works on one-off projects • Includes Born Free’s participation in international multi-species coalitions such as Species Survival Network (SSN) • Supports schools and communities close to Born Free funded projects (Global Friends)

Annual Highlights • SSN played a critical role in the CITES CoP15 Conference in Doha this March. Significant successes, other than those on ivory, included preventing the USA from removing bobcats from CITES, and securing agreement on increased efforts to protect rhino populations now under serious threat from poaching. For marine species, sadly, political pressure from Japan resulted in failure to list bluefin tuna and several shark species on CITES. • Wildlife Rescue Conservation and Education Centre, Ethiopia. Following agreement on the provision of an official launch was held on the 200-acre site on 9th February in the presence of His Excellency, President Girma. Construction began on the boundary fence and final briefs were drawn up for the architects’ visit • Lilongwe People and Wildlife Centre. This was the final year of the initial three year pilot. The majority of construction has been completed, over 200 animals rescued and the community support side is now progressing with the establishment of 12 ‘People & Wildlife’ clubs drawn from the neighbouring communities. The Centre aimed to become operationally self-financing by the end of the pilot. However, this has not yet been achieved and we have agreed the fourth year of support. • We supported Rathambalagama school in Sri Lanka with the construction of a water supply system and backing for an elephant-proof passion fruit plantation. 13 CHIEF EXECUTIVE’S REPORT

“At the heart of our global initiatives, it is still the individual that matters. It could be a rescued animal that finds a safe haven in one of the Rescue Centres we work with or a child who attends one of our ‘Global Friends’ supported schools. Each has a story to tell, that can inspire further actions on behalf of helping create a more compassionate future for people and wild animals.” Alison Hood, Programmes Director

2009/10: Other Highlights

Born Free USA

In America, Born Free USA advanced their campaigns to stop the keeping of exotic animals as pets, end the brutal trade in wild animal fur, protect animals exploited for entertainment, and stop the destructive trade in wildlife.

Our US counterparts published a dramatic expose of the cruel fur-farming industry in America, highlighting the ‘dirty dozen’ States that are the worst offenders, incarcerating animals in small cages in order to satisfy market demand for furs. Simultaneously, they expanded their work to stop trapping for fur in the wild.

They continued their efforts to stop the trade in exotic animals as pets. The Captive Primate Safety Act, which would prevent trade in pet primates, is very close to being signed into law. One of our team in the Washington, DC office is serving as an expert witness in a legal case brought by Charla Nash, who was nearly fatally mauled by a chimpanzee kept in private hands.

Meanwhile, the Born Free USA Primate Sanctuary continues to provide animals in need with a peaceful home. Often languishing in people’s homes or roadside menageries, the animals they take in can feel grass beneath their feet, smell and taste the rain (often for the first time), and live a better life.

“From coast to coast across America animals are exploited in myriad ways. Wild bears are killed for their internal organs and furbearers are ensnared in barbaric steel traps to satisfy an ugly an antiquated sense of fashion. Meanwhile, thousands of zoos and roadside menageries keep elephants and other magnificent wild animals in unnatural conditions. People even keep exotics animals as ‘pets’; a chimpanzee in the living room; a tiger in the backyard. I’m proud that Born Free USA is on the front lines, fighting cruelty to wildlife in America in all its forms.” Adam M. Roberts, Executive Vice President, Born Free USA

Born Free Kenya

The Born Free Kenya team’s efforts have continued to help wildlife and communities in need within their geographic area. Highlights include: • A major public-awareness and fundraising event, Pride of Kenya, took place during the latter part of 2009 with a focus on lion conservation. The hugely successful project grossed over £150,000 and generated extensive media coverage as well as positive contacts and supporters within the Kenyan commercial sector. • Taking a lead role in the ongoing ‘lion-proof boma’ project reported under Big Cats. • An animal welfare survey of all captive wild animal facilities in Kenya. Currently, little or no attention is paid to such animal welfare issues in Kenya and we plan to use the results of this survey to help address shortcomings in legislation, as well as challenging people’s attitudes to animal welfare across the country. 14 CHIEF EXECUTIVE’S C REPORT

• Provision of emergency food relief for hippos at Mzima Springs, following a severe drought. • Continued critical anti-poaching/de-snaring and outreach work with Wildlife Clubs of Kenya. • Support for the Bill Woodley Mount Kenya Trust through logistical support for the 10 to 4 bike race on Mount Kenya. • Support for Global Friends schools in Kenya thanks to funds from Schools for Kenya. Achievements include construction of a science laboratory at Marungu Secondary School in Tsavo, and the beginning of the establishment of a new Secondary School in Amboseli. • Our Consultant Winnie Kiiru continued to work towards her PhD on Human Elephant Conflict. • Born Free Kenya has continued to benefit from the support of Land Rover UK through the use of Land Rover Defender vehicles.

“Local communities are the true guardians of our wildlife. However, in Kenya, these communities are often very poor, struggling to meet even their most basic daily needs. When a precious cow is killed by a lion, it is understandable that the community may then want to kill that lion. However these new lion-proof bomas mean that livestock are protected and, in turn, the lions are no longer being killed. It is a perfect solution which I am proud to be a part of.” David Manoa, Programme Officer Born Free Kenya

Born Free Ethiopia

The Born Free Ethiopia team’s efforts have continued to help wildlife and communities in need within their geographic area. Highlights include: • In April 2009, the land agreement was signed securing Born Free 77-hectares (200-acres) of land at Holeta, 23km from Addis Ababa. Diribu Jemal, head of Oromiya Land and Environment Protection Bureau and James Young, Born Free Foundation Ethiopia (BFFE) Director signed a detailed land agreement in the presence of His Excellency President Girma Wolde Giorgis. Following the signing of the land agreement in April 2009, it was claimed that some local farmers had legal certificates to areas of the land. After six months of negotiations a compromise was reached. • As soon as the land agreement was signed in April 2009, a security team was employed. Major Feyissa heads a team of 16 men, all with military or police experience. The security team has BFFE uniforms and patrols the site 24-hours per day. • A name was chosen for the Centre - Ensessakotteh. This is a phonetic spelling of two Amharic words; ‘ensessa’ that means animal, and ‘kotteh’ that means footprint. • In September 2009 the Ethiopian Wildlife Conservation Authority (EWCA) asked if BFFE would rescue a lion cub chained in a wooden shed to the far south of Ethiopia. James Young travelled with a representative of EWCA to confiscate the female lion cub, named Safia, which had a malformed paw. A temporary enclosure was constructed on the site at Holeta for Safia while a more spacious, permanent enclosure is constructed. • BFFE sponsored a nationwide survey to study the ‘Gap Analysis on the Implementation of Law Enforcement against wildlife crime in Ethiopia’, undertaken by Yeneneh Teka, Director, Wildlife Development and Protection (Directorate of EWCA). The results will be published in late 2010. • Born Free Foundation Ethiopia re-registered as an NGO with the Ministry of Justice, Charities and Societies Agency, Number 0686 on 11 November, 2009. • Construction of a site office, secure area and toilet facilities have been completed. • The Born Free team travelled to Ethiopia for the unveiling on 9th February 2010 of the Wildlife Centre foundation stone by President Girma Wolde Giorgis. This was attended by Honourable Tadalech Dalecho, State Minister for Culture and Tourism, Honourable Takele Uma, Mayor of Holeta, Dr Kifle Argaw, Director General EWCA, Will Travers, CEO Born Free Foundation and over 150 guests including neighbouring farmers, local Kebele Council members and members of the business and NGO community. A range of press covered the event, including Ethiopian television and newspapers. • A spacious cheetah enclosure was created on site for the rescued male cheetahs, Menelik and Sheba.

“Born Free Foundation Ethiopia was established to help facilitate the development of the first, much-needed wildlife rescue, conservation and education centre in Ethiopia. This last year has seen some major successes, in particular the signing of the land agreement which is the foundation to the whole project.” Andrina Murrell, Programmes Officer

15 CHIEF EXECUTIVE’S REPORT

Marketing

The core objective of the Marketing Department is to undertake effective, high-profile and successful marketing and related activities to provide funding to the Foundation in order to meet programme and operational needs.

Highlights • Successfully repeated the Christmas adoption TV advertisement with a larger spend concentrating on successful channels and rolling out to similar profiles. • Extended the partnership with ‘Wild In Art’ animal sculptures following success in Norwich, to the Pride of Kenya project in 25th Anniversary Wild & Live event at the Albert Hall, London Nairobi, Kenya, and began developing similar G Bartholomew projects in Northampton, Newport and Bournemouth in UK. • Maintained our important corporate partnership with Land Rover providing vehicles, sponsorship and public awareness. Born Free is one of their global partners. • Thomson Airways continued their long-term relationship contributing important funding and transporting the Cyprus leopards to South Africa. • Elephant.co.uk maintained their long-standing support with funding for many projects, sponsorship of events and Wild & Live involvement with their in-house choir, Elephant Inspire Choir. • During the year, initiated many events and activities relating to Born Free’s 25th Anniversary, culminating in Wild and Live, a concert at the Albert Hall London featuring top names in entertainment and supporters of Born Free. • Developed a range of wildlife holidays to projects, notably Born Free’s 25th Anniversary tour to Kenya. • Promoted Virginia McKenna’s book ‘The Life in My Years’. • Partnered with Kellogg’s UK where we devised a unique Adopt a Monkey pack offer which appeared on 30m packs of cereal and rolled this out to Kellogg’s Italy and Kellogg’s South Africa. • Launched Animals Are Not Rubbish competition and partnership with children’s author Lauren St John. • Developed relationship as ongoing beneficiaries of first Animal Art Fair. • Continued to build on and expand running event activities and fundraising especially the London Marathon, the Great South Run and Great North Run. • Streamlined database activity and capitalised on donor development opportunities as well as increasing our use of e-technology. • Maintained a successful and effective marketing mix (corporate, events, merchandise, legacy etc) thus spreading the risk and maintaining diversity of income. • Provided marketing support for Born Free animal rescue operations and conservation projects.

“Our 25th year was quite a year, the highlight of which was our ‘Wild & Live’ concert at the Albert Hall; the coming together of so many supporters of all kinds. We pulled together an array of showbiz talent, sponsorship and teams of producers and technicians and what a show it was - a genuine staging of care and commitment. We raised the bar and we raised the roof. All 25 years after someone said we’d be nine day wonder!” Anne Tudor, Marketing Director

16 CHIEF EXECUTIVE’S REPORT

Public Relations

To maintain and build on the Charity’s global media platform and its reputation and status as a leader in the field of animal welfare and conservation. Born Free’s PR Department provides PR support across Programmes and Marketing as well as initiating PR-driven exposure for the Foundation and its philosophies in both a pro-active and re-active way.

Highlights Support for Our Campaigns • A major international campaign by Born Free coincided with the CITES meeting in Qatar and received world-wide media coverage and was especially prominent in the UK. • The Royal Geographical Society evening debate and exhibition (Look at Animals with a Different View) in March 2010 was well received by travel industry publications. • Born Free kept at the forefront of the debate on the keeping of wild animals in circuses. Coverage included Virginia McKenna on BBC Breakfast and Will Travers on The One Show and on the national TV debate show – The Big Questions. • The ‘Homeless Ad’ Campaign created by George Logan, depicting wild animals ‘homeless’ in inner-city environments and storyline emphasising loss of habitat were taken up by several influential media voices • PR coverage of our rescue activities continued to be excellent. Bella the lioness from Romania was relocated to Malawi, which was co-ordinated to mark our 25th anniversary year. There has been continued media coverage following the rescue of the three Limassol leopards that took place in May 2009.

Support for our Fundraising Activities • Together with the Directors of Marketing and Programmes and the CEO, a significant investment of time was dedicated to the delivery of the Wild & Live production at the Royal Albert Hall to capitalise on our 25th Anniversary. This included securing many of the high-calibre recording artists/celebrities that contributed to the evening, negotiations to secure filming on the night and access for additional film units with subsequent coverage. A successful media strategy was devised by the department, aimed at delivering on many levels to secure maximum publicity for the event. The result was an exceptional level of media output for the Foundation, with contributions from many Born Free celebrity patrons. • The successful Pride of Kenya events that took place in Nairobi to highlight the plight of lions in the wild received notable media coverage.

Maintaining Born Free’s Profile • For the official 25th Anniversary in March 2009, GMTV profiled Born Free, dedicating three mornings during the week run- ning up to Wild & Live to talk about our 25 years’ history, including a ‘Live link’ from the Born Free Big Cat Rescue Centre at Shamwari. • Born Free continues to hit and deliver media across the board whilst maintaining a mainstream presence. We continue to get great support from our dedicated celebrity patrons in media interviews, plugs on prime time TV programmes and support at events. • Born Free was featured in HSH Prince Albert’s exclusive interview with the Sunday Telegraph in May 2009 on his visit to the UK. • Sean Stone (son of film director Oliver Stone) and Lady Victoria Hervey were featured in a 10-page spread for Hello Magazine travelling to Cameroon to highlight the plight of the great apes. • A new PR Officer, Kate Chapman, started with Born Free February 2010. Kate replaced Angelique Davies.

“Quality media relations are vital to the organisation’s growth. Dealing with and building up good working relationships with journalists within the broadcast and print media helps take Born Free’s message to the public at large.” Shirley Galligan, PR Director

17 CHIEF EXECUTIVE’S REPORT

Operations

With the recruitment of an Operations Director in early 2010 the Administration, Member and Support Services (AMSS) and Accounts teams now form the Operations Department.

Administration, Member and Support Services The AMSS team aims to deliver a high quality, personal and timely service to all our members, animal adopters and donors and to provide the essential administrative support that enables the rest of Born Free to operate as effectively as possible. The team also coordinates the efforts of our numerous, wonderful volunteers who assist us with a multitude of internal tasks.

Finance The finance team provides the essential financial back office support for Born Free operations world-wide.

Highlights • AMSS successfully outsourced order fulfilment to a local fulfilment house with the aim of improving the efficient and timely despatch of orders. • The two teams working together kept general operating costs 3% under budget, a reduction in expenditure of 10% on the previous year.

“Since joining Born Free I have been impressed with the range of jobs that the Admin and Finance teams undertake. These back office functions are often complex and workloads at certain times of year are high, but the teams tackle them with dedication and enthusiasm; they are essential to the success of Born Free as a whole.” Simon Allen, Operations Director

18 GOVERNANCE G

Status and Objects The charity is a company limited by guarantee. Our governing document is a Memorandum & Articles of Association, which dates from 1998. Our formal Objects are set out in the section on Strategy & Plans on page 5.

Governing Body and Structure Our governing body is a Board of Directors who are the Trustees of the charity. As at 31 March 2010 there were eleven members, four having joined in the year, but Ronnie Wilkie resigned in June 2010.

We have evolved our structure over the years to cope with the increasing complexity of our activities and the steady increase in legislation and regulation. Although most business is dealt with at quarterly meetings we do use ad hoc working groups, for example on governance and appointments, who progress specific issues and report back to the Board and we have a Finance & General Purposes Committee.

We have two overseas branches – in Ethiopia and Kenya and two subsidiaries – Born Free Trading Ltd, Born Free Films Ltd (which is dormant).

We have a well-established annual planning and budgeting process that covers the charity and its subsidiaries and Branches.

Decision Making The Board formally set out how it saw its role some years ago and has subsequently periodically reviewed the position. We regularly monitor how we are performing our duties and recently agreed to conduct a review in the latter part of 2010 an important element of which will be to benchmark ourselves against the Charity Commission’s ‘Hallmarks of a well-run charity’.

We continue to see our prime function as to ensure the good governance of the charity and to this end we focus on matters of policy and general strategy, the approval of plans, the monitoring of progress with charitable projects, financial control and investments.

Operational responsibility is delegated to the Chief Executive Officer. The Board is assisted by a Secretary who advises us on governance generally and also acts as Treasurer in monitoring financial matters on our behalf.

The Board receives two formal reports in advance of its meetings – a Quarterly Report that deals with charitable projects and operational matters and a Treasurer’s Report that covers financial and related matters.

Trustees During the year we spent a lot of time dealing with Virginia McKenna’s decision to stand down as Chair of Trustees. We saw the management of the succession to this post as of critical importance. Existing Trustees were invited to express an interest and we enlisted the help of leading search consultants.

We chose Michael Reyner, Senior Partner in a leading executive search and corporate governance consultancy to succeed Virginia. He initially joined as a Trustee in 2009 and then became Chair of Trustees in February 2010.

We also recruited three other Trustees to replace those who had stepped down in the past two years. We carried out a skills audit to identify the qualities sought in potential candidates and a Trustee’s working group managed the appointment process, reporting to the full Board. We provided the new Trustees with structured induction that included comprehensive documentation, individual briefings and the opportunity to visit our offices to meet staff.

Risk Management Our philosophy on risk management was established several years ago and has been steadily refined. A Risks Register is maintained. The assessment of risks on the register is documented and rated in terms of the likelihood of occurrence and the potential impact. The whole situation is reviewed annually. We can confirm that the major risks to which the charity is exposed, as identified by the Trustees, have been reviewed and systems have been established to mitigate those risks.

19 GOVERNANCE

Reserves We comment on this matter in our Financial Review.

Investments After considerable analysis we decided to appoint a second manager for our investments. This reflects our view that diversification needs to be a key feature of our policy. Citibank Quilter’s remit was adjusted to focus on UK equities and worldwide fixed interest stock. Charles Stanley were appointed to manage a portfolio of non UK equities. Both provided us with regular written reports and meet with the F&GP Committee.

Grants Born Free makes grants to organisations who share the aims and values of the charity. Organisations seeking grants provide documentation outlining how the grant will be spent. The expenditure is regularly reviewed by Foundation staff.

Disclosure of Information to Auditor So far as each Director at the date of approval is aware:

- there is no relevant audit information of which the company’s auditor is unaware; and

- the Board of Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information

20 FINANCIAL T REVIEW

After two years with unusual features this year was much more normal.

Charitable Expenditure Despite the difficult economic background we are pleased to report that our expenditure on charitable Objects was only just below that of last year at just under £2.4m. The breakdown by project is set out in the Accounts on page 36 and details of projects themselves are in the CEO’s Report section.

Our policy is to give priority to maintaining support for core projects and where we can to achieve a continuing, steady increase in spending, subject to maintaining reserves adequate to under-pin our long-term commitments.

Income & Fundraising Our total income on an underlying basis (that is excluding the exceptional donation last year) increased by 13%.

We are pleased that our strategy of seeking as much diversification in our income streams as possible, so that we are not over reliant on any one aspect, continues to bear dividends. The results of this approach will be seen in the Accounts on page 36.

Our trading subsidiary, which provides a vehicle for related commercial activity such as merchandise sales, again contributed well with a donation of £25,000 from its profits.

Apart from Gift Aid the charity receives no government funding.

Reserves We carried out a fundamental review of our policy. We were conscious that, on the one hand, our reserves have increased significantly but, on the other, so has the range and depth of our activities and our ambition for animals in need.

Having regard to the Charity Commission’s guidance, we looked again at our long term obligations (eg for the lifetime care of animals in sanctuaries) and other commitments. These are significant and various examples are referred to in the CEO’s Report including the Bannerghatta Tiger Sanctuary in India; the Ethiopian Wolf Conservation Programme; the Satpuda Tiger Landscape Project; ENDCAP and other zoo and circus campaigns; GRASP; the Elephant Transit Home in Sri Lanka; The Bill Travers Fellowship at WildCRU (Oxford University); the Big Cat Rescue Centres at Shamwari in South Africa; our leading role within the Species Survival Network.

We have also taken on a major new commitment by investing £1 million in a project to establish Ethiopia’s first Wildlife Rescue, Education and Conservation Centre (Ensessekoteh) – a five year commitment.

To complete the picture we then considered a range of possible scenarios for what might happen in relation to our fund raising achievements in future years, particularly in light of the current global economic environment, and how we might respond if our income were reduced.

Our conclusion is that it would be prudent to maintain our reserves at £4 million in real terms to give us reasonable confidence that we can both meet our existing commitments and retain the ability to respond to unexpected priorities where operational flexibility is a necessity.

Investments During the year we received income of £67,053 (rather less than last year) but saw our investments increase in value by just under £300,000, all of which was unrealised.

We adjusted our asset allocation policy to include overseas equities for the first time, allocating 15% for this purpose with corresponding adjustments to other classes. We also appointed a second fund manager for this class.

In monitoring the performance of our appointed fund managers we use individual benchmarks, reflecting our asset allocation policy.

As we have very specific constraints regarding ethical investments we accept that sometimes we may sacrifice the possibility of gains (for example we will not invest in businesses that test their products on animals, such as cigarette manufacturers, or cause significant environmental damage, such as mining companies), so our core aim is to achieve a better return than we could through simply using cash deposits. We received reports from the ethical analysts we retain and remain satisfied with our holdings but keep the position under active review. 21 TRUSTEES’ RESPONSIBILITIES

Under the Charities Act 1993 and the Companies Act 2006, the Trustees are required to prepare a report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, that period. In preparing those accounts, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue its operations.

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006 and the regulations under Section 42(1) of the Charities Act 1993. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

This report was approved by the Trustees on 14 September 2010 and signed on their behalf by

Brian Bergin Secretary

22 INDEPENDENT G AUDITOR’S REPORT F TO THE MEMBERS OF THE BORN FREE FOUNDATION LIMITED We have audited the group and parent company financial statements of The Born Free Foundation Limited for the year ended 31 March 2010 which comprise the Group Statement of Financial Activities, Group Balance Sheet, Company Balance Sheet, the Cash Flow Statement and the related notes. These financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the charitable company’s members, as a body, in accordance with Sections 495 and 496 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors The trustees’ (who are also the directors of The Born Free Foundation Limited for the purposes of company law) responsibilities for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Trustees’ Responsibilities.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice and have been prepared in accordance with the Companies Act 2006. We also report to you whether in our opinion the information given in the Trustees’ Annual Report is consistent with the financial statements.

In addition we report to you if, in our opinion, the charity has not kept adequate accounting records, if the financial statements are not in agreement with the accounting records and returns, if we have not received all the information and explanations we require for our audit, or if certain disclosure of trustees’ remuneration specified by law are not made.

We read the Trustees’ Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.

Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charitable company’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion In our opinion: • the financial statements give a true and fair view of the state of the charitable group and company’s affairs as at 31 March 2010, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; • the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice ; • the financial statements have been prepared in accordance with the Companies Act 2006; and • the information given in the Trustees’ Annual Report is consistent with the financial statements.

Richard Spofforth Bsc FCA (Senior Statutory Auditor) For and on behalf of Spofforths LLP, Statutory Auditor,Chartered Accountants Comewell House, North Street, Horsham, West Sussex, RH12 1RD Date: 29 November 2010 23 GROUP STATEMENT OF FINANCIAL ACTIVITIES Incorporating the Income and Expenditure Account and the Statement of Total Recognised Gains and Losses

FOR THE YEAR ENDED 31 MARCH 2010

Unrestricted Restricted Notes funds funds 2010 2009

££ £ £ Incoming resources Incoming resources from generated funds Voluntary income Donations 4 667,448 385,869 1,053,317 3,313,751 Legacies 4 873,379 153,585 1,026,964 405,623 Tax received 196,239 - 196,239 205,320 Membership base subscription 144,603 - 144,603 157,182 Membership subscriptions to specific projects 4 - 98,915 98,915 95,393 Adoptions 4 - 391,484 391,484 480,101 Activities for generating funds Events, lotteries and other activities 586,556 - 586,556 297,190 Trading income of subsidiary undertaking 14 239,730 - 239,730 143,154 Royalties 6,967 - 6,967 7,402 Investment income 3 67,053 - 67,053 105,119 Other income 36,643 - 36,643 46,586

Total incoming resources 2,818,618 1,029,853 3,848,471 5,256,821

Resources expended Cost of generating funds Cost of generating voluntary income Donations 111,045 - 111,045 127,357 Legacies 10,984 - 10,984 11,075 Membership subscriptions 69,838 - 69,838 77,162 Fundraising and publicity 704,060 - 704,060 446,464 Cost of subsidiary trading company 202,142 - 202,142 89,805 Investment management costs 11,830 - 11,830 9,432 Charitable activities Zoocheck - 198,035 198,035 178,857 Elephants - 105,006 105,006 97,420 Bears - 81,496 81,496 32,920 Wolves - 138,901 138,901 128,928 Big cats - 510,411 510,411 683,940 Primates - 440,363 440,363 408,152 Marine - 69,070 69,070 62,829 Information services and education - 508,085 508,085 574,128 Other projects - 348,437 348,437 428,869 Governance 7 21,095 - 21,095 23,973 Other resources expended Taxation 8 924 - 924 74 Total resources expended 5 1,131,918 2,399,804 3,531,722 3,381,385

Net incoming resources before transfers 2 1,686,700 (1,369,951) 316,749 1,875,436

Transfer between funds 22, 23 (1,433,885) 1,433,885 - - Net income for the year 252,815 63,934 316,749 1,875,436

Foreign exchange differences on restatement of foreign currency opening reserves (2,053) - (2,053) 4,964 Gains/(losses) on investment assets 295,352 - 295,352 (799,310)

Netmovementin funds 546,114 63,934 610,048 1,081,090

Funds at 1 April 2009 4,101,898 96,265 4,198,163 3,117,073

Funds at 31 March 2010 20 4,648,012 160,199 4,808,211 4,198,163

24 GROUP C BALANCE SHEET B

AS AT 31 MARCH 2010

Notes 2010 2009

££££ Fixed assets Intangible fixed assets 10 1 1 Tangible fixed assets 11 109,736 144,801 Investments 12 1,500,886 1,613,499

1,610,623 1,758,301

Current assets Investment property held for sale - 549,981 Stocks 53,890 55,970 Debtors 15 355,991 404,556 Cash at bank and in hand 3,261,742 2,217,357

3,671,623 3,227,864

Creditors: amounts falling due within one year 16 (278,944) (531,073)

Net current assets 3,392,679 2,696,791

Total assets less current liabilities 5,003,302 4,455,092

Creditors: amounts falling due after more than one year 17 (8,000) (8,000)

Provisions for liabilities 18 (187,091) (248,929)

4,808,211 4,198,163

Funds Unrestricted funds General 4,627,903 4,047,590 Non-charitable 14 20,092 54,291 Minority interests 17 17

23 4,648,012 4,101,898

Restricted funds 22 160,199 96,265

4,808,211 4,198,163

These financial statements were approved by the Trustees and authorised for issue on 14 September 2010 and signed on their behalf by:

Michael Reyner Trustee Company number: 3603432

The notes on pages 28 to 37 form part of these accounts 25 COMPANY BALANCE SHEET

AS AT 31 MARCH 2010

Notes 2010 2009

££££ Fixed assets Tangible fixed assets 11 109,202 144,088 Investments 12 1,500,886 1,613,499 Investment in subsidiary 13 2 2

1,610,090 1,757,589

Current assets Investment property held for sale - 549,981 Debtors 15 399,674 443,281 Cash at bank and in hand 3,199,489 2,203,647

3,599,163 3,196,909

Creditors: amounts falling due within one year 16 (228,392) (517,947)

Net current assets 3,370,771 2,678,962

Provisions for liabilities 18 (187,091) (248,929)

4,793,770 4,187,622

Funds Unrestricted funds 4,633,571 4,091,357 Restricted funds 21 160,199 96,265

4,793,770 4,187,622

These financial statements were approved by the Trustees and authorised for issue on 14 September 2010 and signed on their behalf by:

Michael Reyner Trustee

The notes on pages 28 to 37 form part of these accounts 26 GROUP CASH FLOW N STATEMENT F

FOR THE YEAR ENDED 31 MARCH 2010

2010 2009

££££

Reconciliation of net incoming resources to net cash flow from operating activities

Net income for the year 316,749 1,875,436 Taxation (924) (74) Depreciation 42,938 60,557 Decrease/(increase) in stock 2,080 (20,851) Decrease in debtors 48,565 254,676 (Decrease)/increase in creditors (251,279) 367,633 (Decrease)/increase in provisions (61,838) 217,509 Investment income (67,053) (105,119) Donations of investments - (1,456,982) Donation of current asset investment property - (675,000) Proceeds on sale of current asset investment property 549,981 - Donation of motor vehicle - (35,000) Exchange adjustments in tangible fixed assets 1,149 (4,648) Loss on sale of fixed asset 12,614 5,973 Foreign exchange differences on restatement of foreign currency opening reserves (2,053) 4,964

590,929 489,073

Net cash inflow from operating activities 590,929 489,073

Returns on investments and servicing of finance Investment income received 67,053 105,119

Taxation 74 49

Capital expenditure and financial investment Payments to acquire tangible fixed assets (28,344) (49,200) Proceeds from sale of tangible fixed assets 6,708 - Payments to acquire investments (666,456) (660,193) Receipts from sale of investments 1,074,421 791,761 386,329 82,368

Increase in cash 1,044,385 676,609

Analysis of changes in net debt Balance at Cash Other Balance at 1 April 2009 flows changes 31 March 2010 ££££

Cash at bank and in hand 2,217,357 1,044,385 - 3,261,742 Fixed asset investments 1,613,499 (407,965) 295,352 1,500,886

3,830,856 636,420 295,352 4,762,628

27 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010

Principal accounting policies

Basis of accounting

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), "Accounting and Reporting by Charities" published in March 2005 and applicable accounting standards.

Basis of consolidation

The Group Statement of Financial Activities (SOFA) and Group Balance Sheet consolidate the financial statements of the Foundation and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line-by-line basis.

The Foundation has taken advantage of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2006, Schedule 1 Part 1 and adapted the Companies Act formats to reflect the special nature of the Foundation's activities. No separate SOFA or Income and Expenditure Account have been presented for the Foundation alone as permitted by section 408(3) of the Companies Act 2006 and paragraph 397 of the SORP.

Fixed assets

Fixed assets are recorded at cost or, in cases where fixed assets have been donated to The Born Free Foundation Limited, at valuation at the time of acquisition.

Depreciation

Depreciation has been provided at the following rates in order to write down the cost or valuation, less estimated residual value, of all tangible fixed assets over their expected useful lives.

Plant and office equipment 25% per annum reducing balance Educational and fundraising vehicles 25% per annum reducing balance Furniture and equipment 25% per annum reducing balance Computer equipment 33% per annum straight line

Incoming resources

All incoming resources are included in the SOFA when the Foundation is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies apply to categories of income:

Voluntary income: Voluntary income including legacies represents amounts received and recorded at offices and projects during the year. Membership and adoption income is recognised in the financial statements when it is received.

Investment income: Investment income is recognised in the financial statements when it is receivable.

Activities for generating funds comprises amounts receivable during the year.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of resources.

Fundraising expenditure represents the direct costs of fundraising and general publicity for the Foundation and includes the salaries and other direct costs of fundraising and publicity staff.

Governance costs are those costs associated with the governance arrangements of the Foundation as opposed to those costs associated with fundraising or charitable activity. Included within this category are costs associated with the strategic as opposed to day-to-day management of the Foundation's activities.

Support costs, which include the central office functions, are allocated across the categories of charitable expenditure, governance costs and costs of generating funds. The basis of the cost allocation has been explained in note 6 to the financial statements. 28 NOTES TO THE N FINANCIAL STATEMENTS F FOR THE YEAR ENDED 31 MARCH 2010 1 Principal accounting policies (cont.)

Investments

Investments in subsidiaries are stated at cost less provision for any impairment.

Investments listed on a recognised stock exchange are included in the balance sheet at market value. Investments sold are revalued to market value at the date of sale. The change in the value of investments is reflected in the SOFA.

Value added tax

As the majority of the Foundation's activities are classified as exempt or non-business activities for the purposes of value added tax, the Foundation is unable to reclaim all the value added tax which it suffers on its purchases. Expenditure in these financial statements is therefore shown inclusive of value added tax where it is not recoverable.

Hire purchase and leased assets

All other leases are regarded as operating leases and the payments made under them are charged to the SOFA on a straight line basis over the lease term.

Stocks and investment property held for sale

Stocks and the investment property are consistently valued at the lower of cost and net realisable value less provision for slow moving items.

Pensions

The Foundation operates a defined contribution pension plan. Contributions are charged to the SOFA as they become payable.

Branches of the Born Free Foundation Limited

The branches produce audited branch financial statements to 31 March or 31 January each year. The financial statements are incorporated into the main financial statements at the year end to produce the financial statements for the group.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the SOFA.

2 Net incoming resources before transfers

Net incoming resources before transfers are stated after charging or crediting: 2010 2009 £ £

Depreciation 42,938 60,557 Auditor's remuneration - audit fees 18,000 13,000 - other fees 5,155 4,536 Costs of branch audit 1,042 916 Loss on disposal of fixed assets 12,614 5,973

29 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010

3Investmentincome Unrestricted Restricted funds funds 2010 2009 ££ £ £

Dividend income 61,189 - 61,189 47,334 Interest received 5,864 - 5,864 57,785

67,053 - 67,053 105,119

4 Restricted income Restricted Restricted Member plus donations legacies contributions Adoptions 2010 2009 ££ £ £ £ £

Zoocheck 5,913 - 10,106 - 16,019 20,638 Elephants 20,092 38,585 12,024 91,200 161,901 149,125 Bears 723 - 9,062 23,362 33,147 44,429 Wolves 30,397 115,000 8,821 11,865 166,083 33,143 Big cats 31,649 - 15,590 192,263 239,502 457,958 Primates 182,561 - 26,681 40,676 249,918 274,129 Marine 6,384 - 8,678 10,470 25,532 36,011 Information services and education 108,150 - 7,953 1,580 117,683 104,667 Other projects - - - 20,068 20,068 45,577

385,869 153,585 98,915 391,484 1,029,853 1,165,677

5 Resources expended Grant Activities funding of undertaken Support activities directly costs 2010 2009 ££££ £

Cost of generating funds Cost of generating voluntary income Donations - 72,682 38,363 111,045 127,357 Legacies - 10,033 951 10,984 11,075 Membership subscriptions - 34,816 35,022 69,838 77,162 Fundraising and publicity - 559,804 144,256 704,060 446,464 Cost of subsidiary trading company - 195,656 6,486 202,142 89,805 Investment management costs - 11,830 - 11,830 9,432 Charitable activities Zoocheck 63 172,107 25,865 198,035 178,857 Elephants 48,631 43,791 12,584 105,006 97,420 Bears 55,096 17,824 8,576 81,496 32,920 Wolves 85,000 39,588 14,313 138,901 128,928 Big cats 168,158 272,044 70,209 510,411 683,940 Primates 151,136 240,425 48,802 440,363 408,152 Marine 30,109 31,701 7,260 69,070 62,829 Information services and education 120,980 258,206 128,899 508,085 574,128 Other projects 83,223 125,931 139,283 348,437 428,869 Governance - 21,095 - 21,095 23,973 Other resources expended Taxation - 924 - 924 74

742,396 2,108,457 680,869 3,531,722 3,381,385

Included within grants funding are grants to individuals of £13,728. All remaining grants were made to institutions. £147,198 was paid to Oxford University including £85,000 for wolves. There is a remaining commitment of £177,091 to fund the Bill Travers Chair at Oxford University. 30 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010

6 Analysis of support costs Property General Finance, IT Other support and general support salaries office costs costs 2010 2009

£££ £ £ £

Cost of generating funds Cost of generating voluntary income Donations 1,869 13,861 20,500 2,133 38,363 44,086 Legacies - - 951 - 951 1,163 Membership 3,109 19,822 11,478 613 35,022 35,319 Fundraising and publicity 6,500 57,215 51,594 28,947 144,256 83,723 Cost of subsidiary trading company 544 3,632 2,310 - 6,486 6,202 Charitable activities Zoocheck 497 4,509 20,791 68 25,865 36,511 Elephants 509 4,623 6,929 523 12,584 12,283 Bears 431 3,914 4,090 141 8,576 3,566 Wolves 737 6,687 6,672 217 14,313 11,459 Big cats 2,973 26,984 39,236 1,016 70,209 80,841 Primates 2,074 18,825 26,843 1,060 48,802 46,189 Marine 353 3,205 3,594 108 7,260 6,187 Information services and education 6,676 44,308 28,374 49,541 128,899 172,700 Other projects 1,856 16,923 12,312 108,192 139,283 29,932

Total support costs 28,128 224,508 235,674 192,559 680,869 570,161

Support costs have been allocated based on estimated staff time spent on the activities of the Foundation.

7 Governance 2010 2009 Governance costs are made up of the following: £ £ External audit 19,042 13,916 Internal staff costs 2,053 10,057

21,095 23,973

8 Taxation

The Born Free Foundation Limited is a registered charity and is thus exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Corporation tax of £924 is due to be payable by Born Free Trading Limited, a wholly owned subsidiary (2009: £74).

31 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010

9 Trustees, directors and employees

Staff costs were as follows: 2010 2009 £ £

Wages and salaries 852,267 791,320 Social security costs 78,467 72,293 Pension costs 40,293 37,405

971,027 901,018

The Trustees' remuneration was £nil (2009: £nil).

Five Trustees received reimbursement for expenses amounting to £5,518 (2009: £13,951). These relate to travel expenses, postage, telephone calls and use of home.

No employee's emoluments for the year fell within the band from £60,000 to £69,999 (2009: 1 employees).

The average number of staff employed by the Foundation during the year was as follows: 2010 2009 Number Number

Charitable projects 19 18 Information services and education 2 2 Fundraising and publicity 7 7 Member and support services 5 5 Governance 1 1 Kenya branch 6 6 Unpaid part time volunteers 15 15

55 54

Of the non-voluntary staff, 9 are employed on a part time basis.

10 Intangible fixed assets Group Company ££ Cost - film rights At beginning of year 1-

Net book value at 31 March 2010 1-

Net book value at 31 March 2009 1-

32 NOTES TO THE N FINANCIAL STATEMENTS F FOR THE YEAR ENDED 31 MARCH 2010

11 Tangible fixed assets

Group Plant and Educational Furniture Computer Total office and and equipment equipment fundraising equipment vehicles £££££ Cost At 1 April 2009 43,561 168,540 23,872 265,242 501,215 Additions 918 8,991 5,974 12,461 28,344 Disposals - (27,917) - (109,195) (137,112) Exchange adjustment (23) (1,888) (63) (80) (2,054)

At 31 March 2010 44,456 147,726 29,783 168,428 390,393

Depreciation At 1 April 2009 32,488 72,684 17,203 234,039 356,414 Charged for the year 3,120 24,661 3,156 12,001 42,938 Disposals - (22,759) - (95,031) (117,790) Exchange adjustment (11) (788) (41) (65) (905)

At 31 March 2010 35,597 73,798 20,318 150,944 280,657

Net book value At 31 March 2010 8,859 73,928 9,465 17,484 109,736

At 31 March 2009 11,073 95,856 6,669 31,203 144,801

Company Plant and Educational Furniture Computer Total office and and equipment equipment fundraising equipment vehicles £££££ Cost At 1 April 2009 41,210 168,540 23,072 264,531 497,353 Additions 918 8,991 5,974 12,461 28,344 Disposals - (27,917) - (109,195) (137,112) Exchange adjustment (23) (1,888) (63) (80) (2,054)

At 31 March 2010 42,105 147,726 28,983 167,717 386,531

Depreciation At 1 April 2009 30,387 72,684 16,593 233,601 353,265 Charged for the year 3,058 24,661 3,108 11,932 42,759 Disposals - (22,759) - (95,031) (117,790) Exchange adjustment (11) (788) (41) (65) (905)

At 31 March 2010 33,434 73,798 19,660 150,437 277,329

Net book value At 31 March 2010 8,671 73,928 9,323 17,280 109,202

At 31 March 2009 10,823 95,856 6,479 30,930 144,088

The Born Free Foundation Limited also has the use of a cottage located on Skye, Scotland. No amounts for the cottage have been included in the accounts of the Foundation as the title to the cottage has yet to be formalised. The Foundation has occupied 33 the cottage since 1996. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010

12 Fixed asset investments Group and company 2010 2009 All investments are held within the UK £ £ At 1 April 2009 1,613,499 962,375 Additions at market value 666,456 2,117,175 Disposals at market value (1,074,421) (791,761) Change in market value 295,352 (674,291) Market value at 31 March 2010 1,500,886 1,613,499

Historical cost at 31 March 2010 1,210,787 1,523,610

13 Investment in subsidiary undertakings Company £ Cost at beginning and end of year 2

14 Subsidiary undertakings

During the year, the Foundation held two subsidiaries, both of which are incorporated in England & Wales. Born Free Trading Limited makes gift aid payments out of profits to The Born Free Foundation Limited. Born Free Films Limited is a dormant company. Name: Nature of business: Type of share: Holding: Born Free Trading Limited Sale of Born Free merchandise and services Ordinary 100% Born Free Films Limited Film development Ordinary 83%

The accounts of the trading subsidiary companies are prepared to 31 March each year and the results of the companies are consolidated into these accounts on a line by line basis and are summarised below: Born Free Born Free Total Trading Films Limited Limited £££ Turnover 239,730 - 239,730 Cost of sales (165,586) - (165,586) Gross profit 74,144 - 74,144 Administrative expenses (44,317) - (44,317) Charitable gift (25,000) - (25,000) Profit on activities before taxation 4,827 - 4,827 Corporation tax (924) -924- Profit retained in the subsidiary 3,903 - 3,903

Net assets at 31 March 2010 22,831 (2,739) 20,092

34 NOTES TO THE N FINANCIAL STATEMENTS F FOR THE YEAR ENDED 31 MARCH 2010

15 Debtors Group Company 2010 2009 2010 2009 £ £ £ £

Other debtors 112,096 109,688 119,769 116,350 Amounts owed by group undertakings - - 35,375 31,908 Prepayments and accrued income 243,895 294,868 243,574 294,868 Other taxes and social security - - 956 155

355,991 404,556 399,674 443,281

Prepayments and accrued income includes £139,613 (2009: £53,883) with regard to legacies receivable which have not yet been received.

16 Creditors: amounts falling due within one year Group Company 2010 2009 2010 2009 £ £ £ £

Trade creditors 73,850 67,341 53,714 58,330 Accruals and deferred income 171,709 136,082 150,463 133,288 Other creditors 30 306,266 - 306,236 Corporation tax 924 74 - - Other taxes and social security 32,431 21,310 24,215 20,093

278,944 531,073 228,392 517,947

17 Creditors: amounts falling due after more Group Company than one year 2010 2009 2010 2009 £ £ £ £

Loan 8,000 8,000 - -

18 Provisions for liabilities and charges

Group and company Other projects Dilapidations Total £££

Balance at start of year 238,929 10,000 248,929 Released in the year (61,838) - (61,838)

Balance at end of year 177,091 10,000 187,091

The provision included in the financial statements for other projects relates to the funding of the Bill Travers Chair at Oxford University.

19 Contingent asset

At 31 March 2010 the Foundation had been notified of legacy bequests estimated at £90,758. The Foundation had not been informed of the final amount receivable by the year end and as such these amounts have not been included within legacy income for the year ended 31 March 2010.

35 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010

20 Analysis of group net assets between funds Unrestricted Restricted Total funds funds funds ££ £

Fund balances at 31 March 2010 are represented by: Intangible fixed assets 1 - 1 Tangible fixed assets 109,736 - 109,736 Investments 1,500,886 - 1,500,886 Net current assets 3,055,389 337,290 3,392,679 Creditors: amounts falling due after more than one year (8,000) - (8,000) Provisions for liabilities and charges (10,000) (177,091) (187,091)

4,648,012 160,199 4,808,211

21 Share capital

The Foundation is a company limited by guarantee and not having a share capital. Each member is a guarantor in the sum of £1. The Trustees are all members.

22 Restricted funds

Group and Company At 1 April Incoming Outgoing Transfers At31March 2009 2010 ££ £ £ £

Zoo check - 16,019 (198,035) 182,016 - Elephants 76,122 161,901 (105,006) - 133,017 Bears 20,143 33,147 (81,496) 28,206 - Wolves - 166,083 (138,901) - 27,182 Big cats - 239,502 (510,411) 270,909 - Primates - 249,918 (440,363) 190,445 - Marine - 25,532 (69,070) 43,538 - Information services and education - 117,683 (508,085) 390,402 - Other miscellaneous projects - 20,068 (348,437) 328,369 -

96,265 1,029,853 (2,399,804) 1,433,885 160,199

36 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010

23 Unrestricted funds

Group At 1 April Incoming Outgoing Transfers At31March 2009 2010

££ £££

General unrestricted 4,083,605 2,818,618 (838,619) (1,415,592) 4,648,012 Designated - Bears 18,293 - - (18,293) -

4,101,898 2,818,618 (838,619) (1,433,885) 4,648,012

Company At 1 April Incoming Outgoing Transfers At31March 2009 2010

££ £££

General unrestricted 4,073,064 2,578,888 (628,714) (1,415,592) 4,607,646 Designated - Bears 18,293 - - (18,293) -

4,091,357 2,578,888 (628,714) (1,433,885) 4,607,646

The designated fund represents amounts set aside by the trustees for use in connection with bear related projects. Due to increased expenditure during the year for bear related projects the fund has now been fully utilised.

24 Operating lease commitments 2010 2009 £ £ At 31 March 2010 the Foundation had annual commitments under non-cancellable operating leases as set out below:

Operating leases which expire: Between two and five years (other) 9,144 3,492 After five years (land and buildings) 74,000 74,000

83,144 77,492

25 Transactions with directors and trustees

The Chief Executive Officer is a son of Virginia McKenna who is a trustee. He received remuneration of £59,225 (2009: £62,500) in the year.

26 Related parties

In the opinion of the trustees the Foundation is controlled by them.

Included within other debtors in the financial statements are amounts owed by Born Free USA. Ronnie Wilkie and Andrew Newton are trustees of both the charity Born Free USA and The Foundation. Will Travers is also appointed as Chief Executive Officer for both charities. The balance outstanding at the year end was £15,021 (2009: £4,440).

37

Born Free Foundation, 3 Grove House, Foundry Lane, Horsham, West Sussex RH13 5PL 01403 240170 www.bornfree.org.uk Charity No: 1070906 Company No: 3603432 Printed on recycled paper