# **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENT FOR THE PERIOD 01 JANUARY 2020 TO 31 DECEMBER 2020** 

Established 04 August 2017 as a Charitable Incorporated Organisation (CIO) Registered Charity Number:  1174142 

|**CONTENTS**||
|---|---|
|Charity Information|1|
|Trustees’ Report|2|
|Responsibilities|2|
|Organisation|2|
|Origins|3|
|Objectives and Activities|4|
|Financial Review|5|
|Reserves|6|
|Risk Management|6|
|Plans for the Future Period|6|
|Statement of Financial Activities|7|
|Notes to the Financial Statements|9-10|



|**CHARITY INFORMATION**||
|---|---|
|Governing Document:|CIO Constitution dated 09 May 2017|
|Charity Number:|1174142|
|HMRC Charities Reference: EW8083|HMRC Charities Reference: EW8083|
|Registered Address:|Swallowtail and Birdwing Butterfly Trust|
||c/o Hines Harvey Woods|
||Queens Head House|
||The Street, Acle|
||Norwich, UK, NR13 7DY|
|Independent Examiner|None assigned|
|Accountants:|None assigned|
|Solicitors:|None assigned|
|Bankers:|Barclays Bank PLC, Leicester, LE87 2BB|
|Social Media Advisor:|PhaseThree Goods, Norwich|
|Public Relations Advisor:|Holdsworth Associates, Cambridge|
|Website:|www.sbbt.org.uk|
|Email:|info@sbbt.org.uk|
|Telephone:|01493 750207 (registered address only)|
|Facebook:|https://www.facebook.com/swallowtailandbirdwing/|



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## **TRUSTEES’ REPORT** 

The Swallowtail and Birdwing Butterfly Trust (SBBT) established its Constitution as a Charitable Incorporated Organisation on 09 May 2017 and was entered on the Register of Charities, number 1174142, on 04 August 2017. The Trustees have pleasure in presenting this, their third formal report and financial statement, covering the period 01 January 2020 to 31 December 2020. 

The financial statement has been prepared in accordance with the document “CHARITIES SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice”. 

This and future reports will be published on the Charity Commission’s website. The Trust’s reports are also published on its website www.sbbt.org.uk. 

## **Responsibilities** 

The Board of Trustees is responsible for approving the strategy and business plan for the Trust, approving the annual budget, grant-making, monitoring performance and for policies on investment, reserves, remuneration (if any) and risk management. The Board of Trustees normally meets three or four times a year to execute the Trust’s business and is required to call a general meeting of all Members (who for the time being are also the Trustees) only in the event of proposals relating to changes to the constitution, dissolution or amalgamation of the organisation. 

All Trustees give their time freely and no Trustee received remuneration in the period under report. Details of expenses reimbursed to Trustees are disclosed in the accounts. There are no related party transactions. The day to day operations of the charity, the implementation of the business plan and the processing and handling of grant applications prior to formal consideration by the Board are managed by the Trustees. 

## **Organisation** 

The Swallowtail and Birdwing Butterfly Trust is a charitable incorporated organisation limited by guarantee, governed by its Constitution. The members of the organisation, who have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities, are the Trustees, of whom there must be a minimum of three and a maximum of twelve. Decisions are made by a simple majority of votes at a meeting of Trustees or by resolution made in writing or in electronic form and agreed by all Trustees. 

|The Trustees were:|Robert Julian Chetwood (from 15.10.2018)|
|---|---|
||Dr Nicholas Mark Collins - Chair (from 04.08.2017)|
||Sara Frances Harvey – Treasurer (from 15.10.2018)|
||Dr Martin Partridge – Secretary (from 10.10.2019)|
||Oliver Leigh-Wood (from 04.08.2017)|
|The Trust’s Patron was:|Henry Sackville Barlow OBE|



The Trustees were assisted by a number of Honorary Advisors and Coordinators: Honorary Advisor Botany: Sara Oldfield OBE 

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Honorary Advisor Insect Rearing: Bill Page Honorary Advisor CITES: Jonathan Barzdo Honorary Advisor Butterfly Taxonomy: Richard I. Vane-Wright Honorary Coordinator for Homerus Swallowtail Studies: John Parnell Honorary Coordinator for Natewa Swallowtail Studies: Clive Huggins 

New Trustees normally serve for a term of three years from the meeting at which their appointment is confirmed, after which time they may be re-appointed for a further two consecutive terms. During the set-up phase it was agreed to stagger the length of terms but the Trust has now progressed into three-year terms for all Trustees. 

The Board keeps the skill requirements for the Trustee body under review and in the event that a Trustee resigns or additional new Trustees are required, the Board is responsible for an open and rigorous recruitment process which includes advertising on the website, on other appropriate appointments websites and on wider media, as may be necessary. SBBT is committed to diversity and welcomes applicants irrespective of gender, sexual orientation, disability, religion, race or age. All new potential Trustees are interviewed and, if provisionally accepted, they are invited to attend a Trustee meeting before joining formally. On joining the Board, each Trustee is provided with an induction that includes full details of their roles and responsibilities and terms and conditions of service plus comprehensive information about the charity, including its strategy and business plan. 

The Board will in time adopt a process for periodical review of its effectiveness, with external advice as may be needed. The Swallowtail and Birdwing Butterfly Trust is satisfied that it has a capable and experienced Board of Trustees able to support the Trust’s objectives in the future. 

The Key Management Personnel of the charity are the Trustees, and the Trust has no staff at present. The Trustees are committed to training and development to support the effective development of the Trust. The Trust relies heavily on the voluntary work of the Trustees and Honorary Advisors, who make a vital contribution to the Trust and for which the Trust is grateful. 

## **Origins** 

In 1985 the International Union for the Conservation of Nature and Natural Resources (IUCN) published _“Threatened Swallowtail Butterflies of the World: The IUCN Red Data Book”_ and identified a significant number of threatened species which were subsequently featured in a 1991 publication _“Swallowtail Butterflies: An Action Plan for their Conservation”_ . One such species was the subject of a new book _“Queen Alexandra’s Birdwing”,_ published in 2016, which concluded that “the many proposals for conservation work in relation to _Ornithoptera alexandrae_ , have so far borne few practical results”. The Swallowtail and Birdwing Butterfly Trust was conceived in order to provide scientific, technical and financial support to this and other threatened species and habitats identified in the IUCN assessment, and in the many more detailed reports that followed in its wake. 

Following a preliminary meeting on 22 March 2017 online and in Winchcombe, Gloucestershire, to agree the general principles and direction of the proposed charity, the first formal Board meeting was held on 12 October 2017, at which time the Constitution, honorary officers, mission, objectives, priority activities and general operating principles were agreed and confirmed. 

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## **Objectives and Activities** 

The formal objects of the Trust are “for the advancement of environmental protection and improvement, including preservation and conservation of the natural environment and the promotion of sustainable development, in particular for the protection of swallowtail and birdwing butterflies and other Lepidoptera, by means including but not restricted to education, scientific research, preservation, improvement and creation of habitat, captive breeding and sustainable management in the UK and worldwide.” The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. 

The mission of the Swallowtail and Birdwing Butterfly Trust is to conserve and protect members of the Papilionidae, a worldwide family of more than 550 species of butterfly which includes the largest, most spectacular and most endangered species of butterfly on the planet. 

This work is generally conceived and executed in the context of the wider butterfly faunas, their foodplants, and the ecosystems of which they are a part. 

The Trust addresses its objectives and measures the success of its activities in four ways: 

- by identifying need and catalysing action; 

- by raising financial resources for conservation activities; 

- by convening networks and partnerships and 

- by providing scientific and technical support. 

During its early years the Trust has successfully addressed these objectives and has initiated and implemented a number of significant projects and activities. 

## ● Queen Alexandra’s Birdwing Butterfly Project 

The Trust helped prepare a plan to conserve _Ornithoptera alexandrae_ in Papua New Guinea by  captive breeding and release and supported its presentation to Yayasan Sime Darby, who agreed financial support directly to the Higaturu Oil Palm Estate for three years, beginning October 2017. The 2020 closing date has been extended by the funder. In 2020 SBBT agreed additional financial support for a consultancy on genetic analysis of the two remaining and separate populations (funds transmitted 2021). This study showed that the populations are from the same taxon and recommended that a regional conservation strategy is advisable.  The project is ongoing and the Trustees receive regular reports. 

## ● Richmond Birdwing Project 

_Ornithoptera richmondia_ is confined to patches of remaining habitat along Australia’s eastern seaboard. The Trust awarded a grant to the Wildlife Preservation Society of Queensland to assist in the purchase of the foodplant vines needed to extend and consolidate the butterfly’s range. The sub-project supported by SBBT has been successfully completed and satisfactory reports received and reported on the Trust’s website. The wider project is ongoing and the Trust remains in contact. 

4 



## ● Swallowtails in Britain 

In 2018 the Trust convened a workshop in Norfolk, UK, to examine the status of the two subspecies of _Papilio machaon_ that occur in the UK, with a view to strengthening conservation planning and action. The results were published and followed up by two MSc students from the University of East Anglia, whose studies were also published. Proposals to continue with students in 2020 were drawn up but had to be abandoned due to COVID-19. 

## ● Natewa Swallowtail Project 

The Trust’s project in Fiji, which began in 2018, continued into 2019 with a further survey in cooperation with Operation Wallacea. Plans to bring a Fijian entomologist to the UK for a familiarisation and training tour in 2020 were cancelled because of the pandemic. However, the Trust negotiated in principle to provide a grant to local organisations for _in situ_ conservation work (which commenced in 2021). 

## ● Conservation of Jamaica’s Homerus Swallowtail 

In 2018 the Trust provided a grant to enable a team from the University of West Indies to gather small wing samples from living _Papilio homerus_ butterflies for DNA analysis. This assessment, as yet incomplete, is an essential precursor to development of a conservation strategy for the two widely separated populations of this highly endangered species. The project is slow-moving, but ongoing. 

## ● World Swallowtail Day 

SBBT inaugurated “World Swallowtail Day” (WSD) in 2019 and 19 organisations worldwide joined the initiative. In 2020 celebrations were curtailed by the pandemic. However, the Trust celebrated World Swallowtail Day with a successful photographic competition and a limerick challenge. 

## ● Technical assessments 

No technical studies were undertaken in 2020. 

## ● Outreach 

To communicate and promote conservation of swallowtails and birdwings, the Trustees have continued to maintain a comprehensive website, distributed three editions of the newsletter _Papilio!_ to over 300 registrants worldwide in 2020 (2021: more than 400), maintained an active presence on Facebook, Twitter and Instagram, and made a number of lecture presentations to audiences in the UK. 

## **FINANCIAL REVIEW** 

As the income for the Trust was below £25,000 during the period under review, an independent examination is not required under the Charities Act 2011 section 145. 

The charity’s income for the period 01 January 2020 to 31 December 2020 was £4,105.39. This compares with income of £2,132.65 in 2019. 

The charity’s expenses for the period were £183.13, comprising project grants (£0.00), project direct expenses (£0.00), postage, email, website and travel costs (£183.13). 

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The Trust held restricted funds of £5,544.00 for Queen Alexandra’s Birdwing, £3,100.00 for Fiji Natewa Swallowtail project and £77.86 for World Swallowtail Day. 

The charity runs on the goodwill of supporters, volunteer advisors and Trustees and has minimal running costs. This is expected to continue for the foreseeable future. 

## **Reserves** 

At 31 December 2020 SBBT carried forward unrestricted general funds of £8,807.53.  SBBT holds unrestricted reserves in order to mitigate against unexpected reductions in income, provide working capital and assist with cash flow.  The unrestricted general funds are above the range of 3 months general fund expenditure which the Trustees would normally consider to be prudent. However, given the needs and challenges faced by the charity, its annual operating costs and the current heavy dependency upon voluntary work, which, in the event of unforeseen circumstances, might need to be paid for during an interim arrangement, the Board aims to hold a minimum reserve of £5,000. This reserve policy is kept under review. 

## **Risk Management** 

The Trustees have examined the major strategic, business and operational risks which the Trust faces, and are satisfied that, with the regular reports they compile for meetings, they have been able to assess these risks and to put in hand on a timely basis any necessary actions (mainly in relation to the scale of the collaborative activities of the Trust) to lessen or avoid them. 

The principal risk is that income from donors might turn out to be less than anticipated.  This risk is mitigated by retaining sufficient reserves to meet current commitments. A secondary risk is that project executants who have received funds fail to deliver on their commitments. This risk is mitigated by prudent project management procedures. The assets of the Trust are sufficient to meet the commitments currently envisaged. Trustees monitor and assess the impact of all projects undertaken. 

A formal risk register has been prepared and will be kept under regular review. This identifies the major financial, operational, governance/compliance and external risks facing the Charity.  Each risk is assessed according to its likelihood and potential impact, and systems and procedures are in place or will be agreed to manage those risks. 

## **Plans for the Future Period** 

The Trust prepared a Business Plan and budget for 2021 outlining the ways in which its aims would be pursued. The Business Plan also outlined the Trust’s proposals for extending and strengthening its governance, communications and outreach. 

6 



## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **SWALLOWTAIL AND BIRDWING BUTTERFLY TRUST STATEMENT OF FINANCIAL ACTIVITY FOR** 

## **THE PERIOD 1 JANUARY 2020 TO 31 DECEMBER 2020** 

|||**RESTRICTED**|**UNRESTRICTED**||
|---|---|---|---|---|
|||**FUNDS**|**FUNDS**|**TOTAL**|
|**Income**||**£**|**£**|**£**|
|Donations|Note 2|3,100.00|1,005.39|4,105.39|
|Gift Aid tax refund|Note 1|-|-|-|
|**Total income**||3,100.00|1,005.39|4,105.39|
|**Expenses**|||||
|Grants paid|Note 3|-|-|-|
|Other direct charitable expenses|Notes 4,5|-|183.13|183.13|
|**Total expenses**||-|183.13|183.13|
|**Net surplus/(deficit) carried**|||||
|**forward at 31st December 2020**||3,100.00|822.26|3,922.26|
|**STATEMENT OF ASSETS AND LIABILITIES**|**STATEMENT OF ASSETS AND LIABILITIES**||31-Dec-20|31-Dec-19|
|**Current Assets:**|||**£**|**£**|
|Debtors|||803.70|803.70|
|Cash at bank|||17,870.72|17,039.43|
|PayPal balance|||282.32|-|
||||18,956.74|17,843.13|
|**Less Liabilities:**|||||
|Creditors - amounts falling due within one year|||1,427.35|4,236.00|
|**Net assets**|||17,529.39|13,607.13|
|**Reserves:**|||||
|Unrestricted reserves|Page 6||8,807.53|7,985.27|
|Restricted reserves|Note 6||8,721.86|5,621.86|
||||17,529.39|13,607.13|
|Nicholas Mark Collins|||||
|Chair of Trustees|||||



Date: 08 July 2021 The notes on pages 8 to 10 form part of these accounts. 

7 



## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY 2020 to 31 DECEMBER 2020** 

## **1. ACCOUNTING POLICIES** 

## **Basis of Preparation** 

The Charitable Incorporated Organisation constitutes a public benefit entity as defined by FRS 102. 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 on 16 July 2015 and the Charities Act 2011. 

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity. 

## **Going Concern** 

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a going concern. 

## **Funds** 

Unrestricted funds represent funds which can be used in accordance with the charitable objects at the discretion of the Trustees. Designated funds are funds set aside by the Trustees out of unrestricted general funds for specific purposes or projects. Restricted funds represent funds that can only be used for particular restricted purposes within the objects of the charity.  Restrictions arise when specified by the donor or when the funds are raised for specific restricted purposes. 

## **Income** 

All incoming resources are included in the accounts when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.  Donations and legacies are recognised in the financial statements when the Trust is convinced that there is entitlement to the income, there is certainty of receipt and the amount in question is measurable. Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income may be received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. 

## **Expenditure** 

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings: 

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- Costs of raising funds includes all costs in relation to generating voluntary income, fundraising events and fundraising trading; 

- Expenditure on charitable activities includes costs in relation to all projects, programmes and activities. 

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. 

## **Grants** 

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such as upon receipt of a full and acceptable proposal in the Trust’s project format, or when awards are recognised as expenditure only when the conditions attached to the grants are fulfilled.  Grants offered subject to conditions that have not been met at the year-end are noted as a commitment, but not accrued as expenditure. 

## **Allocation of support and governance costs** 

Support costs are those that assist the work of the Trust but do not directly represent charitable activities and include governance costs, administrative costs, depreciation, recruitment, and other costs. They are incurred directly in support of expenditure on the objects of the charity. 

Governance costs comprise all costs involving the public accountability of the Trust and its compliance with regulation and good practice. These costs include costs related to any independent examination, statutory audit and legal fees. 

Support and Governance costs may be allocated across the charitable activities based on an analysis of the time spent on each project. 

## **Tangible Fixed Assets and Depreciation** 

The Trust currently holds no fixed assets. 

## **Debtors** 

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Accrued income is measured at the amount due to be received. 

## **Cash at bank and in hand** 

Cash at bank and cash 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. 

## **Creditors and provisions** 

Creditors are recognised where the Trust 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.  Other creditors and accruals are recognised at their settlement amount due. 

9 



## **Tax** 

HMRC recognised the Swallowtail and Birdwing Butterfly Trust as a charitable incorporated organisation and a charity for tax purposes on 23 October 2017, charity Reference EW80803. SBBT is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.  Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part II 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.  From time to time the Trust will make claims under the Gift Aid scheme and these sums are recorded in the annual accounts. 

## **2. DONATIONS** 

In 2020 unrestricted donations were gratefully received from S. Meredith, R Grassby-Lewis, N.M. & M.M. Collins, S. & G. Easter, M.J. Friend and O. Leigh-Wood. In addition, a donation was received from O. Leigh-Wood for the Fiji (Natewa) Swallowtail project. 

## **3. GRANTS PAID AND PAYABLE** 

|**RESTRICTED**|**UNRESTRICTED**|||
|---|---|---|---|
|**FUNDS**|**FUNDS**|**TOTAL**||
|**£**|**£**|**£**||
|-|-||-|
|-|-||-|



## **4. OTHER DIRECT CHARITABLE EXPENSES** 

|Postage & stationery<br>Travel expenses<br>Bank charges<br>**Total expenses**|**RESTRICTED**<br>**FUNDS**<br>**UNRESTRICTED**<br>**FUNDS**<br>**TOTAL**<br>**£**<br>**£**<br>**£**<br>-<br>136.28<br>136.28<br>-<br>23.20<br>23.20<br>-<br>23.65<br>23.65|
|---|---|
||-<br>183.13<br>183.13|



## **5. TRUSTEE EXPENSES** 

A Trustee made a claim of £23.20 for expenses (other than direct project expenses) during the period under consideration. 

## **6. RESTRICTED RESERVES** 

|Queen Alexandra's Birdwing Butterfly Project<br>Fiji Natewa Swallowtail Project<br>World Swallowtail Day<br>**ENDS**|**£**<br>5,544.00<br>3,100.00<br>77.86|
|---|---|
||8,721.86|
|||



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