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2021-04-05-accounts

THE NYIKA-VWAZA (UK) TRUST

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 6 April 2020 to 5 April 2021.

Charity Number 1105105

THE NYIKA-VWAZA (UK) TRUST

TRUST INFORMATION

Trustees Thomas Geoffrey Lupton Chairman David William Billing Resigned 14 July 2020 Michael John Budgen Re-appointed 24 July 2020 Jonathan Hanson Re-appointed 13 July 2020 Jennifer Anne Kettlewell Jonathan Ralph Timberlake Hon. Secretary and Treasurer Peter Richard Lawrance Re-appointed 16 April 2021 Canadian Representatives Ms. Sigrid Anna Johnson and Mr. Don McMaster Banker Lloyds Bank Investment Manager Canaccord Genuity Wealth Management Anglo International House Bank Hill Douglas IM1 4LN Isle of Man Honorary Independent Charles F Straughan Examiner Registered Office 50 Brewery Road Woking GU21 4NA Surrey Charity Number 1105105 HMRC Charities Ref. XR81083/0

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THE NYIKA-VWAZA (UK) TRUST

TECHNICAL ADVISORY GROUP

As at 5 April 2021

TECHNICAL ADVISORY GROUP

David Billing Carl Bruessow Francoise Dowsett-Lemaire Robert Dowsett Cornell Dudley Jonathan Hanson David Happold Meredith Happold Pat Hardcastle Sigrid Anna Johnson Isobyl La Croix Brian Morris Peter Overton Marianne Overton M.B.E. Jonathan Timberlake Denis Tweddle

Community Programmes and M&E Reptiles Birds and Evergreen Forests Birds and Butterflies Insects Cats Mammals Mammals Forestry General Orchids Ethnobiology Biodiversity Research Expeditions Biodiversity Research Expeditions Vegetation Ecology Fish

2

THE NYIKA-VWAZA (UK) TRUST

THE TRUSTEES’ REPORT FOR THE YEAR ENDED 5 APRIL 2021.

Report of the trustees for the year ended 5[th] April 2021.

The trustees present their annual report and financial statements of the Trust for the year ended 5[th] April 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102 applicable in the UK, published on 16 July 2014.

Objectives and activities for the public benefit.

Objects of the Trust. The objects of the Trust are:

Public Benefit. The Trust provides public benefit by:-

Structure, Governance and Management.

The Trust is a registered charity, number 1105105, and is constituted under a Trust deed dated 13 July 2004.

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Trustees.

New trustees are appointed by the existing trustees and serve for three years after which they may offer themselves for re-appointment. The Trust Deed provides for a minimum of three trustees.

All the trustees are committed to the objects of the Trust. The Chairman, Tom Lupton, lived and worked in Malawi through the 1970/90’s, thereafter, returning periodically. All the other trustees have either lived in Malawi or have close connections with the country.

New trustees are appointed by a resolution of the continuing trustees having regard to their appropriate skills, knowledge and experience. On appointment, new trustees sign a model trustee declaration statement committing them to giving of their time and expertise. The welcome pack includes a copy of the governing Trust Deed, trustee board and sub-committee minutes, a copy of the last three years ‘annual reports and accounts’, and a copy of the Charity Commission’s guidance ‘The Essential Trustee: What You Need to Know’ and ‘Public Benefit: running a charity’ and are required to sign their acceptance of the provisions of the Data Protection Policy.

Governance.

At the periodic trustees’ meetings, the trustees agree the broad strategy and areas of activity for the Trust, including consideration of grant making, investment, reserves and risk management policies and performance. The Trust’s policies as regards to Risk Management, Privacy, Data Protection and Safeguarding are reviewed are agreed annually.

During the year, the trustees held three Ordinary Meetings via Zoom. Day-to-day administration is conducted by the Hon. Secretary and Treasurer, Peter Lawrance, in consultation with the Chairman and trustees as appropriate.

All trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note 2 to the accounts.

Relationship with the Malawi Government.

The Malawi Government is appreciative of the contribution being made by the Trust in its current role of funding research and environmental education in Malawi.

Due to Covid 19 we were unable to meet with the Malawi High Commissioner during the year but intend to resume holding meetings of the trustees at the Malawi High Commission as soon as allowed.

Risk Assessment. The Trust possesses no physical assets. When making grants it takes such steps as it believes necessary to prevent financial fraud and ensure that grants are made to bona fide organisations or persons. In respect of children and other vulnerable persons or groups it also ensures where relevant that the bodies or persons to which it makes grants have adequate measures in place to keep them from harm and abuse. In other respects, the trustees are conscious of the importance of compliance and take such steps as are necessary to avoid failure to do so.

An additional risk lies in the performance of the investment portfolio and its capacity to supplement donations with additional income from the sale of securities to carry out the activities of the Trust. This is mitigated by retaining professional investment managers and having a balanced diversified investment portfolio.

No serious incident or other such matter occurred during the year that should have been brought to the attention of the Charity Commission.

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Financial review.

The Trust’s work is entirely reliant on donation income supplemented where necessary by the income from or sale of investment securities, held as unrestricted funds, as detailed in the Notes to the accounts.

The trustees transferred a total of £26,800 from the unrestricted reserve to support the education programme carried out by the Lilongwe Wildlife Trust (LWT) in Malawi and the research grant programme.

During the year, the Trust received a gross income of £41,129 from donations, promotion activities, investment and other income and transfers from investments and spent £44,773 on contributions to the LWT education programme and the research grants. After UK operating costs of £681 and £1,459 of investment management costs there was a net excess of expenditure over income for the year of £5,783.

Investment policy and performance.

Discretionary management of the portfolio is entrusted to Canaccord Genuity Wealth Management, based in the Isle of Man. The trustees regularly monitor the performance of their investment managers. The Portfolio comprises two sections, the first of which constitutes the Unrestricted Reserve . At the end of the year its market value was £30,732. The second section constitutes the Expendable Endowment Fund. This fund is a Reserve, the intention being to grow it steadily over time by additions and natural growth in order to provide long-term income and financial stability. The Fund had a year-end market value of £85,716.

Grant making policy.

Since the establishment of the Trust, it has been the policy of the Trust to make periodic grants to support the objectives of the Trust in Malawi. This now includes funding an agreed education programme with LWT in Malawi and making available research grants in support of identified environmental and social issues affecting the Nyika and Vwaza areas.

Reserves policy.

The trustees aim to maintain free reserves in unrestricted funds to meet the Trust’s anticipated future commitments to the education programme in Malawi and to meet the anticipated funding for research grants over the next twelve months.

The balance of funds as at 5 April 2021 held as unrestricted funds, £30,732, and the Expendable Endowment Fund £85,716 is sufficient to cover the anticipated expenditure until April 2022.

Activities during the year 2020/21.

Covid 19 disrupted our activities both in Malawi and the UK. Malawi had several lockdown periods resulting in the Education Programme being put on hold. However, by the year end the programme was fully operational.

The activities for 2020/21 were largely driven by the continuing education programme run by LWT, being the second year of the three-year Phase 2 programme agreed in April 2019. This programme provides for the continue education in the schools and communities surrounding the Nyika National Park and Vwaza Marsh Wildlife Reserve and encompasses the three essential elements of:

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During the year, the Trust received regular activity and financial progress reports from LWT and had two on-line meetings with the Director of LWT.

In addition, the Trust operates a research grant programme (developed and launched in December 2015) to focus on known environmental and conservation issues that affect the Nyika National Park and the Vwaza Wildlife Reserve.

12 grants have been awarded to date, nine of which have been completed and three are in progress. In addition to providing financial support, the trust helps potential researchers with developing robust proposals and with advice and support in finalising study reports and is most grateful to Jonathan Timberlake for the time he devotes to this. The completed study reports are published on the Trust website.

In normal years, the Trust carries on an on-site review in Malawi of progress with LWT on the environmental education programme and the planned activities for the coming year. Due to Covid-19 restrictions on travel a visit was not possible in 2020 and is unlikely to be possible in 2021. However, the Trust is satisfied that progress as planned has been made during the year, despite reduced level of activities.

The Trust is to a large extent dependent on the support of donors, both individual and institutional, to fund the activities on the Nyika and at Vwaza Marsh Reserve. Some benefactors donate money unconditionally (general unrestricted funds); others express a non-binding preference that their donations are used for specific purposes, which we classify as designated unrestricted funds for administrative purposes as none fall within the legal definition of restricted funds where the donor imposes a restriction on the use of the funds by the trustees.

Project Grants Received.

We are most grateful for the very generous project grants totalling £5,500 received from nonpersonal donors namely the Camellia Foundation towards the costs of the education programme.

In addition, a total of £7,538 was donated by individuals, either by regular donation or oneoff gifts for which we are most grateful. These donations include gift aid relief where appropriate.

Grants made during the year.

The Trust continued to make further payments to LWT under the agreed education programme for year 2 of Phase 2. In addition, two new research grants were awarded. Details of the grants made to institutions can be found in note 6 to the accounts.

Needs and Risks. The trustees are aware that the education work in Malawi to some extent can be affected by the health of the Malawi economy, especially when the exchange rate continues to depreciate, increasing local costs but yielding additional local income from sterling-based funding, and are conscious that unless additional reserves are built up through donation, in due course it may not be able to continue to support the activities beyond the agreed periods we have committed to. As the Trust does not operate commercially, it will continue to actively seek funds by way of grants, donations and legacies from all who support the activities, and combine this with fund-raising activities. We are most grateful to all supporters and especially those who themselves raise funds for us through their own individual initiatives.

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Other Activities during the year .

Website. www.nyika-vwaza-trust.org The website was relaunched in May 2019 and aims to provide up to date information both to supporters and anyone interested in the Nyika and Vwaza as it also enables the whole computerised world to become familiar with work of the Trust and how to support it. Jonathan Timberlake continues to add to the Bibliography and bird and plant checklists making it a valuable resource for scientific research as well as tourists. All completed Research Reports are available through the website. It is the Trust’s continued intention that the website should become the first port of call for anyone who wishes to learn about the fauna and flora of the parks. The site also provides an important historical record of our times, and some earlier times, through the recording of every issue of Nyika-Vwaza News.

Twitter. #NyikaVwazaTrust The NVT Twitter account was opened in early 2019. Weekly posts are made, which are being followed by an increasing number of people interested in conservation in Malawi. Many thanks to Jonathan Hanson for leading this initiative.

Revised “A Guide to the Nyika National Park”. The Trust published a completely revised edition of “Nyika - A Guide to the Nyika National Park” by Sigrid Johnson in July 2017. A total of 1,102 copies have been distributed to schools, communities and other interested bodies in the Nyika/Vwaza areas of Malawi under the education programme. The Guide was written primarily for Malawians, to give them a practical tool to learn about their rich natural heritage and to help care for it.

Technical Advisory Group. The Trust continued to receive invaluable support from its Technical Advisory Group, through provision of articles for the Newsletter and assistance in updating the Bibliography and species list.

Nyika-Vwaza News. Now in its sixteenth year, these biannual newsletters continue to be the Trust’s principal, regular method of informing supporters of the work of the trust in the Nyika National Park and the Vwaza Marsh Wildlife Reserve areas. The Trust is indebted to the editor, Jennie Kettlewell, assisted by Mike Budgen, for continuing to plan and produce the newsletters. All 32 of the past issues are posted on the Trust’s website. Following the provisions of the General Data Protection Act 2018 the Trust took steps to ensure supporters voluntarily ‘opt-in’ to the receipt of the newsletters and other communications from the Trust.

Evening at the Union Jack Club in London. Due to Covid-19 restrictions the annual meeting of the Trust had to be cancelled in 2020. It is hoped that the meeting will be possible in 2021.

Plans for the future.

The trustees will continue to support the LWT environmental education programme. 2020/21 was the second year of the three-year Phase 2 programme. During 2021 trustees will review progress and options for any further involvement in an education programme or similar linked activity. It will also continue developing lines of applied research on relevant conservation and environmental issues, based on the experience and information gathered over the last sixteen years. The intention is to define research needs and to publicise these through the NGO and academic networks.

The trustees will continue to develop the knowledge base using the website with the intention that the facility will become a principal resource of information on the Nyika and Vwaza areas. The trustees will continue their advocacy work in the United Kingdom, raising funds to enable the work programmes to continue.

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At the time of writing this report it is unclear if, and how the incidence of Covid-19 will impact on the future work of the Trust in Malawi, and its finances in the UK both in the short and longer term. The trustees will keep this under review.

Trustees’ responsibilities in relation to the financial statements.

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the 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 to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Thanks. I would like to record thanks to all the supporters of the trust, the trustees, and to Peter Lawrance, our honorary secretary and treasurer, for their input during the last year. Signature. This Report was approved by the trustees on 6 July 2021 and is signed on their behalf by

Tom Lupton Chairman

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Independent Examiner’s Report to the Trustees of the Nyika Vwaza (UK) Trust on the accounts for the year ended 5 April 2021 .

I report on the accounts of the Nyika Vwaza (UK) Trust for the year ended 5 April 2021 as set out in the annual report on pages 10-19.

Respective responsibilities of the Trustees and the Examiner.

The charity’s trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under Section 144 (2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Basis of independent examiner’s statement

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently, no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent Examiner’s statement

In the course of my examination no matter has come to my attention which gives me reasonable cause to believe that in any material respect the requirement :

Signed 8 May 2021

C F Straughan Fellow of the Institute of Chartered Accountants in England and Wales Rusper House Lodge Newdigate Road Rusper Horsham RH12 4RR

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THE NYIKA-VWAZA (UK) TRUST

Notes
FIXED ASSETS
Investments
8
Total Fixed Assets
Current Assets
9
Debtors
Book Stock
Cash at Bank
Total Current Assets
Liabilities
10
Creditors falling due within 1 year
Net Current Assets
TOTAL NET ASSETS
The funds of the Charity
11
Expendable Endowment Fund
Unrestricted funds
Total Charity Funds
Balance Sheet as at		 Unrestricted
funds
Expendable
Endowment
Total
Unrestricted
funds
Expendable
Endowment
Total
£
£
£
£
£
£
30,732
85,716
116,448
44,747
64,069
108,816
30,732
85,716
116,448
44,747
64,069
108,816
1,475
1,475
833
833
995
995
1,001
1,001
992
992
6,552
6,552
3,462
-
3,462
8,386
-
8,386
950
950
1,064
1,064
2,512
-
2,512
7,322
-
7,322
33,244
85,716
118,960
52,069
64,069
116,138
85,716
85,716
64,069
64,069
33,244
33,244
52,069
52,069
33,244
85,716
118,960
52,069
64,069
116,138
5 April 2021.
2019-20

The Balance Sheet was approved by the trustees on 6 July 2021 and is signed on their behalf by

Tom Lupton Chairman

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THE NYIKA-VWAZA (UK) TRUST

Statement of Financial Activities for the period 6 April 2020 to 5 April 2021.

Notes
INCOME
Donations and legacies
Promotional activities
Investment Income
3
Other Income
Transfer from Investments
8
Total Income
EXPENDITURE
Education Programme Grants
6
Research programme grants
6
Nyika Guide Book issued FOC
6
Fund Raising and Promotion Costs
Investment Management costs
4
Other support costs
5
Total expenditure
Net Income/(Expenditure)
Other gains/(losses) on investments
Movement on other assets
Net movement in funds
Reconciliation of funds
Funds brought forward
Total Funds carried forward		 Total
Unrestricted
funds
Expendable
Endowment
Fund
Total
General
Designated
£
£
£
£
£
5,316
7,723
13,038
13,038
806
806
806
167
167
318
485
0
0
26,800
26,800
26,800
33,089
7,723
40,812
318
41,129
30,370
7,723
38,092
38,092
6,675
6,675
6,675
6
6
6
667
667
667
546
546
913
1,459
14
14
14
Unrestricted Funds		 Unrestricted
Funds
Expendable
Endowment
Fund
Total
£
£
£
11,670
11,670
1,591
1,591
1,497
1,537
3,034
7
7
36,500
36,500
2019-20
51,265
1,537
52,803
39,253
39,253
2,580
2,580
2,564
2,564
817
817
933
907
1,840
2,720
2,720
38,278
7,723
45,999
913
46,913
(5,189)
0
(5,188)
(595)
(5,783)
13,543
13,543
22,237
35,780
(27,180)
(27,180)
5
(27,175)
(18,826)
0
(18,825)
21,647
2,822
52,069
64,069
116,138
33,244
85,716
118,960		 48,867
907
49,775
2,398
630
3,028
6,008
(4,806)
1,202
(47,948)
(5,061)
(53,010)
(39,542)
(9,237)
(48,780)
91,611
73,307
164,918
52,069
64,069
116,138

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THE NYIKA-VWAZA (UK) TRUST

Statement of Cash Flows For the period ending 5 April 2021

For the period ending 5 April 2021
Net Income/(Expenditure)
adjustments:
Transfer from investment account
Investment income
investment management costs
(Increase)/decrease in debtors/stocks
Increase/(decrease) in creditors
Net cash used in operating activities
Cash flows from investing activities
Interest and Dividends
Investment management costs
Net proceeds from sale of investments
Net cash provided by investing activities
Change in cash and cash equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 Unrestricted
funds
Expendable
Endowment
Total
£
£
£
(5,188)
(595)
(5,783)
(26,800)
(26,800)
(167)
(318)
(485)
546
913
1,459
(636)
0
(636)
(114)
0
(114)
(32,359)
0
(32,358)
167
318
485
(546)
(913)
(1,459)
27,178
595
27,773
26,799
0
26,799
(5,559)
0
(5,559)
6,552
0
6,552
992
0
992		 Unrestricted
funds
Expendable
Endowment
Total
£
£
£
2,398
630
3,028
(36,500)
0
(36,500)
(1,497)
(1,537)
(3,034)
933
907
1,840
2,403
0
2,403
(1,880)
0
(1,880)
2019-20
(34,143)
0
(34,142)
1,497
1,537
3,034
(933)
(907)
(1,840)
35,918
(630)
35,288
36,482
0
36,482
2,339
0
2,339
4,213
0
4,213
6,552
0
6,552

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The Nyika Vwaza (UK) Trust

Notes to the accounts

1. Accounting Policies.

(a) Basis of preparation and assessment of going concern.

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The trust constitutes a public benefit entity as defined by FRS 102.

The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with estimating, if applicable, the liability from multi-year grant commitments (see note 1(d) and note 10 for more information). With respect to the next reporting period, 2021-22, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management sections of the trustees‘ annual report for more information).

(b) Funds structure.

The charity has one unrestricted fund, being a legacy in 2009 from the late Ian Hay. Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.

At the time of receipt of the legacy the trustees decided to create an expendable endowment fund using part of the funds from the same legacy. This fund is unrestricted as to the use of funds by the trustees but it is the intention of the trustees to let the fund grow to provide income in the future.

Further details of each fund are disclosed in note 8.

(c) Income recognition.

All income is recognised once the charity is entitled to the income or there is sufficient certainty of receipt that the income will be received, and the amount of income receivable can be measured reliably. Donations, are recognised when they have been communicated and received in writing with notification of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/ executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset has been transferred to the charity.

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Interest on funds held on deposit is included upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been paid. This is normally upon notification by the investment manager.

(d) Expenditure recognition.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure and it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities. For more information on this allocation refer to note (h) below.

Research grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer, tenable from a stated date, this is accrued once that date has passed, and the recipient has been notified of the grant award. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when a) the tenable date has passed and b) the recipient has been notified that any remaining unfulfilled conditions attaching to that grant have been satisfied.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

A provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award and there are no unfulfilled performance conditions under the control of the Trust that would permit the Trust to avoid making the future payment(s).

(e) Irrecoverable VAT.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

(f) Allocation of support and governance costs.

Support costs have been differentiated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs relating to trustee Board and sub Committee meetings.

Governance costs and support costs relating to charitable activities have been apportioned based on the nature of the support costs between the education programme and research grants. The allocation of support and governance costs is analysed in note 5.

(g) Costs of raising funds.

The costs of generating funds consist of investment management.

(h) Charitable activities.

The expenditure on charitable activities includes grants made, governance costs and an apportionment of support costs as shown in note 5.

(i) Fixed asset investments.

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

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The Trust does not acquire or use put options, derivatives or other complex financial instruments.

(j) Investment gains and losses.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

(k) Contingent liabilities.

A contingent liability is identified and disclosed for those grants resulting from:

2. Related party transactions and trustees’ expenses and remuneration.

The trustees all give freely of their time and expertise without any form of remuneration or other benefit in cash or kind (2020: £nil). Travel expenses paid to the trustees in the year totalled £nil (2020: £331).

3. Investment income.

Dividends - equities
Interest - fixed interest securities
Total		 2021
2020
£
£
485
2,524
-
510
485
3,034

In 2021 investment income, £318 (2020:£1,537) was attributable to the expendable endowment funds with the balance of £167 (2020: £1,497) to unrestricted funds.

4. Investment management costs.

2021 2020
£ £
Investment management fees 1,459 1,840

In 2021, £913 (2020: £907) of investment management costs were attributable to expendable endowment funds, £546 (2020: £933) to unrestricted funds.

15

5. Allocation of governance and other support costs.

The breakdown of support costs and how these were allocated between governance and other support costs is shown in the table below:

Cost type
Trustee’s expenses
Other costs
Total		 Total
Allocated
Governance
Related
Other
support
costs
Basis of
apportionment
£
£
£
14
14
Usage

Allocation of support costs:

llocation of support costs:
Grants to Lilongwe Wildlife Trust Education Programme
Research grants
Total allocated		 2021
2020
£
£
14
2,552
168
14
2,720

6. Analysis of charitable expenditure.

The charity undertakes its charitable activities through grant making and awarded grants to a number of individuals and institutions in furtherance of its charitable activities.

Funded from unrestricted funds:
Grants to LWT for Education in Malawi
Guide Book donated in UK
Grants for Research		 Grant funded
activity
Support and
governance
costs
Total
2020
£
£
£
£
38,092
14
38,106 41,805
6
6
2,564
6,675
6,675
2,748
44,778 47,117

The education grants were made to an institution and grants for research to either institutions or individuals supported by an institution.

The Education grants were made from unrestricted funds £30,370 (2020:£31,495) and designated funds £7,723 (2020: £7,758)

The research grant was made from unrestricted funds £6,675 and from designated funds £nil, (2020:£80, designated funds £2,500.)

No Guide Books were donated to Malawi during the year, (2020: 352 books).

7. Auditor’s remuneration.

The Independent Examiner’s remuneration was Nil, (2020: Nil).

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8. Fixed Asset Investments.

Movement in fixed asset
investments
Market value brought forward
at 6 April 2020
Investment Income
Transfer to income
Portfolio management fees
Net gain on revaluation
Market value at 5 April 2021
Equities & alternatives
Fixed interest securities
Investments at 5 April 2021
Cash held within the
investment portfolio
Total Investments		 2021
£
£
Unrestricted
Fund
Investments
Endowment
Fund
Investments
44,240
63,410
167
318
(26,800)
(546)
(913)
13,543
22,237		 2020
£
£
Unrestricted
Fund
Investments
Endowment
Fund
Investments
74,169
67,586
1,497
1,537
(36,500)
(933)
(907)
6,007
(4,806)
30,604
85,052		 44,240
63,410
23,269
64,668
7,335
20,384		 31,618
45,319
12,622
18,091
30,604
85,052		 44,240
63,410
128
664		 507
659
30,732
85,716		 44,747
64,069

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The significance of financial instruments to the ongoing financial sustainability of the Trust is considered in the financial review and investment policy and performance sections of the trustees ‘Annual Report’.

The main risk to the Trust from financial instruments lies in the combination of uncertain investment markets and volatility in yield.

The Trust manages the investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Trust does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer-term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.

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9. Analysis of Current assets.

Stock ‘Nyika Guide’ Book
Accrued Income
Cash at bank
Total		 2021
2020
£
£
995
1,001
1,475
833
992
6,552
3,462
8,386

All current assets in 2021 and 2020 relate to unrestricted funds.

10. Analysis of Current liabilities.

Creditors under 1 year
3 Research Grants payable (2020:2)
Total		 2021
2020
£
£
950
1,064
950
1,064

All creditors in 2021 and 2020 relate to unrestricted funds.

Movement in recognised provisions and funding commitments during the year:

Grant commitments recognised at the start of the year
New grant commitments charged to the SoFA in year (see note 6)
Grants paid during the year
Amount of grant commitments recognised as at 5 April 2021		 Charitable
commitments
accrued
£
1,064
6,675
(6,789)
£950

11. Analysis of charitable funds.

Analysis of
Fund
movements
Expendable
endowment
Unrestricted
funds
Total		 Balance
b/fwd
Income
Expenditure
Transfers
Gains/Losses
Fund
c/fwd
£
£
£
£
£
£
64,069
318
(913)
22,242
85,716
52,069
167
(546)
(26,800)
8,354
33,244
116,138
485
(1,459)
(26,800)
30,596 118,960

The expendable endowment was established as part of the legacy from the late Ian Hay. The trustees have the power to spend both the income and the capital but it is their intention to grow the fund to support future Trust activity.

The unrestricted funds are available to be spent for any of the purposes of the charity.

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12. Reconciliation of net movement in funds to net cash flow from operating activities.

Net Income/(Expenditure)
Transfer from Investment account
Deduct investment income shown in investing
activities
Add back investment management costs
Decrease (increase) in debtors
Increase (decrease) in creditors
Net cash used in operating activities
Cash flows from investing activities
Interest and dividends
Investment management costs
Net proceeds from sale of investments
Net cash provided by investing activities
Change in cash and equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 2021
2020
£
£
(5,783)
3,028
(26,800)
(36,500)
(485)
(3,034)
1,459
1,840
(636)
2,403
(114)
(1,880)
(32,359)
(34,142)
485
3,034
(1,459)
(1,840)
27,774
35,288
26,800
36,482
(5,559)
2,339
6,552
4,213
992
6,552

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