Charity Number: 1174115 The Conflict and Environment Observatory Report and financial statements for the year ended 31 December 2022 www.ceobs.org Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 Contents Reference and administrative information for the year ended 31 December 2022........ Trustees, annual report for the year ended 31 December 2022................................... Diroetor's report................................................................................................ Obje¢tive$........................................................................................................ Activities in 2022, our achievements and performance.......................................... 1. Monitoring and collecting data on the environmental and derived humanitarian consequences of armed conflicts and military activities..................................... 2. Developing tools and undertaking ¢apa¢ity building a¢tlvltle$ to enable relevant stakeholder$ to undertake such monitoring and dala colle¢tion.......................... 3. Educating the public, decision makers. policy makers, researchers. civil society and ihe national and international media about the environmental and derived humanitarian consequences of armed conflict and military activities. 4. Contributing to the sound administration of legislation and commenting on proposed legislation....................................................................................... Benef iciaries of our services............................................................................... Financial review................................................................................................ Reserves........................................................................................................... Plans for the future............................................................................................ Structure? governance and management............................................................10 Operational decision-making .10 Related parties and relationships with other organisations . Remuneration policy for key management personnel........................................... 11 Risk managemont.. .12 Funds held as custodian trustee on behalf of others.............................................12 11 Environmental and social policy . Statement of rospon$ibilitio$ of tho trusloes.. Independent examlnerf$ report to the trustees of The Confll¢t and Envlronment Ob$ervalory.......................................................................................................14 Financial statements and notes to the accounts.................. .15 .12 .13 Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 The Conflict and Environment Observatory: Reference and administrative information for the year ended 31 December 2022 Charity number: 1174115 Registered office and operational address: The Conflict and Environment Observatory, The Chapel. Scout Road, Mitholmroyd. Hebden Bridge, West Yorkshire, HX7 5HZ. The charity is also known as CEOBS. Trustees: Trustees, who served during the period and up to the date of this report, were as follows: David Cullen (Chair) Dr lessica Hope (resigned 2510412022) Oliver Brown Dr Teresa Lappe-osthege Dr Matthew Bolton (resigned 0611212022) Dr Sarah Njeri (appointed 06112/2022) No trustees held title to property belonging to the charity during the reporting period or at the date of approval. Key management personnel: Doug Weir (Research and Policy Director). Bankers: The Co-operative Bank plc. i Balloon Street, Manchester, M4 4BE. Solicitors: Elderflower Legal and Secretarial Services, Chestnut House, 23 Ryles Park Road, Macclesfield, Cheshire SKII 8AH. Independent examiner: Patrick Morrello ACA, Third Sector Accountancy Ltd., Holyoake House, Hanover Street, Manchester, M60 OAS. Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 The Conflict and Environment Observatory: Trustees, annual report for the year ended 31 December 2022 The trustees present their report and the unaudited financial statements for the period ended 31 December 2022. Included within the trustees, report is the directors, report as required by company law. The reference and administrative information set out on page 3 forms part of this report. The financial statements comply with current statutory requirements, the charity's constitution and the Statement of Recommended Practice- Accounting and Reporting by Charities: SORP; applicable to charities preparing their accounts in accordance with FRS 102. Director's report The full-scale invasion of Ukraine in February 2022 had an enormous impact on everybody working in this sector, and we were no different. From the outset of the armed conflict we began documenting instances of environmental harm, establishing a database that we could use for advocacy, to inform assesstnent and which we hope may eventually be used for accountability. Media attention on the environmental dimensions OF the invasion was unprecedented, and For many months, relentless. CEOBS fulfilled the role that we had intended for it, gathering data, raising awareness and working with a range of stakeholders. Foremost among these was the UN Environment Programme (UNEP), which brought in CEOBS as external monitoring capacity. In this we worked closely with our long-term collaborators on Ukraine, Zoi Environment Network. While the response to Ukraine dominated our aCtI￿tIeS over the year, it was not the only item on our agenda. We launched a remote assessment of the impacts of the war in Tigray on its decades-old regreening programme. We ran and contributed to numerous events and workshops on environmental mainstreaming in mine action. Similarly, our activities on military and conflict emissions accelerated, at times in response to the attention the issue was receiving in respect to Ukraine. And throughout 2022, we took part in and organised events to coincide Thryth the UN General Assembly's finalisation of the International Law Commission's principles on the Protection of the Environment in Relation to Armed Conflicts the PERAC principles. This included a side event with Nordic governments at the UN in New York. With what became a Four-year grant from the Nonvegian government coming to an end, we increasingly turned to consultancy work, developing relationships with international organisations. The volume of work on Ukraine in particular necessitated an expansion of our Ukraine team, and we were also able to recruit a campaigner to take fonvard our activities on military and conflict emissions. Doug Weir, Research and Policy Director Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 Objectives CEOBS, Objects are: To promotefor the public benefEt the protectlon of individuals, communities ecosystems from the effects ofenvironmental damage related to armed conflEcts and military activities. These objectives will be fulfilled by undertaking the following activities: Monitoring and collecting data on the environmental and derived humanitarian consequences of armed conflicts and military actiTrities" 2. Developing tools and undertaking capacity building activities to enable relevant stakeholders to undertake such monitoring and data collection. 3. Educating the public, decision makers, policy makers, researchers, civil society and the national and international media about the environmental and derived humanitarian eonsequenees of armed conflicts and military activities; 4. Contributing to the sound administration of legislation and commenting on proposed legislation. 5. Undertaking relevant activities in these fields in partnership with other organisations sharing a similar purpose, where the Trustees have determined that this is in keeping with the CIO'S Objects. Activities in 2022, our achievements and performance The charity's main activities and beneficiaries are described below. All its charitable activities focus on efforts to increase understanding and awareness of the environmental dimensions of armed conflicts and military activities, in order to strengthen protection for affected people and ecosystems, and are undertaken to further CEOBS. charitable purposes for the public benefit. CEOBS was established in August 2017 and publicly launched in April 2018. During 2022 our primary focus areas related to our four core workstreams: monitoring and raising awareness around environmental issues in recent and ongoing conflicts. monitoring and contributing to international legal and policy processes intended to minimise harm. environmental mainstreaming in humanitarian disarmament. and collaborative work with civil society on the environment, peace and security. 1. Monitoring and collecting data on the environmental and derived humanitarian consequences of armed conflicts and military activities. The vast majority of our monitoring work focused on Ukraine. This included the development of a database and methodologies for the remote analysis of environmentally harmful incidents, built on Open-source Intelligence (OSILvf) and remotely sensed data. The work was primarily financed by UNEP as part of its response to the armed conflict. Alongside the database, outputs included briefings on nuclear sites. water. indust and Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 fossil fuel facilities. These were a collaboration between CEOBS and Zoi Environment Network. The Ukraine database also informed our media work, and a large number of presentations at events and webinars. In the early stages of the invasion we blogged on impacts within the first 2 hours and io da s, and ran posts on key issues such as accountabili and . We also provided technical assistance to the government of Ukraine. recove Beyond Ukraine, we published research on Tigray. which examined the relationship between war, forest loss and enNryronmental recovery. We also worked with Airwars on an assessment of the enTrironmental consequences of the bombing of Gaza in 2021. Results Data frorn our monitoring of Ukraine was used by a wide range of Stakeholders, and foT public engagement via the media and online. Attention on Ukraine's environment has been unprecedented and we have played an important role in that. Our work on Ukraine resulted in several new partnerships with international organisations and NGOS. 2. Developing tools and undertaking capacity building activities to enable relevant stakeholders to undertake sueh monitorTng and data eolleetTOn. Our work in 2022 continued to explore new methodologies to examine the relationship between armed conflict and the enNryronment. Most significant was the Ukraine database, and methodological process thatwe developed to undertake remote analyses of environmentally harmful incidents. For Tigray, we used a diverse range of data and analyses to remotely assess vegetation changes linked to the civil war. This included integrating groundtruth data to train a n]achine learning approach. Results The Ukraine database methodology 15 being used to rank hazardous sites for future assessment by UNEP. The Tigray methodology wa5 published on our website and will be made available a5 a journal article in 2023. 3. Edueating the public, decision makers? policy makers, researchers ¢ivil society and the national and international media about the environmental and derived humanitarian consequences of armed conflict and military activities. During 2022 CEOBS staff undertook a range of outreach and educational activities for a diverse range of audiences. These included: Presentations and seminars for students at University of Applied Arts, Vienna; Harvard Law School., the University of Hull; the University of Manchester; the Royal Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 Agricultural University; King's College London and The Hebrew University of lerusalern. Providing technical advice, interviews and citations for journalists and media organisations. resulting in 103 notable publications, includingbut not limited to- TIME,. New Scientist,. DW,. 117RED,. Politico,. BBC World Seruice,. The Guardian,. The New York Times..ABCNews.. Woll StreetIournal.. The Observer,. CNBC,.FORBES..Alla2eertt,. BBCRttdio 4,. DerSpieg¢l. We convened or co-convened virtual and hybrid events on: the PERAC PTinciples' Tigray; mine action and the environment; Ukraine., and the military emissions gap. We contributed to nun]erous expert events. including but not limited to those organised by: EUROMIL (military emissionsl- Halifax International Security Conference IPERAC); the OSCE (Ukraine, and PERACI., Humanitarian Networks and Partnerships Week Iukyainel., UN Global Pulse., Stockholm +50 IPERACI,. Geneva Centre for Human Rights IPERACI. European Green Academy (Ukrainel; Hamburg University {Ukrainel., Environment People Law {Ukrainel., Allianz (conflict and the enviyonmentl,. ICRC (mine action); ICEL{PERAC); DIIS IPERACI., ICEL-U3CM IPERACI., and SIPRI (Ukraine). We continued to populate our website with conflict and thematic resources. We also responded to numerous requests for information from the media, students, researchers and the public, and for technical assistance on environmental issues from NGOS and states. Results We managed a massive increase in media interest linked to Ukraine, at times providing 12 inteLview5 per week. During 2022 our website, www.ceobs.org, was visited by 108,844 users who viewed 214,669 pages. This was nearly double the nun]ber of users and page views in 2021. The site informs public understanding of the environmental and derived humanitarian dimensions of armed conflicts and military activities, &nd acts as a resource for researchers, governments and the media. CEOBS. social media audiences continued to grow. in particular on TwitteT and Linkedln. 4. Contributing to the sound administration of legislation and eommenting on proposed legislation. In 2022. CEOBS monitored and documented a number of ongoing international legal processes, and provided technical support to those involved in them. These processes included the UN International Law Commission. the UN FraTnework Convention on Climate Change, the Mine Ban Treaty and the Convention on Cluster Munitions, the process towards a political declaration on the use of explosive weapons in populated areas, and the UN Open Ended Working Group on chemicals, pollution and waste. We spoke at and organised £￿1￿, engaged in media work and undertook other activities to draw attention to the UN General Assembly's adoption of the PERAC Principles and the need for their implementation. In support of the implementation of the Paris Agreement we produced a number of publications on military emissions, in collaboration with academic partners and Thuth Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 Scientist5 for Global responsibility. This included a in Nature, activities at COP2 re orts and blogs, a odcast series with the Royal United Services Institute and giving evidence at the UK Parliament's Defence Committee. Wear ed in favour of the environment during negotiation5 towards a political declaration on the use of explosive weapons in populated areas IEWtPAI. We worked with mine action partners to promote environmental standards in the implementation of the nv ni ' and the Mine Ban Treaty. We worked with Harvard Law School to help define the standards for environmental remediation in the context of the UN Treaty on the Prohibition of Nuclear Weapons. We for the inclusion of conflict pollution in the mandate of a new UN seience policy panel on chemicals, waste and pollution. nim Results We enjoyed good media coverage of the PERAC principles and a very well-attended interactive dialogue at the UN in New York. Our work on military and conflict emissions exceeded our expectations, receiving extensive media coverage and leading to partnerships and events. Environmental language was included in the EWIPA declaration. Engagement with the environment in mine action continued to grow. Beneficiaries of our services The trustees have ensured that CEOBS, work during the period has complied with Section 17 of the Charities Act 2011. The trustees have also referred to the Charity Commission's guidance on the public benefit, particularly when considering the design and focus areas of new projects, and in identifying goals and objectives for existing programmes. As stated in our Objects, the ultimate beneficiaries OF our work are individuals, communities and ecosystems, which will be better protected from the effects of environmental damage related to armed conflicts and military activities as a result ofour activities. All OF the work that we do contributes to this overarching goal. The general public also benefits From the awareness raising work that we undertake, for example outreach and Fundraising events, as well as the open-access reports and updates we provide on our website. Financial review During 2022 CEOBS had a total income of £229,40612021: 242,4461. Newfunding from the Minor Foundation for Major Challenges was received for the Military Emissions Gap project1£63,508). A significant donor was the Norwegian Ministry of Foreign Affairs, our partners Norwegian People's Aid, from which we received £42,301 (2021: £172,856). This was the fourth and final year of a funding agreement. We received £17,850 from the UN Environment Programme for our work on Ukraine. Further income of £60,000 was received from the loseph Rowntree Charitable Trust 12021: £40,695). The charity raised £9,782 in fundraising aCtI￿tieS (2021: £4,067). Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 The overall expenditure for 2022 was £258,858 (2021: £208,001). This resulted in a deficit of £29,452, made up of a deficit on restricted funds of £45,498 and a surplus on unrestricted funds of £16,046. The deficit on restricted funds represents the spending in 2022 of restricted grant money received in 2021. The total unrestricted income for the year was £105,747 (2021: £64,355} and the total unrestricted expenditure was £90,293 12021: £52,064). The total restricted income was £123,659 (2021: £178,091) and the total restricted expenditure was £168,565 (2021: £155,937). At the end of the year the total funds of the charitywere £57,976 (2021: £87,428) consisting of £3,01412021: £48,512) restricted funds and £54,962 (2021: £38,916) of unrestricted funds. Towards the end of 2022 CEOBS was successful in securing new project funding from the Organization For Security and Co-operation in Europe IOSCE) for work documenting environmental harm as a result of the invasion of Ukraine. The trustees are satisfied that the charity will continue to be a going concern for the foreseeable future. The charity has no subsidiary undertakings or funds. Reserves Reserves are required for the organisation to be financially robust and continue operating in the eventoFa short-term Funding shortfall or an emergency funding requirement. The reserves policy and balance are reviewed annually by the Board of Trustees. In 2022 we increased our unrestricted reserves level to £54,962 on the 31st December (2021: £38,916). Wherever possible all unrestricted funds are put towards reserves to build these up as quickly as possible. CEOBS also seeks to raise additional funds for reserves within project proposals. Our target is to add one month of running costs to our reserves everyyear until an ideal situation of six months of reserves is achieved. Our interim target, set in 2019 for 2020 onwards, was three months, running costs in three years. With average monthly running costs at 2022 levels, this is approximately £64,715. We have therefore fallen short of this target by £9,753. However, during 2022 our average monthly running costs were just over £4,000 more than in 2021. We will continue our target of adding one month of running costs to our reserves level each year until our target of six months is reached by the end of 2025. Plans for the future In 2023, the response to Ukraine will continue to dominate our conflict monitoring activities, allowing closer ties with a range OF international organisations and requiring more capacity. Ukraine is also influencing our other workstreams: meaning PERAC implementation will focus on accountability" providing opportunities for collaboration Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 on the ground with mine action operators in Ukraine; and creating new partnerships for international events on military and conflict emissions. Structure* governance and management The organisation is a charitable incorporated organisation (CIO), registered on 3 August 2017. The charity was established under a constitution which states the objects and powers of the charity and its governance. The trustees are members of the charity but this entitles them only to voting rights. They have no beneficial interest in the charity. All trustees give their tiTne voluntarily and receive no benefits from their role as trustees of the charity. Any expenses reclaimed from the charity are set out in note li to the accounts. CEOBS recognises that an effective board of trustees is essential if the charity is to achieve its objectives. There must be at least three trustees, who serve for a renewable term oftwo years or until they resign. Trustees may form sub-committees or working groups, with or without staff members, on an ad-hoc basis. The board of trustees has responsibility for and oversight of the recruitment of new trustees, and they are supported by staff in this. The organisation uses skills audits to identify knowledge and expertise of existing trustees. These may also be used to identify gaps and desired characteristics of new trustees. Advertising may be done through appropriate channels. As a result of the specialised nature of the organisation's work, approaches to individuals known to CEOBS through its activities may also be made. CEOBS seeks to avoid conflicts of interest and ensure diversity in its board of trustees, as well as in its staff. Consideration is given to ways in which groups that are under- represented on the board might be reached and encouraged to apply. New trustees are appointed by a decision at a properly convened meeting of the existing trustees. They receive an induction pack that includes copies of the latest Trustees Annual Report and Accounts, the charity's Constitution, copies OF Board minutes and finance reports, a role description and the Charity Commission guidance 'The Essential Trustee, ICC31. Theyare required to confirm they have read the last of these in a minuted meeting, and to submit a Trustee Eligibility Declaration, as provided by the Charity Commission, and a declaration of interests form. Operational decision-making CEOBS, trustees are responsible for the governance of the organisation. This includes, but is not restricted to, deciding on policy and strategy, appointing and overseeing staff, monitoring performance and finances and providing guidance and knowledge. Day-to- day management of CEOBS is provided by its Research and Policy Director, working with our staff. io Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 Related parties and relationships with other organisations CEOBS works with other organisations as necessary to further its aims. these are typically collaborations for research or advocacy purposes. CEOBS does not have any affiliates or subsidiaries. During the period, CEOBS worked with the following: Research: Lancaster University, Durham University, Scientists for Global Responsibility (Military Emissions Gap project); Edinburgh and Leeds universities (SENSE PhD placement). University of Ghent. Belgium ITigray study); Zoi Environment Network, Switzerland Iukraine monitoring). Projects: Norwegian People's Aid. Norway, Airwars. Fundraising (grants): Norwegian People's Aid, Norway; Greater Manchester and District CND. Other: For further information concerning related parties and related party transactions please see note li of the accounts. Remuneration policy for key management personnel The trustees consider the board of trustees and the Research and Policy Director as comprising the key management personnel of the charity. The board has responsibility for directing and controlling the charity, and they delegate the responsibility for running and operating the charity on a day to day basis to the Research and Policy Director. All trustees are volunteers and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note li to the accounts. CEOBS has a Conflict of Interest Policy and Register. Trustees are required to disclose all relevant interests and register theTn with the Research and Policy Director and, in accordance with the charity's constitution, withdTaw from decisions where a conflict of interest arises. Atransaction relatingto a decision thatwas taken in 2021 occurred during the year. please refer to note li in the accounts. The Board of Trustees has responsibility for approving the salaries and remuneration of all staff, including key management personnel. Remuneration is set within the boundaries of budgets presented in grant applications and aligns pay grades for Comparable sectoral roles and skill sets. The trustees aim to provide employees, including key management personnel, with yearly inflationary pay rises where feasible and subject to the constraints of funding. Beyond this, salary increases are based on changes in responsibilities and experience. It is the charity's aim to employ effective staff and the trustees recognise that the rates of pay offered should be appropriate. li Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 The charity does not offer bonuses or benefits in kind, other than the statutory pension scheme (currently NEST). In 2021 the trustees reviewed the remuneration policy with reference to the Living Wage, gender pay ratios, maximum pay ratios and pay bench-marking. Risk management It is the staff and trustees, responsibility to identify, assess and manage risks. The biggest risk to the charity is that of lack of funds and work has been undertaken throughout the period to secure funds and diversify our funding sources. Controls are in place to reduce risks associated with Financial, administrative and operational procedures. In 2020 a risk mapping exercise was completed by the board of trustees. The resulting Risk Register is relryewed when deemed necessary by the trustees. Risks are continuously assessed by the staff and trustees and reviewed at both the project and governance level, and risk management is ongoing. Actions to mitigate risks are taken at appropriate levels of the organisation. Funds held as custodian trustee on behalf of others No funds were held by the Charity as a custodian trustee on behalf of others. Environmental and social policy CEOBS, environmental and social policies consider the impact of our office and of our travel footprint. To reduce the environmental impact and increase the social benefits of our office we are: Using local suppliers, such as for printing. Reducing single use plastics, for example milk deliveries and, where possible. plastic-free stationery. Utili5ing Fair Trade and ethically sourced products. To the greatest extent possible using recycled IT equipment. Our travel policy seeks to: Minimise flights where other options are available, within the constraints of staff time and financial resources. Encourage staff to avoid flights by accepting additional travel hours as working hours and absorbing additional travel and accommodation costs. Encourage st&ff to consider and address the higher environmental footprint of periods away travelling, Such as increased use of 5ingle-u5e plastie5. We have decided not to utilise a carbon offsetting scheme to address emissions from travel. Instead our policy is to volunteer staff time throughout the year to local 12 Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 environmental projects. The Calder Valley, in which we are based, is prone to flooding and we prioritise projects focused on natural flood risk reduction, such as tree planting. Statement of responsibilities of the trustees The trustees are responsible for preparing the trustees, annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law requires the trustees to prepare financial statements for each financial period 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 these financial statements, the trustees are required to: Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Charities SORP Make judgements and estimates that are reasonable and prudent State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and Financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The trustees. annual report has been approved by the trustees on 2910912023 and signed on their behalf by: David Cullen (Trustee) Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 Independent examiner's report to the trustees of The Conflict and Environment Observatory I report on the accounts of the charity for the period ended 31 December 2022 set out on pages 15 to 29. Respective responsibilities of trnstees and examiner The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 ("the Charities Act") and that an independent examination is needed. It is my responsibility to: examine the accounts under section 145 of the Charities Act, to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(51{b) of the Charities Act, and to state whether particular matters have come to my attention. Basis of independent examiner's statement My examination was carried out in accordance with 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 connection with my examination, no matter has come to my attention: i. which gives me reasonable cause to believe that. in any material respect, the requirements: to keep accounting records in accordance with section 130 of the Charities Act. and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met., or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. P Vmorrdlo Patrick Morrello ACA Third Sector Accountancy Limited. Holyoake House, Hanover Street, Manchester, M60 OAS 2910912023 Date: ........................................... 14 Doc ID.. 3c1c4f569971c3399a9778289bOb808bc6f86425 ## The Conflict and Environment Observatory ## Statement of Financial Activities (including Income and Expenditure account) for the year ended 31 December 2022 **----- Start of picture text -----**
Unrestricted Restricted Total funds Unrestricted Restricted Total funds
funds funds 2022 funds funds 2021
Note £ £ £ £ £ £
Income from:
Donations and legacies 3 60,704 - 60,704 40,772 5,235 46,007
Charitable activities 4 35,261 123,659 158,920 19,516 172,856 192,372
Other trading activities 5 9,782 - 9,782 4,067 - 4,067
Total income 105,747 123,659 229,406 64,355 178,091 242,446
Expenditure on:
Raising funds 6 3,059 - 3,059 3,867 - 3,867
Charitable activities 8 87,234 168,565 255,799 48,197 155,937 204,134
Total expenditure 90,293 168,565 258,858 52,064 155,937 208,001
Net income/(expenditure) for the year 9 15,454 (44,906) (29,452) 12,291 22,154 34,445
Transfer between funds 592 (592) - - - -
Net movement in funds for the year 16,046 (45,498) (29,452) 12,291 22,154 34,445
Reconciliation of funds
Total funds brought forward 38,916 48,512 87,428 26,625 26,358 52,983
Total funds carried forward 54,962 3,014 57,976 38,916 48,512 87,428
**----- End of picture text -----**
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 15 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 ## The Conflict and Environment Observatory Company number ## Balance sheet as at 31 December 2022 **----- Start of picture text -----**
Note 2022 2021
£ £ £ £
Fixed assets
Tangible assets 14 494 840
Total fixed assets 494 840
Current assets
Debtors 15 9,277 6,721
Cash at bank and in hand - 58,306 83,549
Total current assets 67,583 90,270
Liabilities
Creditors: amounts falling
due in less than one year 16 (10,101) (3,682)
Net current assets 57,482 86,588
Total assets less current liabilities 57,976 87,428
Net assets 57,976 87,428
The funds of the charity:
Restricted income funds 17 3,014 48,512
Unrestricted income funds 18 54,962 38,916
Total charity funds 57,976 87,428
**----- End of picture text -----**
For the year in question, the charity was entitled to exemption from an audit under section 144 of the Charities Act 2011. The Charity Commission has not ordered an audit to be carried out under Section 146 of Charities Act 2011. The notes on pages 17 to 29 form part of these accounts. Approved by the trustees on and signed on their behalf by:29 / 09 / 2023 David Cullen (Trustee) 16 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory Notes to the accounts for the year ended 31 December 2022 ## 1 Accounting policies The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows: ## a Basis of preparation 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 (FRS 102) issued in October 2019 - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Conflict and Environment Observatory meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £ sterling. ## b Judgments and estimates The trustees have made no key judgments which have a significant effect on the accounts. ## c Preparation of the accounts on a going concern basis The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. ## d Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met. ## e Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank. 17 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory Notes to the accounts for the year ended 31 December 2022 (continued) ## f Fund accounting Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity. ## g Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: - Costs of raising funds comprise the costs of fundraising events, marketing and website costs, and their associated support costs. - Expenditure on charitable activities includes the costs of personnel and conducting research projects undertaken to further the purposes of the charity and their associated support costs. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. ## h Tangible fixed assets The trustees have decided to set the capitalisation threshold for fixed assets at £500. Items costing £500 or more are capitalised at cost. They are depreciated over their estimated useful economic lives on a straight line basis as follows: Office and computer equipment 25% ## i Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## j Creditors and provisions Creditors and provisions are recognised where the charity has 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 trade discounts due. ## k Financial instruments The charity 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. 18 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory Notes to the accounts for the year ended 31 December 2022 (continued) ## l Pensions Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity’s contribution is restricted to the contributions disclosed in note 10. There were no outstanding contributions at the year end. ## 2 Legal status of the charity The charity is a charitable incorporated organisation registered with the Charity Commission and has no share capital. The registered office address is disclosed on page 1. 19 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory ## Notes to the accounts for the year ended 31 December 2022 (continued) ## 3 Income from donations and legacies |Donations
Grants
T
o
t
a
l
4
I
n
c
o
m
e
f
r
o
m
c
h
a
r
i
t
a
b
l
e
a
c
t
i
v
i
t
i
e
s
Grants
Charitable trading
T
o
t
a
l|Unrestricted
£
704
60,000
60,704
Unrestricted
£
-
35,261
35,261|Restricted
£
-
-
-
Restricted
£
123,659
-
123,659|Total 2022
£
704
60,000
60,704
Total 2022
£
123,659
35,261
158,920|_Unrestricted_
_£_
_77_
_40,695_
_40,772_
_Unrestricted_
_£_
_-_
_19,516_
19,516|_Restricted_
_£_
_5,235_
_-_
_5,235_
_Restricted_
_£_
_172,856_
_-_
172,856|_Total 2021_
_£_
_5,312_
_40,695_
_46,007_
_Total 2021_
_£_
_172,856_
_19,516_
192,372| |---|---|---|---|---|---|---| 20 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory ## Notes to the accounts for the year ended 31 December 2022 (continued) 5 Income from other activities |Fundraising event
6
C
o
s
t
o
f
r
a
i
s
i
n
g
f
u
n
d
s
Staff costs
Event costs
Administration
Governance costs (see note 7)
Support costs (see note 7)|Unrestricted
£
9,782
9,782
Unrestricted
£
2,063
542
161
70
223
3,059|Restricted
£
-
-
Restricted
£
-
-
-
-
-
-|Total 2022
£
9,782
9,782
2022
£
2,063
542
161
70
223
3,059|_Unrestricted_
_£_
_4,067_
_4,067_
_Unrestricted_
_£_
_2,794_
_488_
_226_
_120_
_239_
_3,867_|_Restricted_
_£_
_-_
_-_
_Restricted_
_£_
_-_
_-_
_-_
_-_
_-_
_-_|_Total 2021_
_£_
_4,067_
_4,067_
_2021_
_£_
_2,794_
_488_
_226_
_120_
_239_
_3,867_| |---|---|---|---|---|---|---| 21 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory ## Notes to the accounts for the year ended 31 December 2022 (continued) ## 7 Analysis of governance and support costs |taff costs
remises costs
eneral administration
ank charges
ccountancy fees
nsurance
nline services and design
egal and professional
taff events
epreciation|Support
£
13,219
1,379
290
43
1,020
829
220
1,559
232
92
18,883|Governance
£
4,084
336
70
-
1,380
-
-
-
-
23
5,893|_Total 2022_
£
17,303
1,715
360
43
2,400
829
220
1,559
232
115
24,776|_Support_
_£_
_8,957_
_1,080_
_162_
_19_
_1,020_
_474_
_270_
_402_
_93_
_61_
_12,538_|_Governance_
_£_
_4,460_
_439_
_66_
_-_
_1,380_
_-_
_-_
_-_
_-_
_25_
_6,370_|_Total 2021_
_£_
_13,417_
_1,519_
_228_
_19_
_2,400_
_474_
_270_
_402_
_93_
_86_
_18,908_| |---|---|---|---|---|---|---| These costs are apportioned to fundraising and charitable activities in proportion to their respective share of the total direct costs. ## _Apportionment of support and governance costs to fundraising and charitable activities_ **----- Start of picture text -----**
Direct costs % of total Share of Share of
direct costs support costs governance costs
£ £ £
Fundraising 2,766 1.18% 223 70
Charitable activities 231,316 98.82% 18,660 5,823
Total 234,082 18,883 5,893
**----- End of picture text -----**
22 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory ## Notes to the accounts for the year ended 31 December 2022 (continued) ## 8 Analysis of expenditure on charitable activities |Staff costs
Other staff costs
Premises cost
General office and administration costs
Travel, accommodation and subsistence
Conferences and events
Marketing
Subscriptions
Consultancy
Project costs
Web design
Depreciation
Governance costs (see note 7)
Support costs (see note 7)
Restricted expenditure
Unrestricted expenditure
9
N
e
t
i
n
c
o
m
e
/
(
e
x
p
e
n
d
i
t
u
r
e
)
f
o
r
t
h
e
y
e
a
r
This is stated after charging/(crediting):
Depreciation
Grant audit fees
Accountancy fees
Independent examiner's fee|2022
£
185,789
1,493
12,164
2,825
4,948
3,370
-
253
14,840
4,819
-
815
5,823
18,660
255,799
168,565
87,234
255,799
2022
£
938
1,200
1,020
180|_2021_
_£_
_154,117_
_1,856_
_13,220_
_2,144_
_462_
_288_
_22_
_840_
_4,732_
_6,165_
_995_
_744_
_6,250_
_12,299_
_204,134_
_155,937_
_48,197_
_204,134_
_2021_
_£_
_840_
_1,200_
_1,020_
_180_| |---|---|---| 23 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory ## Notes to the accounts for the year ended 31 December 2022 (continued) ## 10 Staff costs Staff costs during the year were as follows: |Wages and salaries
ocial security costs
ension costs
A
l
l
o
c
a
t
e
d
a
s
f
o
l
l
o
w
s
:
Cost of raising funds
Charitable activities
Support costs
Governance costs|2022
£
185,296
14,168
5,691
205,155
2,063
185,789
13,219
4,084
205,155|_2021_
_£_
_154,070_
_11,317_
_4,941_
_170,328_
_2,794_
_154,117_
_8,957_
_4,460_
_170,328_| |---|---|---| No employees has employee benefits in excess of £60,000 (2021: Nil). The average number of staff employed during the period was 5.8 (2021: 4.9). The average full time equivalent number of staff employed during the period was 5.8 (2021: 4.3). The key management personnel of the charity comprise the trustees and the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £45,849 (2021: £45,652). ## 11 Trustee remuneration and expenses, and related party transactions Neither the trustees nor any persons connected with them received any remuneration or reimbursed expenses during the year (2021: Nil). There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties. No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2021: nil) with the exception of the transaction below. The charity entered into a joint project with two other parties one of which is Alp Analytica, a France based consultancy. Oliver Brown, a trustee of the charity, is the founder and a director of Alp Analytica. This company was chosen from a number of organisations based on its specialism and following relevant procedures. Oliver Brown was not involved in the selection and decision processes. The total transaction value in the year was £6,743 (2021: £3,571) for consultancy fees. 24 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory ## Notes to the accounts for the year ended 31 December 2022 (continued) ## 12 Government grants The government grants recognised in the accounts were as follows: |Norwegian Ministry of Foreign Affairs|2022
£
42,301
42,301|_2021_
_£_
_172,856_
_172,856_| |---|---|---| There were no unfulfilled conditions and contingencies attaching to the grants. ## 13 Corporation tax The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. ## 14 Fixed assets: tangible assets |s
t
ditions

p
r
e
c
i
a
t
i
o
n
arge for the year

t
b
o
o
k
v
a
l
u
e
1 January 2022
31 December 2022
31 December 2022
1 January 2022
_31 December 2021_
31 December 2022|Computer
equipment
£
3,359
592
3,951
2,519
938
3,457
494
_840_| |---|---| 25 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory Notes to the accounts for the year ended 31 December 2022 (continued) **----- Start of picture text -----**
15 Debtors
2022 2021
£ £
Other debtors - 48
Prepayments and accrued income 9,277 6,673
9,277 6,721
16 Creditors: amounts falling due within one year
2022 2021
£ £
Other creditors and accruals 5,483 3,682
Taxation and social security costs 4,618 -
10,101 3,682
17 Analysis of movements in restricted funds
Balance at 1 Balance at 31
January December
2022 Income Expenditure Transfers 2022
£ £ £ £ £
British Ecological
Society 1,243 - (698) - 545
Norwegian Ministry of
Foreign Affairs 47,103 42,301 (89,404) - -
Nahrein Network 166 - - - 166
United Nations
Environment
Programme - 17,850 (17,850) - -
The Minor Foundation
for Major Challenges - 63,508 (60,613) (592) 2,303
Total 48,512 123,659 (168,565) (592) 3,014
**----- End of picture text -----**
The funds transfers between restricted and unrestricted funds was due to the charity purchasing computer equipment to the value of £592 for the Military Emissions Gap project. 26 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory ## Notes to the accounts for the year ended 31 December 2022 (continued) ## _Comparative period_ |_Nahrain Network_
_ush_
_Total_
Nahrein Network
United Nations
Environment
Programme
The Minor Foundation
or Major Challenges
N
a
m
e
o
f

e
s
t
r
i
c
t
e
d
f
u
n
d
_British Ecological_
_Society_
British Ecological
Society
Norwegian Ministry of
Foreign Affairs
_Norwegian Ministry of_
_Foreign Affairs_|_Balance at 1_
_January_
_2021_
_Income_
_Expenditure_
_Transfers_
_Balance at_
_31 December_
_2021_
_£_
_£_
_£_
_£_
_£_
_1,590_
_-_
_(347)_
_-_
_1,243_
_24,444_
_172,856_
_(150,197)_
_-_
_47,103_
_324_
_-_
_(158)_
_-_
_166_
_-_
_5,235_
_(5,235)_
_-_
_-_
_26,358_
_178,091_
_(155,937)_
_-_
_48,512_
D
e
s
c
r
i
p
t
i
o
n
,
n
a
t
u
r
e
a
n
d
p
u
r
p
o
s
e
s
o
f
t
h
e
f
u
n
d

to
develop
science,
technology,
engineering
and
mathematics
(STEM)
educational resources on conflict and the environment
to contribute remote sensing data to academic research on the eco-tourism
potential of the Iraqi marshlands
grant for various specific projects related to the impact of war on environment
and humanity
grant for research project: "Environmental impact assessment in Ukraine"
grant for research project: "Communicating and plugging the military emissions
gap"

| |---|---| 27 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory ## Notes to the accounts for the year ended 31 December 2022 (continued) ## 18 Analysis of movement in unrestricted funds **----- Start of picture text -----**
Balance at 1 As at 31
January December
2022 Income Expenditure Transfers 2022
£ £ £ £ £
General fund 38,916 45,747 (30,293) 592 54,962
Joseph Rowntree
Chartable Fund - 60,000 (60,000) - -
38,916 105,747 (90,293) 592 54,962
Comparative period
Balance at As at 31
1 January December
2021 Income Expenditure Transfers 2021
£ £ £ £ £
General fund 26,625 23,660 (11,369) - 38,916
Joseph Rowntree
- - -
Charitable Fund 40,695 (40,695)
26,625 64,355 (52,064) - 38,916
**----- End of picture text -----**
Name of unrestricted fund Description, nature and purposes of the fund General fund The free reserves after allowing for all designated funds Designated fund: Joseph Rowntree Charitable Fund to be used as the charity sees fit to further its objects, for charitable purposes only and within the bounds of charity law, not to be used for reserves 19 Analysis of net assets between funds |fixed assets
ent assets/(liabilities)|General
fund
£
494
54,468
54,962|Designated
funds
£
-
-
-|Restricted
funds
£
-
3,014
3,014|Total 2022
£
494
57,482
57,976| |---|---|---|---|---| 28 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425 The Conflict and Environment Observatory Notes to the accounts for the year ended 31 December 2022 (continued) **----- Start of picture text -----**
Comparative period
General Designated Restricted
fund funds funds Total 2021
£ £ £ £
Tangible fixed assets 840 - - 840
Net current assets/(liabilities) 38,076 - 48,512 86,588
Total 38,916 - 48,512 87,428
**----- End of picture text -----**
29 Doc ID: 3c1c4f569971c3399a977e289b0b808bc6f86425