Registered number: 09427919 Charity number: 1164052
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 - 2 |
| Trustees' report | 3 - 10 |
| Independent auditor's report on the financial statements | 11 - 14 |
| Consolidated statement of financial activities | 15 |
| Consolidated balance sheet | 16 |
| Company balance sheet | 17 - 18 |
| Consolidated statement of cash flows | 19 |
| Notes to the financial statements | 20 - 42 |
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021
| Trustees | Peter Carr |
|---|---|
| William Freear | |
| Martin Hewitt | |
| Charles Redlinger | |
| HarryTaylor | |
| BarryShaw(appointed 21 April 2021) | |
| Company registered number 09427919 Charity registered number 1164052 Registered office 180 Piccadilly London W1J 9HF Independent auditor BHP LLP Rievaulx House 1 St Mary's Court Blossom Street York YO24 1AH Bankers NatWest Bank Plc 2 King Street Bridlington YO15 2DB Solicitors Browne Jacobson London EC3A 7BA Chief Operating Officer Peter Carr Chief Executive Officer Harry Taylor Chief Information Officer Nicola Turner Chief Financial Officer Brian Daniel Chief Development Officer Gemma Shaw Head of Training George Scott Head of Human Rights Jesper Roerbaek Legal Advisor Henry Gow |
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Head of Policy, Health and Jo Scrivener Safety Head of Programmes Gemma Wiles
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their annual report together with the audited financial statements of the group and parent charitable company for the 1 January 2021 to 31 December 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, 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 applicable in the UK and Republic of Ireland published in October 2019.
Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
Our charity’s purposes as set out in the objects contained in the company’s memorandum of association are to:
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Promote the conservation and protection of endangered and exploited species of animals for the benefit of the public.
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The aims of our charity are to reduce the illegal killing of endangered animals, promote credible transparent conservation practice, and protect wildlife custodians. Our aims fully reflect the purposes that the charity was set up to further.
We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help.
The review also helps us ensure our aim, objectives and activities remain focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.
b. The focus of our work
Our main objectives for the year continued to be the promotion of conservation and prevention of illegal endangered animal killing. The strategies we used to meet these objectives included:
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Providing a range of services that are reflective of relevant quality training standards.
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Addressing the potential problems related to poaching and protecting endangered wildlife.
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Focusing upon limiting the danger to wildlife custodians currently protecting animals in the field, and their families in the local community.
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Working towards applying credible standards of service and the implementation of occupational safety standards.
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Working in partnership with other agencies in country to secure the widest range of services available that best matches the relative needs of the endangered animals and their custodians.
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Investigating the Illegal Wildlife Trade (IWT).
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Objectives and activities (continued)
c. How our activities deliver public benefit
Our main activities and whom we help are described below. All our charitable activities focus on the protection of endangered species and their custodians, or the case-building against, exposure and prosecution of those killing protected wildlife, and are wholly undertaken to further our charitable purposes for the greater public benefit.
Achievements and performance
a. Who used and benefited from our services?
Our objects and funding limit the services we provide to endangered and exploited species worldwide. This year our ranger training services have focused primarily on the protection of forest elephant and okapi in the Democratic Republic of the Congo. Our areas of operation covered Okapi Wildlife Reserve in DRC, the protection of rhino in Hlane Royal National Park and Mkhaya Game Reserve in Eswatini, and the protection of vulnerable peregrine falcon nest sites in the UK.
Further to that ESPA has continued its investigations into the rogue Norwegian whaling fleets operating in the North Sea, Norwegian Sea, and Barents Sea, and maintained its work on developing nature conservation-specific principles, guidelines, and frameworks for human rights within conservation law enforcement.
Despite the challenges presented by Covid-19 and the resulting travel and work disruption, ESPA has maintained as many projects as possible within the constraints and has continued to provide remote support where possible. Our increased investment in fundraising activity has been primarily responsible for the continuation of two projects which do not have service provision income. As such we are pleased to report that the rangers and species involved in these particular projects have been able to benefit from our activities. The success of ESPA’s fundraising strategy in this area will be factored into our forward fundraising strategy in order that we can continue to serve important projects that would otherwise have to be put on hold. The benefits to these projects include the maintenance of training standards, enabling a protected area that has otherwise been severely strained through the lack of income due to the pandemic to protect its endangered species.
We have continued to engage with funders throughout the year, and have further increased fundraising and outreach efforts in order to deepen the support available to our protected area partners.
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and performance (continued)
b. Projects
Project ALPHA – Hlane RNP and Mkhaya GR – Swaziland
Objective: up-skill and better equip the existing ranger force and selected police constables, to primarily protect rhino from poachers and increase ranger safety.
Following a year on hold owing to the Covid-19 pandemic, we were able to re-engage with this project across two interventions in 2021. We delivered medical training, patrol mentoring, and refresher training as well as a security audit to the rangers at Hlane Royal National Park and Mkhaya Game Reserve. The combination of cyclones and the pandemicinduced restrictions on travel have made the last two years difficult for wildlife in Eswatini, as well as our project partner Big Game Parks, but ESPA is pleased to have been able to recommence its partnership with Big Game Parks and support the rangers on the frontline of conservation.
Did we succeed in this objective?
Yes – Big Game Parks rangers are better able to maintain their personal safety in the field and have had essential patrol skills refreshed and brought up to date.
Project RESOLUTE – Okapi Wildlife Reserve – WCS
Objective: To up-skill all the Reserve’s Eco Guards, continue the specialist courses that will start to elevate the Reserve’s operational capability, and increase the operational footprint through the selection and training of new Eco Guards.
In 2021, this project saw its first increase in the Eco Guard force, through the recruitment and selection of a brand-new intake of recruits. These were all brought up to the same standard as the existing Eco Guard service and their time on the Basic Field Ranger (BFR) Course allowed instructors the chance to identify those with the potential to take on more specialist training. In the second part of the year, those recruits identified went through the Okapi Commando, Specialist Weapons, or the Team Medic Course, depending on the aptitude they had shown on the BFR.
Further to these specialist courses, the nexus of the OWR’s own training department has been created following the first Operational Train the Trainer Course. This course will set the foundations for the OWR Eco Guard units to run their own training and standards maintenance in the future and provide a lasting legacy of improvement.
Covid-19 continued to prove a disrupting factor, with travel cancellations and enforced quarantine making travel to and from the project difficult. Furthermore, the volcanic eruption in Goma and the resulting closure of the airport added another scheduling and logistical difficulty, while the imposition of a state of siege highlighted the risk inherent in the region under which ESPA’s team of instructors once again have continued to show outstanding dedication.
Did we succeed in this objective?
Yes, the Eco Guards continue to respond well to the training and the Reserve now has an increased capacity and potential operational footprint.
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and performance (continued)
Project ASSISI – Human Rights Training Materials
Objective: Produce an aide memoire for rangers to use in the field and allow them to refresh their knowledge without requiring another training intervention.
This project was an additional service that ESPA were engaged to supply following the delivery of scenario-based human rights training in a conservation law enforcement context. This course is focused on the practical application of humanrights observant practices in law enforcement, and the aide memoire was designed to support the course content and allow rangers to review it and revise their training following completion of the course to offset skill fade.
Did we succeed in this objective?
Yes, a pocket-sized aide memoire has been produced that will allow rangers to maintain their understanding once training interventions have been completed, and is in the final stages of review ahead of publication.
Project VANGUARD – South America
Objective: To deliver training needs analyses to protected areas and conservation projects in South America.
ESPA is working on increasing its global reach, despite the pandemic restrictions, and project VANGUARD saw two consultants visit several terrestrial and marine protected areas across South America. They identified protected areas in which ESPA’s capability could make a difference, and conducted site surveys and training needs analyses at zero cost to the site management.
Did we succeed in this objective?
Yes, several projects and protected areas were identified that could benefit from ESPA’s capability, and we are able to begin to build relationships with the management institutions in those areas.
Project FLOTSAM – Investigation – Scandinavia
Objective: IWT Investigation
Not for public dissemination - progress to be delivered verbally.
Project TENACITY – Investigation – South Africa/Asia
Objective: IWT Investigation
Not for public dissemination - progress to be delivered verbally.
Project HORUS – Investigation – UK
Objective: IWT Investigation
Not for public dissemination - progress to be delivered verbally.
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Financial review
a. Going concern
The Directors have prepared forecasts and projections of income and expenditure for the period to 31 December 2023 and subjected these forecasts to sensitivity analysis which shows that they have sufficient reserves to be able to continue for the foreseeable future. They will continue to monitor the impact on income and take appropriate action as necessary.
The Directors have considered the impact of current economic issues on the group and parent charitable company’s income and operating cost base. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Directors are confident that they have in place plans to deal with any financial losses that may arise.
The group had free reserves of £223,872 as at 31 December 2021. It is possible that they may need to utilise these reserves to support the group and parent charitable in the 12 months from the date of approval of these accounts. At the time of approving the financial statements, the Directors have a reasonable expectation that the group and parent charitable company have adequate resources to continue in existence for the forseeable future. The Directors therefore continue to adopt the going concern basis of preparation for these financial statements.
Further details regarding the adoption of the going concern basis can be found in Note 1.4.
b. Reserves policy
The board of directors has examined the charity’s requirements for reserves in light of the main risks to the organisation. It has established a procedure whereby unrestricted funds not committed should be retained in the account as a minimum figure to cover unforeseen overhead as a reserve to meet working capital requirements. Owing to the disruptions to operations caused by Covid-19 and the resulting placement of at least two projects on hold, this figure remains at three months for this year. The intention remains to build this up to six months’ working capital and to separate this from general operating and core project funds. As at 31 December 2021 the group had total funds of £233,103 (2020: £429,004), with free reserves at 31 December 2021 of £223,872 (2020: £228,930).
c. Financial review
Against the backdrop of limited resources and insecurities over funding, exacerbated by the ongoing Covid-19 crisis, it has continued to be difficult to plan or develop our services. The maintenance of a large project in the DRC has offered some level of security, but this is not guaranteed in the face of the emergence of new strains of Covid-19. The activities of our Chief Development Officer have been supported by the reallocation of other staff resource, and this has helped the CDO identify other sources of funding in order that reliance on project-specific funding, over which ESPA or its trustees have limited or no control, is lessened.
In the year to 31 December 2021, income to the group decreased to £1,230,048 from £2,263,195. Expenditure during the year decreased to £1,425,949 from £2,144,369. This resulted in a net deficit for the year of £195,901, compared with a surplus of £118,826 in the previous year. Total funds available at the end of the year were £233,103, all of which are unrestricted.
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
d. Principal funding sources
ESPA has received funding from several NGOs, funding organisations, and grant giving institutions, as grants and for services provided, and their support looks set to continue to serve the on-going ranger training and wildlife investigative projects in 2022. A percentage of all grants are allocated for operating overhead.
e. Future fundraising
A fundraising strategy in into its second year, with ESPA’s Chief Development Officer continuing to lead on outreach and engagement. This strategy includes maintaining a focus on building more diverse income streams in order to lessen reliance on project income to maintain operating overhead. ESPA has UK charity status and 501c status for the US ESPA fundraising wing.
Structure, governance and management
a. Governing document
The ESPA organisation is a charitable company limited by guarantee, incorporated on the 9th February 2015 and has the company no. 09427919. It was registered as a charity on 21st October 2015 with the charity no. 1164052. The Company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.
b. Recruitment and appointment of board of directors
The directors of the company are also charity trustees for the purposes of charity law and under the Company’s Articles are known as members of the board. Under the requirements of the Memorandum and Articles of Association the members of the board are elected to serve for a period of five years after which they must be re-elected at the next General Meeting. ESPA appointed a new director in 2021 with the full assent of the board. A full onboarding process and briefing on ESPA projects was undertaken, in order that he could begin with a full understanding of ESPA’s projects, practices, and procedures.
c. Director requirements
All members of the board (except for one Trustee) gave their time voluntarily and have received no benefits from the charity. In accordance with Articles 12-19 of the Charity's Articles of Association and sections 185-188 of the Charities Act 2011, the Trustees agreed to pay one of the Trustees for providing services to the Charity. Subsequently this trustee has received remuneration for his position as Chief Operating Officer and following the year end the board have regularised this with the Charity Commission. Any expenses reclaimed from the Charity must conform to the Charity Commission guidance on trustee expenses and payments and the ESPA Financial Policy, Data Protection & Whistleblowing Policies.
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Structure, governance and management (continued)
d. Organisational structure
The Endangered Species Protection Agency has five directors who sit on the board and meet at least once a year, and twice a year wherever possible. They are responsible for the strategic direction and policy of the charity. The directors come from a variety of professional backgrounds relevant to the work of the charity.It is no longer a statutory requirement for charitable companies to appoint a Company Secretary.
A scheme of delegation is in place and day to day responsibility for the provision of the services rest with the CEO, COO and CIO, and Head of Programmes.The CEO is responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. The COO, CIO and Head of Programmes have responsibility for the day-to-day operational management of the Agency.The CFO, CIO, Head of Programmes and Accounts Administrator has responsibility for the day-to-day financial management of the Agency.
The Charity’s key management personnel have their pay set at the comparable market rates for their positions, responsibilities, and day-to-day competencies required. Charity staff pay is reviewed yearly in line with budgeting, forecasting, and staff performance.
e. Risk management
The board of directors has conducted a review of the major risks to which the charity is exposed. The charity risk register is reviewed annually and amended in line with emerging risks and mitigation measures. As part of the risk mitigation measures outlined in 2020, ESPA has continue to increase its fundraising and outreach work in order to diversify its strategic activity and manage external risks to project funding.
Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to meeting venues and areas of operation. All procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.
Plans for future periods
ESPA plans to maintain its project activity in line with its expected forecast, which includes training service provision and investigations. We continue to engage with partner organisations across conservation in order to add value wherever possible, and remain responsive to requests for our services.
In line with our fundraising goals and risk management priorities, ESPA will continue to diversify its income and has budgeted the necessary resources to facilitate this.
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
Each of the persons who are Directors at the time when this Trustees' Report is approved has confirmed that:
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so far as that Director is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and
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that Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.
Approved by order of the members of the board of Trustees and signed on their behalf by:
M Hewitt
M Hewitt (Oct 27, 2022 17:34 GMT+1) Martin Hewitt Director and Chairman of Trustees Date: Oct 27, 2022
Peter Carr Director
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF ENDANGERED SPECIES PROTECTION AGENCY LTD
Opinion
We have audited the financial statements of Endangered Species Protection Agency Ltd (the 'parent charitable company') and its subsidiary (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 December 2021 and of the group's incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF ENDANGERED SPECIES PROTECTION AGENCY LTD (CONTINUED)
Other information
The other information comprises the information included in the Trustees' Report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the Trustees' Report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report (incorporating the directors' report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and.
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the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:
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the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company's financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
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(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF ENDANGERED SPECIES PROTECTION AGENCY LTD (CONTINUED)
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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:
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We gained an understanding of the legal and regulatory framework applicable to the group and parent charitable company and the industry in which it operates and considered the risk of acts by the group and parent charitable company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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We focussed on laws and regulations, relevant to the group and parent charitable company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of company minutes and legal expenses.
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We addressed the risk of management override of internal controls, including the testing of journals and reviewing the nominal ledger. We evaluated whether there was evidence of bias by management or directors that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. This risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF ENDANGERED SPECIES PROTECTION AGENCY LTD (CONTINUED)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report.
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, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members and its trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body and the charitable company trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Jane Marshall (Oct 28, 2022 16:35 GMT+1)
Jane Marshall FCA DChA (Senior Statutory Auditor)
for and on behalf of
BHP LLP
Rievaulx House 1 St Mary's Court Blossom Street York YO24 1AH
Date: Oct 28, 2022
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Income from: Donations and legacies 3 Charitable activities 4 Other income 5 Total income Expenditure on: Raising funds 6 Charitable activities 7 Total expenditure Net (expenditure)/income Transfers between funds 18 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ 41,178 1,069,794 69 1,111,041 91,117 1,160,864 1,251,981 (140,940) (47,129) (188,069) 421,172 (188,069) 233,103 |
Restricted funds 2021 £ 110,083 8,924 - 119,007 - 173,968 173,968 (54,961) 47,129 (7,832) 7,832 (7,832) - |
Total funds 2021 £ 151,261 1,078,718 69 1,230,048 91,117 1,334,832 1,425,949 (195,901) - (195,901) 429,004 (195,901) 233,103 |
Total funds 2020 £ 55,765 2,205,563 1,867 |
|---|---|---|---|---|
| 2,263,195 | ||||
| - 2,144,369 |
||||
| 2,144,369 | ||||
| 118,826 - |
||||
| 118,826 | ||||
| 310,178 118,826 |
||||
| 429,004 |
Page 15
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
REGISTERED NUMBER: 09427919
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 13 Current assets Debtors 15 Cash at bank and in hand 23 Creditors: amounts falling due within one year 16 Net current assets Creditors: amounts falling due after more than one year 17 Total net assets Charity funds Restricted funds 18 Unrestricted funds 18 Total funds |
144,301 255,903 400,204 (176,254) |
2021 £ 9,153 9,153 223,950 - 233,103 - 233,103 233,103 |
152,058 652,765 804,823 (337,737) |
2020 £ 6,918 6,918 467,086 (45,000) 429,004 7,832 421,172 429,004 |
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
M Hewitt M Hewitt (Oct 27, 2022 17:34 GMT+1) Martin Hewitt Peter Carr Date: Oct 27, 2022
The notes on pages 20 to 42 form part of these financial statements.
Page 16
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
REGISTERED NUMBER: 09427919
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 13 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Total net assets Charity funds Restricted funds 18 Unrestricted funds 18 Total funds |
144,301 214,633 358,934 (176,254) |
2021 £ 9,153 9,153 182,680 191,833 - 191,833 - 191,833 191,833 |
152,057 600,344 752,401 (337,737) |
As restated 2020 £ 6,918 6,918 414,664 421,582 (45,000) 376,582 - 376,582 376,582 |
|---|---|---|---|---|
As permitted by s408 Companies Act 2006, the company has not presented its own Statement of Financial Activitites and related notes. The Company's net movement in funds for the year was £(184,749) (2020 - £68,780).
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
Page 17
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2021
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
M Hewitt
M Hewitt (Oct 27, 2022 17:34 GMT+1)
Martin Hewitt
Peter Carr
Date: Oct 27, 2022
The notes on pages 20 to 42 form part of these financial statements.
Page 18
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Cash flows from operating activities Net cash (used in)/provided by operating activities 22 Cash flows from investing activities Purchase of tangible fixed assets 13 Net cash used in investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 23 The notes on pages 20 to 42 form part of these financial statements |
2021 £ (388,657) (8,205) (8,205) - (396,862) 652,765 255,903 |
2020 £ 263,097 (5,917) (5,917) - 257,180 395,585 652,765 |
|---|---|---|
Page 19
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice
Endangered Species Protection Agency Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis for both the current and comparative year.
The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.
The financial statements are presented in sterling which is the functional currency of the parent charitable company and rounded to the nearest £.
The foreign subsidiary has a functional currency other than the sterling. The results of the subsidiary have been translated into sterling (the currency in which ESPA UK presents its financial statements) as follows:
-
Foreign currency assets and liabilities are translated at the closing rate;
-
The income statement is translated at the average rate for the period;
-
Translation differences arising from different exchange rates are recognised in the Statement of Financial Activities.
1.2 Company Status
The charity is a company limited by guarantee, incorporated in England and Wales. The company's registered office is as stated in the Trustees' Report.
1.3 Prior year adjustment
In preparing the financial statements for the year ended 31 December, a reclassification of funds was identified that was considered sufficient to warrant restatement. The effect and nature of the restatement. are disclosed in Note 21.
Page 20
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1. Accounting policies (continued)
1.4 Going concern
The Directors have prepared forecasts and projections of income and expenditure for the period to 31 December 2023 and subjected these forecasts to sensitivity analysis which shows that they have sufficient reserves to be able to continue for the foreseeable future. They will continue to monitor the impact on income and take appropriate action as necessary.
The Directors have considered the impact of current economic issues on the group and parent charitable company’s income and operating cost base. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Directors are confident that they have in place plans to deal with any financial losses that may arise.
At the time of approving the financial statements, the Directors have a reasonable expectation that the group and parent charitable company have adequate resources to continue in existence for the foreseeable future. The Directors therefore continue to adopt the going concern basis of preparation for these financial statements.
1.5 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Charitable Activities
Income from contracted projects is recognised on a work done basis, once the Company is entitled to the income.
Donations and Grants
Income from donations and grants, including capital grants, are included in income when these are receivable, except as follows:
-
When donors specify that donations and grants that are given to the charity must be used in future accounting periods, the income is deferred until those periods.
-
When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in income until the pre-conditions for use have been met.
When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included within restricted income when receivable.
Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 21
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1. Accounting policies (continued)
1.6 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by project.
The costs of each project are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.
Certain expenditure is directly attributable to specific activities and has been included in the relevant cost categories.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include central functions that have been allocated to activity cost categories on a basis consistent with the use of resources.
Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
1.7 Foreign currencies
Where contracts have a predetermined fixed rate of exchange the relevant foreign currency transactions are recognised by applying to the fixed exchange rate per the contract. All other foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Consolidated Statement of Financial Activities.
1.8 Taxation
The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 22
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1. Accounting policies (continued)
1.9 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
| Plant and machinery | - 3 year straight line |
|---|---|
| Computer equipment | - 3 year straight line |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
1.10 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.11 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.12 Liabilities and provisions
Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.
1.13 Financial instruments
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 23
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1. Accounting policies (continued)
1.14 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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15 Pensions
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
1.16 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
2. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.
Although not a significant risk of material misstatement the allocation of support costs is also a key estimate. The accounting treatment of support costs can be found in accounting policy 1.6.
Page 24
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
3. Income from donations and legacies
| Donations Grants Total 2020 |
Unrestricted funds 2021 £ 2,950 38,228 41,178 47,933 |
Restricted funds 2021 £ - 110,083 110,083 7,832 |
Total funds 2021 £ 2,950 148,311 151,261 55,765 |
Total funds 2020 £ 158 55,607 |
|---|---|---|---|---|
| 55,765 | ||||
4. Income from charitable activities
| Project Resolute Other project income Total 2021 Total 2020 as restated |
Unrestricted funds 2021 £ 1,056,681 13,113 1,069,794 2,205,563 |
Restricted funds 2021 £ - 8,924 8,924 - |
Total funds 2021 £ 1,056,681 22,037 1,078,718 2,205,563 |
Total funds 2020 £ 1,468,913 736,650 |
|---|---|---|---|---|
| 2,205,563 | ||||
Page 25
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
5. Other incoming resources
| Other income Insurance claim Total 2020 6. Expenditure on raising funds Costs of raising voluntary income |
Unrestricted funds 2021 £ 69 - 69 1,867 |
Total funds 2021 £ 69 - 69 1,867 |
Total funds 2020 £ - 1,867 |
|---|---|---|---|
| 1,867 | |||
| Professional fees Computer and software costs Wages and salaries Employer's NI Employer's pension Total 2020 |
Unrestricted funds 2021 £ 12,553 2,392 66,820 8,033 1,319 91,117 - |
Total funds 2021 £ 12,553 2,392 66,820 8,033 1,319 91,117 - |
Total funds 2020 £ - - - - - |
|---|---|---|---|
| - | |||
Page 26
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
7. Analysis of expenditure on charitable activities
Summary by fund type
| Other charitable expenditure Project Alpha Project Bravo Project Flotsam Project Halo Project Horus Project Noah Project Resolute Project Temple Project Tenacity Project Vanguard Other smaller projects Total 2020 as restated |
Unrestricted funds 2021 £ 54,346 - - - 20 - 280 1,061,847 - 20,955 19,530 3,886 1,160,864 2,144,369 |
Restricted funds 2021 £ - 78,501 - 72,863 - 22,604 - - - - - - 173,968 - |
Total funds 2021 £ 54,346 78,501 - 72,863 20 22,604 280 1,061,847 - 20,955 19,530 3,886 1,334,832 2,144,369 |
Total funds 2020 £ 5,719 - 142,472 10,436 22,732 - 422,195 1,469,293 30,968 - - 40,554 |
|---|---|---|---|---|
| 2,144,369 | ||||
Page 27
(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
8. Analysis of expenditure by activities
| Other charitable actvities Project Alpha Project Bravo Project Flotsam Project Temple Project Tenacity Project Vanguard Project Noah Project Resolute Project Halo Project Horus Other smaller projects Total 2020 |
Activities undertaken directly 2021 £ - 71,556 - 59,252 - 19,189 19,530 280 793,815 20 19,104 2,870 985,616 1,755,144 |
Support costs 2021 £ 54,346 6,945 - 13,611 - 1,766 - - 268,032 - 3,500 1,016 349,216 389,225 |
Total funds 2021 £ 54,346 78,501 - 72,863 - 20,955 19,530 280 1,061,847 20 22,604 3,886 1,334,832 2,144,369 |
Total funds 2020 £ 5,719 - 142,472 10,436 30,968 - - 422,195 1,469,293 22,732 - 40,554 |
|---|---|---|---|---|
| 2,144,369 | ||||
Page 28
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
9. Analysis of direct costs
| Contractor costs Travel expenses Legal and professional fees Vehicle expenses Project specific insurance costs Other direct costs Foreign currency gains and losses Wages and salaries Bad debt provision |
2021 £ 824,061 58,208 28,196 1,537 45,616 21,386 (16,534) 15,190 7,956 985,616 |
2020 £ 1,558,074 92,425 - - 40,217 16,694 41,014 6,720 - |
|---|---|---|
| 1,755,144 |
Page 29
(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Analysis of support costs
| Contractors' costs Wages and salaries Employer's NI Employer's pension Travel expenses Professional fees Bank charges Insurance Office expenses Printing, postage and stationary Computer and software costs Accountancy fees Sundries Depreciation Governance costs Subscriptions Foreign currency gains and losses Advertising and marketing Legal fees |
2021 £ 6,999 189,545 19,433 2,204 19,575 21,814 3,590 9,414 10,858 2,510 2,636 8,976 9,484 5,970 10,303 2,921 21,308 1,270 406 349,216 |
2020 £ 94,213 144,363 14,990 1,664 31,670 23,091 4,476 14,218 5,759 3,389 3,600 8,948 12,571 4,558 9,975 3,115 8,625 - - |
|---|---|---|
| 389,225 |
Travel expenses include expenditure on air travel, train travel, taxis, accomodation and subsistence.
10. Auditor's remuneration
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Company's auditor for the audit of the Company's annual | ||
| accounts | 10,275 | 9,975 |
| Fees payable to the Company's auditor in respect of: | ||
| All non-audit services not included above | 8,188 | 7,411 |
Page 30
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
11. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
Group 2021 £ 271,555 27,466 3,523 302,544 |
Group 2020 £ 151,083 14,990 1,664 167,737 |
Company 2021 £ 271,555 27,466 3,523 302,544 |
Company 2020 £ 151,083 14,990 1,664 |
|---|---|---|---|---|
| 167,737 |
The average number of persons employed by the Company during the year was as follows:
| Group | Group | |
|---|---|---|
| 2021 | 2020 | |
| No. | No. | |
| Employees | 5 | 4 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| Group | Group | ||
|---|---|---|---|
| 2021 | 2020 | ||
| No. | No. | ||
| In the band £60,001 | - £70,000 | 2 | - |
| In the band £90,001 | - £100,000 | 1 | - |
The total amount of employee benefits (including employer pension contributions and national insurance) received by key management personnel is £178,751 (2020: £100,872). The company considers its key management personnel to comprise of the Chief Executive Officer, Chief Operating Officer, Chief Finance Officer and Chief Information Officer.
12. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration in their capacity as Trustees (2020: £nil).
One trustee has received remuneration in their capacity as Chief Operating Officer, further details of which are given in note 26.
During the year ended 31 December 2021, expenses totalling £nil were reimbursed or paid directly to Trustees (2020: £nil).
Page 31
(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
13. Tangible fixed assets
Group and Company
| Cost or valuation At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
Plant and machinery £ 5,501 5,504 11,005 4,122 2,045 6,167 4,838 1,379 |
Computer equipment £ 12,423 2,701 15,124 6,884 3,925 10,809 4,315 5,539 |
Total £ 17,924 8,205 |
|---|---|---|---|
| 26,129 | |||
| 11,006 5,970 |
|||
| 16,976 | |||
| 9,153 | |||
| 6,918 |
14. Principal subsidiaries
Endangered Species Protection Agency USA Foundation was considered to be under the control of the parent charitable company as a result of it's ByLaws and therefore meets the definition of a subsidiary. As a result, a consolidated position has been prepared for the current and prior year.
The Foundation has 501(3)(c) status and is registered in United States of America. The results of the foundation have been translated into Sterling for the purposes of the group accounts.
The financial results of the subsidiary for the year were:
Income: £106,345 Expenditure: £117,497 Deficit for the year (£11,125) Net assets: £41,270
Page 32
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
15. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
Group 2021 £ 119,935 2,236 22,130 144,301 |
Group 2020 £ 132,338 2,655 17,065 152,058 |
Company 2021 £ 119,935 2,236 22,130 144,301 |
Company 2020 £ 132,338 2,655 17,064 |
|---|---|---|---|---|
| 152,057 |
16. Creditors: Amounts falling due within one year
| Other loans Trade creditors Other creditors Accruals and deferred income Deferred income at 1 January 2021 Resources deferred during the year Amounts released from previous periods |
Group 2021 £ - 43,439 8,191 124,624 176,254 |
Group 2020 £ 5,000 7,472 24,735 300,530 337,737 |
Company 2021 £ - 43,439 8,191 124,624 176,254 Group 2021 £ 274,156 105,867 (274,156) 105,867 |
Company 2020 £ 5,000 7,472 24,735 300,530 |
|---|---|---|---|---|
| 337,737 | ||||
| Group 2020 £ - 274,156 - |
||||
| 274,156 |
Deferred income carried forward relates to amounts received in advance of the contract or work commencing.
Page 33
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
17. Creditors: Amounts falling due after more than one year
| Group | Group | Company | Company | |
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Bank loans | - | 45,000 | - | 45,000 |
Page 34
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| 18. Statement of funds Statement of funds - current year Unrestricted funds Designated funds Project Assisi Project Halo Project Noah Project Orphan Project Panda Project Resolute Project Surety Project Tenacity General funds General funds ESPA USA funds Total Unrestricted funds Restricted funds Project Alpha Project Flotsam Project Horus Total of funds |
As restated Balance at 1 January 2021 £ - - - - 3,502 181,822 - - 185,324 191,258 44,590 235,848 421,172 7,832 - - 7,832 429,004 |
Income £ - - - - - - - - - 1,077,735 33,306 1,111,041 1,111,041 34,724 66,783 17,500 119,007 1,230,048 |
Expenditure £ (4,902) (20) (280) 1,709 116 (1,061,847) (809) (20,955) (1,086,988) (160,011) (4,982) (164,993) (1,251,981) (78,501) (72,863) (22,604) (173,968) (1,425,949) |
Transfers in/out £ 4,980 20 280 (1,709) (3,618) 880,025 809 20,955 901,742 (895,001) (53,870) (948,871) (47,129) 35,945 6,080 5,104 47,129 - |
Balance at 31 December 2021 £ 78 - - - - - - - |
|---|---|---|---|---|---|
| 78 | |||||
| 213,981 19,044 |
|||||
| 233,025 | |||||
| 233,103 | |||||
| - - - |
|||||
| - | |||||
| 233,103 |
Page 35
ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
18. Statement of funds (continued)
| Statement of funds - prior year Unrestricted funds Designated funds Project Bravo Project Chastise Project Flotsam Project Halo Project Noah Project Orphan Project Panda Project Resolute Project Temple General funds General funds ESPA USA funds Total Unrestricted funds Restricted funds Project Alpha Total of funds |
As restated Balance at 1 January 2020 £ - - - 5,206 - - (2,850) 182,202 - 184,558 123,244 2,376 125,620 310,178 - 310,178 |
As restated Income £ - - - - - - - - - - 2,207,430 47,933 2,255,363 2,255,363 7,832 2,263,195 |
As restated Expenditure £ (142,472) (11,320) (10,436) (22,732) (422,195) (16,860) (12,374) (1,469,293) (30,968) (2,138,650) - (5,719) (5,719) (2,144,369) - (2,144,369) |
As restated Transfers in/out £ 142,472 11,320 10,436 17,526 422,195 16,860 18,726 1,468,913 30,968 2,139,416 (2,139,416) - (2,139,416) - - - |
As restated Balance at 31 December 2020 £ - - - - - - 3,502 181,822 - |
|---|---|---|---|---|---|
| 185,324 | |||||
| 191,258 44,590 |
|||||
| 235,848 | |||||
| 421,172 | |||||
| 7,832 | |||||
| 429,004 |
Page 36
(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
18. Statement of funds (continued)
Project ALPHA
Establishment of a partnership for the purposes of developing anti-poaching strategy and specialist counterpoaching training in Eswatini.
Project ASSISSI
Establishment of a partnership for the purposes of developing ranger training materials.
Project BRAVO
Establishment of a partnership for the purposes of developing an anti-poaching strategy and specialist counterpoaching training in Garamba National Park.
Project CHASTISE
Establishment of a partnership for the purposes of conducting an investigation into the illegal lion bone trade.
Project FLOTSAM
Establishment of a partnership for the purposes of conducting an investigation into rogue whaling vessels operating in the Barents sea.
Project HALO
Development of conservation specific Voluntary Principles of Security and Human Rights that can be the benchmark for all protected area law enforcement personnel and management to adhere to and be recognised by IUCN and UN.
Project HORUS
Establishment of partnerships for the purpose of protecting the UK’s peregrine falcon populations.
Project NOAH
Establishment of a partnership for the purposes of delivering ranger training to up-skill and increase the operational effectiveness and safety of Eco-Guards in the Complex Kundelungu-Upemba, DRC.
Project ORPHAN
Establishment of a partnership for the purposes of developing an information management capacity dedicated to supporting a protected area in the DRC.
Project PANDA
Establishment of a partnership for the purposes of developing a set of practical operational guidelines related to law enforcement in protected areas.
Project RESOLUTE
Establishment of a partnership for the purposes of delivering ranger training to up-skill and increase the operational effectiveness and safety of Eco-Guards in the Okapi Wildlife Reserve, DRC.
Project SURETY
Establishment of a partnership to develop anti-poaching strategies with Conservation South Luangwa (CSL) for the purposes of delivering training to the Wildlife Protection Officers (WPO) and Community Game Scouts (CGS).
Project TENACITY
Establishment of a partnership for the purposes of investigating the lion bone trade.
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(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
18. Statement of funds (continued)
Project TEMPLE
Establishment of a partnership for the purposes of conducting human rights scenario training in Cambodia.
Transfers
Where the Company undertakes contracted projects, this income is designated for the particular project, until the contracted services have been carried out. Where applicable surpluses accrued in relation to projects are released to general reserves to be used for the charitable purpose of the Company, once the project has been completed. These are shown as transfers between funds.
Where projects required additional expenditure in the year, this has been sourced from ESPA general funds and is shown as transfers into restricted funds.
19. Summary of funds
Summary of funds - current year
| Designated funds General funds Restricted funds Summary of funds - prior year Designated funds General funds Restricted funds |
Balance at 1 January 2021 £ 185,324 235,848 7,832 429,004 Balance at 1 January 2020 £ 184,558 125,620 - 310,178 |
Income £ - 1,111,041 119,007 1,230,048 As restated Income £ - 2,255,363 7,832 2,263,195 |
Expenditure £ (1,086,988) (164,993) (173,968) (1,425,949) As restated Expenditure £ (2,138,650) (5,719) - (2,144,369) |
Transfers in/out £ 901,742 (948,871) 47,129 - As restated Transfers in/out £ 2,139,416 (2,139,416) - - |
Balance at 31 December 2021 £ 78 233,025 - |
|---|---|---|---|---|---|
| 233,103 | |||||
| Balance at 31 December 2020 £ 185,324 235,848 7,832 |
|||||
| 429,004 |
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
20. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2021 £ 9,153 400,204 (176,254) 233,103 |
Total funds 2021 £ 9,153 400,204 (176,254) 233,103 |
|---|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total |
Unrestricted funds 2020 £ 6,918 796,992 (337,737) (45,000) 421,173 |
Restricted funds 2020 £ - 7,832 - - 7,832 |
Total funds 2020 £ 6,918 804,824 (337,737) (45,000) 429,005 |
|---|---|---|---|
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(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
21. Prior year adjustment
During the preparation of the financial statements, the classification of contracted income was reconsidered. As a result it was concluded that this income should not have been classified as restricted in previous years and a prior year adjustment has been made to reclassify income and expenditure relating to contracts for services to unrestricted funds.
This adjustment has been made in relation to a number of projects, such that the total adjustment made to funds brought forward as at 1 January 2020 was to reclassify £184,558 from restricted funds to unrestricted funds.
Designated funds were created for each of these projects, and as a result restricted income of £2,205,563 and expenditure of £2,138,650 was reclassified to unrestricted funds for the 2020 financial year, along with the related transfers made in 2020. The impact of this adjustment to funds held as at 31 December 2020 was to reclassify £185,324 from restricted funds to unrestricted funds.
22. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Decrease in debtors Increase/(decrease) in creditors Net cash provided by/(used in) operating activities |
Group 2021 £ (195,901) 5,970 7,757 (206,483) (388,657) |
Group 2020 £ 118,826 |
|---|---|---|
| 4,558 120,262 19,451 |
||
| 263,097 |
23. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
Group 2021 £ 255,903 255,903 |
Group 2020 £ 652,765 |
|---|---|---|
| 652,765 |
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ENDANGERED SPECIES PROTECTION AGENCY LTD
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
24. Analysis of changes in net debt
| Cash at bank and in hand Debt due within 1 year Debt due after 1 year |
At 1 January 2021 £ 652,766 (5,000) (45,000) 602,766 |
Cash flows £ (396,863) 5,000 45,000 (346,863) |
At 31 December 2021 £ 255,903 - - |
|---|---|---|---|
| 255,903 |
25. Pension commitments
The company operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £3,523 (2020: £1,664), and the amount owed as at year end was £nil (2020: £483).
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(A Company Limited by Guarantee)
ENDANGERED SPECIES PROTECTION AGENCY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
26. Related party transactions
The company entered into transactions with Peter Carr Sporting Limited, a limited company owned by P Carr, a director of the company. The company was charged £21,064 in respect of contractors fees, (2020: £24,029).
The company also entered into transactions with P Carr, a director of the company. The company was charged £1,510 (2020: £23,909) in respect of contractor fees, including the reimbursement of travel and accommodation expenses.
P Carr received remuneration for his position as Chief Operating Officer of £96,000 during the year (2020: £56,000) and the board sought to regularise this with the Charity Commission. Following the year end, with effect from 3 February 2022, the Charity Commission gave their prospective approval for this remuneration.
During the year to company paid £1,898 (2020: £630) for the use of accomodation, owned by P Carr a director of the company, for visiting workers to stay in. Also, during the year, the company used office space owned by P Carr, at no cost.
The company entered into transactions with H Taylor, a director of the company. The company was charged £6,107 in respect of the reimbursement of travel and accommodation expenses (2020: £6,146).
The company entered into transactions with D Carr, wife of P Carr who is a director of the company. The company was charged £28,380 (2020: £31,659) in respect of contractors fees, including reimbursement of travel and accommodation expenses.
Endangered Species Protection Agency USA Foundation is considered to be under the control of the parent charitable company as a result of it's ByLaws. During the year the parent charitable company received grants of £114,433 (2020: £nil) from the USA Foundation. There were no amounts payable between the two entities at either year end.
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