OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

Company Number: 03685911 Registered Charity Number: 1081183

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2023

CONTENTS CONTENTS PAGE
Legal and Administrative Information 2
Trustee
Report		 3
11
12
19
Statement of Financial Activities 20
Balance Sheet 21
Cashflow Statement 22
Notes to the Financial Statements 23 - 32

1

CRUELTY FREE INTERNATIONAL TRUST CRUELTY FREE INTERNATIONAL TRUST
FOR THE YEAR ENDED 31 MARCH 2023
LEGAL AND ADMINISTRATIVE INFORMATION
_____________
BANKERS Co-Operative Bank
1 Islington High Street
London
N1 9TR
AUDITORS Moore Kingston Smith LLP
9 Appold Street
London
EC2A 2AP
SOLICITORS Bates Wells & Braithwaite LLP
10 Queen Street Place
London
EC4R 1BE
INSURANCE BROKERS Towergate Risk Solutions
Halford House
Coval Lane
Chelmsford
ESSEX
CM1 1TD
REGISTERED AND PRINCIPAL ADDRESS 16a Crane Grove
Highbury
London N7 8NN

2

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present for submission their report for the 12-month period to 31 March 2023.

CONSTITUTION

The Organisation was incorporated and registered as a Charity on the 18 December 1998 and is governed by the Memorandum and Articles of Association set out on that date and amended in June 2013. The Organisation is both a Charity and Company limited by guarantee and has no share capital. Though independently governed, the Organisation has a single permanent corporate member, Cruelty Free International (registered company number 04115167).

OBJECTS

The Organisation acts as an educational body about all aspects of animal testing. It strives to educate the public in the moral, scientific, and other arguments both for and against animal testing; the prevention of cruelty to and suffering of animals, including laboratory animals, and the alternatives to animal testing.

In terms of ongoing activities, the long-term business plan is to provide grant funding awards in support of the development of scientific alternatives to animal testing, and to ensure that animal testing is lawfully regulated and accountable.

PUBLIC BENEFIT

The Trustees confirm that they have complied with the duty to have due regard to the guidance on public benefit published by the Charity Commission, including its guidance

3

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

The Organisation provides public benefit through the fulfilment of its charitable objectives; by educating the public regarding arguments both for and against all aspects of animal testing, and in the funding, development, and promotion of humane and effective science.

TRUSTEES

The Organisation is governed by an Executive Committee of Trustees. Ordinarily, the Executive Committee meets in session four times per year and is responsible for the strategic direction, tactical outputs, and all other affairs of the Organisation.

Appointments to the Executive Committee are made by recommendation of serving Trustees. Each recommendation is considered on merit, and recommendations must be seconded and pass a majority vote thereafter. Once appointed, new Trustees are inducted into the affairs of the Organisation, and are provided with relevant training, should that be required.

As Cruelty Free International is the sole member of the Organisation, it has the effective right to determine the appointment of all new Trustees, and to remove any Trustees from office.

The Trustees that served during the year were:

Director Chris Deacon
Director Bob Garner
Director Siobhan Barrett
Director Eleanor Thomas
Company Secretary Michelle Thew

4

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

_____________

REVIEW OF ACTIVITY, AND FUTURE PLANS

The Organisation continued to deliver its charitable activities in line with its ongoing strategy and, as in previous financial years, the Organisation sought to use its grant making objectives to discharge its core charitable activities.

ational and Cruelty Free Europe are disclosed in Note 8 on page 31 and 32 of this document.

5

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

With regards to overall financial performance, total unrestricted income across the Organisation amounted to £396,096 [2022: £869,458]. Of this overall figure, and following the unusually large Legacies receipts of the previous financial year, Legacies income amounted to a more modest £277,172 [2022: £743,426], and fundraising income, associated with Supporter Development and Other Donations associated with corporate giving, amounted to a further £22,205 [2022: £ 17,330] and £91,391 [2022: £108,956] respectively. As ever, the Organisation remains indebted to the wonderful generosity of its financial donors, whether individuals or corporate bodies alike, their interest and support is a vital network and lifeline for our ongoing work.

Separately, the Organisation established a treasury deposit account during the year to steward its accumulated reserves efficiently, and importantly, to generate a return on investment. With a large balance of £435,030 [2022: £0] on deposit, this facility significantly helped increase investment income for the year to £5,328 [2022: £646], which is a very favourable comparison to the previous year.

Measured against total income, expenditure across the Organisation amounted to £442,017 [2022: £442,622] and the Organisation sought to provide the financial resources to maintain delivery despite inflationary headwinds and a significant reduction in income during the year.

To do so, the Organisation drew on accumulated reserves to fund the delivery of its Charitable Activities the costs of which amounted to £256,168 [2022: £280,158]. A further £185,849 [2022: £162,464] was nominated in support of Raising Funds and it is hoped that the added investment in fundraising will bear fruit in subsequent financial years.

6

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

Overall, the Organisation generated a deficit of £45,921 [2022: surplus £426,836] in sharp contrast to the large surplus during the previous financial year and, therefore, the value of the of the

In terms of other operational developments, during the year the Organisation continued to invest in and improve its data management processes and cyber security systems to ensure that they remain efficient and effective, and compliant with both regulatory and best practice operational procedures. Further with regards to systems and policies, the Organisation is currently working to draft and implement a suitable whistleblowing and anti-fraud policies to enhance and improve its management controls, protection, and accountability across the full range of its services.

In similar vein, during the forthcoming financial year, the Organisation intends to build on its ethical investment, equality & diversity, and environmental (carbon emissions) policies by revising and introducing further policies commensurate with its place in the charity sector. In the near term the Organisation will revise its existing health & safety and wellbeing policies and prioritise the introduction of new anti-slavery & human trafficking and working from home policies to ensure that it is properly equipped in each of these areas.

Looking to the future, the Organisation has an enduring commitment to continue its successful science grants programme, and the Organisation is also considering the expansion of its charitable activities further through the adoption of a new and complementary education-based outreach strategy, which would be designed to contribute further to the public debate around animal testing and its alternatives.

7

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

RESERVES POLICY

The Organisation is committed to maintain adequate levels of reserves, the calculation of which is sophisticated enough to protect cash flow whilst maintaining sufficient funding to deliver three months of budgeted expenditure. During this year of operation, the minimum reserve level required was calculated to again amount to £110,000 [2022: £110,000].

Accumulated funds that are currently held in excess of the minimum level of reserves deemed necessary, will be used to expand the impact of the O regulatory activity, and to underpin the O in the financial periods that lie ahead.

REVIEW OF RISKS

The Trustees are responsible for the management of the risks faced by the Organisation. Risks are identified and assessed, and controls are established and used throughout the year. A comprehensive review of the O undertaken on an annual basis and a detailed Risk Register, addressing the full spectrum of the O is maintained and appended when necessary.

A particular risk affecting the Organisation s sustainability is fundraising and income generation, the performance of which can be extremely sensitive to sectoral and economic headwinds, and that can cause significant fluctuations in results. To mitigate this risk, the Organisation strives to maintain a comprehensive cashflow statement and sufficient reserves as detailed above.

The internal stewardship of donations and more broadly of maintaining compliance with regulatory standards across the Organisation, whilst achieving the best practice benchmarking, represents another set of practical risks.

8

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

In response, the Organisation employs a series of complex systems, policies, and procedures to ensure that its supporter journey is compliant with the minimum standards maintained by the Fundraising Regulator and by the Information Commissioners Office, and that the Organisation more generally correctly adheres to all the regulatory framework in which it is required to work.

THE KEY CONTROLS USED BY THE ORGANISATION INCLUDE:

Through observation of the above risk management processes, trustees are satisfied that the major risks identified have been adequately mitigated. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

KEY MANAGEMENT REMUNERATION

The Organisation has no staff of its own. The work of the Organisation is primarily administered by Cruelty Free International workers that are seconded to the Organisation to carry out specific tasks by financial agreement with that organisation, please see Note 3 on page 29 and 30 for further detailed information.

The Organisation is content that the costs incurred in the delivery of its work have been correctly apportioned and that staff costs are regulated by Cruelty Free International in accordance with best practice, including through the provision of sectoral benchmarking, and a comprehensive annual staff appraisal process.

9

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

RESPONSIBILITIES

The Trustees (who are also directors for the purposes of company law) are responsible for

law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

Company law requires Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period.

In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP;

make judgements and estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

10

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

So far as the Trustees are aware:

unaware;

the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the organisation's auditor is aware of that information.

Small Company Rules: Advantage is taken in preparing this report of the provisions applicable to small companies entitled to the small exemption.

Approved by the Trustees on and signed on their behalf by:

5 October 2023

Chris Deacon Date: Director

11

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the for the year ended 31 March 2023 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, epublic of

In our opinion the financial statements:

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 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

12

CRUELTY FREE INTERNATIONAL TRUST INDEPENDENT FOR THE YEAR ENDED 31 MARCH 2023

_____________

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

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 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 other information comprises the information included in the annual report, other than the other information. 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

13

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2023

_____________

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:

r for which the financial

statements are prepared is consistent with the financial statements; and

requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained annual report.

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

14

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2023

_____________

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 Strategic Report.

Responsibilities of trustees

As explained more fully in the on page 10, 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 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.

15

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2023

_____________

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 gh 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 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 non-compliance 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

16

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2023

_____________

Our approach was as follows: We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

17

CRUELTY FREE INTERNATIONAL TRUST

FOR THE YEAR ENDED 31 MARCH 2023

_____________

18

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2023

_____________

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Luke Holt (Senior Statutory Auditor) Date: 9 October 2023 for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 9 Appold Street London EC2A 2AP

19

CRUELTY FREE INTERNATIONAL TRUST STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

INCOME
Income from Donations and Legacies
Investment Income
Total Income
EXPENDITURE
Raising Funds
Charitable Activities
Total Expenditure
Net (Deficit) / Surplus
Balance at 1 April 2022
Balance at 31 March 2023		 Notes
2.
3.		 Unrestricted
2023
£
390,768
5,328
396,096
185,849
256,168
442,017
(45,921)
1,057,531
1,011,610		 Unrestricted
2022
£
868,812
646
869,458
162,464
280,158
442,622
426,836
630,695
1,057,531

The Statement of Financial Activities is in respect of continuing activities. There are no other gains or losses in the year except those reported in the Statement of Financial Activities. The accompanying notes form part of the financial statements.

20

CRUELTY FREE INTERNATIONAL TRUST BALANCE SHEET AS AT 31 MARCH 2023

Notes
2023 2022
£ £
FIXED ASSETS
Investments
Cash on Deposit		 435,030 -
435,030 -
CURRENT ASSETS
Debtors 4. 328,542 784,033
Cash at bank and in hand 283,156 318,558
Total Current Assets 611,698
1,102,591
CURRENT LIABILITIES
Less: Creditors
amounts due within one year		 5. (35,118) (45,060)
Net Current Assets / (Liabilities) 576,580 1,057,531
Net Assets 1,011,610 1,057,531
RESERVES
General Fund 6. 1,011,610 1,057,531
These financial statements have been prepared in accordance with the provisions applicable
to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and were signed on its behalf by: 5 October 2023 Chris Deacon Date: Director Registered Company Number: 03685911

21

CRUELTY FREE INTERNATIONAL TRUST CASHFLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

_______
CASHFLOWS FROM OPERATING ACTIVITIES
Net Cash provided by / (used in) operating activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
period
Cash and cash equivalents at the end of the
reporting period
RECONCILIATION OF NET CASHFOW FROM
OPERATING ACTIVITIES
Net (deficit) / Surplus
Decrease / (Increase) in debtors
(Decrease) / Increase in creditors
Net cash provided by / (used in) operating activities		 _______
2023
£
399,629
399,629
318,559
718,188
2023
£
(45,921)
455,492
(9,942)
399,629		 _____
2022
£
(177,887)
(177,887)
496,446
318,559
2022
£
426,836
(622,300)
17,577
(177,887)

The Trust has no debt and therefore a Net Debt Note, as required by Update Bulletin 2 to the Charities FRS 102 SORP has not been prepared.

22

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

_____________

1. ACCOUNTING POLICIES

a) Company Information

Cruelty Free International Trust is a limited company domiciled and incorporated in England and Wales. The registered office is 16a Crane Grove, London N7 8NN.

b) Accounting Convention

These financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Charities Act 2011 and the requirements of the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements were prepared under FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

c) Going Concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cause significant doubt on the ability of the charitable company to continue as a going concern.

23

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. The Trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future.

d) Value Added Tax

All figures stated in the accounts are inclusive of valued added tax where applicable.

e) Income

All incoming resources are included in the Statement of Financial Activities on a receivable basis when the charitable company is legally entitled to the income, the receipt of income is probable, and the amount can be quantified reliably.

For legacies, entitlement arises when the charity is aware that probate has been granted. Receipt is normally probable when the executors have established that there are sufficient assets in the estate. Legacy income is recognised when there is entitlement, probability of receipt and can be reliably measured.

f) Expenditure

basis. Fundraising expenditure comprises costs incurred encouraging people and Governance expenditure comprises all expenditure not directly related to the charitable activity of fundraising, including audit fees. Support costs represent those costs which are wholly or partially in support of on usage.

24

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

g) Funds

Unrestricted funds are available for use at the discretion of the trustees to further the general objectives of the company and charity. The charitable company has no restricted funds.

h) Financial Instruments

financial instruments.

Financial instruments are recognised in the charita charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic Financial Assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction cost and are subsequently carried at settlement value 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.

25

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Derecognition of Financial Assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risk and the rewards of ownership to another entity.

Classification of Financial Liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charitable company after deducting all of its liabilities.

Basic Financial Liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently at settlement value.

Derecognition of Financial Liabilities

Financial liabilities are derecognised when, and only when, the charitable obligations are discharged, cancelled, or they expire.

26

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

_____________

i) Investments

Cash balances with maturities of more than three months have been included within investments in the financial statements.

j) Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less.

k) Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

l) Retirement Benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

m) Judgements and Key Sources of Estimation Uncertainty

In the application of the charitable

to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated

27

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

_____________

assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revisions affects both current and future periods.

n) Critical Judgements

We are not aware of any critical judgements or estimates that have had a significant effect on amounts recognised in the financial statements.

2. INCOME

Legacies
Supporter Development
Other Donations
Investment
TOTAL		 2023
£
277,172
22,205
91,391
5,328
396,096		 2022
£
743,426
17,330
108,056
646
869,458

28

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

__________
3.
EXPENDITURE
Raising Funds
Developments and Appeals
Other Costs
TOTAL
Charitable Activities
Project Programmes - Science Grants to Cruelty
Free International & Cruelty Free Europe
Support Costs
TOTAL
Support Costs
Auditors Remuneration - Current Year (excl. VAT)
Committee Expenses
Other Costs
Staffing
Allocated to Charitable Activities
TOTAL		 ___
2023
£		 ____ __
2022
£
19,755 8,814
166,094 144,529
162,464
185,849
2023 2022
£ £
141,352 175,557
83,261 104,601
224,613 280,158
2023
£
5,292
390
5,987
19,886
(31,555)		 2022
£
6,048
27
1,252
14,953
(22,280)
- -

29

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

3. EXPENDITURE (CONTINUED)

Staff Cost
2023
£
Wages and Salaries
177,757
Social Security Costs
28,120
Pensions Contributions
9,236
TOTAL
215,113
Five (2022: three) Cruelty Free International staff members worked on behalf		 2023
£
177,757
28,120
9,236
215,113		 2022
£
166,702
25,268
8,652
200,622

i) Three staff were classified as significant decision-makers at a combined cost of £61,283 (2022: £68,448) during the year. ii) No individual earned in excess of £60,000 in the current or previous year. iii) 2: £ nil).

4.
DEBTORS
Accrued Income
Prepayments
TOTAL
5.
CREDITORS
Trade Creditors
Cruelty Free International
Accruals		 2023
£
328,359
183
328,542
2023
£
466
26,698
7,954
35,118		 2022
£
783,815
218
784,033
2022
£
287
35,150
9,623
45,060

30

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

____________
6.
RECONCILIATION OF MOVEMENT IN RESERVES
General unrestricted reserves
Opening Balance
Net (Deficit) / Surplus for the year
Closing Balance		 _____
2023
£
1,057,531
(45,921)
1,011,610		 __
2022
£
630,695
426,836
1,057,531

7. GOVERNANCE

Executive Committee expenses incurred during the year by four (2022: four) individuals on travel and subsistence, totalled £390 (2022: £27).

8. RELATED PARTY TRANSACTIONS

The Organisation works closely with Cruelty Free International, a separate not-for-profit company limited by guarantee. Cruelty Free International is the sole member of Cruelty Free International Trust and hence is therefore its ultimate controlling party. They share the same registered address and co-operate on infrastructure and office space.

Cruelty Free International provides the Organisation with staffing resources for administration and project delivery purposes, and the associated staffing expenses are then recharged to the Organisation at cost. Staff costs and the numbers of Cruelty Free International staff deployed in support of the organisation during the year are set out in Note 3 on page 30.

31

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

The Organisation also works closely with Cruelty Free Europe, a not-for-profit company that has been established and is domiciled in Belgium. Cruelty Free International provides Cruelty Free Europe with staffing resources for administration and project delivery purposes, and the associated expenses are then recharged to the at cost via a grant funding mechanism.

Although Cruelty Free Europe has its own separate board of directors, the General Assembly, its ultimate governing body, is controlled by Cruelty Free International.

The following related party transactions took place during the year:

2023 2022
£ £
Science Grant Award to Cruelty Free International 85,617 91,184
Science Grant Award to Cruelty Free Europe 55,735 84,373
Amount owed to/(from) Cruelty Free International at year end 26,698 35,150
Staff and Administration costs recharged from Cruelty Free 215,112 214,908
International

32