2024-06-30-accounts

FALKLANDS CONSERVATION

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

Company Number: 03661322 (England and Wales)

Registered Charity Number: 1073859

FALKLANDS CONSERVATION

CONTENTS

	Page
Trustees’ Report	1 – 8
Independent Auditors’ Report	9 – 10
Statement of Financial Activities	11
Balance Sheet	12
Cash Flow Statement	13
Notes to the Financial Statements	14 - 26

FALKLANDS CONSERVATION Report of The Trustees

The Trustees have pleasure in presenting their Annual Report together with the audited financial statements for the year ended 30 June 2024.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

In shaping our objectives and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit.

The company’s objects and principal activities as set out in its Articles are:

• a) to undertake scientific research in the wildlife and environment of the Falkland Islands including New Island and their surrounding seas and to publish the results of such research;

• b) to conserve the wildlife and environment of the Falkland Islands including New Island and its surrounding seas for the benefit of the public;

• c) to educate the public in the principles and practice of nature conservation;

The work we do reflects our mission to work in partnership with the local and international Falkland Islands community to conserve nature. This was achieved during the year through the work described below.

Trustees have adopted a Falklands Conservation Strategy with a 5 year plan under 4 headings. The achievements during the third year of this plan are described below under the headings.

ACHIEVEMENTS AND PERFORMANCE

1. FORCE FOR NATURE

Carbon Footprint

Falklands Conservation (FC) is committed to lowering its organisational carbon footprint. In 2021 we used data on electricity use, heating and diesel usage from transport to accurately calculate our carbon footprint. This has been used as a baseline for future years as we work on lowering our emissions. In 2023 our carbon footprint was 17055 kgs per year compared to 17517 kgs/CO2/Year in 2021. This increased due to fuel from our new boat being included. As we will always be producing some carbon we took the decision to purchase carbon credits from a Gold Standard Carbon offsetting scheme to offset both our local and international carbon emissions. The project we have chosen to support assists planting biodiverse forests in Panama. Timber trade in Panama has severely depleted the native rainforest. This project is looking to change that by introducing sustainable timber production while reforesting degraded pastureland with a mix of native tree species and teak. The resulting forests offer a natural habitat for native animals and plants, protect and enrich the soil, save and filter water and contribute to the mitigation of climate change. We will continue to purchase credits each year to offset our carbon production but these will be for unavoidable carbon production only. We will still be trying to reduce our carbon footprint and keep potential carbon production in mind when undertaking activities.

Education and outreach – the Watch Group

The Watch Group continued its programme of activities for young people in the Islands. The Watch Group award scheme has gone from strength to strength and children are showing real engagement with the scheme. We now have a number of children who have successfully achieved their “Tussac Habitat” award and are now working toward their “Rockhopper Award”. The Watch Group enjoyed another successful year of activities including a wildlife photography scavenger hunt and a visit to Horseshoe Bay to see the newly installed flux towers.

Supporting environmental education within Falkland Island schools

We continued to provide information and staff support to environmental education lessons, field trips and assemblies within schools and to support work experience students. This year we gave talks on tussac habitats to years 2 and 4 and a talk on waste to year 3. We also gave a careers day talk to students in years 7-11.

Community Engagement

Community engagement remained high throughout the year with a total engagement of 1053 – a 95% increase from our 20/21 baseline (engagement Value = 1 point per individual present at event). Events such as Farmers week, Peaty Pals and a community scavenger hunt contributed toward these figures.

Sustainable Business

The New Island business out-turn remained positive.

New Falklands Conservation Headquarters

New designs for the building are in the process of being developed.

Financial Independence

The previous target was to increase unrestricted income percentage by 10% from 35% of total income to 38.5% of total income. By the end of 22/23 our percentage of unrestricted income had dropped to 27%. This reflects the fact that we have been more successful in securing Darwin Funding (restricted income) than we have been in securing unrestricted income. Finding new sources of unrestricted income remains a challenge.

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FALKLANDS CONSERVATION Report of The Trustees

ACHIEVEMENTS AND PERFORMANCE (continued)

2. RESTORING NATURE

Land Management and Habitat Restoration

On Middle Island 12.4 ha of land has been planted with tussac providing protection from erosion. For the first time we undertook surveys to quantify the growth of tussac on Middle Island. These surveys showed significant growth of tussac over the last 4 years. This year on Middle Island we were able to harvest tillers from planted tussac bogs for the first time. We also recorded the first flowering and seed set of planted boxwood seedlings. There were also more self-seeded tussac plants recorded than previously (the first being recorded last year). For the first time ever we were also able to confirm breeding striated caracaras on Middle Island. Pebble Islet to progress this season in September. Thistles and Gorse controlled on Pebble Islet. Large parts of New Island are threatened by erosion, habitat and soil loss.

We are currently in discussions with 2 landowners regarding set-aside. Springcreek grants have been provided to 3 sites; Philomel Island, Dyke Island, Little Creek). Responsible Wool Standard Biodiversity Monitoring training has been provided to multiple farms.

Stage 1 of our New Island restoration project has been completed. We have confirmed partnership and permissions from FIG and RSPB to proceed to stage 2. We are currently applying for Darwin Strategic funding to enable stage 2 to proceed.

The Falkland Peatland greenhouse gas (GHG) project has taken significant steps over the past year seeing the installation of four eddy-covariance flux towers (the first of their kind on the Falklands) and the establishment of a GHG flux chamber network of 20+ sites across the Falklands. The towers and chambers will provide GHG flux insights for the peatlands informing emissions from the environment and assist national GHG accounting. A series of peat cores have also been collected which will inform past formation rates and carbon storage capacity. The project will continue to collect GHG flux data for two years and will begin discussion with the community to assess carbon offset feasibility in the Falkland Islands.

3. SPACE FOR NATURE

Management plans for all FCs islands (except Pebble Islet and New Island) have been completed.

4. USING NATURE

The Falklands-wide Seabird Monitoring Programme, was completed for the 35th consecutive year. 2024 was the final year of the current Darwin Plus whale research project, and achievements have included the completion of our eighth consecutive sei whale field season including the deployment of one more sei whale satellite tag and reencountering some individual sei whales from previous years confirming their long-term fidelity to the Falklands feeding ground. We commenced a new long-term southern right whale telemetry project with international collaborators, and deployed six tags on whales during June and July. In July we also completed our final right whale aerial abundance survey, and the results are being used to propose a Key Biodiversity Area for that species in the Falklands. Our draft Conservation Management Plan for Falklands’ sei whales was also completed and delivered to FIG.

FINANCIAL REVIEW

The results for the year are detailed in the financial statements that follow. Most of the charity’s work consists of grant-aided projects with an agreed budget; the funding in each case counting as restricted as it cannot be used for any other purpose. Often, projects run over more than one financial year, but over the duration of a project, expenditure matches grant income. The funding for each project contains a percentage agreed with the donor which contributes to the charity’s fixed overheads including building maintenance, office costs and core staff salaries which are otherwise funded from unrestricted funds. However, generating unrestricted income to cover fixed overheads continues to be a challenge in spite of the generous support of the Falkland Islands Government. Fundraising efforts such as the Charity Ball, donations and sales, together with membership and penguin adoption, ensured that essential costs were covered. The Trustees would like to record their thanks for the hard work of the management team, members and supporters for all these various fundraising activities .

Principal funding sources

Falklands Conservation has a diversity of funding partners, whose contribution varies from year to year based upon project interests. FIG provides us with an annual subvention, and this income contributes to our core organisational costs in the Falkland Islands and to a number of ongoing projects. Springcreek Conservation,

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FALKLANDS CONSERVATION Report of The Trustees

FINANCIAL REVIEW (continued)

Detroit Zoological Society, Steve Spring and the Royal Society for the Protection of Birds also provide significant yearly support. Hence, we are particularly grateful to all these organisations for their continued support.

Fundraising

We held a successful, Charity Ball event in 2023 which resulted in income of nearly £36k. A number of UK wildlife parks continued to display collection boxes for Falkland’s wildlife. We continued to run our gift shop at Jubilee Villas in Stanley and outsourced our products through local and international retailers and our webshop. Fundraising is a major preoccupation of the management team and is a constant challenge.

New Island

We had a very successful fourth year of tourism operations on New Island, including new cruise ship visits. The new solar power system has greatly reduced fossil fuel use enabling us to reduce our carbon footprint and further improvements have been made to the water system in Fur Seal House (formerly Old Main House) which has undergone extensive renovations. Work has also taken place to improve North Hut.

Investment policy

The charity’s foundation document states that the charity has the power to “invest any money which the Company does not immediately need in any investments, securities or properties.” To that end, the charity has an investment adviser, Quilter Cheviot Ltd, which manages a portfolio of assets. The charity is in close contact with the investment adviser who produces quarterly reports for the Board.

Reserves policy

In line with best practice in the charity sector, it is the policy of the Trustees to maintain a reserve of unrestricted, undesignated funds to service cash flow requirements, to safeguard against potential fluctuations in revenue and to enable it to deal with an unexpected emergency or opportunity.

Risk management

The Board reviews annually the main risks facing the charity and develops appropriate measures to mitigate those risks. Among the main risks identified at present are:

• Over-reliance on particular sources of income. Efforts are continually made to diversify sources of income to avoid the difficulties which might arise if a key donor suddenly withheld support.

• Disaster through fire or flood at the main office in the Falkland Islands. Comprehensive insurance policies are in place against such an eventuality. IT systems are backed up and the backup copies held off site. Fire prevention arrangements and disaster recovery plans are in place.

• Injury or death of a member of staff or volunteer with the attendant reputational damage. A Health & Safety policy is in place which is reviewed by Trustees at least every 3 years. All members of staff and volunteers are regularly reminded of the need to work safely, particularly when working in remote areas. Any safety-related incidents or personal injuries are carefully investigated and appropriate measures put in place to prevent a re-occurrence.

• Injury or harm to visitors to New Island and damage to the buildings and equipment on the Island which is isolated and remote. Insurance policies are in place and carefully reviewed at renewal.

PLANS FOR THE FUTURE

We will continue our work towards our 2021-2026 strategy showing progress against indicators in our 4 key areas:

1. Falklands Conservation as a Force for Nature

In order to have an effective organization we need to invest in the people, systems and infrastructure that make up the organization. Over the next few years we will refresh the organizational structure to accommodate new team members and will allow us to grow where possible and sustainable. We will work to increase our financial stability by working with partners, supporters and donors. We will continue to put our work with the community at the heart of our strategy.

2. Restore Nature

We will champion the restoration of nature as a key way of tackling the major challenges that we face. This will focus on our responsibility to restore our own islands alongside offering support to other landowners and businesses where possible.

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FALKLANDS CONSERVATION . Report of The Trustees

PLANS FOR THE FUTURE (continued)

3. Space for Nature

Falklands’ land and seascapes are globally important for nature. While much good work has been done, there is still much to do to ensure appropriate conservation of our marine and terrestrial natural heritage. We will work alongside other members of the community to find positive solutions.

4. Using Nature

Onshore and offshore industries have the potential to alter the natural character of the islands forever. We will work alongside other members of the community to encourage sustainable solutions to these challenges. We are all part of the solution for achieving a bright future for Falkland’s nature, and we look forward to continuing to work together. We will continue to report on our progress under our Achievements and Performance section (above) each year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Falklands Conservation is a charitable company limited by guarantee (Company Number: 03661322), incorporated on 4 November 1998. The company took over the activities and assets of the Falkland Islands Foundation, a charitable trust founded in 1979 by Sir Peter Scott. The company was established under a Memorandum & Articles of Association. These were replaced in Dec 2016 by a new governing document which complies with recent changes in UK law.

Recruitment and appointment of the Board of Trustees

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the Board of Trustees. The Board consists of not more than 10 elected members resident in the Falkland Islands and not more than nine elected members in the UK. It is responsible for the strategic direction and policy of the charity. Under the requirements of the Articles of Association one third of the number of places in each group of Trustees must be vacated at each Annual General Meeting. All are eligible for re-election.

Roger Spink stepped down as our Chairman and was replaced by Tom Blake who is based in the Falkland Islands, while Henry Robinson remained Vice-Chairman based in the UK.

Trustees have between them a variety of skills and experience in various fields including, for example: environmental and scientific expertise, in-depth knowledge of the Falkland Islands, finance and contacts with a variety of relevant stakeholders.

The Board’s membership is reviewed periodically, with particular attention given to ensuring diversity of experience. All members are invited to nominate candidates for election.

The Board of Trustees meets quarterly by conference telephone link UK-Falkland Islands. The Chief Executive Officer, Conservation Manager and Finance and Admin Manager are in attendance at Board meetings, but do not vote. All Trustees give their time freely and do not receive any remuneration.

Trustee induction and training

All Trustees are well informed of the charity’s mission, objectives, strategic priorities and the current conservation activities. An induction pack is provided for new Trustees which includes a role description, our strategic priorities, our most recent financial statements and published accounts and our Articles of Association. Information on governance and the annual work plan is distributed quarterly to Trustees.

Management

The key members of the management team were: the Chief Executive, the Conservation Manager and the Finance and Admin Manager. The pay of the key management and the remaining staff salaries are reviewed and approved annually by the Board as part of the budgeting process. Account is taken of a number of factors, including salary levels in the local economy, changes to the cost of living and the need to recruit and retain suitable employees.

The members of staff who continued in their posts during the year were as follows: Dr Esther Bertram (Chief Executive Officer), Dr Andrew Stanworth (Conservation Manager), Dr Caroline Weir (Cetaceans Ecologist), Pamela Quilodrán Jelbes (Finance and Admin Manager) Grant Munro (Sites Officer), Jenni Sol (Logistics and Tourism Officer for New Island), Tim Stenning (Infraestructure Officer for New Island); Glenn Welch (Community Outreach Officer), Amanda Kuepfer (Seabirds Ecologist), Ross James (Biosecurity and Invasives Manager) and .

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FALKLANDS CONSERVATION

Report of The Trustees

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Vanessa Valler-Nannig (Administrative Officer). Darnell Christie started work as our new Communications and Marketing Officer in August 2023. David Higgins (Peatland Biodiversity Project Manager) stepped down in April 2024. Janna Biesiot stepped down as Finance assistant in December 2023 and was replaced by Rabia Rao. Ben Taylor started work as our Peatland GHG flux Project Lead in May 2023. In the UK, Alicia Boyer stepped down as the UK Administrative Officer and was replaced by Grace Ibberson in January 2024; Howard Boyer continues in the role of UK Volunteer, Helen Marsh very kindly continued to provide voluntary support as the Herbarium Curator. With this group of people, together with the assistance of many dedicated volunteers both locally and overseas, we have had a successful year. We thank each and every one of them.

Members

We have over 500 members spread throughout the world and continued to expand our generous group of corporate supporters

Premises

Our main office is at Jubilee Villas in Stanley, with a complementary office for our UK Administrative Officer, Grace Ibberson at The RSPB Lodge in Sandy, Bedfordshire. We continued working towards our vision of a purpose-built headquarters, with a dedicated space for Watch Group activities, in Stanley. We are still holding funds for this progression.

THANKS AND ACKNOWLEDGEMENTS

We could not have achieved so much without everyone listed below.

Conservation Societies and other Organisations. Forum for the Conservation of the Patagonian Sea, British Antarctic Survey, Oxford University, International Union for Conservation and Nature Peatland Programme, South Atlantic Environmental Research Institute, Island LandCare, Elephant Seal Research Group, Department of Agriculture.

Corporate Supporters . To ensure that we are partnering with those that are furthering environmental impact, we are currently reviewing our Corporate Supporters scheme.

Supporters of Project Work. The Falkland Islands Government, UK Department for Environment, Food and Rural Affairs, including their Darwin Plus programmes Biodiversity Challenge Funds, the Royal Society for the Protection of Birds, Standard Chartered Bank, Wild Planet Trust, Dunbar Farm, UK Centre for Ecology and Hydrology, Rincon Ridge Farm, Springpoint Farm, Port Howard Farm, Antarctic Research Trust, UK Department for Business, Energy and Industrial Strategy, Fitzroy Farm, Fortuna, Polar Seafish, Falkland Islands Government Air Service, Island LandCare, Chris Hawksworth, Falkland Islands Fire & Rescue Service, Consolidated Fishing Ltd, EU Best, Georgia Seafoods Ltd, British Forces South Atlantic Islands Conservation Society, UK Ministry of Defence and RSK Group, Workboat Service, Weddell and Beaver Island. As well as all landowners who supported cetacean strandings and permitted access to their land for conservation research purposes.

Supporters of Core Activities . The Falkland Islands Government, Detroit Zoological Society, Dingle Oceanworld Aquarium, Thrigby Hall Wildlife Gardens, Drusilla’s Park, Cotswold Wildlife Park and Gardens, John Ellerman Foundation, Alice Clarke, Springcreek Conservation and Steve Spring. For substantial donations in kind, we thank Stanley Services Ltd.

Charity Ball 2023. Sponsors: Consolidated Fisheries Ltd, ELink, South American Atlantic Service Ltd, RBC Ltd, Falkland Islands Company, RSK Group and Falkland Islands Development Corporation Auction Donors: Erin Ranney, Joleen Morrison, Adrian Love, HE the Governor, Alison Blake, Glenn Welch, David Higgins, Tim Carr, David Spivack, Andrew Pollard, Manchester United Football Club, Brighton and Hove Albion Football Club, Steve Massam, Alice Clarke, Pame Quilodran-Jelbes, Just Wool Textiles, Lorraine Kelly,Stuart Walker, Lindblad Expeditions

Raffle Donors 2023. New Island, Sulivan Shipping, BFSAI, Pebble Island Lodge, Port Edgar Farm, Waterfront Boutique Hotel, Bleaker Island Farm, Black Shanty House, Falklands Outdoors, FIGAS, Sylvia Allen The Narrows Bar & Restaurant, Michelle Winnard Photography, Kelper Stores Ltd, FITB, Falkland Islands Distillery, Government of South Georgia & South Sandwich Island, Malvina House Hotel, Newen Breadshop, South Atlantic Detection Dogs, Pro-Install Interiors, Groovy’s, Hurtigruten Expeditions.

Donations to the New Organisational Headquarters Building Fund. Standard Chartered Bank, Falkland Islands Government, Premier Oil, Noble Energy, JK Marine, Caribbean Alliance, John & Tracey Hellowell, Henry Kenner (Arrowgrass), Cotswold Wildlife Park and Gardens, Morrison’s Construction, and Frits W Olivier. We would also like to thank the H.B. Allen Charitable Trust - long-term supporters of our core activities, who have now completed their funding to us with a generous donation to our proposed new headquarters. We are very grateful.

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FALKLANDS CONSERVATION Report of The Trustees

REFERENCE AND ADMINISTRATIVE DETAILS

VICE PRESIDENTS

Sir David Attenborough Julian Fitter Robert Gibbons Mark Carwardine

Peter Harrison Rebecca Ingham Mandy Shepherd

BOARD OF TRUSTEES

Roger Spink (FC Chairman) (Resigned in April 24) Henry Robinson (UK Chair) Paul Brewin (FI Vice Chair) Keith Biles (FI Hon Treasurer) Thomas Blake (FC Chairman April 24) Phyl Rendell (Resigned October 23) David Crwys-Williams (Resigned in October 23) Craig Lewis (Appointed in January 24)

KEY MANAGEMENT Chief Executive Finance and Admin Manager Conservation Manager

PRINCIPAL ADDRESSES United Kingdom: The Lodge Sandy Bedfordshire SG19 2DL

Tim Carr Jan Cheek (Resigned in October 23) Colin Clubbe Sally-Ann Wilson Ian Moncrieff (Resigned in October 23) Nicola Granger (Hon Treasurer) Elizabeth Radford Dr Alan Ryder (Appointed in February 24)

Dr Esther Bertram Pamela Quilodrán Jelbes Dr Andrew Stanworth

Falkland Islands: Jubilee Villas, 41 Ross Road, Stanley Falkland Island FIQQ 1ZZ

REGISTERED OFFICE 2nd Floor, Regis House 45 King William Street London, EC4R 9AN

BANKERS United Kingdom: Barclays Bank Plc King George Street, Yeovil, Somerset, BA20 1PX

Falkland Islands: Standard Chartered Bank Ross Road, Stanley Falkland Island FIQQ 1ZZ

SOLICITORS

United Kingdom: Russell-Cooke 2 Putney Hill London, SW15 6AB

Falkland Islands: Waverly Law 56 John Street, Stanley

INVESTMENT ADVISERS

Quilter Cheviot Limited The Pinnacle, 73 King Street, Manchester, M2 4NG

AUDITOR

Azets Audit Services 2nd Floor, Regis House, 45 King William Street, London, EC4R 9AN

ACCOUNTANTS

Bluegrass Accounting 1 Barrack Street, PO Box 725, Stanley

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FALKLANDS CONSERVATION Report of The Trusteos Trus1￿$. r•sponsibllltFo8 In relatlon to tho flnanclal statem•nts Tha trustees (who aro aiso ¢Jire¢tors of F41klands Conservation fly Ihe puTro89s of company lawl are r86ponsible for preparing the TTUStees' Report and the financial statem8nts in a￿rdanc with applicable law and United Kingdom AccountlTIg Standards (United Kingdom Generally Accepted Accounting Practlce). Company law requlres the twste05 to prep8re financial slatements for 88th financial year, vthich gfve a true and fair view of the st8te of affairs of the tharitable company and of the Incomlng resources and application of resources. including the income and expenditure. of the charitable company ft)r the year. In preparlng Ihese financial stal6ments. the trustsos are required to: select suitable accounting policies and then apply them eonsistentty., observe thè Methodg and principles in the Charftles SORP. make judgements and estimates that are ￿aSonable and prudent., Stale whether applicable UK Accountlng Slandards have been followed, subject to any material departure8 disclosed and explained in the financial Statements: prepare the accounts on the wg concam bags unles• it is inapprO￿te ts> pr84U￿ that th￿]￿ble comp8ny will continuE In operation, The trustees are responsible for keeping adequate aC¢x>un￿n9 r?coril8 that disdose wlth reasonable accuracy at any tsme the financial position of the charitable company and énable them to ensure that the financial $￿eMentS comply with the Companies Act 2006. They are also r88pon8ible for safeguarding tho assels of the chantsble company end hence for t8klng reasonable stsp8 for th8 prevention and det9Ction of fraud and other Irregularitl68. In so far 8$ the tnJ$tée8 aré aware,. th8re is no relevant audit infomiation of whi¢h the charitablfj wmpany's auditor 18 unaware; and the truslees have taken all st8ps that they ought lo have laken to make them8•fve8 awaM of any relevant audlt infomiation and to estsblish that tho auditor is awaTr ol that infomiatlon. Audltor A rèsdulon for the re.app¢)Inlmenl of Azets Audm SefvIts8 as audltors to the thartt8ble company be 8ubmitted to the Annual General Meeting. This report has been prepared in accordance with th8 Slat8m•nt of Recomm8nded Practlce. A¢￿untIng and Reporting by Ch8rities' and in a￿OrdanCe wlth the spgcial prowsion6 of Part 16 of the Compani08 Act 2006 relating to smaller entitles, Signed on bohalf of the Trust8ts'. Tom 818ke, FC Ch8ffm Board of Truste88 D8to: a S 24

FALKLANDS CONSERVATION

Independent Auditors’ Report To The Members

Opinion

We have audited the financial statements of Falklands Conservation (the ‘charitable company’) for the year ended 30 June 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of 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:

• give a true and fair view of the state of the charitable company’s affairs as at 30 June 2024 and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report included within the trustees’ report have/has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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FALKLANDS CONSERVATION

Independent Auditors’ Report To The Members

Matters on which we are required to report by exception (continued)

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the 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 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 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 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

Our objectives are to obtain reasonable assurance about whether the 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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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FALKLANDS CONSERVATION

Independent Auditors’ Report To The Members

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the 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 charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Howard (Senior Statutory Auditor) For and on behalf of Azets Audit Services Statutory Auditor 2[nd] Floor, Regis House 45 King William Street London, EC4R 9AN

Date: 17 December 2024

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FALKLANDS CONSERVATION

Statement of Financial Activities

For The Year Ended 30 June 2024

	Notes	Unrestricted	Designated	Restricted	Total	Total
		Funds	Funds	Funds	2024	2023
		£	£	£	£	£
INCOME AND ENDOWMENTS
FROM
			-
Donations and legacies	2	298,382		898,338	1,196,720	1,475,842
			-
Other trading activities	3	43,720		75,979	119,699	109,400
			-
Investments		75,000		-	75,000	23,413
			-
Other income		39,168		142,450	181,618	165,989
		_____	_____	_____	_____	_____
Total income		456,270	-	1,116,767	1,573,037	1,774,644
		____	_____	_____	_____	_____
EXPENDITURE ON
Raising funds		22,576	-	4,185	26,761	24,903
Charitable activities:
Conservation and research		259,960	10,123	311,124	581,207	580,114
Education and community		317,731	12,372	380,262	710,365	709,028
		_____	_____	_____	_____	_____
Total expenditure	4	600,267	22,495	695,571	1,318,333	1,314,045
		_____	_____	_____	_____	_____
NET (EXPEDITURE) /INCOME
BEFORE NET GAINS		(143,997)	(22,495)	421,196	254,704	460,599
NET (LOSSES)/GAINS ON
INVESTMENTS	8	10,448	-	-	10,448	(605)
		_____	_____	_____	_____	_____
NET (EXPENDITURE) /INCOME		(133,549)	(22,495)	421,196	265,152	459,994
Transfers between funds	12	133,549	151,148	(284,697)	-	-
		_____	_____	_____	_____	_____
NET MOVEMENT OF FUNDS		-	128,653	136,499	265,152	459,994
Total funds at 1 July 2023		338,037	558,435	1,409,588	2,306,060	1,846,066
Funds brought in on acquisition		-	-	-	-	-
Impairment on acquisition		-	-	-	-	-
		_____	_____	_____	_____	_____
Total funds at 30 June 2024	13	338,037 _____	687,088 _____	1,546,087 _____	2,571,212 _____	2,306,060 _____

CONTINUING OPERATIONS

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FALKLANDS CONSERVATION AJI income and expenditure has arisen from continuing activibes. The notes on page5 14 to 26 fom part of ihe¥e financial statements. Balance Sheet A8 at 30 Jun• 2024 2024 2023 FIXED A&SET8 Tangible assets Investments 310.450 1.151,691 289,917 1.095.450 1.462,141 1,385,367 CURRENT ASSErs Stock Debtors Cash and cash 8qulval8nts 27,064 130,320 1.085,965 10 84,184 954,809 1,243,349 1,042,061 CREDITORS ounts falling duo ￿thIn on8 year 11 1134,2781 1121,3881 NET CURRENT ASSETS 1,109,071 920,693 NET ASSETS 2,571,212 2,306,060 FUNDS Endowmenl Restricted 12.4 12.3 32,408 1.546,087 32.408 1.409.588 Unrestricted funds.. Dèsignatsd Gener81 12.2 12.1 687.utio 305.629 305.629 2.571.212 2,306.060 TOTAL FUNDS the Companies Act 2006 relating to srnall charitable companies. The finan ial s tements were approved by the Board of Trustees and Directors of the A880ciation on and were signed on Its behalf by.. Tom Blake Board of Trustees The notes on pages 14 to 26 fomi part of these financial statements.

FALKLANDS CONSERVATION

Cash Flow Statement

As at 30 June 2024

Notes 2024 £ Cash flows from operating activities: Cash generated from operations 16 Cash flows from investing activities: Payments to acquire tangible fixed assets (33,241) Dividends and interest from investments 75,000 Purchases of marketable securities - Purchases of non-marketable securities (46,231) Movement in cash held in investments capital account 61 Investments management fees 377 ____ Net cash provided by 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	2023 £ 135,390 ____ (23,064) 23,413 (250,000) (623,530) 315 617 ____ (4,034) ____ 131,356 ____ 954,609 ____ 1,085,965 ____	414,845 _ (872,249) _ (457,404) _ 1,412,013 _ 954,609 ____

The notes on pages 14 to 26 form part of these financial statements.

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Notes To The Financial Statements

For the Year Ended 30 June 2024

1. ACCOUNTING POLICIES

1.1

Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006; and the requirements of the Statement of Recognised Practice, Accounting and Reporting by Charities (effective 1 January 2015).

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets and the recognition of certain financial assets and liabilities at fair value.

The financial statements are presented in sterling (£) which is also the functional currency for the charity.

• 1.2 Going concern

After reviewing the charity’s forecasts and projections and taking into account the economic conditions (given inflation levels) and possible changes in trading performance, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

• 1.3 Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under circumstances.

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See note 7 for the carrying amount of the land and buildings, plant and equipment and motor vehicles, and note 1.10 for the useful economic lives for each class of assets.

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

1.4 Legal status

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

• 1.5 Public Benefit

The charitable company meets the definition of a public benefit entity under FRS 102.

1.6 Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds of the charity which the trustees have decided, at their discretion, to set aside to use for a specific purpose. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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Notes To The Financial Statements

For the Year Ended 30 June 2024

1.7 Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Income from donations including grants, subscriptions and gifts is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Grants include amounts received from the Falkland islands Government for core funding and other specific projects, together with grants from other bodies in response to applications or appeals.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity in circumstances in which it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. It is included when the amount can be measured reliably.

1.8 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

• Costs of raising funds include those costs incurred in attracting voluntary income.

• Expenditure on charitable activities includes those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose

• 1.9 Allocation of support and governance costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative costs. They are incurred directly in support of expenditure on the objects of the charity.

Support and Governance costs have been allocated across the charitable activities using various percentage allocations.

1.10 Fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Plant and Equipment – 25% Straight line Motor Vehicles – 25% Straight line

It is the policy of the trustees to maintain freehold property, which is held for charitable use, in such condition that the useful economic life is considered to be in excess of fifty years from the balance sheet date. In the opinion of the trustees this policy results in the estimated residual value of the property being not less than its carrying value in the accounts. Consequently any depreciation charged on the buildings element of the property is deemed to be immaterial and no depreciation is charged on the property. The property is carried in the accounts at original cost to the charity.

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Notes To The Financial Statements

For the Year Ended 30 June 2024

1.10	Fixed assets (continued)
	Equipment purchased as part of projects financed by restricted funds is to be expensed to the project
	until the completion of the project. Upon completion of the project, a decision is to be taken as to whether
	the equipment should be returned to the donor, stored for later use, sold or disposed of.
	Where land is purchased with a view of it being held and restored the land is impaired to a nominal value
	of £1.
1.11	Investments
	Investments are recognised initially at fair value which is normally the transaction price excluding
	transaction costs. Subsequently, they are measured at fair value with movements recognised in ‘net
	gains/(losses) on investments’ in the SOFA, if the shares are publicly traded or their value can otherwise
	be measured reliably. Investments in unquoted equity instruments whose fair values cannot be
	measured reliably are measured at cost less impairment.
1.12	Stocks
	Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete
	and slow moving items.
1.13	Debtors
	Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the
	amount prepaid. Accrued income is measured at the amount due to be received.
1.14	Cash and cash equivalents
	Cash at bank and cash in hand includes cash and short term highly liquid investments with a short
	maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.15	Creditors
	Creditors are recognised when there is a present obligation resulting from a past event that will probably
	result in the transfer of funds to a third party and the amount due to settle the obligation can be
	measured or estimated reliably.
	Other creditors and accruals are recognised at their settlement amount due.
1.16	Employee benefits
	When employees have rendered service to the charity, short-term employee benefit to which the
	employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for
	that service.
1.17	Financial instruments
	The charity only has assets and financial liabilities of a kind that qualify as basic financial instruments.
	Basic financial instruments are initially recognised at transaction value and subsequently measured at
	their settlement value with the exception of bank loans which are subsequently measured at amortised
	cost using the effective interest method.
1.18	Foreign currency
	Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at
	the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on
	the date of the transaction. All exchange differences are reflected in the Statement of Financial Activities.
1.19	Taxation
	The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act
	2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
	Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received
	within categories covered by Chapter 3 Part II Corporation Tax Act 2010 or Section 256 of the Taxation
	of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to
	charitable purposes.

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FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2024

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
	Unrestricted	Restricted	2024	2023
	£	£	£	£
Grants, donations and gifts (note 2.1)	283,760	897,463	1,181,223	1,450,493
Legacies	-	-	-	6,783
Subscriptions	14,622	875	15,497	18,566
	298,382	898,338	1,196,720	1,475,842

In 2023, £1,116,094 of the income received from grants, donations, legacies and subscriptions was attributable to the restricted fund, and the remaining £359,748 was attributable to the unrestricted fund.

2.1 RESTRICTED GRANTS, DONATIONS AND GIFTS

The following grants, donations and gifts in excess of £5,000 have been received in the year (note 12.3):

a) EPD b) John Ellerman Foundation c) Tom Hart d) Springcreek Habitats e) DEFRA f) Darwin Protect & Restore g) RSPB h) FIG i) FITB j) Other less than £5,000	£ 58,030 121,100 8,000 40,789 237,361 371,652 35,000 5,000 6,533 14,873 898,338

3.	INCOME FROM OTHER TRADING	ACTIVITIES
		Unrestricted	Restricted	2024	2023
		£	£	£	£
	Sale of goods and publications	43,720	51,516	95,236	82,753
	Accommodation income	-	24,463	24,463	26,647
		43,720	75,979	119,699	109,400

In 2023, £67,334 of the income received from trading activities was attributable to the unrestricted fund.

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Notes To The Financial Statements

For the Year Ended 30 June 2024

4. ANALYSIS OF RESOURCES EXPENDED

Staff costs Direct costs Support costs £ £ £ (note 6) (note 4.1) Cost of generating funds: Costs of generating voluntary income - 21,633 - Cost of fundraising trading - 4,185 943 Charitable activities: Conservation and research 234,104 31,775 315,328 Education and community 286,128 38,836 385,401 Total resources expended 520,232 96,429 701,672	Total £ 21,633 5,128 581,207 710,365 1,318,333	2023 £ 13,011 11,892 580,114 709,028 1,314,045

All costs are allocated between the expenditure categories noted above on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, for example, time spent, per capita or floor area.

In 2023, £515,704 of the resources expended was attributable to staff costs, £53,957 to direct costs and the remaining £744,384 was attributable to support costs. Of the total £1,314,045; £881,229 was attributable to the restricted fund and the remaining £432,816 was attributable to the unrestricted fund.

4.1 SUPPORT COSTS

Unrestricted Restricted Designated £ £ Subscriptions 2,217 - - Property & Maintenance 25,063 109,902 - General 2,081 11,523 - Recruitment 1,557 86 - Training 2,648 - - Professional fees 1,775 280,457 - Telephone costs 7,846 2,488 - Postage & office consumables 13,726 2,155 - Computer, website & hardware 15,789 3,130 - Equipment & Furniture 1,019 68,680 - Insurance 11,294 3,889 - Travel costs 17,079 67,424 - Motor vehicle costs 10,108 8,624 - Depreciation and impairment 5,029 4,160 - Conservation activity - 715 - Governance costs: Audit & Accountancy costs 18,100 208 - Management fees 439 - - Bank charges 1,657 804 - 137,427 564,245 -	2024 TOTAL £ 2,217 134,965 13,604 1,643 2,648 282,232 10,334 15,881 18,919 69,699 15,183 84,503 18,732 9,189 715 18,308 439 2,461 701,672	2023 TOTAL £ 1,367 56,542 58,259 1,611 2,682 101,703 11,800 15,175 13,393 334,218 15,664 88,414 18,212 8,936 - 13,426 933 2,049 744,384

Restricted support costs represent expenditure incurred on projects.

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Notes To The Financial Statements

For the Year Ended 30 June 2024

5 NET INCOME/(EXPENDITURE) FOR THE YEAR

	2024	2023
This is stated after charging:	£	£
Auditors’ remuneration:
- for audit	9,250	8,750
- for other services	3,750	3,500
Depreciation	9,188	8,936
Impairment	(4,533)	-

6 ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL Wages and salaries Social security costs Pension costs The average number of employees during the year was as follows: Average number	2024 £ 494,913 16,816 8,503 520,232 2024 No. 15 ____	2023 £ 495,157 14,567 5,980	2023 £ 495,157 14,567 5,980
		515,704
			2023 No. 14 ____

Employee time has been allocated to the charitable activity based on a percentage over all the costs.

No employees receive employee benefits (excluding employer pension costs) of more than £60,000 in either the current or prior year.

The key management of the charity comprises the Chief Executive, Technical Administrative Officer and Conservation Manager. The total employee benefits of the key management personnel for the year were £155,574 (2023: £141,447).

Trustees receive no regular remuneration. However, in accordance with the Articles, they may be remunerated under certain circumstances. No trustees were remunerated in either year.

During 2024, none of the trustees was reimbursed for travel costs (2023: None).

7. TANGIBLE FIXED ASSETS COST At 1 July 2023 Additions Disposals DEPRECIATION At 1 July 2023 Charge for the year Impairment Eliminated on disposal NET BOOK VALUE At 30 June 2024 At 30 June 2023	Land and Buildings £ 1,368,687 - - __ 1,368,687 1,130,318 - - - __ 1,130,318 238,369 _____ 238,369	Plant and Equipment £ 162,633 7,341 (8,053) __ 161,921 129,218 4,655 (4,533) - __ 129,340 32,581 _____ 33,415	Motor Vehicles £ 43,318 25,900 - __ 69,218 25,185 4,533 - - __ 29,718 39,500 _____ 18,133	Total £ 1,574,638 33,241 (8,053) _ 1,599,826 1,284,721 9,188 (4,533) - _ 1,289,376 310,450 _____ 289,917

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Notes To The Financial Statements

For the Year Ended 30 June 2024

7. TANGIBLE FIXED ASSETS - continued

Land and buildings includes land at a cost of £100,000.

Land and buildings also include land and buildings on New Island. These were valued at £1 as the intention of the Charitable Company is to preserve the island and not to sell on. During financial year 2021-2022, Pebble and Government Islets were purchased and land was also valued at £1 as the intention of the Charitable Company is to preserve the island and not to sell on.

Additionally, land and buildings includes £32,408 representing the following Islands and land holdings:

Cat Island The Twins (North and South) Hawks Nest Pond Rookery Motley Island Ship The Mot Beef Sal Island Coffin Pyramid Island North Centre Island Saddle Outer Island Cliff Knob Island Double Island Landsend Bluff Middle Island

The charity owns a piece of land to the rear of 44 Waverley Road, Reading as the result of a bequest from Mrs Joan Ann Kenneally (deceased). It is recorded by the Land Registry under number BK130021 and in 2011 was valued at £400-£500. However, the legal costs of disposal are likely to exceed the value of the land itself so it is noted in these accounts as of no value. (Note: This land was formerly held jointly together with the National Birds of Prey Trust. However, during 2016 the National Birds of Prey Trust was wound up and the land came into the exclusive ownership of Falklands Conservation, this change being effective from 17 August 2016.)

8. INVESTMENTS

8.	INVESTMENTS
		2024	2023
		£	£
	At market value:
	Balance at 1 July 2023	1,095,450	223,457
	Additions	-	250,000
	Disposal	-	-
	Revaluation	10,448	(605)
	Cash held in investment portfolio	(61)	(315)
	Interest reinvested	46,231	19,430
	Management fees	(377)	(617)
	Transfer from cash	-	604,100
		_____	_____
	Market value at 30 June 2024	1,151,691	1,095,450
		_____	_____
	Cost at 30 June 2024	1,018,775	1,018,775
		_____	_____
	The Charity’s investment in the following represents more than 5% of the total investment portfolio		as at 30
	June 2024:
	COIF	£783,252
	Flagstone	£257,063
9.	STOCKS
		2024	2023
		£	£
	Goods for resale	27,064	23,268
		_____	_____

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Notes To The Financial Statements

For the Year Ended 30 June 2024

10. DEBTORS

10.	DEBTORS
								2024	2023
								£	£
	Trade debtors							119,334	53,212
	Other debtors							610	610
	Prepayments and accrued income							10,376	10,362
								____	____
								130,320	64,184
								____	____
11.	CREDITORS: Amounts falling due within			one year
								2024	2023
								£	£
	Trade creditors							15,951	36,816
	Other creditors							2,523	38,773
	Deferred income							65,050	-
	Accruals							50,754	45,779
								___	___
								134,278	121,368
								____	____
12.	STATEMENT OF FUNDS
		Balance at		Incoming		Resources		Transfers	Balance at
	Unrestricted Funds	30 June		Resources		Expended,			30 June
			2023			Gains & (losses)			2024
12.1	General Fund		£	£		£		£	£
General Account			305,629	456,270		(600,267)		143,997	305,629
Island Nature Reserves(note 12.4)			32,408		-		-	-	32,408
		_____		_____		_____		_____	_____
			338,037	456,270		(600,267)		143,997	338,037
		_____		_____		_____		_____	_____
12.2	Designated Funds		£	£		£		£	£
Fixed Asset reserve			209,929		-	(5,028)		-	204,901
New Building fund			170,000		-		-	68,768	238,768
Whale Project support			5,256		-	(5,256)		-	-
Remote working			7,743		-		-	-	7,743
Vehicle replacement fund			52,507		-		-	13,612	66,119
Peatland/Carbon Capacity Fund			30,000		-	(12,211)		-	17,789
NI Restoration work development			43,000		-		-	-	43,000
New Island Contingency			-		-		-	68,768	68,768
Marine role			40,000		-		-	-	40,000
			____	____		____		____	____
			558,435		-	(22,495)		151,148	687,088
		_____		_____		_____		_____	_____
		896,472 _____		456,270 _____		(622,762) _____		295,145 _____	1,025,125 _____

The Fixed Asset Reserve is equal to the net book value of the charitable company's non-endowed fixed assets (i.e. the net book value of £266,564 less endowments worth £32,408, less restricted New Island fixed assets worth £29,255. See Note 7).

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FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2024

12.3 Restricted Funds

210 212 217 228 268 276 287 290 298 303 308 325 350 355 356 362 370 372 375 381 394 401 407 435 439 440 448 477 486 500 701 340 361 702	PROJECT FUNDS Annual Seabird Monitoring An Inventory of Bryophytes and Lichens Hydrocarbon Policy Framework Sei Whales Falkland Eller Hill Areas DZS MoU Activities Marine Conservation Officer Falklands National Herbarium FC Reserve Management Propagation Booklet Springcreek Habitats BEST 2.0 Motley Restoration DEFRA Carbon Darwin Whale Satellite Tracking ESB Match Funding- Cetacean Project HB Allen Conservation Fund Oiled Seabird Rehabilitation Facility FCO Comms Funding FCO Salmon Farming Equipment Darwin Fire Contingency ESB Burrowing Seabirds Islets acquisition RSPB Annual support Darwin Protect & Restore FC Restoration Project Contingency Restoration Funds Darwin Pebble Islets Darwin Local Biodiversity monitoring Darwin NI Restoration NOAA Satelite Tracking New Island NON-PROJECT FUNDS WATCH Group Building for the Future Appeal New Island Land and Buildings		Balance at 1 July 2023 £ 45,058 3,962 1,433 2,322 (1,509) - 36,322 150 171,820 2,750 45,641 (632) 59,928 1,140 - 48,330 581 4,246 1,087 - - 1 25,000 (4,261) 3,807 - 43,767 20,170 24,586 - 229,532	Balance at 1 July 2023 £ 45,058 3,962 1,433 2,322 (1,509) - 36,322 150 171,820 2,750 45,641 (632) 59,928 1,140 - 48,330 581 4,246 1,087 - - 1 25,000 (4,261) 3,807 - 43,767 20,170 24,586 - 229,532	Incoming Resources (note 2.1) £ 39,230 - - - 121,100 2,014 - - 10,904 - 35,789 632 244,905 115,907 5,000 - - - - 48,118 8,800 - 35,000 6,940 - - 93,076 (985) 112,612 - 228,051	Resources Expended £ (25,897) - - (731) (11) - - - (1,413) - (21,310) - (217,478) (46,379) - - - - - (47,000) (2,976) - (375) (2,439) - - (63,778) (2,921) (81,717) (245) (174,520)	Transfers & Impairment Charges £ (22,040) - - - (12,420) - - - (165,260) - (17,351) - (11,560) (64,515) - (48,330) - - - (1,118) (5,600) (1) (31,000) (240) - 400,000 (46,193) (13,104) (44,286) - (201,679)	Transfers & Impairment Charges £ (22,040) - - - (12,420) - - - (165,260) - (17,351) - (11,560) (64,515) - (48,330) - - - (1,118) (5,600) (1) (31,000) (240) - 400,000 (46,193) (13,104) (44,286) - (201,679)	Balance at 30 June 2024 £ 36,351 3,962 1,433 1,591 107,160 2,014 36,322 150 16,051 2,750 42,769 - 75,795 6,153 5,000 - 581 4,246 1,087 - 224 - 28,625 - 3,807 400,000 26,872 3,160 11,195 (245) 81,384	Balance at 30 June 2024 £ 36,351 3,962 1,433 1,591 107,160 2,014 36,322 150 16,051 2,750 42,769 - 75,795 6,153 5,000 - 581 4,246 1,087 - 224 - 28,625 - 3,807 400,000 26,872 3,160 11,195 (245) 81,384	Balance at 30 June 2024 £ 36,351 3,962 1,433 1,591 107,160 2,014 36,322 150 16,051 2,750 42,769 - 75,795 6,153 5,000 - 581 4,246 1,087 - 224 - 28,625 - 3,807 400,000 26,872 3,160 11,195 (245) 81,384
				765,231 8,829 606,273 29,255	1,107,093 9,674 - -	(689,190) (6,381) - -		(284,697) - - -			898,437 12,122 606,273 29,255
				644,357	9,674	(6,381)		-			647,650
			1,409,588		1,116,767	(695,571)		(284,697)	1,546,087

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FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2024

12. STATEMENT OF FUNDS (continued)

The following restricted funds were held at 30 June 2024:

210 ESB FISMP

Funded by FIG’s Environmental Studies Budget for Biodiversity Monitoring, this long-term project annually monitors the survival rates of southern rockhoppers, gentoo and king penguin populations, together with blackbrowed albatrosses and southern giant petrels.

212 An inventory of Falkland Islands Bryophytes and Lichens.

Funds remaining from the Darwin Plus project to support legacy elements to address critical knowledge gaps of lower plants diversity in the Falkland Islands, and to provide conservation tools for local decision making.

217 RSPB Hydrocarbons Policy Frameworks

Funds from the RSPB to provide additional resources to initiate policy processes to enable sustainable, positive hydrocarbon development in the Falkland Islands.

228 Darwin Whale Project

Project finished in 23-24; the remaining funds belong to match funding and are due to be used for data analysis.

268 Ellerman Mountain Areas

Funds to reassess the Important Plant Area status of two West Falkland Mountain areas and to utilise this data to facilitate the designation of one as the Falkland Islands first National Park and the other as a potential agricultural set-aside at rates based of a quantitative assessment of Falkland Island land-values.

276 DZS MoU Activities

Restricted fund created to track activities from Detroit Zoo as part of our MoU agreement.

287 Marine Conservation Officer

Partly funded by the RSPB with match funds from Falklands Conservation to support marine management planning. The remaining funds include a Marine Officer for the Organisation, technical consultancy costs to draw on legal or fisheries consultants, and time from Falklands Conservation’s Communications Officer to develop a structured communication, engagement plan and materials.

290 Falklands National Herbarium

Funds to be used for housing our National Herbarium within our proposed new office building, which is currently held in 40 Jubilee Villas

298 FC Reserve Management

A fund to be used for the management of Falklands Conservation’s nature reserves and for future reserve purchases.

303 Propagation Booklet

Funds to create a propagation Booklet to engage community members to have a go at growing native plants for recreation and ecological restoration.

308 Springcreek Habitats

Funded by Springcreek Conservation to undertake multimedia promotion of planting efforts as well as provide opportunity for the Watch Group to get a greater understanding of habitat restoration through planting trips.

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FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2024

12. STATEMENT OF FUNDS (continued)

325 BEST 2.0 Motley Restoration

Funds received from BEST 2.0 to undertake urgently needed habitat restoration, to stem erosion, on Motley Island, with the help of community volunteers. Project finished in year 23-24.

340 WATCH Group

Supported by the Standard Chartered Bank and Springcreek Habitats, this environmental group for young Islanders allows them to experience and learn the value of their unique natural surroundings.

350 DEFRA Falkland Peatland greenhouse gas (GHG) project

Funds from DEFRA applied for the development of a comprehensive dataset on Falkland peatland GHG emissions, carbon sequestration rates, peat formation/loss and soil erosion. Including completion of a feasibility study for carbon offsetting to take place on the Falkland Islands.

355 Darwin Advancing Falklands and region-scale management of globally important whale populations.

Recovering populations of southern right whales and endangered sei whales occur around the Falklands. Informed management decisions are hindered by lack of knowledge of their local and region-wide occurrence. This project uses telemetry to track individual whales, and boat/aerial surveys to address data gaps on distribution, abundance, and ecology. Management outputs include a draft Species Action Plan, Key Biodiversity Area assessment, and recognition of Falklands’ whale populations by regional regulators. Community and stakeholder engagement will optimise support of management recommendations.

356 ESB Match Funding – Cetacean Project

Funds provided by Environmental Studies Budget as Match funding support to the Darwin: Advancing Falklands and region-scale management of globally important whale populations.

361 Building for the Future Appeal

The charity has an aspiration to build a new, fit-for-purpose office building in Stanley. Fundraising has been going on for several years and during the period there was a tremendous boost with a restricted gift of £375k from the HB Allen Foundation.

362 HB Allen Conservation Fund

During financial year 2018-2020 the charity received a donation of £75k from the H B Allen Foundation for use in conservation. During the year 23-24 the remaining of these funds have been directed to the New Island Contingency, to support restoration efforts.

370 Penguin Rehab Centre

A fund established with support from numerous sources both within and outside of the Falklands, to aid the construction, maintenance and running of a small-scale oil-spill response centre for wildlife in the Islands.

372 FCO Comms Funding

Funded by the FCO this project aims to encourage the younger generation to engage Falkland Island decision makers about environmental governance, and in particular their plans for management of the natural environment.

375 FCO Salmon Farming Equipment

Funded by the FCO the aim of this project is to provide for equipment that will allow the Watch Group to learn about aquaculture and how they perceive it impacting the Falkland Islands

407 RSPB Annual support

Annual Partner support from RSPB to continue the development of Falklands Conservation to achieve their key objectives.

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FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2024

12. STATEMENT OF FUNDS (continued)

435 Darwin: Recognise, protect, restore - driving sound stewardship of Falklands peat-wetlands.

Covering over a quarter of the Falkland’s land-area, peat-wetlands is highly significant for carbon storage, ecosystem function, and the important habitats, fauna and flora it supports. Habitat and soil lost, are ongoing threats to our peat-wetlands ecosystems, exacerbated by a lack of knowledge which prevents site-based protection and management for conservation. Project funded by Darwin Plus, will result in descriptions of nationally “Vulnerable” peat-wetland ecosystems, development of assessment tools for land-managers, and multimedia outputs that will inspire and drive protection and management of valuable sites for lasting conservation benefit. The project finished in year 23-24

439 FC Restoration Project

Funds from Falklands Conservation to support New Island Restoration Project.

440 Restoration Funds Contingency

Funds created by HB Allen fund, FC Reserve Management fund and New Island funds, to support the application for a fund to cover the New Island restoration efforts.

448 Darwin Pebble Islet

Fund to undertake environmental restoration activities on four island Private Protected Areas including habitat restoration of Pebble Islet through tussac planting, threatened plant conservation on Motley and Middle Islands and Cobb’s Wren reintroductions following island rat-eradications.

477 Darwin Local Biodiversity Monitoring

Fund to facilitate the adoption of the Responsible Wool Standard sustainable farming model in the Falkland Islands through providing outreach guidance manuals on undertaking biodiversity monitoring, writing a Farm Biodiversity Management Plan and conducting practical workshops on monitoring and plant identification. Funds remaining belong to a match-funding for the project.

486 Darwin NI Feasibility Restoration

Funded by Darwin Plus, this project would complete preparatory technical steps necessary for a potential four species eradication programme and engage the Falkland Islands Government and community to secure support for New Island’s long-term restoration.

500 NOAA Right Whale Satellite tracking

Funds from NOAA to be used on the deployment of satellite transmitters on southern right whales and on followup efforts to located tagged individuals off the Falkland Islands

701 New Island

Funds originally provided through the Merger between New Island Conservation Trust (NICT) and Falklands Conservation, for the conservation and management of New Island.

701 New Island Land and Buildings

Land and Buildings provided through the Merger between New Island Conservation Trust (NICT) and Falklands Conservation, for the conservation and management of New Island.

Notes To The Financial Statements

For the Year Ended 30 June 2024

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FALKLANDS CONSERVATION

12.4 Capital Endowment Fund Balance at 30 June 2024 £ Islands Nature Reserves 32,408

The above capital fund was created in the old charity in 1995, from donations received and was utilised to purchase certain freehold land, and the islands listed in Note 7 with the exception of Hawk’s Nest Pond which was donated separately at a later date. The balance was transferred in 2001 from the old charity to the new charitable company, Falklands Conservation, following the transfer of legal title.

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed Assets Investments £ £ Endowment Funds 32,408 - Restricted Funds 29,255 - Designated Funds 248,787 - General Funds - 1,151,691 __ __ 310,450 1,151,691	Other Net Assets £ - 1,516,832 427,846 (835,607) _____ 1,109,071	Total £ 32,408 1,546,087 676,633 316,084 _____ 2,571,212

14. RELATED PARTIES

There were no related party transactions in either the current or the prior year.

15. ULTIMATE CONTROLLING PARTY

The charitable company is considered to have no ultimate controlling party.

16. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charges Dividends and interest from investments Losses/(gains) on investments (Gain)/loss on sale of fixed assets Impairment of fixed assets (Increase)/decrease in stocks (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by operating activities	2024 £ 265,152 4,655 (75,000) (10,448) 3,520 4,533 (3,796) (66,136) 12,910 _____ 135,390	2023 £ 459,994 8,936 - (23,413) 605 - (3,806) (54,089) 26,618 _____ 414,845

17. SUBSEQUENT EVENTS

There have been no subsequent events.

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