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2022-03-31-accounts

Trustees’ Annual Report and Accounts for the year ended 31 March 2022 THE BORN FREE FOUNDATION

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CHAIR’S INTRODUCTION
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ENDING THE EXPLOITATION AND SUFFERING OF WILD ANIMALS

20 PLANS FOR THE FUTURE

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FINANCIAL REVIEW
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A FEW WORDS FROM
THE EXECUTIVE PRESIDENT
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6 OUR VISION

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PROTECTING WILD
ANIMALS, HABITATS INSPIRING COMPASSION AND
AND ECOSYSTEMS RESPECT FOR WILD ANIMALS
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REFERENCE AND
STRUCTURE, GOVERNANCE ADMINISTRATIVE
AND MANAGEMENT INFORMATION
© J Pepler_Pinpep
© burrard-lucas.com © georgelogan.co.uk
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INDEPENDENT AUDITOR’S
REPORT TO THE MEMBERS
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35 CONSOLIDATED FINANCIAL STATEMENTS

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OUR VISION

OUR VISION IS A WORLD WHERE INDIVIDUAL WILD ANIMALS ARE TREATED WITH RESPECT AND COMPASSION. WE STRIVE TO SECURE MUTUALLY BENEFICIAL CO-EXISTENCE, ENABLING WILD ANIMALS TO LIVE THEIR LIVES FREE FROM HARMFUL HUMAN EXPLOITATION AND AS PART OF FUNCTIONAL, VIABLE ECOSYSTEMS.

We have three core Impact Goals that guide us as we work to realise our vision. They are:

  1. Ending the Exploitation and Suffering of Wild Animals

  2. Protecting Wild Animals, Habitats and Ecosystems

  3. Inspiring Compassion and Respect for Wild Animals

Our Impact Goals are aligned to broader global ambitions as agreed by the international community in the United Nations’ Sustainable Development Goals.

The UN Sustainable Development Goals (SDGs) are illustrated in the table below. They represent global objectives designed to secure an equitable, longterm future for the planet and all its life forms. Born Free’s efforts should chime with the overall ambitions of the SDGs.

Born Free’s actions actively engage with and help deliver against the SDGs that best reflect our charitable values.

To achieve our Vision requires us to adopt a multifaceted approach to our work, recognising the interdependent nature of our three Impact Goals. We seek to identify and apply practical, long-lasting solutions. Our inter-related activities provide for a cohesive approach based on the charity’s four programmatic pillars – Wildlife-Friendly Policy, Compassionate Conservation, Humane Education and Captive Wild Animal Welfare. These in turn are aligned to our internal departmental structure of:

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In all our work, we adhere to our values as set out in the elephant below.

Our Programmes, Campaigns and external Partnerships take into account our heritage, our DNA, our character and our ethics. The design and development of activities are undertaken in the context of the following Considerations:

Born Free takes a lead role in these projects, curating strategy, delivering much of the work directly and committing substantial human and financial resources for the longer term. Within each programme, there will be multiple projects working coherently to achieve our aims. Examples of our Tier 1 work include the Pride of Amboseli and Saving Meru’s Giants, in Kenya.

  1. Conservation coherence

  2. Policy coherence

  3. Education coherence

  4. Welfare coherence

  5. Community engagement

  6. Attitudinal change opportunities

We also have a larger number of Tier Two activities, where Born Free provides intellectual and modest financial support to trusted partners. Examples include our contribution to the Ngamba Island chimpanzee project in Uganda and the Freeland tiger project in Thailand.

  1. Wildlife law-enforcement opportunities

  2. Capacity-building opportunities

  3. Scientific credibility

A Tier Two activity may, over time, develop into a Tier One activity.

  1. Marketability

  2. Story-telling potential

  3. Measurable impact

  4. Practicality

  5. Financial viability

Alongside our Tier One and Tier Two work, we also deliver specific campaigns that are defined by a particular timescale or objective, for example, achieving legislative change.

  1. Collaboration

The emphasis, thrust and level of investment behind our activities can broadly be divided into two tiers.

We have a small number of Tier One programmes and campaigns. These are programmes of work undertaken at landscape level, covering a specific geographical area, that have a particular focus on protecting threatened species and ecosystems.

Each of our efforts, large or small, seeks to address multiple challenges by identifying and applying practical, long-lasting solutions, and inspiring others to both support our work, and follow our example in their own lives to do what they can to create a more sustainable, compassionate, and caring world.

The following sections highlight the main activities we have performed in the year (2021/22) to deliver against each of our Impact Goals.

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

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ANIMALS WILD ANIMALS ARE EXPLOITED IN MYRIAD WAYS - BOTH IN CAPTIVITY AND IN THE WILD. THE NEGATIVE IMPACTS OF THAT EXPLOITATION CAN CAUSE LASTING DAMAGE TO INDIVIDUALS AND SPECIES. BORN FREE HAS ALWAYS PLACED A HIGH VALUE ON THE IMPORTANCE OF THE INDIVIDUAL ANIMAL.

Our efforts continue to explore alternatives to trophy hunting that deliver tangible benefits to conservation, environment protection and community development.

The policies we help develop and promote, the conservation initiatives we undertake, the humane education work we deliver, and the efforts we invest in caring for the many animals we rescue from appalling captive circumstances, demonstrate that ending the exploitation and suffering of wild animals lies at the heart of everything we do.

Killing animals for ‘sport’

Having campaigned since our inception to end the exploitative ‘sport’ of trophy hunting, Born Free helped persuade the UK government to announce details of its long-anticipated ban on trophy imports and is pushing for its introduction without delay. Our efforts continue to explore alternatives to trophy hunting that deliver tangible benefits to conservation, environment protection and community development. We helped influence the South African government’s draft policy intentions to phase-out the despicable captive lion breeding industry, associated canned hunting of lions and other big cats, and the export of lion bones for international trade.

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Tackling trade in wildlife

Our long-standing efforts to end illegal trade in wild flora and fauna, and reduce the impact of legal trade, continued through our participation in the Convention on International Trade in Endangered Species (CITES), our membership of the Species Survival Network, and our involvement in Multilateral Environmental Agreements such as the Convention on Migratory Species. We do all we can to oppose trade in live wild animals and end the capture of live wild-caught elephants for export to zoos. As a cofounder of the Global Initiative to End Wildlife Crime, chaired by former CITES Secretary General, John Scanlon, Born Free helped secure governmental support to develop a global agreement to tackle wildlife crime and establish a 4th Protocol under the United Nations Treaty on Organised Crime.

Animals have feelings

Aided by our supporters, Born Free has been a prominent member of the Better Deal for Animals coalition, campaigning for animal sentience to be recognised since it fell out of UK law following Brexit, and for the Animal Welfare (Sentience) Bill to pass through Parliament without being weakened. The new UK law would recognise animals as sentient beings with feelings, and worthy of respect.

Lions of Lockdown

After a two-year delay due to Covid-19, in February 2022 four adult lions rescued from a circus in France were finally moved from their temporary home in France to lifetime care at our big cat sanctuary at Shamwari Private Game Reserve, South Africa,. Our appeal to supporters raised £116k towards their significant lifetime care costs (each animal costs Born Free about £5,000 a year to care for), and the move received widespread media coverage, including BBC Breakfast and ITV News. Lavished with skilful care, the four lions have transformed in their ancestral homeland – what a contrast to their miserable lives of exploitation in the big top.

Fighting to end the ivory trade

For more than 30 years, Born Free has campaigned effectively for legal and practical measures to protect elephants from poaching. Shockingly, evidence suggests that the UK was, until recently, the world’s largest exporter of legal ivory and Born Free has fought a lengthy battle to strengthen the trade ban, first introduced in 1989. Four years after the UK Government passed the legislation, the Ivory Act 2018, banning almost all UK ivory sales, comes into force in June 2022. We cautiously welcomed the European Commission’s new ivory trade regulations following years of lobbying, urging greater action through strengthening the EU’s Action Plan Against Wildlife Trafficking.

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Our work continues to
combat the devastating
trade in elephant ivory
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At long last, the Lions of Lockdown arrive at our sanctuary in South Africa

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

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A victim of Ethiopia’s illegal wildlife trade, a young cheetah is safe in our care following a dramatic rescue operation

Ensessa Kotteh Wildlife Centre, Ethiopia

Our talented Ethiopian team rescued two cheetahs and five grivet monkeys from the illegal wildlife trade, nursing them back to health and providing expert care. As the only centre of its kind in Ethiopia and aided by our recent £27k Safe Haven appeal, Ensessa Kotteh plays a crucial role in supporting the wildlife law enforcement work of our partners, The Ethiopian Wildlife Conservation Authority (EWCA), and rehabilitating confiscated, orphaned and injured animals, including lions and hyenas. Our education team worked with local communities to promote conservation, combat trade and end exploitation, including conducting awareness workshops with education officials and police officers, plus outreach and equipment donations to local schools.

Sandro, Simba and the servals

Rescued from a barren cage in a rundown Spanish zoo, we give Sandro the tiger a life worth living, at a sanctuary in Italy

Rescued from a barren cage in a rundown zoo in Spain – closed after a lengthy Born Free campaign – 15-year-old tiger, Sandro, was moved from a halfway house in Belgium to a life of bliss at

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13 orphan brown bear cubs,
rescued as helpless newborns,
were rehabilitated and
successfully returned to the
wild in Russia
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Animanatura Wild Sanctuary in Italy, aided by a £51k appeal. Meanwhile, 18-month-old lion cub Simba was safely brought to a temporary home in Belgium from Russia’s cruel wildlife trade, and four rescued servals – kept illegally as pets in Belgium – now enjoy spacious enclosures where nature intended at the Panthera Africa sanctuary, not far from Cape Town, South Africa. Many captive wild cats are not so fortunate and, in the UK alone, at least 75 servals are kept privately. Alongside others, including the Wildheart Sanctuary, our work continues to persuade the government to reform laws on exotic pet ownership.

Other rescues

From wild-caught victims of the wild pet trade, such as Simao the chimpanzee in Guinea-Bissau and flocks of grey parrots in Cameroon, to victims of human conflict such as pangolins in Central African Republic, brown bear cubs in Russia and Gopal the tiger in India, Born Free supports the rescue and care of individual animals, returning to the wild, whenever possible or providing a loving forever home.

Supporting sanctuaries

As well as directly facilitating rescues and providing on-going care, we work with partners who provide sanctuary for animals saved from exploitative situations, providing grants, and offering our expertise. These on-going partnerships include:

Some of these rescued animals are supported through our Animal Adoptions programme which, including new eco-friendly digital adoptions, raised £1.0m for wild animal care and conservation over the year.

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THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

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PROTECTING WILD ANIMALS, HABITATS AND ECOSYSTEMS

BORN FREE’S CORE MESSAGE IS THAT WE SHOULD STRIVE TO ‘KEEP WILDLIFE IN THE WILD’. ENDING THE CAPTIVE EXPLOITATION OF WILD ANIMALS IS A DECADES[-] LONG MISSION BUT IT IS VITAL THAT WE REDIRECT OUR ENERGY, EFFORTS AND RESOURCES AWAY FROM THE INCARCERATION OF WILD ANIMALS FOR HIGHLY-CONTESTABLE ‘CONSERVATION AND EDUCATION BENEFITS’ TOWARDS INVESTING IN WILDLIFE AND WILD PLACES.

Born Free achieved significant outcomes across a large range of international, regional, and national initiatives, including promoting wildlife protection through addressing climate, biodiversity and human health crises.

The current global initiative to secure 30% of the planet for wildlife attests to how ‘on message’ Born Free has been for all these years. Our strategy of deploying the majority of our conservation funding into our Tier One landscape level programmes, whether that be in Kenya, India, or Cameroon, allows us to claim with justification that we are putting our money where our mouth is.

Managing Nature: a global framework

Born Free achieved significant outcomes across a large range of international, regional, and national initiatives, including promoting wildlife protection through addressing climate, biodiversity and human health crises. We urged the United Nations Convention on Biological Diversity (CBD) to increase its ambitions for wildlife, resulting in positive changes to the Global Biodiversity Framework, due to be agreed in 2022.

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Global Pandemics Agreement

Joining with partner NGOs, we helped persuade the World Health Organisation to include preventative measures in the development of a Global Pandemics Agreement which will promote action to change our relationship with wild animals, protect species, end habitat destruction, curb wildlife trade, and improve animal welfare as key to reducing future pandemic risks.

Together for our planet, COP26

Born Free hosted a ‘State of the Earth’ Question Time debate in partnership with the Cabinet Office at the COP26 Climate Change Conference in Glasgow, November 2021. The sell-out event, live streamed to a global audience, highlighted how important nature protection is if we are to achieve climate stability targets and end the exploitation and destruction of the natural world, in order that wildlife and people can live in harmony.

UK small grants, big impact

Born Free provided a number of small grants to wildlife rescue and rehabilitation centres, saving lives and protecting native species across the UK. We funded vital equipment and veterinary care such as an essential £500 brooder to keep orphan baby birds warm at Baby Beaks Garden Bird Rescue in Kinross-shire. In West Sussex, Born Free supported the rescue of 167 animals, across 23 native species, plus the overwintering and release of 25 rescued ‘autumn juvenile’ hedgehogs.

Pride of Meru, Kenya

In our spiritual heartland, where Elsa the lioness was returned to the wild, we support our partners, the Kenya Wildlife Service (KWS), to restore wildlife populations previously decimated by poaching. Our lion conservation team covered over 10,000 miles in vehicles and captured thousands of hours of data in the field aided by 40 new camera traps. In total, 65 individual lions were logged on our ID database and ten new lion cubs recorded. We also helped rescue two lions from deadly wire snares and conducted a successful pilot study for a socio-economic community survey, facilitated by newly recruited ‘Conservation Ambassadors’.

Saving Meru’s Giants, Kenya

Supported by a successful £71k appeal, we launched a major new project with local people to protect rare giraffes and elephants, and find solutions to wildlife conflict. We completed two solar-powered staff houses, and our five newly-recruited Conservation Ambassadors will help to add to our database of 46 individuals, including the Acacia elephant family, and 45 giraffes. Our new five-person Twiga Team of eco-scouts will help combat illegal hunting and remove lethal snares. We also help keep 100 black and white rhinos safe in Meru, providing KWS rangers with essential solar energy and other support. Not a single rhino has been poached in Meru since 2019, while Kenya’s rhinos increased 11% to 1,605, including 10 Meru calves.

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With the help of 40 new camera
traps, a total of 65 lions were
identified and added to our
database, including 10 new cubs
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Trustees’ Annual Report and Accounts for the year ended 31 March 2022THE BORN FREE FOUNDATION 13
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Born Free works with local communities to reduce conflict so people and wild animals can coexist

Pride of Amboseli, Kenya

We reinforced 20 traditional livestock night corrals (bomas) – including the world’s biggest predatorproof boma at 500m in circumference – to protect cattle, sheep and goats, end retaliatory attacks on lions and other predators, and promote coexistence. We also distributed 1,050 energy saving stoves and 46 solar units. A total of 361 Born Free predatorproof bomas now protect 100,000 livestock, and directly assist 7,500 people. Since this work began in 2010, lions have increased 182% to over 140 in the parts of the Amboseli ecosystem where we work, and by 29% to 2,589 countrywide.

Satpuda Landscape Tiger Programme, India

In 2021, India reported nearly 3,000 tigers, over double the number recorded when our work began in Central India’s forests in 2004. A £51k appeal, launched with the assistance of Founder Patron Dame Joanne Lumley and featured in the Independent, allowed our work with eight Indian partner organisations to continue, focusing on conservation education (6,346 students engaged in 97 local schools), community health (186 medical camps treated 9,354 patients from local villages), and human-wildlife conflict mitigation – the Tiger Ambassador programme now involves 65 villages,

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Tigers on the up: India reported
nearly 3,000 tigers, more than
double recorded in 2004, the
year our tiger conservation
work began there
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Born Free works to protect
wild pangolins, return rescued
individuals to the wild and
stop their exploitation
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helping to prevent deadly conflict. Born Free recruited Network Support Consultant Yashvardhan Dalmia to aid communication. Our Partners on the programme include: Tiger Research and Conservation Trust; Bombay Natural History Society; Satpuda Foundation; The Corbett Foundation; Conservation Action Trust; Nature Conservation Society Amravati; Bagh Aap Aur Van; Wildlife Conservation Trust; Tony Renton; and Professor Claudio Sillero.

Tier Two projects

We sponsor partner-led collaborations to protect a range of species, with highlights including the return of

two seized Indian pangolins to the wild, 13 orangutan births in Borneo’s Lamandau Reserve and an incredible 94 new Ethiopian wolf pups (there are only approximately 500 Ethiopian wolves in existence). With our help: a NW Liberia survey counted 450 forest elephants, 151 wildlife traffickers and other major criminals were arrested across eight African countries, and 33 adult Indochinese tigers are now monitored in eastern Thailand – aided by our 20 donated camera traps. We helped monitor over 100 chimpanzees living in a vital ‘corridor’ area in Uganda, supported a large carnivore survey in Ethiopia, and a prey survey in Sudan, while in Cameroon the two ‘conflict’ lions we helped relocate are living safely inside a National Park.

Human-elephant conflict, Sri Lanka

The National Action Plan for Human Elephant Conflict Mitigation, previously prepared by the Presidential Committee, was not actioned as recommended, but would have included the erection of power fencing and the creation of trenches on Protected Area boundaries. However, after the expert committee raised concerns, the Parliamentary Committee on Public Accounts directed the Ministry of Wildlife to comply with the plan’s recommendations.

Environmentally sensitive areas, Sri Lanka

An expert group completed the National Policy on Environmentally Sensitive Areas (ESA) with emphasis on mitigating Human Wildlife Conflicts. As an outcome of this exercise, the Ministry of Environment intends to identify one hundred ESAs for protection.

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

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Born Free inspires the next generation, including schools and communities living alongside some of the world’s most threatened wildlife

INSPIRING COMPASSION AND RESPECT FOR WILD ANIMALS

IT MAY SEEM A TRUISM, BUT CHILDREN REALLY ARE THE FUTURE. PART OF BORN FREE’S WORK IS TO ENGAGE AND EMPOWER THE NEXT GENERATIONS, AND CHANGE THE MIND OF THE CURRENT GENERATION, TO EQUIP THEM TO DELIVER WILDLIFE FRIENDLY AGENDAS THAT WILL BE ESSENTIAL IF NATURE IS TO SURVIVE IN OUR INCREASINGLY HUMAN-DOMINATED WORLD.

We also have a responsibility to hand over the planet to those who follow us in the best possible condition, which is why our holistic approach to wildlife - individual animals, individual species as part of functional ecosystems - is so important. The key word going forward is co-existence, and we can only achieve true co-existence through compassion and respect at every level.

Hard-hitting reports

Our published reports in 2021-22 highlighted a number of key issues including: the plight of animals in zoos, and UK zoos’ lack of meaningful contribution to conservation; UK’s unethical exploitation of wild animals for exhibition and entertainment; the state of the UK exotic pet trade (in cooperation with the RSPCA), which led to a meeting with DEFRA. With extensive press

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coverage, including the Daily Mail, the Independent and the Sunday Mirror, these reports helped highlight the plight of wild animals in captivity and encourage for changes to legislation and policy.

Online vet hub

With first aid basics, diagnosis, treatment and diet, Born Free’s new series of videos was launched to help veterinary professionals look after UK wildlife casualties from badgers to owls. Aimed at vet students, recent graduates and nurses, the online resource was created by an expert team, including experienced wildlife rehabilitators and vets.

UK education

Born Free hosted a ‘State of the Earth’ Question Time. Our biannual kids’ magazine Hear the Roar was sent to 1,900 schools while a monthly email Hear the Roar XL was sent to 1,000+ young people. Our curriculum-linked online teaching resources covered topics from COP26 to circuses, while Key Stage 2 and Key Stage 3 school webinars reached thousands of children. In addition, working with Volunteers for Future enabled us to directly reach thousands of years 1-6 students. Key Stage 2, 3 and 4 teaching packs, including lesson plans and PowerPoints were developed for our Great Debate, Topic #3 focussing on the global impacts of cattle farming, with a free five-lesson programme published online at the Times Educational Supplement www.tes.com to help teachers engage students.

Wildlife Clubs, Kenya

From regular school conservation clubs to working with women’s groups and planting thousands of trees to create new habitats for wildlife, we supported communities in Meru and Amboseli. Our community outreach included practical support such as installing a water borehole with partners at Schools for Kenya, building a new school science lab, and providing hundreds of schoolgirls with menstrual dignity packs.

Created by experts, our new series of videos helps veterinary professionals look after UK wildlife casualties

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THE BORN FREE FOUNDATION 17
Trustees’ Annual Report and Accounts for the year ended 31 March 2022
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Our 2022 Year of the Lion was launched in memory of our Co-Founder, Bill Travers OBE, to celebrate the symbol of Born Free and raise funds for lion protection

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Local school-children enjoyed
our Born Free Forever exhibit of
25 life-size lions, cast in bronze,
on tour in the UK in 2022
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Arts and outdoor education

Our Creative Nature programme engaged young people through the arts and outdoor education with partners including Last Chance to Paint, Where Did All The Animals Go, Autism and Nature, and Get Creative Outdoors. Our first Youth Wildlife Filmmaker and Photographer of the Year Competition encouraged young people to engage with nature while leading children’s author, Jay Vincent, gave an exclusive online book reading of his brand-new book The Shark Who Barked.

Wildlife Clubs, South Africa

Our team based at Shamwari continued to organise community clean up days with the municipality and has been given permission to restart their work in local schools, including our first regular Born Free Clubs. The Lavelikhwezi Empowerment Project in Paterson, set up with our help, has registered as a Private Company and is now eligible for government grant funding.

Wild Life magazine

Incorporating adoption updates for the first time, our biannual, flagship magazine Wild Life was written, edited, designed, published and distributed to 40k print and 100k digital supporters, including adopters. A new editorial team was established with our Fundraising colleagues to review the publication. Our new monthly impact email for supporters engaged 100k readers.

Digital outreach

Our social media outreach had a 664,688 total audience with 1,720,525 engagements, 357,981 Facebook followers (down 1.1%), 159,134 Instagram (up 8.2%), 137,821 Twitter (up 7.6%)

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and 9,752 LinkedIn (up 51%). We received 1,720,499 website visitors over the year, an average of 4,713 views a day, while our YouTube channel has 51.6k subscribers.

Year of the Lion

To the delight of the public, our Year of the Lion got off to a roaring start with the high-profile launch of our free Born Free Forever exhibition of 25 life-size lions cast in bronze, in London’s Millennium Green, Waterloo, in January. Created by world-famous artists Gillie and Marc, and featured on ITV News, Channel 5 News, Sky News and in the Independent, The Sun, The Daily Mirror and The Express, each lion has a special affinity with our charity, not least Elsa – our original inspiration. The exhibition raises awareness about the negative human impacts on lions including through the pet trade, trophy hunting, human persecution, habitat loss, and zoo and circus exploitation. On tour throughout 2022, in quarterly segments, the exhibition will visit Newcastle (April/June), Bristol (July/September), and finally Edinburgh (October/December), inspiring public interest as well as raising vital funds through sculpture sales.

Our open-air lion exhibit was launched in London’s Waterloo by Co-Founders Will Travers OBE and Virginia McKenna OBE

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Trustees’ Annual Report and Accounts for the year ended 31 March 2022THE BORN FREE FOUNDATION 19
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PLANS FOR THE FUTURE BUILDING ON OUR PREVIOUS ACHIEVEMENTS, SOME OF THE KEY ACTIVITIES WE HAVE PLANNED FOR NEXT YEAR INCLUDE:

Two larger than life reports

Just a cub when found abandoned in a Russian garage, plans are underway to give Simba a lifetime home at a sanctuary in Italy

Born Free’s Policy team will publish a report, in collaboration with Born Free USA, to expose the suffering of elephants kept in captivity, calling for all zoos to become elephant-free. We will also publish an investigation in the UK’s online ivory trade.

Global policy priorities

Our team will seek to secure our wildlife protection and animal welfare priorities within the United Nations’ Global Biodiversity Framework. We will also call for wildlife protection to be front and centre in Europe, in the World Health Organisation’s Pandemics Agreement, and at the Convention on International Trade in Endangered Species (CITES) global wildlife trade meeting in Panama (November 2022).

Big cat moves

We plan to move Sandro the tiger from a temporary enclosure to a new, Born Free-funded purpose-built enclosure at Animanatura in Italy, freeing up space to move Simba the rescued lion from Natuurehulpcentrum in Belgium to Italy. We will then design and build a new, larger enclosure for Simba, funded by an appeal to Born Free supporters.

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The plight of elephants in zoos will be highlighted in a significant Born Free report exposing their captive suffering

Improving infrastructure

At Ensessa Kotteh in Ethiopia we are developing an onsite borehole, solar pump, water storage and gravity-fed water distribution system, and working towards connecting to mains electricity, to improve staff welfare, and to enable the Sanctuary operations to become more reliable and sustainable.

Best-practice guidelines

Thanks to a kind donation from Anna-Louise Pickering and the Pollyanna Pickering Foundation, we will develop best-practice guidelines for the rehabilitation and release of rescued animals, in collaboration with a carefully selected working group of relevant experts.

Saving Meru’s Giants programme implementation

In the next year, our new Saving Meru’s Giants programme in Kenya will progress rapidly, as we construct beehive fences to protect farmers’ crops and create income generating opportunities for communities, and systematically remove illegal snares from the National Park that would otherwise entrap and entangle giraffes and other species.

A major new Saving Meru’s Giants project will aim to secure a future for endangered reticulated giraffe, in Kenya

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

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The Guardians of Dja, an important new conservation project, will protect Cameroon’s rare western lowland gorillas

We will empower and sensitise local communities to turn their traditional livelihoods into a sustainable trade which will ease anthropocentric pressures on the forest and, we hope, enable great ape numbers to stabilise and subsequently increase.

Guardians of Dja

Financially supported by our Apes on the Edge appeal and outreach to companies with links to Cameroon, we will launch a major new conservation programme in the Dja Biosphere Reserve in Cameroon in April 2022, to protect the region’s chimpanzees and gorillas. Working with Association pour la Protection de Grands Singes (Association for the Protection of Great Apes), we will empower and sensitise local communities to turn their traditional livelihoods into environmentally sustainable trade which will ease anthropocentric pressures on the forest and, we hope, enable great ape numbers to stabilise and subsequently increase.

Sanctuary accreditation

Our application for accreditation from the Global Federation of Animal Sanctuaries (GFAS) for our two big cat rescue centres at Shamwari Reserve in South Africa will continue and will involve a site visit from GFAS.

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Brand refresh and new website

Designed for today’s audiences, our Communications team will undertake a vibrant brand refresh to makeover and update our look and feel, while maintaining a visual connection to our current brand identity. Our team will also develop a new, cleaner, easier to navigate website to drive engagement and support. A powerful marketing tool, the new site will appropriately reflect the values, determination, activities and impact of our worldleading organisation.

Fundraising vision

Born Free’s Mane Event in Dorking, UK, in September, will be our first in-person fundraising event since Covid-19. We aim to recruit more individuals to Born Free’s Climb Mount Kenya team and London Marathon team, both in October 2022. We will scale up participants in Born Free’s lottery via email and social media platforms, and further use of Crowdfunder opportunities, not least for people to

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© Rowan Griffiths, The Mirror
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Our Mount Kenya Climb for
Conservation, with Patron Sally
Gunnell OBE, will raise vital funds
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donate Nectar Points to Born Free. With the new Legacy and In-Memory strategy launched, Born Free will engage audiences specifically within key promotional dates e.g. Remember a Charity Week and Free Wills’ Month.

Refreshing the Board of Trustees

Born Free will be refreshing our Board following the expected retirement of two Trustees who have given many years of excellent and dedicated service. We will recruit new Trustees through a professional recruitment agency, and through our own networks, to ensure that we reach the richest pool of expertise to supplement the skills we already have on our Board, and to give ourselves the best opportunity to improve on all aspects of diversity, including skills, thought and experience. Born Free is truly grateful to all our existing and retiring Trustees for their unwavering support.

Born Free Merchandise and Trading

The Born Free Shop will move away from the traditional trading model of offering merchandise through expensive physical stock holdings, to a more dynamic and flexible ‘print-on-demand’ model. This important progression will enable Born Free to offer exciting new creative ranges, but more importantly, it will reduce waste and our environmental impact on the planet by only producing what is already sold.

Attracting Talent to Born Free

Born Free believes that the teams we now have in place are entirely capable of delivering the Organisational Strategy, as agreed by Trustees, for 2022-2024. Nevertheless, we are an organisation which encourages personal growth and ambition, and we will always celebrate progression outside of Born Free if we are unable to offer progression internally. In this regard we have a robust recruitment and induction process in place to ensure that we are attracting the best talent available to our organisation.

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Status and Objects

The charity is a company limited by guarantee. Our governing document is a Memorandum & Articles of Association, dated 1998. Our charitable objects as set out in the Memorandum & Articles of Association are:

We have overseas branches in Kenya and Ethiopia and a long-established partnership with Shamwari Game Reserve in South Africa. We also have an operational presence in Sri Lanka, Australia and France. The charity has three subsidiaries that are separate legal entities – Born Free Trading Ltd, Born Free Films Ltd, which is dormant, and Born Free South Africa Ltd, also dormant. We have a sister organisation in the USA, named Born Free USA, which has a separate Board and is incorporated in the United States as a not-for-profit 501(c)(3).

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

Governing Body and Structure

Our governing body is a Board of Directors. The Directors are the Trustees of the charity. As at 31 March 2022, there were 11 Trustees.

Decision-making

The Trustees’ 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 regard to our charitable objects, fiduciary responsibility, financial controls and investments.

Operational responsibility is delegated to the Executive Management Team, consisting of the Executive President, Managing Director, and Chief Financial Officer. A Secretary to the Board provides advice on general governance matters and administrative assistance to the Board.

The Board receives formal reports in advance of its quarterly meetings. These reports contain details of our programmatic activity, organisational and support function activities, the current position of our finances and other related financial matters.

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. The Board meets quarterly and has two subcommittees, the Finance & General Purposes Committee that also meets quarterly and the Remuneration Committee that meets annually. In addition, we have established Advisory Panels where Trustees, senior staff and independent experts meet to discuss specific issues in more detail to help evolve our approach and work plans. During the year, the Income Generation and Communications Advisory Panel and the Programmatic Advisory Panel each met twice. The Ethical Investments Advisory Panel met once in the year.

The Remuneration Committee approves the salaries for staff, including the salaries of the Executive Management Team. Use is made of relevant sector benchmarks for comparable roles to help establish the salary bands. Cost of living increases are guided by the prevailing level of inflation. Due regard is also given to affordability in the context of the total annual budget.

Trustees

When we recruit new Trustees, we follow a bestpractice process, including a skills audit to identify the qualities sought in potential candidates. A Trustees’ Working Group manages the appointment process, reporting to the full Board. We provide new Trustees with a structured induction that includes

24

Born Free has supported the conservation of endangered Ethiopian wolves, the world’s rarest canid species, since 1995

comprehensive documentation and individual briefings from key staff.

The Charity Governance Code was published in 2017 and updated in 2020. The code sets out seven principles of good governance and encourages charities to review their governance structures and processes against the code to ensure they are fit for purpose and operate efficiently. The Trustees have received training on the content of the code, and they have due regard to its principles when conducting their business.

we can all play a part in securing a vibrant and thriving natural environment. Setting out our values and vision allows people from all walks of life to make informed choices about how they live their lives. At the same time, by exposing bad practices, those that harm, demean, marginalise, and cause suffering to wild animals and wild environments, we allow the widest possible number of people, through the decisions they make in their everyday lives, to, singly and cumulatively, bring about positive, lasting, sustainable change.

Grant-making

Public benefit

The Trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011.

The protection of the natural world and its myriad biodiversity is a shared responsibility. The role of, and benefit to, the public cannot be underestimated. Born Free leads by example, demonstrating through its charitable activities how

To help achieve our objectives, Born Free makes grants to other not-for-profit organisations. This includes making grants to organisations that provide sanctuary to rescued animals, organisations undertaking conservation work and organisations that deliver wildlife-related educational activities. Many of the organisations to whom we give grants are long-term partners of the Charity. In June 2022, Trustees approved a new Grants Policy setting out the process for selecting partners, awarding grants and reviewing how funds have been applied.

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

25

REFERENCE AND ADMINISTRATIVE INFORMATION

Board of Trustees

Michael Reyner (Chair) Michael Drake (Deputy Chair) Elaine Olson-Williams (Treasurer) Dr Amal-Lee Amin (appointed June 2022) Sean Cassidy Peter Ellis (resigned June 2022) Navindu Katugampola (appointed June 2022) Virginia McKenna OBE Sharon Peake Jessica Ruben Jenny Seagrove Kate Stephenson Dr Graeme Young (resigned September 2022)

Registered office 2nd Floor, Frazer House 14 Carfax Horsham West Sussex RH12 1ER

PROFESSIONAL ADVISORS

Auditors Saffery Champness LLP 71 Queen Victoria Street London EC4V 4BE

Secretary to the Trustees Karen Monaghan

Finance and General Purposes Committee Elaine Olson-Williams (Chair) Michael Reyner Graeme Young (to September 2022) Peter Ellis (to June 2022)

Remuneration Committee

Michael Reyner (Chair) Elaine Olson-Williams Sharon Peake Will Travers Karen Botha Sharon Martin

EXECUTIVE MANAGEMENT TEAM

Executive President Will Travers OBE

Managing Director Karen Botha

Chief Financial Officer Sharon Martin CPFA

Bankers HSBC Bank Plc 18 North Street Leatherhead Surrey KT22 7AR

Solicitors Coole Bevis Solicitors 14 Carfax Horsham West Sussex RH12 1DZ

Insurance broker Gallagher 3rd Floor Metro House Chichester West Sussex PO19 1BE

Investment advisors Shipman Financial Planning Ltd Eagle House 1 Babbage Way Exeter EX5 2FN

REGISTERED INFORMATION

Registered charity name The Born Free Foundation

James Hambro & Partners 45 Pall Mall London SW1Y 5JG

Charity number 1070906 (In Ethiopia: 0686)

Company registration number 3603432 (In Kenya: F.76/2003)

Quilter Cheviot Investment Management Three Temple Quay Temple Way Bristol BS1 6DZ

26

FINANCIAL REVIEW

The financial year 2021-22 proved to be very successful for Born Free. We are reporting a net operating surplus for the year of £692k, increasing to £830k after taking account of investment gains and foreign exchange losses. At year end, the net assets of the Group were £6,426k, an increase of 15% compared to the previous year end.

Our income for the year was £6,139k, compared to £5,876k for the previous year, an increase of £263k (4%). The increase is driven by the strong performance of the legacy income stream – in 2021-22, we received £2,576k from gifts generously left to us in Wills, compared to £2,296k in 2020-21. Legacy income is inherently volatile and difficult to predict. While the number of new legacy notifications received has remained steady year on year, we have seen an increase in the average value of gifts, which is partly attributable to the increase in house prices.

Total donation income from individuals, whether raised through special appeals, regular giving or our adoption programme, remained broadly in line with 2020-21. In 2021-22, we adopted a new trading strategy, based on print on demand. While this has resulted in a drop in trading income, from £409k to £173k, the costs of running the trading subsidiary have also decreased. However, due to the write-out of redundant stock (£28k), the Trading Subsidiary reported a small loss for the year of £2k (see Note 18).

We maintained tight control of our expenditure, which, compared to the previous year, decreased by £1,374k to £5,447k. The decrease is mainly due to the full year impact of the cost reduction exercise from 2020-21, which included a move to smaller offices and a review of all out-sourced activity. 202021 also included the one-off cost of asset writedowns totalling £483k.

Total expenditure on charitable activities was £3,995k, representing 73.3% of total spend, compared to 67.4% in 2020-21. The year on year decrease in expenditure on Conservation is due to an overall reduction in support costs and the proportion of these costs allocated to Conservation activities. While direct costs of Conservation were also lower, this reduction is temporary as we worked to set up new Tier 1 Projects that will be implemented fully in the next financial year.

Despite the volatility in the investment markets towards the end of the financial year, the value of our investments increased by £200k compared to 31

March 2021. The reduction in our cost base also meant we were able to transfer £500k back into our investment portfolio following a drawdown of £1,000k in the previous year.

Our balance sheet remains strong. We had a cash balance of £1,371k at the year end, of which £300k was invested in a fixed term deposit. We have not transferred further balances into the investment portfolio at this time as we have set a deficit budget of £300k for 2022-23 and we forecast the funds will be needed to support grant payments in the near future.

During the year, there has been much work to strengthen the financial controls and processes within the Group. We have undertaken a thorough review of our financial policies and drafted new policies where gaps were identified. We have improved our monthly internal financial reporting and delivered training to our colleagues on how to interpret the management accounts. We have implemented First Class, a legacy administration system, to provide better recording and oversight of this vital income stream. We now have two fully qualified accountants within the Finance team. Finally, we have in-sourced the production of the Annual Accounts.

Reserves policy

Our Trustees require the Foundation to set aside reserves to manage financial risk and short-term income volatility. Reserves allow Born Free to continue performing our charitable activities in the event of a fall in our income or an unexpected increase in our costs. They ensure that our immediate and medium-term financial commitments can be met. They help support the charity’s longterm financial viability and offer protection against adverse external factors, allowing us to take advantage of opportunities as and when they arise. The Trustees have determined that we should not retain income for longer than required by our Reserves Policy or hold excess unrestricted or designated reserves beyond our identified needs. The current Reserves Policy was approved by Trustees in June 2022. Under the Policy, there are two designated funds:

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

27

therefore not available to meet any immediate cash needs of the Charity. Neither may the funds be realised in cash at their stated value

After accounting for these two funds, the balance of unrestricted reserves represents the free reserves of the Charity. The Charity aims to hold free reserves that are sufficient to allow it to:

structured charity portfolios. The performance of James Hambro was slightly below that of its peer group for the year, whereas Quilter Cheviot outperformed its peer group.

The Charity has an ethical investment policy and during the year, at the Ethical Investment Advisory Panel, we completed a detailed review of the activities that would be excluded from our investment portfolio, or to which our exposure would be severely limited, for example, by the company we are investing in not deriving more than a specified percentage of its income from those activities. Amongst other defined restrictions, Born Free does not invest in companies that are involved in extracting or processing fossil fuels.

During the year, a total of £500k was transferred to our investment portfolio. This followed a withdrawal from the portfolio of £1,000k in the previous financial year. The portfolio achieved unrealised gains of £200k in the year. Further details of the transactions on the portfolio are set out in Note 13.

Risk management

Having performed a risk-assessment of our income streams, calculated the cost of our lifetime care commitments and assessed our need for working capital, we have concluded that we need to maintain free reserves within the range of £4,000k to £4,500k.

As at 31 March 2022, our free reserves stood at £4,021k, which is within the target range.

As at 31 March 2022, the balance on our restricted funds was £17k (2021: £51k).

Our philosophy on risk management is wellestablished and rigorously and regularly analysed, reviewed and updated. During the year, we implemented a new format risk register that incorporates the three lines of defence model for controls and assurance and documents the risk indicators that we can review to establish if the risk is emerging. The risk register was last reviewed by Trustees in June 2022. The following were identified as the key risks facing Born Free:

  1. Business continuity: In the UK, our work is heavily reliant on IT and access to systems and data. Our fieldwork overseas is vulnerable to extreme weather incidents. To help reduce the risk of disruption due to IT failures, we have migrated our central filing system to the Cloud. All new systems procured are Cloud-based. This will ensure frequent back-ups are taken and security updates are automatically installed. In the field, we have contingency plans in place, and we are in the process of installing water and solar power at our Ensessa Kotteh sanctuary. We will continue to review and learn from any incidents that occur.

Investment performance, policy and objectives

At 31 March 2022, the Charity held investments totalling £4,110k. Included within this balance is the Charity’s investment portfolio that is managed by two investment managers – James Hambro and Quilter Cheviot. The total value of the portfolio as at 31 March 2022 was £3,827k, with the funds split equally between the two investment managers. The funds are invested across a range of equities and fixed income investments, with the objective of achieving a target return of CPI +2%. The investment objective was achieved for the year. We also monitor the performance of the investment managers against their peer group for similarly

  1. Overseas travel: As the world opens up postCOVID, staff will resume some limited international travel. Travel has a number of associated risks, particularly given some of the locations in which we operate and support partner organisations. We will never travel against the advice of the Foreign, Commonwealth and Development Office (FCDO) and a thorough risk assessment is completed ahead of every international trip.

  2. Fraud: Fraud is an ever-present risk. We are engaged in sector-wide anti-fraud networks to ensure we are alert to the latest scams and threats.

28

We provide advice and guidance to staff and have established internal controls, such as dual authorisation, to minimise the risk of a successful fraud attempt. Related to business continuity, we remain alert to cyber-security developments and have prepared a Cyber Incident Response Plan. We have reviewed and updated our financial policies and procedures to ensure they are robust in preventing, and detecting, fraudulent activity.

  1. Compliance: Our operating environment is complex and ever-changing. The regulations with which we must comply are wide-ranging and cover safeguarding, human resources, data protection, taxation, fundraising and health and safety, to name but a few. We have undertaken significant work in the year to ensure we are fully compliant in all areas. We have identified a small number of areas that remain to be addressed, in particular, ensuring our home-based teams are working safely. A working from home well-being assessment will be completed by all staff later in 2022.

We are very alert to the economic challenges facing both the UK and the countries in which we operate, particularly the impact of inflation and rising fuel prices on our cost base and the impact cost of living pressures might have on fundraised income. Currently, we have sufficient process and activities in place to manage this risk, but we will continue to monitor this closely as the year progresses.

Ensuring we fundraise responsibly

Born Free is committed to the highest standards of supporter care and fundraising. Our Fundraising Promise clearly outlines our guarantee to those who choose to support Born Free. Through our promise we are committed to transparency about how we use donations, sharing stories that demonstrate impact, respecting privacy and generosity, offering an approach that’s right for the individual and ensuring a friendly and open response when we’re contacted by supporters.

Born Free ensures that our values are reflected in all our fundraising activities and that we comply with the provisions of The Charities (Protection and Social Investment) Act 2016. We are registered with the Fundraising Regulator. We adhere to the Code of Fundraising Practice (the Code).

We raise funds in a variety of ways, including: recruiting regular givers through our adoption scheme, holding events, supporting sponsored challenges, running a weekly lottery, receiving gifts in wills, applying for grants from trusts and foundations, and corporate fundraising with local, national and international companies.

The majority of our fundraising activity is performed directly by our own staff. We rarely use professional fundraisers, but where we do, we perform due diligence to ensure they too operate to the highest

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Born Free’s work continues to
protect cheetahs from the
exploitative illegal wildlife trade
Trustees’ Annual Report and Accounts for the year ended 31 March 2022THE BORN FREE FOUNDATION 29
© georgelogan.co.uk
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standards and comply with the Code. Born Free trains and supports any third-party organisations that work on our behalf and conducts regular meetings with them to look at performance, supporter feedback and to ensure compliance with the Code and our Fundraising Promise.

Due to the varied nature of our fundraising activities, we are aware of the potential for a breach of compliance to occur. We manage and minimise this risk by providing training to our staff, ensuring they are aware of the requirements of the Code. No such breaches were identified in the financial year.

Whilst Born Free seeks to reduce the need for supporters or the public to make complaints by delivering the highest standards in everything we do, we know there may be times when we do not meet these standards. When this happens, Born Free has a clear and easy procedure in order to deal with the situation as quickly possible and put measures in place to stop it happening again. We listen to feedback and respond appropriately to compliments and criticism we receive. During the year, the charity received no complaints in relation to its fundraising activities (2021: no complaints).

We take our duty to protect vulnerable people and personal privacy seriously. We have signed up to the Fundraising Preference Service and in conjunction with the Code, adhere to our own Vulnerable Persons Policy that seeks to help us identify a vulnerable person and provides guidance as to how we should conduct any communication. We have age limits on who can be approached with a fundraising ask to protect minors. In respect of the weekly lottery, we are registered with the Gambling Commission and ensure we adhere to the law and offer self-exclusion for individuals who may have issues with gambling.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the charity and the financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Statement of Trustees’ responsibilities

The Trustees, who are also Directors of the charity for the purposes of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

Saffery Champness LLP were auditors during the period and their reappointment will be considered at the annual general meeting.

The Trustees have taken advantage of the small companies’ regime in preparing the Trustees’ Annual Report.

On behalf of the board

14 September 2022

Michael Reyner Chair of Trustees

30

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 MARCH 2022

Opinion

We have audited the financial statements of The Born Free Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the group and charity balance sheets, the consolidated cash flow statement and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

31

Other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees and Strategic Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 30, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees, communication with component auditors and updating our understanding of the sector in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

32

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of noncompliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications with component auditors included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent 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 parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP Chartered Accountants Statutory Auditors

71 Queen Victoria Street London EC4V 4BE

Date: 21 September 2022

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

33

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Full prior year comparatives are set out in Note 23

Notes
Unrestricted
funds
£’000s
Restricted
funds
£’000s
2022
Total funds
£’000s
2021
Total funds
£’000s		 Notes
Unrestricted
funds
£’000s
Restricted
funds
£’000s
2022
Total funds
£’000s
2021
Total funds
£’000s
Income from:
Donations and legacies
Other trading activities
Investment income
Other income
2
3
4
5		 5,408
173
88
63
407
-
-
-
5,815
173
88
63
5,304
409
46
117
Total income 5,732
407
6,139
5,876
Expenditure on:
Raising funds
Charitable activities:
Conservation
Rescue and Care
Policy
Education
Behavioural Change
Other expenditure
6
7
7
7
7
7
8		 1,452
1,327
1,304
449
332
142
-
-
169
193
40
39
-
-
1,452
1,496
1,497
489
371
142
-
1,739
2,153
1,505
175
206
560
483
Total expenditure 5,006
441
5,447
6,821
Net results before gains/(losses)
Investment gains/(losses)
Net income/(expenditure)
Foreign exchange gains/(losses)
Net movement in funds
Reconciliation of funds:
Total funds brought forward		 726
(34)
692
(945)
200
-
200
727
926
(62)
(34)
-
892
(62)
(218)
(28)
864
5,545
(34)
51
830
5,596
(246)
5,842
Total funds carried forward
20-21		 6,409
17
6,426
5,596

Continuing operations

All incoming resources and resources expended arise from continuing activities.

The notes on pages 37 to 51 form part of these financial statements.

34

CONSOLIDATED AND CHARITY BALANCE SHEETS

AS AT 31 MARCH 2022

Notes Group
2022
£’000s
Charity
2022
£’000s
Group
2021
£’000s
Charity
2021
£’000s
Fixed assets
Tangible assets
Investments
Current assets
Stocks
Debtors
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one year
Provisions for liabilities
Net current assets
12
13
14
15
16
17		 1,136
4,110
1,136
4,110
1,128
3,414
1,128
3,414
5,246
2
402
1,371
5,246
-
386
1,336
4,542
31
616
1,014
4,542
-
661
950
1,775
(475)
(120)
1,722
(452)
(120)
1,661
(607)
-
1,611
(589)
-
1,180
1,150
1,054
1,022
Net assets 6,426
6,396
5,596
5,564
Funds
Unrestricted funds
Restricted funds
20/21		 6,409
17
6,379
17
5,545
51
5,513
51
Total funds 6,426
6,396
5,596
5,564

The total income of the Charity as an individual entity for the year was £6,071k (2021 - £5,632k) and its net surplus for the year was £832k (2021 – deficit of £246k). A Statement of Financial Activities for the Foundation as an individual entity is not included using the exemption given in section 408 of the Companies Act 2006.

The financial statements were approved by the Board of Trustees on 14 September 2022 and were signed on its behalf by:

Michael Reyner Chair of Trustees

The notes on pages 37 to 51 form part of these financial statements. Company number 360343

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

35

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2022

FOR THE YEAR ENDED 31 MARCH 2022
Notes 2022
£’000s
2021
£’000s
(Restated)
Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of investment property
Investment income
Reinvestment of investment returns
Investment management fees
Proceeds from the sale of tangible fixed assets
Withdrawals from investments
New funds invested
Net cash generated by/(used in) investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
a) Reconciliation of net income to net cash flow from operating activities
Net income/expenditure for the reporting period (as per the SOFA)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Investment income
Write-out/impairment of fixed assets
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Increase/(decrease) in provisions
Non-cash movements in foreign exchange
Net cash inflow from operating activities
b) Analysis of cash and cash equivalents
Cash at bank and in hand
Notice deposits (less than three months)
Total cash and cash equivalents
a
b
b		 846
(100)
-
88
(44)
29
20
18
(500)
(206)
(133)
(43)
46
(44)
27
24
1,002
(60)
(489)
613
357
1,014
613
401
1,371
892
54
(200)
(88)
-
19
29
214
(132)
120
(62)
1,014
(218)
150
(727)
(46)
483
66
(5)
(143)
262
-
(28)
846
(206)
1,071
300
1,014
-
1,371
1,014

The prior year figures have been restated in order that balances are presented in a format consistent with the current year.

The notes on pages 37 to 51 form part of these financial statements.

36

1. Accounting policies

1.1

Accounting convention

The financial statements of the Charitable Company and Group have been prepared in accordance with the second edition of the Charities SORP (FRS 102) “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)”, Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Companies Act 2006.

The Charity constitutes a public benefit entity as defined by FRS102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

1.2 Basis of aggregation

The overseas branches of the Charity produce audited branch financial statements to 31 March each year. The financial statements are aggregated into the charity financial statements at the end of the year to produce the Charity only figures, prior to the consolidation of the subsidiary companies.

1.3

Basis of consolidation

The Group financial statements consolidate the financial statements of the Charity and its subsidiaries for the year ended 31 March 2022. The statement of financial activities (SOFA) and the balance sheet consolidate the financial statements on a line-by-line basis where appropriate.

Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. In forming their conclusion, the Trustees have considered the 2022-23 Budget and cash flow forecast, and the residuary impact of the Covid-19 pandemic on the activities of the Group. The Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the Charity is legally entitled to the income, it is probable that the income will be received, and the amount can be quantified with reasonable accuracy. The following specific policies apply to categories of income:

Resources expended

Liabilities are recognised as expenditure as soon as there is a legal obligation or constructive obligation committing the Group to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Support costs that cannot be directly attributed to a particular heading have

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

37

been allocated to activities on the basis of the direct costs associated with that activity. This is a change in accounting policy from 2020-21. In previous years, support costs have been allocated on the basis of staff costs, however, that method no longer fairly reflects the use of the support activities.

The cost of tangible fixed assets is their purchase cost together with any incidental costs of acquisition. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property 2% per annum Leasehold property Over life of the lease agreement to first break point Plant and office equipment 25% per annum Vehicles 25% per annum Fixtures, fittings and equipment 25% per annum Computer equipment 25% per annum

No depreciation is provided on freehold land.

1.8 Investments

Investments are stated at market value in the balance sheet. The Statement of Financial Activities includes the net gains or losses arising on revaluations throughout the year.

1.9 Investment property

The investment property is stated in the balance sheet at historic value plus the cost of refurbishments. Trustees consider this to be a suitable valuation basis given the income generating opportunity of the property, which is available for holiday lets. No depreciation is charged on investment property.

1.10

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

1.11

Debtors

Debtors are included in the balance sheet at the amount due/invoiced. There is no bad debt provision as a review has concluded that none is necessary.

1.12

Creditors

Creditors are recognised when goods or services have been delivered or provided prior to the financial year end but the invoice has not yet been received or paid. Creditors are measured on the basis of either the invoice or order value.

1.13 Provisions A provision is created when the Group has a liability that can be reasonably estimated and for which there is an expectation that payment will be made. However, the timing or the amount of the future expenditure is uncertain. Estimation techniques involve assumptions, which are based on experience.

1.14 Financial instruments

The Group has applied the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Other than where specifically stated, all of the Group’s financial instruments are classed as basic financial instruments.

Financial assets are recognised in the Group’s balance sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through the statement of financial activities are measured at fair value.

38

The other debtors and prepayments do not constitute financing transactions and are deemed to be basic financial assets and are measured at transaction cost. There has been no impairment of the financial assets in the year.

None of the creditor balances constitute financing transactions and therefore they are recognised at transaction price and deemed to be basic financial liabilities. No financial liabilities were derecognised in the year.

Operating leases and the payments made under them are charged to the Statement of Financial Activities on a straight-line basis over the lease term. The Group does not hold any assets under a finance lease.

1.16 Taxation

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

The Charity is exempt from Corporation Tax on its charitable activities and therefore no provision has been made for either Corporation Tax or deferred tax.

1.17 Foreign currencies

Assets and liabilities denominated in foreign currencies are translated into sterling using the exchange rate ruling at the balance sheet date. Transactions in the period are translated using the exchange rate ruling on the date of the transaction. Exchange differences are accounted for in the Statement of Financial Activities.

1.18 Fund accounting

Funds held by the Charity and Group are split into different types:

1.19 Pension costs and other post-retirement benefits The Charity operates a defined contribution pension scheme. Contributions payable to the Charitable Company’s pension scheme, administered by Standard Life, are charged to the Statement of Financial Activities in the period to which they relate.

1.20 Donated goods, facilities and services Where an organisation or individual donates goods or services for the charity’s use, or to facilitate its activities, the value of those goods or services is recognised in the SOFA if a monetary value can be reasonably attributed and that value is considered significant in the context of the charity’s overall income and expenditure. Such amount will be recognised as donated income with a corresponding expenditure entry recognised against the activity for which the goods or services were donated. There is no net impact on the charity’s outturn.

Trustees’ Annual Report and Accounts for the year ended 31 March 2022THE BORN FREE FOUNDATION 39

2. Donations and legacies

Total
£’000s
Unrestricted
£’000s
2022
Restricted
£’000s
2021
Restricted
£’000s
Total
£’000s
Unrestricted
£’000s		 Total
£’000s
Unrestricted
£’000s
2022
Restricted
£’000s
2021
Restricted
£’000s
Total
£’000s
Unrestricted
£’000s
Legacies
Donations and gifts
Donations - adoptions
Corporates and Trusts		 2,296
1,437
1,088
483
2,398
1,614
1,039
357
178
6
-
223
-
132
-
-
2,576
1,620
1,039
580
2,296
1,305
1,088
483
5,304
5,408
407
132
5,815
5,172

Included within Corporates and Trusts unrestricted income of £357k is £22k, which represents the support-inkind value of services donated by Qatar Airlines to transport the four Lions of Lockdown from France to our sanctuary in South Africa. Corresponding expenditure of £22k is included in the direct costs of Rescue and Care (Note 7).

3. Other trading activities

2021
£’000s
2022
£’000s
Income from trading subsidiary (Note 18)
Events and raffles
Carriage		 277
76
56
95
78
-
409
173

All 2022 income above is unrestricted (2021: all unrestricted).

Included within Events and raffles income of £78k is income of £5k (2021: £2k) relating to lotteries. As part of the charity’s Gambling Commission License (Non-Remote License – 004701-N-302463-014) (Remote License – 004701-A-319139-006), during the year, the charity has operated a weekly lottery and been the beneficiary of the Weather Lottery. In line with the requirements under social responsibility code provision 4.3.1 of the License Conditions and Codes of Practice of the Gambling Act 2005, the following section details the percentage of lottery proceeds returned to the purposes of the Born Free Foundation from the lotteries promoted.

Lottery name
Percentage Proceeds
returned to charity 2022		 Percentage Proceeds
returned to charity 2021
Born Free Lottery
Weather Lottery
60%
37%
4. Investment income		 -
37%
2021
£’000s
2022
£’000s
Dividend income
Investment property income
Bank interest received		 45
-
1
44
43
1
46
88

40

5. Other income

5. Other income
2021
£’000s
2022
£’000s
Furlough grant
Sale of fixed assets
Royalties
Insurance claims
Other		 64
24
7
-
22
-
20
4
2
37
117
63

Furlough grant represents income received under the Government’s Coronavirus Job Retention Scheme. Included within Other for 2022 is £6k (2021: £nil) of grant received from Action for Conservation under the Government’s Kickstart scheme, designed to place young adults in employment.

6. Expenditure on Raising funds

6. Expenditure on Raising funds
2021
£’000s
2022
£’000s
Staff costs
Investment management costs (exc. VAT)
Direct Costs
Cost of Sales
Support costs (Note 9)		 503
23
703
235
275
349
24
817
65
197
1,739
1,452

7. Expenditure on Charitable activities

2022 2022
Total
£’000s
Support Costs
(Note 9)
£’000s
Grants Awarded
£’000s
Direct Costs
£’000s
Conservation
Rescue and Care
Policy
Education
Behavioural Change		 1,496
1,497
489
371
142
205
205
67
51
19
583
234
-
68
-
708
1,058
422
252
123
3,995
547
885
2,563
2021 2021
Total
£’000s
Support Costs
(Note 9)
£’000s
Grants Awarded
£’000s
Direct Costs
£’000s
Conservation
Rescue and Care
Policy
Education
Behavioural Change		 2,153
1,505
175
206
560
680
476
56
64
176
592
259
-
90
-
881
770
119
52
384
4,599
1,452
941
2,206

All grants were paid to institutions, no grants were paid to individuals.

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

41

8. Other Expenditure

8. Other Expenditure
2021
£’000s
2022
£’000s
Impairment of fixed assets
Write-out of fixed assets		 416
67
-
-
483
-

9. Support Costs allocation

Total
£’000s
Charitable
Activities
£’000s
2022
Raising
Funds
£’000s
2021
Raising
Funds
£’000s
Total
£’000s
Charitable
Activities
£’000s
Salaries
Property
IT & office costs
Finance
Other support
Governance costs		 1,177
106
92
33
181
138
322
28
75
17
30
75
116
10
27
6
11
27
-
53
46
17
90
69
438
38
102
23
41
102
1,177
53
46
16
91
69
1,727
547
197
275
744
1,452

The decrease in Salaries in 2022 compared to the previous year is due to the salaries of staff working within our programmatic teams now being treated as a direct cost of the related charitable activity, rather than a support cost.

Governance costs include:

Governance costs include:
2021
£’000s
2022
£’000s
UK Auditors’ statutory audit – current year
UK Auditors’ statutory audit – prior year
Non-audit services
Branch audit remuneration
Legal and professional fees		 29
8
9
6
86
25
-
4
9
64
138
102

10. Trustees’ remuneration, benefits and expenses

None of the Trustees have been paid any remuneration or received any other benefits from the charity during the year (2021: none). There were no travel and subsistence expenses paid to, or incurred on behalf of, Trustees for the year ended 31 March 2022 (2021: £nil).

Donations totalling £2,250 were received from Trustees during the year (2021: £1,306).

42

11. Staff costs

11. Staff costs
2021
£’000s
2022
£’000s
Wages and salaries
Social security costs
Pension costs		 1,869
128
196
1,730
132
185
2,193
2,047

The charity operates a defined contribution pension plan. Pension costs disclosed above represent the employer contributions into the pension plan, including any payments made under the Salary Sacrifice scheme.

The average number of employees during the year was 115 headcount, 111.8 full time equivalent (2021: 109 headcount, 105.8 full time equivalent).

The numbers of employees whose emoluments for the year fell within the following bands were:

2022 2021
Number Number Restated
£70,000 to £79,999 1 1
£80,000 to £89,999 - 1
£90,000 to £99,999 1 -

Emoluments include salary, allowances and benefits in kind (medical insurance), but not employer pension costs. The figures for 2021 have been restated as they incorrectly included Employer National Insurance Contributions. All of the higher paid employees are members of the defined pension contribution scheme and in the year 202122, the Charity paid £11,383 to the scheme on their behalf (2021: £8,926). This includes contributions made under the Salary Sacrifice where the employee has opted to sacrifice an element of their gross salary for an equivalent payment into the pension scheme.

The key management personnel of the charity are the Executive Management Team (EMT), comprising the Executive President, Managing Director and Chief Financial Officer (appointed May 2021). The EMT is considered to form the key management personnel of the charity as it is responsible for the day-to-day management of the activities and reports directly to Trustees. During 2021-22, the total amount of employee salary and benefits, including employer’s pension contributions and employer’s National Insurance Contributions was £263,308 (2021: £185,720).

During the year to 31 March 2022, the Charity made no redundancy or exit payments (2021: eight payments, totalling £64,614).

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

43

12. Tangible fixed assets

Group and charity

2022
Total
£’000s
Assets under
construction
£’000s
Freehold
Property
£’000s
Leasehold
premises
£’000s
Plant, furniture
& equipment
£’000s		 2022
Total
£’000s
Assets under
construction
£’000s
Freehold
Property
£’000s
Leasehold
premises
£’000s
Plant, furniture
& equipment
£’000s
Cost
At 1 April 2021 (Restated)
Additions
Disposals and write outs
Foreign exchange losses
At 31 March 2022
Depreciation
At 1 April 2021 (Restated)
Depreciation
Disposals
Write out
Foreign exchange losses
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 1,551
100
(102)
(44)
37
11
-
-
803
5
-
-
146
-
-
(26)
565
84
(102)
(18)
1,505
48
808
120
529
423
54
(23)
(79)
(6)
-
-
-
-
-
35
16
-
-
-
9
2
-
-
(2)
379
36
(23)
(79)
(4)
369
-
51
9
309
1,136
48
757
111
220
1,128
37
768
137
186

The balances for Cost and Depreciation as at 1 April 2021 have been restated to incorporate the write-off and impairment of assets in 2020-21. The disposals were completed in 2020-21 but were not reflected in the equivalent Note 12.

Included in freehold property is land of £152,761 (2021: £152,761) which is not depreciated. Foreign exchange losses represent the change in balance sheet value when assets recorded in the accounts of the Ethiopia and Kenya branches are converted into GBP. The loss is recorded within the Foreign exchange gains/(losses) line in the SOFA.

Capital commitments

The charity had no significant (over £50k) capital commitments as at the year-end (2021: £nil).

13. Fixed asset investments

Group and charity

Group and charity
2021
£’000s
2022
£’000s
Market value at 1 April
New funds introduced
Funds withdrawn
Reinvested income
Management fees including VAT
Net gain/(loss) on revaluation
Historic cost of investments		 3,612
60
(1,002)
44
(27)
727
3,414
3,414
500
(18)
44
(29)
199
4,110
2,703
3,383

44

Investments are held as follows:

Group and charity

Group and charity
2021
£’000s
2022
£’000s
Quoted investments:
UK Fixed interest
Overseas Fixed interest
UK Equities
Overseas Equities
Alternatives
Cash deposits
Total quoted investments
Other investments:
Investment Property
Total investments
14. Stocks		 399
132
750
1,490
120
279
549
221
742
1,872
185
296
3,169
3,865
245
245
3,414
4,110
2021
£’000s
2022
£’000s
Goods held for resale
The Charity held nil stocks in 2022 (2021: nil)		 31
2

15. Debtors: Amounts falling due within one year

Group
Charity
2021
£’000s
2021
£’000s
2022
£’000s
2022
£’000s
Trade debtors
Other debtors
Prepayments and accrued income
Amounts due from subsidiaries		 11
31
557
62
16
43
557
-
14
2
368
2
18
1
383
-
661
616
386
402

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

45

16. Creditors: Amounts falling due within one year

2021
£’000s
2021
£’000s
2022
£’000s
2022
£’000s
Group
Charity
Trade creditors
Other tax and social security
Other creditors
Grant commitments
Accruals and deferred income		 205
30
62
258
34
218
30
62
258
39
158
109
84
60
41
159
112
84
60
60
589
607
452
475

Analysis of grant commitments (Group and Charity)

Analysis of grant commitments (Group and Charity)
2021
£’000s
2022
£’000s
Opening commitments
New commitments in year
Grants paid in year
Commitments at year end		 -
941
(683)
258
885
(1,083)
258
60

17. Provision for liabilities

17. Provision for liabilities
2021
£’000s
2022
£’000s
VAT Provision
As at 1 April
Raised during the year
At 31 March		 -
-
-
120
-
120

The provision relates to VAT due to HMRC in respect of the adoption pack provided to our adopters. The liability dates back four years and the actual amount due has not yet been calculated fully. An estimate has therefore been made based on one year’s data. The liability will be settled in 2022-23.

46

18. Subsidiaries

The charity holds 20% or more of the share capital of the following companies:

Country of
Company incorporation Class Shares % £
Born Free Trading Limited England & Wales Ordinary 100% 2
Born Free Films Limited England & Wales Ordinary 83% 83
Born Free Foundation South Africa South Africa - - -

Born Free Trading Limited (registered company 02801162) undertakes the sale of Born Free merchandise and services. The Company donates 100% of its profits to the Charity under Gift Aid.

Born Free Films Limited (registered company 03491691) undertakes film development but has been dormant in the years 2020-21 and 2021-22.

Born Free Foundation South Africa NPC (registered company 2012/122790/08) was set up to receive sponsorship and fundraise for projects in South Africa but has limited activity to date. Arrangements are in place to close the company in 2022-23.

A summary of the result of these undertakings is set out below:

Turnover
Cost of sales
Gross profit
Administrative expenses
Tax
Net profit/(loss)
Current assets
Current liabilities
Share capital
Retained reserves
2021
£’000s
-
-
-
-
-
-
3
-
3
-
3
3
2021
£’000s
277
(180)
97
(95)
-
2
109
(80)
29
-
29
29
2022
£’000s
-
-
-
-
-
3
-
3
-
3
3
2022
£’000s
95
(45)
50
(52)
(2)
53
(26)
27
-
27
27
Born Free
Trading Limited
Born Free Foundation
South Africa
2021
£’000s
-
-
-
-
-
-
(3)
(3)
(3)
(3)
2022
£’000s
-
-
-
-
-
(3)
(3)
(3)
(3)
Born Free
Films Limited		 Turnover
Cost of sales
Gross profit
Administrative expenses
Tax
Net profit/(loss)
Current assets
Current liabilities
Share capital
Retained reserves
2021
£’000s
-
-
-
-
-
-
3
-
3
-
3
3
2021
£’000s
277
(180)
97
(95)
-
2
109
(80)
29
-
29
29
2022
£’000s
-
-
-
-
-
3
-
3
-
3
3
2022
£’000s
95
(45)
50
(52)
(2)
53
(26)
27
-
27
27
Born Free
Trading Limited
Born Free Foundation
South Africa
2021
£’000s
-
-
-
-
-
-
(3)
(3)
(3)
(3)
2022
£’000s
-
-
-
-
-
(3)
(3)
(3)
(3)
Born Free
Films Limited		 Turnover
Cost of sales
Gross profit
Administrative expenses
Tax
Net profit/(loss)
Current assets
Current liabilities
Share capital
Retained reserves
2021
£’000s
-
-
-
-
-
-
3
-
3
-
3
3
2021
£’000s
277
(180)
97
(95)
-
2
109
(80)
29
-
29
29
2022
£’000s
-
-
-
-
-
3
-
3
-
3
3
2022
£’000s
95
(45)
50
(52)
(2)
53
(26)
27
-
27
27
Born Free
Trading Limited
Born Free Foundation
South Africa
2021
£’000s
-
-
-
-
-
-
(3)
(3)
(3)
(3)
2022
£’000s
-
-
-
-
-
(3)
(3)
(3)
(3)
Born Free
Films Limited		 Turnover
Cost of sales
Gross profit
Administrative expenses
Tax
Net profit/(loss)
Current assets
Current liabilities
Share capital
Retained reserves
2021
£’000s
-
-
-
-
-
-
3
-
3
-
3
3
2021
£’000s
277
(180)
97
(95)
-
2
109
(80)
29
-
29
29
2022
£’000s
-
-
-
-
-
3
-
3
-
3
3
2022
£’000s
95
(45)
50
(52)
(2)
53
(26)
27
-
27
27
Born Free
Trading Limited
Born Free Foundation
South Africa
2021
£’000s
-
-
-
-
-
-
(3)
(3)
(3)
(3)
2022
£’000s
-
-
-
-
-
(3)
(3)
(3)
(3)
Born Free
Films Limited
Turnover
Cost of sales		 277
(180)
95
(45)		 -
-
-
-
Gross profit 97
50		 -
-
Administrative expenses
Tax		 (95)
-
(52)		 -
-
-
Net profit/(loss) 2
(2)		 -
-
Current assets
Current liabilities
Share capital
Retained reserves		 109
(80)
29
-
29
29
53
(26)
27
-
27
27		 3
-
3
-
3
3
3
-
3
-
3
3
(3)
(3)
(3)
(3)
(3)
(3)

In the year 2021-22, the following transactions took place between the Charity and its wholly owned subsidiaries:

At 31 March 2022, Born Free Trading Limited owed the charity £1,954 (2021: £61,793).

At 31 March 2022, Born Free Films Limited owed the charity £2,894 (2021: £2,839).

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

47

19. Operating lease commitments

As at 31 March 2022 the Group and Charity had commitments under non-cancellable operating leases as follows:

Within one year
Between one and five years
In more than five years		 2021
£’000s
2022
£’000s
37
54
5
30
22
0
96
52

20. Net Assets by fund

Group

2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
£’000s £’000s £’000s £’000s £’000s £’000s
Tangible Fixed Assets 1,136 - 1,136 1,128 - 1,128
Investments 4,110 - 4,110 3,414 - 3,414
Current Assets 1,758 17 1,775 1,610 51 1,661
Current liabilities (595) - (595) (607) - (607)
Net assets 6,409 17 6,426 5,545 51 5,596

Charity

2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
£’000s £’000s £’000s £’000s £’000s £’000s
Tangible Fixed Assets 1,136 - 1,136 1,128 - 1,128
Investments 4,110 - 4,110 3,414 - 3,414
Current Assets 1,705 17 1,722 1,560 51 1,611
Current liabilities (572) - (572) (589) - (589)
Net assets 6,379 17 6,396 5,513 51 5,564

48

21. Movement in funds

Unrestricted funds
General fund
Fixed asset reserve
Pangea reserve
Restricted funds
Conservation
Rescue and Care
Policy
Education		 At 1 April
2021		 Income
Expenditure		 Income
Expenditure		 Gains and
Losses		 At 31 March
2022
Transfers		 At 31 March
2022
Transfers
4,417
1,128
-
5,545
4
17
-
30
51		 5,732
-
-
5,732
165
193
40
9
407		 (5,006)
-
-
(5,006)
(169)
(193)
(40)
(39)
(441)		 138
-
-
138
-
-
-
-
-		 (1,260)
8
1,252
-
-
-
-
-
-		 4,021
1,136
1,252
6,409
-
17
-
-
17
Total 5,596 6,139 (5,447) 138 - 6,426
Unrestricted funds
General fund
Fixed asset reserve
Restricted funds
Conservation
Rescue and Care
Policy
Education		 At 1 April
2020		 Income
Expenditure		 Gains and
Losses		 At 31 March
2021
Transfers
5,632
-
5,632
117
35
-
58
210		 5,744
-
5,744
62
-
40
30
132		 (6,576)
-
(6,576)
(179)
(18)
(40)
(8)
(245)		 699
-
699
-
-
-
-
-		 (1,082)
1,128
46
4
-
-
(50)
(46)		 4,417
1,128
5,545
4
17
-
30
51
Total 5,842 5,876 (6,821) 699 - 5,596

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

49

General funds represent the funds of the charity which are not designated for particular purposes by the Trustees. These are also referred to as our Free Reserves.

The Fixed asset reserve represents the net book value of fixed assets in use by the charity. It is disclosed separately from the general funds as the assets are not readily realisable and are unlikely to be liquidated at the value disclosed.

The Pangea reserve represents the balance on a funding commitment to support The Pangea Trust (registered charity number 1177137) which is seeking to build an elephant sanctuary in Portugal.

Restricted funds are for the following purposes:

Conservation – Delivering a range of projects in specifically chosen eco-systems, according to our priorities, that enable us to create evidence-based solutions to reach a co-existent future between humans and wildlife.

Rescue and Care – A broad approach to identify and protect individual animals in the context of our aim, which is to keep wildlife in the wild. This involves campaigns against the keeping of captive animals and the rescue and rehabilitation of the victims of trade, legal and illegal, and cruelty.

Policy – Creating an intelligence base across political, economic and social factors from which we can inform our own programmatic activity and campaign or lobby, internationally, to achieve our aims.

Education – Creating innovative approaches and programs for public engagement, including schools, drawing on our evidence base and knowledge, which we share on an open society basis.

22. Related party transactions

Transactions with the subsidiary companies are detailed in Note 18.

Will Travers, the Executive President, is a son of Virginia McKenna, who is a Trustee. He received remuneration of £91,625 during the year (2021 - £86,712) which is included in the key management personnel expenditure in Note 11. Virginia McKenna is not involved in decisions regarding employment or levels of remuneration, which are benchmarked independently.

Born Free USA is a United States 501(c)(3) foundation. Sean Cassidy, a Trustee, is a Director and Chair of Born Free USA. Will Travers, the Executive President, and Michael Reyner, Chair of the charity, are Directors of Born Free USA. During the year, the Charity made a grant payment of £52,000 to Born Free USA to support its work (2021: £nil). There was a £nil balance outstanding at year end. There were no receipts from Born Free USA during the year (2021: £4,109). While The Born Free Foundation has a common interest, and although both Will Travers and Michael Reyner are Directors of Born Free USA, it does not control Born Free USA.

Michael Reyner and Elaine Olson-Williams, who are Trustees of the Born Free Foundation, are Trustees of The Pangea Trust. During the year, the charity made member contributions of £172,674 to The Pangea Trust (2021: £75,000). At the year end, £97,674 of these contributions were outstanding and are included in Creditors (2021: £nil).

Will Travers is a Director and Trustee of the Species Survival Network (SSN). During the year, the Charity made an annual contribution to SSN of £30,000, of which £nil was outstanding at year end.

50

23. Prior year comparatives for the statement of financial activities

Income from
Donations and legacies
Other trading activities
Investment income
Other income
Unrestricted funds
£’000s
5,172
409
46
117
2021
Total funds
£’000s
5,304
409
46
117
Restricted funds
£’000s
132
-
-
-		 Income from
Donations and legacies
Other trading activities
Investment income
Other income
Unrestricted funds
£’000s
5,172
409
46
117
2021
Total funds
£’000s
5,304
409
46
117
Restricted funds
£’000s
132
-
-
-		 Income from
Donations and legacies
Other trading activities
Investment income
Other income
Unrestricted funds
£’000s
5,172
409
46
117
2021
Total funds
£’000s
5,304
409
46
117
Restricted funds
£’000s
132
-
-
-		 Income from
Donations and legacies
Other trading activities
Investment income
Other income
Unrestricted funds
£’000s
5,172
409
46
117
2021
Total funds
£’000s
5,304
409
46
117
Restricted funds
£’000s
132
-
-
-
5,172
409
46
117		 132
-
-
-		 5,304
409
46
117
Total 5,744 132 5,876
Expenditure on
Raising funds
Charitable activities
Other expenditure		 1,739
4,354
483		 -
245
-		 1,739
4,599
483
Total 6,576 245 6,821
Net results before gains/(losses)
Investment gains/(losses)
Net income/(expenditure)
Foreign exchange (losses)
Transfers between funds
Net movement in funds
Total funds brought forward		 (832)
727
(105)
(28)
46
(87)
5,632		 (113)
-
(113)
-
(46)
(159)
210		 (945)
727
(218)
(28)
-
(246)
5,842
Total funds carried forward 5,545 51 5,596

24. Contingent assets

The Born Free Foundation was left an interest in a residential property that is subject to a life tenancy of up to 40 years from 2015. The value of the freehold has not been included in the financial statements as the charity does not control the property and has no entitlement to the underlying value at this time. A valuation will be made when the tenancy expires.

THE BORN FREE FOUNDATION Trustees’ Annual Report and Accounts for the year ended 31 March 2022

51

Born Free Foundation 2nd Floor, Frazer House 14 Carfax, Horsham West Sussex, RH12 1ER, UK

bornfree.org.uk

Registered charity 1070906