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2024-03-31-accounts

Company Number: 03685911 Registered Charity Number: 1081183

CRUELTY FREE INTERNATIONAL TRUST

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2024

CONTENTS PAGE
Legal and Administrative Information 2
Trustees’ Report 3 – 11
Independent Auditor’s Report 12 – 19
Statement of Financial Activities 20
Balance Sheet 21
Cashflow Statement 22
Notes to the Financial Statements 23 - 35

1

CRUELTY FREE INTERNATIONAL TRUST FOR THE YEAR ENDED 31 MARCH 2024 LEGAL AND ADMINISTRATIVE INFORMATION

_____________

PRINCIPAL 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 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present for submission their report for the 12-month period to 31 March 2024.

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 education services to the public in respect of testing on animals, to make 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 ‘Public Benefit: Running a Charity (PB2)’.

3

CRUELTY FREE INTERNATIONAL TRUST TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

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

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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REVIEW OF ACTIVITY, AND FUTURE PLANS

As in previous years, the Organisation’s strategy of disbursing science grant awards to deliver its core charitable activities continued, and the Organisation subsequently awarded grant funding of £123,602 [2023: £141,352] to support Cruelty Free International and Cruelty Free Europe deliver their key science-based projects. The nature of the Organisation’s relationships with Cruelty Free International and Cruelty Free Europe are disclosed in Note 8 on page 33 and 34 of this document.

Funding nominated in support of Cruelty Free International was used to sustain its Global implementation of alternatives to regulatory animal testing initative, and the Organisation separately supported Cruelty Free Europe’s Implementation of alternatives to regulatory animal testing in the EU project.

Technical in nature, both projects were successfully discharged and, by helping to ensure that existing law is upheld, through the promotion of humane science and alternative methods to animal testing; and by contributing to the debate on the use of animals in testing, the funding of these science projects ensured that the Organisation generated public benefit in accordance with its charitable purpose.

In terms of financial performance, the Organisation recorded a successful year as total unrestricted income across the Organisation increased significantly to £572,863 [2023: £396,096]. The primary reason for growth is related to Legacies income, which amounted to £390,371 [2023: £277,172], as the Organisation made an accrual of £59,000 in relation to the complex and longstanding Conway legacy case.

5

CRUELTY FREE INTERNATIONAL TRUST

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024

During the year fundraising, and the generation of voluntary funds more generally, remained difficult, and the effects of the cost-of-living crisis bearing down on financial donors, continued to be felt. Despite these challenges, corporate donations increased in value significantly during the year to £152,164 [2023: £91,391] and this helped to offset the contraction in supporter fundraising which fell to £11,886 [2023: £22,205].

The Organisation remains indebted to the generosity of its financial donors, both individuals and corporate bodies alike, and their interest and support remains a vital network and lifeline for our enduring work.

Finally, with regards to income, the Organisation continued in the application of its successful proactive treasury management strategy, used to steward accumulated reserves efficiently, and to generate a return on investment. In this way, the Organisation generated investment income for the year of £18,442 [2023: £5,328]. A detailed note on income generation is available in Note 2 on page 30.

In the funding and delivery of its work, total expenditure across the Organisation amounted to £426,591 [2023: £442,017] and, because of an unexpected late surge of legacies receipts, the Organisation returned an unplanned surplus of £146,272 [2023: deficit £45,921].

Charitable activities expenditure, representing funds used to directly deliver the Organisation’s mission, increased proportionately during the year to £285,638 [2023: £256,168], largely due to an increase in the cost of working, as a result of inflationary pressure experienced across the sector and wider economy. The overall value of the grant awards made to applicants during the year was lower than in comparison to the previous financial year due to the tailoring of each application and its unique requirements. A detailed description of expenditure more generally is provided in Note 3 on page 30 and 31.

6

CRUELTY FREE INTERNATIONAL TRUST TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024

With challenges remaining in the establishment of a sustainable fundriaising strategy, exacerbated by strong headwinds associated with the wider cost-of-living crisis, the Organisation was forced to make difficult choices during the year. Therefore, and in consultation with Cruelty Free International, with the nature of that relationship described in Note 8 on page 33 and 34 of this document, it was decided to make significant changes to the existing fundraising team, and this decision resulted in two redundancies being made. It is essential to strike the right balance in the allocation of valuable resources, and the restructured team, by bringing more tasks in house and through the adoption of a boutiquelike focus on the stewardship of donor relationships, will help achieve that balance. Overall, the cost of raising funds subsequently fell to £140,953 [2023: £185,849].

During the year, in terms of other operational developments and achievements, as part of the Organisation’s new 10-year strategy, continued investment was made in the improvement of data management processes and cyber security systems, in order to safeguard security and drive efficiency. And, the Oganisation implemented new whistleblowing and anti-fraud policies to help improve management controls, protection, and accountability across the full breadth of its operations.

Considering future plans and developments, despite an enduring commitment to the continuation of its successful science grants programme, the Organisation will launch an education-based feasibility study during the year ahead that will consider and inform the expansion of its charitable activities further. A restricted fund to help garner and deliver this work will also be established. It is likely that any future education service will be internet based, to ensure access for the widest possible audience, and for that reason a new website is also currently being considered.

7

CRUELTY FREE INTERNATIONAL TRUST

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The Organisation intends to further develop and manage its ethical investment, equality & diversity, and environmental (carbon emissions) policies during the year ahead, the principles of which are closely aligned to its values.

Finally, with plans therefore in place to enhance its work and uplift its charitable activities, the financial performance and surplus achieved this year, coupled with carefully maintained reserves, means that the Organisation is well placed to continue to discharge its mission in the future financial periods.

The Organsiation holds a general reserve fund amounting to £1,157,882 [2023: £1,011,610] the details of which are set out on the balance sheet on page 22 of this document. The balance sheet has been reclassified and restated in light of amended accounting policies. Fuller details of the reclassification and restatement are held in note 9 on page 34 and 35 of this document.

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 amount to £110,000 [2023: £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 Organisation’s education, science, and regulatory activity, and to underpin the Organisation’s general operations in the financial periods that lie ahead.

8

CRUELTY FREE INTERNATIONAL TRUST

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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 Organisation’s risk management processes is undertaken on an annual basis and a detailed Risk Register, addressing the full spectrum of the Organisation’s systems and activities, is continuously monitored, maintained, and subsequently appended as 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.

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.

9

CRUELTY FREE INTERNATIONAL TRUST

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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 30 and 31 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 managed and regulated by Cruelty Free International in accordance with best practice, including through the provision of sectoral benchmarking, and a comprehensive annual staff appraisal process.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

10

CRUELTY FREE INTERNATIONAL TRUST TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024

Accounting Practice including FRS102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

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:

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.

So far as the Trustees are aware:

11

CRUELTY FREE INTERNATIONAL TRUST INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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

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

Chris Deacon Date: 2 October 2024 Director

12

CRUELTY FREE INTERNATIONAL TRUST INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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Opinion

We have audited the financial statements of Cruelty Free International Trust (‘the company’) for the year ended 31 March 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 FRS 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:

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

13

CRUELTY FREE INTERNATIONAL TRUST

INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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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

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 financial statements and our auditor’s report thereon. The trustees are responsible for 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

14

CRUELTY FREE INTERNATIONAL TRUST

INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

_____________

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:

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 in the course of the audit, we have not identified material misstatements in the trustees’ 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:

15

CRUELTY FREE INTERNATIONAL TRUST

INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

_____________

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10, 11, and 12, 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.

16

CRUELTY FREE INTERNATIONAL TRUST

INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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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 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.

17

CRUELTY FREE INTERNATIONAL TRUST

INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

_____________

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:

18

CRUELTY FREE INTERNATIONAL TRUST INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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19

CRUELTY FREE INTERNATIONAL TRUST

INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 MARCH 2024

_____________

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 so that we might state to the 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 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.

Mowe Kvagsten Seif UP

Date: 4 October 2024

Luke Holt (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 Appold Street London EC2A 2AP

20

CRUELTY FREE INTERNATIONAL TRUST STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

INCOME
Income from Donations and Legacies
Investment Income
Total Income
EXPENDITURE
Raising Funds
Charitable Activities
Total Expenditure
Net Surplus / (Deficit)
Balance at 1 April 2023
Balance at 31 March 2024		 Notes
2.
3.		 Unrestricted
2024
£
554,421
18,442
572,863
140,953
285,638
426,591
146,272
1,011,610
1,157,882		 Unrestricted
2023
£
390,768
5,328
396,096
185,849
256,168
442,017
(45,921)
1,057,531
1,011,610

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.

21

CRUELTY FREE INTERNATIONAL TRUST BALANCE SHEET

AS AT 31 MARCH 2024

Notes Notes
2024 2023
As reclassified
£ £ £
CURRENT ASSETS
Debtors 4. 491,800 328,542
Cash at bank and in hand 274,682 283,156
Short term cash investment 401,126 435,030
Total Current Assets 1,167,608 1,046,728
CURRENT LIABILITIES
Less: Creditors – amounts due within
one year		 5. (9,726) (35,118)
Net Current Assets / (Liabilities) 1,157,882 1,011,610
Net Assets 1,157,882 1,011,610
RESERVES
General Fund 6. 1,157,882 1,011,610

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:

Director

Date: 2 October 2024

Registered Company Number: 03685911

22

CRUELTY FREE INTERNATIONAL TRUST

CASHFLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2024

_______
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 Surplus / (deficit)
(Increase) / Decrease in debtors
(Decrease) / Increase in creditors
Net cash provided by / (used in) operating activities		 _______
2024
£
(42,378)
(42,378)
718,186
675,808
2024
£
146,272
(163,258)
(25,392)
(42,378)		 _____
2023
£
399,629
399,629
318,559
718,188
2023
£
(45,921)
455,492
(9,942)
399,629

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.

23

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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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.

24

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. With adequate resources in place, a sophisticated 10year strategy agreed, and an enduring mission to address, the Trustees are confident 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

Resources expended are included in the Statement of Financial Activities on an accrual’s basis. Fundraising expenditure comprises costs incurred encouraging people and organisations to contribute financially to the charity’s work. 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.

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CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company’s balance sheet when the 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.

26

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 company’s obligations are discharged, cancelled, or they expire.

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CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

_____________

i) Cash and Cash Equivalents and short term cash investments

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

Cash is also held on longer term deposits for treasury management purposes for period for up to 1 year in duration, and these funds are classified within the balance sheet as short term cash investments.

During the year, the balance sheet has been restated, and cash previously shown as cash held investments of less than 1 year in fixed assets have been recategorised as short term cash investments within current assets.

j) 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 employee’s services are received.

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.

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CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

_____________

k) Retirement Benefits

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

l) Judgements and Key Sources of Estimation Uncertainty

In the application of the charitable company’s accounting policies, the trustees are required 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 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.

m) 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.

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CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

_____________

2. INCOME

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
Legacies
Supporter Development
Other Donations
Investment
TOTAL		 2024





2023
£
2023
£
277,172
22,205
91,391
5,328
396,096
£
390,371
11,886
152,164
18,442
572,863
2024
£
6,157 19,755
134,796 166,094
140,953 185,849
2024 2023
£ £
123,602 141,352
119,211 83,261
242,813 224,613

30

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS

____________

3. EXPENDITURE (CONTINUED)

Support Costs
Auditors Remuneration - Current Year (excl. VAT)
Committee Expenses
Other Costs
Staffing
Allocated to Charitable Activities
TOTAL
Staff Cost
Wages and Salaries
Social Security Costs
Pensions Contributions
TOTAL		 2024
£
9,238
894
10,592
22,101
(42,825)
-
2024
£
163,925
27,388
9,965
201,278		 2023
£
5,292
390
5,987
19,886
(31,555)
-
2023
£
177,757
28,120
9,236
215,113

Three (2023: Five) Cruelty Free International staff members worked on behalf of the Trust to deliver a range of outputs; and their salaries were proportionately recharged to the Trust on an at cost basis.

i) Two staff were classified as key management personnel at a combined cost of £63,906 (2023: £61,283) during the year. ii) No individual earned in excess of £60,000 in the current or previous year. iii) Trustee’s remuneration for the year was £ nil (2023: £ nil).

31

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

4.
DEBTORS
Accrued Income
Prepayments
Debtors
TOTAL
5.
CREDITORS
Trade Creditors
Cruelty Free International
Accruals
TOTAL
6.
RECONCILIATION OF MOVEMENT IN RESERVES
General unrestricted reserves
Opening Balance
Net Surplus / (Deficit) for the year
Closing Balance		 2024
£
416,194
245
75,361
491,800
2024
£
95
-
9,631
9,726
2024
£
1,011,610
146,272
1,157,882		 2023
£
328,359
183
-
328,542
2023
£
466
26,698
7,954
35,118
2023
£
1,057,531
(45,921)

1,011,610

32

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

7. GOVERNANCE

The Trustees did not receive remuneration for their guiding role in the charity’s affairs. Executive Committee expenses incurred during the year by four (2023: four) individuals on travel and subsistence, totalled £894 (2023: £390).

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 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 29 and 30.

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.

33

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

The following related party transactions took place during the year:

2024 2024 2023
£ £
Science Grant Award to Cruelty Free International 88,219 85,617
Science Grant Award to Cruelty Free Europe 35,383 55,735
Amount owed (from) / to Cruelty Free International at year end
(16,361)		 26,698
Staff and Administration costs recharged from Cruelty Free 201,278 215,112
International

9. PRIOR YEAR RECLASSIFICATIONS

The Organisation holds cash on longer term deposits for treasury management purposes for periods for up to 1 year in duration, and these funds are classified within the balance sheet as short term cash investments.

During the year, the balance sheet has been restated, and said longer term deposits previously shown as cash held investments of less than 1 year within fixed assets have been reclassified as short term cash investments within current assets.

34

CRUELTY FREE INTERNATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

There is no change in the prior year deficit as a result of the reclassification, which in financial terms, is set out in the table below.

2023 2023
As previously Prior year As restated /
stated adjustment reclassified
£ £ £
FIXED ASSETS 435,030 (435,030) -
Investment Cash on Deposit
CURRENT ASSETS - 435,030 435,030
Short Term Interest
NET CURRENT ASSETS 576,850 - 1,011,610

35