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2021-03-31-accounts

Royal Society of Wildlife Trusts Annual Report & Accounts 2020-21

Registered charity number: 207238

Andy Rouse/2020VISION

Royal Society of Wildlife Trusts CONTENTS for the year ended 31 March 2021

Page
Overview of the Year 2
Trustees’ Report 3 - 23
Auditors’ Report 24 - 26
Accounting Policies 27 - 29
Consolidated Statement of Financial Activities 30
Consolidated and Society Balance Sheets 31
Consolidated Cash Flow Statement 32
Notes to the Financial Statements 33 - 54

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Royal Society of Wildlife Trusts OVERVIEW OF THE YEAR for the year ended 31 March 2021

The natural world is so important to us all and we are proud to be leading the way to enable more people to connect with nature; raising the profile of the ecological and climate crisis we face and championing and demonstrating practical solutions.

This has been a difficult year with COVID-19 dominating all our lives, and our thoughts are with those who have lost loved ones and have been particularly impacted. Our natural world provides us with solace and joy but is in trouble – facing both an ecological and climate crisis. We believe we cannot just think about slowing the loss of the natural world and protecting what remains. We need to stop and reverse the declines, and put nature in recovery, at scale and at pace, to restore biodiversity, stabilise the climate, ensure food security, protect the health and wellbeing of billions of people, and much more.

We have stepped up our Wilder Future campaign and almost 265,000 people have taken action, many of whom are new to the work of The Wildlife Trusts. Our proposed Wildbelt proved invaluable in getting nature’s recovery on the Government’s agenda and this year the Agriculture Act become law, and we influenced some of its content, including the principle of ‘public money for public goods’. The Fisheries Act also came into law - the first piece of fisheries legislation for nearly forty years and we are pleased that it aims to manage fisheries for the benefit of both the fishing industry and the marine environment. And finally, the Environment Bill has progressed to report stage. We are calling for it to be strengthened, in particular around setting a headline target to reverse nature’s decline by 2030.

The Wildlife Trusts’ media profile grew considerably this year and our social media audiences now total around 2 million followers. Our annual 30 Days Wild in June was completely digital due to COVID-19, and yet it was our most popular year, seeing growth of over 70%, with over 136,000 individuals, 1,400 Care Homes, 1,000 businesses, and almost 16,000 schools taking part. We also ran a number of new initiatives to reach new audiences, including a series of public Zoom events, Wild LIVE, featuring internal and external speakers, with a collective viewing of over 60,000.

Due to COVID-19, we did not have any face-to-face meetings within the movement this year, but we ensured that we had all the technology, platforms and support in place to grow our collective culture and impact, as well as supporting Wildlife Trusts. At our virtual AGM we were delighted to elect naturalist and TV presenter Liz Bonnin as President of The Wildlife Trusts, and Gillian Burke as Vice President as well as welcoming four new ambassadors. Although Craig has not been able to get out to meet Trusts on the ground, our technology has enabled

him to engage in real dialogue across the movement. Craig is leading an inclusive strategy reset process for The Wildlife Trust movement, including through Wildlife Trust Town Hall events open to all staff and trustees. Although these discussions are ongoing, it is already clear that we will be adopting bold goals that, by 2030, nature will be in recovery with abundant, diverse wildlife and natural processes creating wilder land and seascapes; people will be taking action for nature and the climate; and nature will play a central and valued role in addressing local and global problems of climate change and people’s health and wellbeing.

We are extremely grateful for the support and flexibility given by all our funders during COVID-19, including emergency funding from the National Lottery Heritage Fund and the National Lottery Community Fund enabling Our Bright Future projects to utilise funding for quality engagement with young people, and to embed the Three Asks within their organisations. Substantial unrestricted funds from players of People’s Postcode Lottery have enabled us to reach out to many more people and deliver a step-change in our diversity and inclusivity work, as well as funding from the Postcode Climate Challenge to support the development of innovative Nature-Based Solutions projects.

Our long-term partnerships with businesses including Jordans Cereals, Vine House Farm, Redrow, Siemens, and Aggregate Industries continue to deliver benefits for the environment and people. COVID-19 curtailed our Wild Wellbeing days, but we provided digital content and support which was well received. This year we developed our partnerships with Tata Consultancy Services and Hogan Lovells and embarked on a number of new relationships. All of this work helps us reach out to more people so they can benefit from nature and have a voice in the future of our environment.

Our support to Wildlife Trusts continued with the integration of the website platform and Customer Relationship Management systems, and our Talent and Skills programme that was delivered virtually with a fantastic uptake of over 15,000 interactions.

Finally, as the UK begins to open up again, we want to thank you for your ongoing support as we navigate the year ahead, and invite you to be part of our goal for nature to be in recovery by 2030.

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Peta Foxall Craig Bennett
Chair Chief Executive
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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Registered name Royal Society of Wildlife Trusts (RSWT) Also known as The Wildlife Trusts Previously known as Society for the Promotion of Nature Reserves (SPNR) Society for the Promotion of Nature Conservation (SPNC) Royal Society for Nature Conservation (RSNC)

Registered charity number 207238 Head office address The Kiln Waterside Mather Road Newark NG24 1WT Principal bankers NatWest Bank 225 High Street Lincoln LN2 1AZ Investment managers Sarasin & Partners LLP CCLA Investment Juxon House Management 100 St Paul's Churchyard Senator House London EC4M 8BU 85 Queen Victoria Street London EC4V 4ET Pension scheme administrators Capita Employee Benefits Ltd 65 Gresham Street London EC2V 7NQ Solicitors Chattertons Linklaters LLP St Swithin’s Court One Silk Street 1 Flavian Road London EC2Y 8HQ Nettleham Road Lincoln LN2 4GR Auditor Saffery Champness LLP 71 Queen Victoria Street London EC4V 4BE

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

RSWT is a body corporate, incorporated under the Royal Charter of 2 March 1976, as amended in 1981, 1994, 1998, 2003 and 2007.

Patron HRH The Prince of Wales President Liz Bonnin from 26 November 2020 Presidents Emeritus Sir David Attenborough OM CH CVO CBE FRS FLS FZS FSA FRSGS Simon King OBE Tony Juniper CBE Vice Presidents Prof J Chris Baines Nick Baker Ellie Harrison Prof David Macdonald CBE FRSE Bill Oddie OBE Julian Pettifer OBE Prof Sir Robert Worcester KBE Council: Chair Peta Foxall Hon Secretary Stewart Goshawk Hon Treasurer Genevieve Landricombe Other Trustees: Steve Garland Peter Young to 26 November 2020 Ruth Sutherland CBE Anne Selby to 26 November 2020 Jennifer Fulton to 8 April 2020 Rob Pickford OBE David Jordan OBE Joanne Pike Sir Graham Fry KCMG Joanna Davidson CBE Stephen Aston from 26 November 2020 Julian Woolford from 26 November 2020 Chief Executive Craig Bennett from 1 April 2020

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

Appointment and induction of Trustees

Council comprises the Chair, Honorary Secretary, Honorary Treasurer, one Wildlife Trust-nominated Trustee from each of Scotland, Wales and Ulster, the Chair of The Wildlife Trusts England Policy Committee and four other Trustees nominated by the English Wildlife Trusts. Trustees are elected by the corporate members at the Annual General Meeting. Council appoints a Vice Chair.

The Chair is elected to serve a single five-year term. Honorary Officers are elected, and other Trustees are appointed or elected, for up to two terms of three years. Council may also have two additional members possessing specialist skills, knowledge or expertise, as assessed by a skills audit.

The Chair introduces new Trustees at their first Council meeting. New Trustees are also given access to a dedicated intranet website which includes the charity’s key documents, including its Royal Charter, Governance Handbook, Financial Standing Orders, latest Annual Report and Accounts, Five Year Plan, budget, minutes of recent Council meetings, relevant Charity Commission publications, and the Charity Trustee Network’s ‘Code of Conduct for Trustees’. New Trustees are also invited to attend induction sessions at the RSWT’s office in Newark at the earliest convenient opportunity to receive introductory briefings on key work areas. Due to COVID-19 these were moved to Zoom sessions in 2020/21, which were well received.

Statement of Trustees’ responsibilities

The Trustees 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).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and parent charity and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the group and parent charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the Royal Charter. They are also responsible for safeguarding the assets of the group and parent 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 financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

Organisational structure

The Royal Charter gives Council the powers to:

Council, as RSWT’s governing body, is ultimately responsible, and directly accountable, to the charity’s corporate members, the 46 independent Wildlife Trusts. Council operates a number of sub-committees. The main committees of Council are:

And main boards overseeing partnership programmes and grants:

Council is the primary leadership group for The Wildlife Trusts, aiming to deliver its stated purpose and mission as a movement. It also aims to lead The Wildlife Trusts in pursuit of excellent collective governance, ensuring that a collective strategy is in place and that the role of the RSWT as the central charity is clearly identified and effectively delivered.

The England Policy Committee has delegated authority to set English policy issues relating to our outcomes ranging from people being closer to nature to marine conservation.

The purpose of Countries Committee is to focus on building trust and understanding between the respective parts of the UK and headline political discussions relating to coordinating policy across the four countries.

The Strategic Development and Research Committee has responsibility for recommending The Wildlife Trust’s development and research priorities to Council and for allocating grants that further the movement’s agreed strategic objectives from the Strategic Development Fund and other similar funds held by RSWT. During 2020/21, the Strategic Development Fund was re-purposed as a Covid Emergency Fund, providing emergency financial support to help individual Wildlife Trusts weather the worst impacts of the COVID-19 pandemic. It distributed about £300k of grants and £180k of loans to 16 Wildlife Trusts.

Resources and Audit Committee has responsibility for the operational effectiveness of The Wildlife Trusts as well as for overseeing the central charity’s own resources.

The Marketing and Development Committee’s purpose is to support the development of the movement’s strategic approach to marketing, fundraising, mass communications and external reputation.

The Biffa Award Board has delegated powers to make grant offers in respect of our major grant fund, in accordance with the terms agreed with the respective funding bodies. The Biffa Award Board comprises six members, with RSWT and Biffa Group Ltd each appointing three members.

The Our Bright Future Steering Group involves all eight key partners overseeing this major programme of youth and environment work funded by £33m from the National Lottery Community Fund.

The Nature Friendly Schools Steering Group is comprised of a senior representative of each of the ten delivery partners, providing impartial and strategic governance across the programme, funded by the Department for Education (DfE) and the Department for Environment, Food & Rural Affairs (Defra).

Trustee nominations and those for main committees are considered by a standing Nominations Advisory Panel before being presented to Council and onwards to the AGM in the case of Trustees.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

Much of the organisation’s work is undertaken by a team of staff, reporting to a Chief Executive who is accountable exclusively to Council for achieving The Wildlife Trust’s strategic objectives and for complying with Council’s policies.

Remuneration of key personnel

In accordance with the agreed job evaluation framework and available benchmarking information, the Chief Executive has delegated authority to agree salaries. They will normally do so in conjunction with HR executives or, for Director level posts, with the input of key trustees. The Chief Executive’s own salary is set by the Chair and Honorary Officers.

Fundraising

The individual Wildlife Trusts manage relationships with more than 850,000 members between them. These members make up our movement and when members are asked for financial contributions it is done in a responsible, respectful and ethical manner. The same applies to all our supporters including those giving oneoff donations or legacies to RSWT or to their Wildlife Trust. We are always seeking to improve the ways in which we relate to supporters and RSWT helps Wildlife Trusts to develop and share best practice. To demonstrate our commitment to ethical fundraising practices, RSWT is an organisational member of the Fundraising Regulator and the Institute of Fundraising and adheres to their recognised standards.

The Wildlife Trusts do not believe in approaching vulnerable people for financial support and we aim to avoid causing distress to anyone.

We always want to exceed the expectations of our members and supporters in everything we do. However, we know that there may be times when we do not meet our own high standards. When this happens, we want to hear about it, in order to deal with the situation as quickly as possible and put measures in place to stop it happening again. As such, we have a Complaints Policy in place, to enable members and supporters to contact us and express their concerns. Further information on our Complaints Policy can be found on our website: www.wildlifetrusts.org/complaints-policy

We are also committed to disclosing the number of complaints received. No complaints relating to RSWT’s fundraising practices were received between 1 April 2020 – 31 March 2021.

We are proud of our corporate partnerships and seek to work with businesses with whom we share common cause. Any new collective corporate partnerships are subject to full scrutiny through well-established governance processes. Ongoing partnerships are governed by clear contractual obligations, relationship management and ongoing review and scrutiny by governance committees.

The outbreak of COVID-19 had a big impact on fundraising both for individual Wildlife Trusts and RSWT. During the year, we kept our own finances under close review, as well as working closely with Wildlife Trusts to understand the impact for them and support them where we could, and with government and funders to try to reduce this impact, wherever possible.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

OBJECTIVES AND KEY ACTIVITIES

Supporting the work of The Wildlife Trusts

The Wildlife Trusts comprise 37 local Wildlife Trusts in England, five in Wales and a Trust for each of Ulster, Scotland, Isle of Man and Alderney. RSWT supports the whole federation and also represents the 37 English Trusts in advocating policy at an England level, including in Westminster. All 46 Trusts are corporate members of RSWT. Wildlife Trusts Wales acts for the five Welsh Wildlife Trusts to ensure an effective interface with the Welsh Government. Trusts in Scotland and Ulster undertake policy work with their devolved governments.

In this way the federation benefits both from local ownership and from a voice at each country level and across the UK into the European Union.

Taken together, The Wildlife Trusts represent an immense force for nature’s recovery and people’s connection to wildlife in the UK, working in the countryside, in cities and at sea.

The Wildlife Trusts’ combined income is around £150 million, with over 850,000 members, including 150,000 junior members. There are 38,000 volunteers, including 600 Trustees, and more than 2,000 staff.

The impact of the movement’s work on real places and real communities is vast in terms of: the land area managed for wildlife, of over 100,000 hectares; the many places saved from the wrong form of development; and the hundreds of thousands of people inspired about, and learning about, wildlife.

The work of The Wildlife Trusts remains even more relevant and important in the light of COVID-19. However, since much of individual Wildlife Trust work is done through our 35,000 volunteers and our people engagement work is primarily done in person, COVID-19 seriously curtailed our ability to carry out this face-to-face work. RSWT increased its work to promote The Wildlife Trusts’ cause, and support Wildlife Trusts, with a focus on securing support for short-term funding issues and also with longer-term future planning. During the first lockdown around 60% of Wildlife Trust staff were furloughed, which will have significant short, medium and long-term impacts for wildlife and people.

Following the recruitment of our new CEO, Craig Bennett, in April 2020, the Wildlife Trust movement is collectively undergoing a strategy reset which includes its vision, purpose, approach, goals, transformations, enabling priorities and impact.

Although the strategy discussions are ongoing, it is already clear that we will be adopting bold goals that, by 2030, nature will be in recovery with abundant, diverse wildlife and natural processes creating wilder land and seascapes; people will be taking action for nature and the climate, resulting in better decision making for the environment; and nature will play a central and valued role in addressing local and global problems of climate change and people’s health and wellbeing.

Our approach is driven by local action building our collective impact as part of a global story. We are ambitious in our desire not just to slow but to reverse the declines in nature, speaking with a bold and confident voice, to tell the truth about the state of nature and what needs to be done to put it in recovery. We demonstrate what is possible and look to establish common cause and work in partnership with others from all backgrounds, cultures, identities and abilities to achieve our mission with us, embracing the diversity of our society to change the natural world for the better.

There are five strategic transformations that are needed to deliver this change and these will be our focus over the next few years:

The financial statements in this Annual Report and accounts refer only to the income and expenditure of the central charity in The Wildlife Trusts, RSWT. Each Trust also produces its own annual report and accounts.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

The role of RSWT – the central charity - is to ensure a strong voice for wildlife at a UK level, to help coordinate work between individual Wildlife Trusts and to lead the development of the movement and federation as a whole.

How we have worked to achieve the above objectives is shown in the Achievements and Performance section beginning on page 10.

In the next five years RSWT will work to:

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

ACHIEVEMENTS AND PERFORMANCE

RSWT’s contribution to achieving The Wildlife Trusts’ vision during 2020/21 is set out below, with all of this occurring during the COVID-19 pandemic.

Promoting The Wildlife Trusts’ cause

Campaigning for a Wilder Future

Managing key relationships and grants

Grant funders

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

The private sector

Government

Influencing government (Westminster) policy and decision making in favour of wildlife

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

responded to the Environmental Land Management (ELM) Policy Discussion Document and submitted evidence to the EFRA Committee on ELM and called for more urgency in addressing issues - from climate change mitigation and diffuse pollution to species loss and habitat degradation - whilst delivering a wellmanaged transition toward farming that delivers public goods.

Provide infrastructure support to ensure The Wildlife Trusts operate effectively as a collective

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

Driving Collective Governance, Strategy & Evidence Collation

Managing central resources

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

Equipment and Wellbeing Assessment over the summer for each member of staff to ascertain if they needed any extra support and have undertaken a number of staff surveys to ensure we continue to give the best support and to inform what a return to the office might look like. We have also helped a number of Trusts in their support of homeworking for some staff and furloughing for others.

Administering Partnership Programmes and Grants

Grant-making policy

Grants are made subject to the terms and conditions placed upon RSWT by the relevant funding bodies. Biffa Award grants are subject to the approval of a board comprising nominees of Biffa and RSWT. Detailed criteria and procedures for applying for grants from Biffa Award can be found on the website: www.biffa-award.org. Grants from RSWT’s own unrestricted funds are made at the discretion of Council.

Biffa Award programme

A major part of RSWT’s turnover relates to the administration and distribution of Landfill Communities Funding through the Biffa Award programme. Our work in this area seeks to distribute funds to achieve the maximum benefit for the environment, and local community facilities across England and Northern Ireland.

The strategies, activities and achievements for these programmes during 2020/21 are described below. Details of the grants offered during the year can be found in Note 29.

The Biffa Award Main Grants programme aims to support improving local community facilities and the environment. The scheme funds projects which either provide or improve public amenities for the benefit of communities, or contributes to rebuilding biodiversity. Such projects must be within five miles of a Biffa operation or 10 miles of a Biffa landfill site. The distance criteria are increased to within 15 miles of a Biffa operation in the case of environmental projects.

The Biffa Award Partnership Grants programme funds projects that create or improve Built or Natural Environments considered to be regionally or nationally significant. Between £250,000 and £750,000 can be awarded for projects that are within 15 miles of a significant Biffa Group operation or active Biffa Landfill site. All projects must be within 10 miles of an active Landfill site.

Key Activities & Achievements

A total of £3.6 million of Biffa Award grants were awarded this year to 30 projects in England and Northern Ireland. Cumulatively, more than £180 million has now been awarded since 1997 across England, Scotland, Wales and Northern Ireland.

Highlights of the year included:

Our Bright Future

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

Leading a consortium of eight partner organisations, RSWT oversees a £33.2m portfolio of 31 projects across the UK. All the projects enable young people to build their skills and confidence, their leadership capability, their connection to the environment and make a genuine positive difference to the environment. The National Lottery Community Fund support means that each project engages young people with the environment, empowering them as people and as environmental leaders. Work has focussed on the impacts of COVID-19 and the legacy of the programme.

The National Lottery Community Fund has continued to be proactive and supportive of the programme during the COVID-19 pandemic, which has affected all projects and all project staff have been working at home. The impact on project delivery varies from project to project, with most able to deliver some elements online. Most projects had to put elements of their project on hold and just under half had to furlough some or all of their delivery staff during the past year. COVID-19 caused a reduction in project delivery however, some face-toface delivery did happen throughout the year, dependent on local and regional restrictions.

Furthermore, due to the success of the programme over the past four years, the outcomes have been revised upwards with 140,000 young people expected to participate in Our Bright Future activities (original target 60,000) and 60,000 young people have increased environmental skills and knowledge (original target 26,000); 3,500 community spaces have been improved (original target 450); all projects have utilised the Share Learn Improve function to share best practice, collaborate and develop relationships with organisations that they may not previously have worked with (original target 80%).

Key Activities & Achievements

Nature Friendly Schools

RSWT led a consortium to secure £6.4m from the Department for Education with support from the Defra and Natural England to bring thousands of children closer to nature as the flagship project as part of the Government’s 25 year environment plan. The partnership - Resilience Through Nature (RTN) includes six Wildlife Trusts, YoungMinds, Groundwork UK, Field Studies Council and Sensory Trust. Working with schools with the highest proportion of disadvantaged pupils, it aims to demonstrate and understand how an increase in supported delivery of high-quality activities in natural environments contributes to improved mental health & wellbeing, engagement with school and other key programme outcomes.

Teachers across England will be supported over a period of 12 months, to promote positive mental health and wellbeing, and encourage pupils’ engagement with school and nature. The project seeks to develop whole school confidence and capacity to embed outdoor learning within the everyday curriculum. As a legacy project, significant focus will be placed on developing the skills and confidence of teaching staff to deliver their lessons outside.

The project has demonstrated significant resilience during COVID-19, although there have been significant impacts with limited access to schools and a low uptake for online support. Following extensive discussions with project partners and Natural England, the project was paused, and delivery models revised, together with updated on the safeguarding plans and health and safety protocols.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

In January 2021 the project was notified that funding was at immediate risk due to funding streams being diverted towards COVID recovery. The project was awarded £1million for delivery year two, almost a £500,000 reduction to the original grant agreement. The project is now co-funded by the Department for Education and Defra. The project will work with 100 schools in 2021, with delivery commencing from 1 April.

Key Activities & Achievements

Key factors relevant to achievement of RSWT’s objectives

The continued support of our corporate members, the 46 individual Wildlife Trusts, remains key to the ability of RSWT to continue to achieve its objectives.

The recognition and support of all those we work closely with and their trust in our knowledge and capability are also key.

Public benefit statement

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.

RSWT’s public benefit is enshrined in its charitable objects, as set out in the Royal Charter, being: ‘to promote the conservation and study of nature, the promotion of research into such conservation and to educate the public in understanding and appreciating nature, in the awareness of its value and in the need for conservation’.

RSWT fulfils its objects and delivers its public benefit through two main strands of activity: Supporting the work of The Wildlife Trusts, and distributing grant funding to a wide range of external organisations through RSWT’s Grants Programmes.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

FINANCIAL REVIEW OF THE YEAR

Statement of Financial Activities

Incoming resources

2020/21 Total Income £18,058 (£'000)

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Other income from charitable activites £1,368
Biffa Award (Landfill
Communities Fund) £3,919 Royalties £354
Other trading income £222
Investment income £52
Government grants £15
Nature Friendly Schools Other Income £15
(DEFRA) £1,480
Wildlife Trusts Contribution £1,840
Magazine income £214
Our Bright Future (National Lottery Legacies £995
Community Fund) £4,446
Donations £506
People's Postcode Lottery (PPL) £2,632
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RSWT is very grateful for bequests included in legacy income from the estates of the following individuals:

Ruth Valerie Abrams Dinendra Narayan Bagchi Mayville Blay Francoise Louise Marie Butcher David Stanley Carey George Costa Alan Duxbury Shirley Anne Ferrill Sheila Rosalind Foot Slyvia Elsa Dorothy Harley Margaret Ellen Hayman Judith Mary Jones Adrian John Nuttal Beverley Ann Robin John Norman Smith Ernest Lionel Stonier Noreen Wallis

Resources expended

Total expenditure during the year amounted to £18.8 million (2020: £17.7 million) of which expenditure on charitable activities totalled £18.3 million (98% of the total).

2020/21 Total Expenditure 18,774 (£'000)

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Promoting TWT cause £658
Biffa Award (Landfill
Driving Collective Governance,
Communities Fund) £3,981
Strategy & Evidence £268
Nature Friendly Schools Policy, campaigns and
(Defra) £1,551 government influence £1,354
TWT organisational support
£1,222
Raising funds £429
Our Bright Future (National
Lottery Community Fund) Investment management
£4,448 costs and Other £17
Movement in Pension deficit -£125
Grants paid from PPL funds £1,935
Managing key strategic relationships £3,036
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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

Trading activities

The charity’s active trading subsidiary, The Wildlife Trusts Services Limited, provides services to Wildlife Trusts. Subsidiary turnover was £560,000 (2019/20: £595,000), primarily relating to income from corporate relationships. The subsidiary reported a net profit before and after tax of £41,000 (2019/20: £34,000).

Profits are paid as a gift aided donation to the charity in the following accounting year from which they are generated.

Investment gain/loss

Our investments in Sarasin & Partners’ Climate Action Endowment Fund and CCLA COIF Charities Ethical Investment Fund reported a total gain of £226,000 (2020: £40,000 loss) reflecting the movement in investment markets over the year.

Net movement in funds and fund balances

Fund Balances 2020/21 (£'000)

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General Fund Designated Fund Restricted Fund Total Funds
£10,468
£10,033
£5,781 £5,522
£3,162
£2,844
£1,525 £1,667
FUND BALANCE AS AT APRIL 2020 FUND BALANCE AS AT MARCH 2021
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The balance of designated funds decreased by £259,000 from April 2020 to March 2021. This was mainly due to People’s Postcode Lottery Fund, for which draws for the calendar year 2020 largely took place before 1 April, with the income mainly being spent in financial year 2020/21. The balance of Restricted funds decreased by £318,000 over the year, with £200,000 from Building Momentum for A Living Landscape (Tubney) being used towards campaigns.

Balance Sheet

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Group Balance Sheet 2020/21 (£'000)
FIXED ASSETS
£1,637
CURRENT ASSETS
£15,367
CURRENT LIABILITIES -£6,384
CREDITORS DUE AFTER ONE YEAR -£263
PENSION PROVISION -£324
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Financial Reserves

Designated funds

Designated funds are those unrestricted reserves that the Trustees have designated for particular purposes.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

2020/21 Designated Funds £5,522 (£'000)

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Strategy Reset £200 Pension Deficit Provision £756
Digital Transformations £100 Strategic Development Projects £115
TWT ICT Systems Projects £339
Strategic Development Fund
Landscape Recovery £70
£1,207
Conferences and
Seminars £14
TWT Development and Futures Fund £400
Training Fund £9
Living Seas Marine Protected Tubney Closure Fund £105
Areas £15
Campaigns (30 by 30 and Property Reinstatment Fund £150
Action for Insects) £158
Community Fundraising £33 National Legacy Campaign Fund £200
Development Strategy £321
Campaigns (People's Postcode Lottery) £242
People's Postcode Lottery Climate Fund £319 People's Postcode Lottery Fund £769
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Free reserves

Free reserves provide the working capital requirements of the charity, whilst providing a buffer of liquid funds in case of any short-term decline in income, unexpected increase in costs or risk exposure. They are intended to ensure that contractual obligations to staff, premises and funding partners can be met. RSWT calculates its free reserves by deducting fixed assets from its general unrestricted funds.

Free Reserves Calculation
 2021
£’000		 2020
£’000		 2020
£’000
General Unrestricted Funds 1,667 1,525
Less: Tangible Fixed Assets
 (80) (71)
Free Reserves 1,587 1,454

The Trustees seek to maintain a level of free reserves of between three and six months’ establishment and non-project staff costs. This currently equates to a range of £0.9 million to £1.9 million. The current level of free reserves is £1.6 million, falling within the target range and equating to approximately 5.0 months’ of core costs.

The level of free reserves in recent years, compared with the target range, is shown in the chart below:

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Free Reserves versus Target Range (£'000)
2,000
1,587
1,454
1,500
1,181
1,018 1,042 1,078
877 902 852
1,000 763
500
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Actual 3 months 6 months
Reduction in 2017 was due to an increase in the pension deficit provision.
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Investment policy

RSWT’s Royal Charter empowers the Trustees to invest any funds not immediately required by the charity in any security authorised for the investment of Trust funds. The Trustees’ investment objective is to maximise the charity’s total return from investments, consistent with a moderate level of risk and a socially responsible investment policy.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

The Society’s unrestricted investments are managed by two renowned charity investment managers, Sarasin & Partners and CCLA. At 31 March 2021 the Society’s investments were valued at £1.303m, with 60.6% held in the Sarasin Climate Active Endowment Fund and 39.4% in CCLA’s COIF Charities Ethical Investment Fund. During the year the investments produced an income of £36,000 (2020: £44,000).

Investments recovered well over the course of the year, from the opening balances which were heavily impacted by COVID-19. The Society’s investments finished the year with total unrealised investment gains of £227,000.

Pension Commitments

The last full actuarial valuation of the Wildlife Trusts Pension Scheme, as at 1 April 2019, reported a scheme deficit of £4.7 million.

In accordance with the revised schedule of contributions, RSWT’s deficit recovery payments increased by 4.8% from August 2020, to £193,272, and are set to increase thereafter by 3% per annum. This equates to 23.7% of the total contributions being paid by The Wildlife Trusts. The repayment plan anticipates that the deficit will be eliminated by August 2026. RSWT’s total commitment at 31 March 2021 amounted to £1.14 million (2020: £1.33 million). The present value of this commitment, when discounted at the current yield on AA rated 15 year+ corporate bonds of 1.95% (2020: 2.25%), amounted to £1.08 million (2020: £1.24 million).

The liability reflected in the balance sheet is based on defined benefit accounting principles, in accordance with FRS102. The assumptions used in this methodology result in a pensions liability for RSWT of £324,000 (2020: £504,000). A designated fund of £756,000 (2020: £732,000) sets aside funds representing the difference between this and the value of the payments due under the schedule of contributions.

Related parties

RSWT, together with a number of Wildlife Trusts, jointly participate as employers within The Wildlife Trusts Pension Scheme, which is described in Note 28.

The charity has one active wholly-owned trading subsidiary, The Wildlife Trusts Services Limited, which provides services on a commercial basis to The Wildlife Trusts and makes an annual gift aid donation to RSWT.

Patience Thody, Deputy CEO for RSWT, is also a Director of Wildlife Trusts Services Limited.

Genevieve Landricombe, Honorary Treasurer for RSWT, is also a Director of Wildlife Trusts Services Limited.

RSWT’s governing body, Council, includes a number of Trustees and Chief Executives from individual Wildlife Trusts across the federation of The Wildlife Trusts. No individual Trust benefits from their representation on Council.

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

PLANS FOR THE FUTURE

As outlined above, full plans are uncertain due to COVID-19. However, the work of Wildlife Trusts remains as critical as ever.

Support for The Wildlife Trusts

During the coming year, RSWT will support the work of The Wildlife Trusts by:

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Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

Administration of Partnership Programmes and Grants

Biffa Award programme

Under legislation, the standard rate of Landfill Tax will increase from £94.15 per tonne to £96.70 from 1 April 2021. For 2021/22 the maximum percentage Landfill Tax that a site operator may claim for contributions to environmental bodies will remain at 5.3%. The programme’s target for the percentage of total funds which should go towards Partnership projects has been maintained at 60% for 2021/22. Programme income and expenditure are expected to increase in 2021/22 and for the next five years.

Our Bright Future

Over the coming year, young people will continue to shape the programme, in particular its legacy through membership on the Steering Group, Evaluation Panel and Youth Forum. We will continue to focus on progressing the three policy asks developed by young people, namely: more time spent learning in and about nature; support to get into environmental jobs; and more attention paid to the needs of young people and the environment. A series of evaluation learning papers as well as the final evaluation report will be produced in 2021/22 so a major focus for the team will be sharing the impacts and learnings from the resources.

Nature Friendly Schools

The project received a budget of £1,040,831 for 2021/22. Over the coming year, the project will work with 100 schools in six commissioning areas in England, commencing from 1 April 2021. The budget for 2022/23 is yet to be confirmed and, as such, the Children and Nature programme has been notified of early closure in March 2022, removing the third and final year of delivery. The project has refined the delivery model and has a comprehensive delivery package and associated milestones agreed in order to achieve the anticipated outcomes within the reduced timescale. The project has reported strong engagement from schools, and a notable increase in participation, meaning initial activities delivered have had a high uptake and has set a positive and determined direction of travel for the year ahead. Natural England and Defra have committed to continually review opportunities to secure funding for a further year.

Principal Risks and Uncertainties

In 2020/21 we carried out a full review of our approach to managing risks, and the trustees have signed off a new risk management policy for RSWT (in accordance with governance best practice) to ensure ongoing and active risk management with a focus on the headline strategic risks which might affect RSWT’s ability to deliver against its strategy. In the opinion of the Trustees, RSWT’s new processes and systems should allow the risks identified by them to be mitigated to an acceptable level in its day-to-day operations, even during these uncertain times.

The identification and management of a separate movement-wide risk process forms part of the strategy reset process. In the meantime, Council has reviewed the top risks of Trusts, which are principally driven by COVID-19, weakening environmental legislation and climate change, and agreed the collective activity to mitigate.

The Trustees recognise that we continue to operate in very uncertain times with COVID-19 and continue to work closely with the Executive Team to review the best ways forward, being mindful of risks. The Executive Team are, in turn, working closely with Wildlife Trusts to keep abreast of their needs and with funders, stakeholders and other charities to influence where possible.

All our external work to promote our mission is affected by uncertainties in the political, economic and policy environment across the UK and in England. Leaving the European Union remains an overriding risk given the

Page | 22

Royal Society of Wildlife Trusts TRUSTEES’ REPORT for the year ended 31 March 2021

strong and well implemented environmental regulations associated with the UK’s EU membership, particularly due to continued delays to the Environment Bill.

We have excellent relations with other environmental groups and are working together with key partners to influence policy and legislation and public campaigning. We continue to build relations with Ministers and MPs, and in promoting our views to Government and business sectors. We have a leading role in influencing policy affecting marine wildlife; farmland wildlife and ecological health and in calling for ambitious domestic environmental legislation and in demonstrating the value of nature to health and wellbeing.

Other major risks include the building of damaging new infrastructure, such as major new roads, destructive bypasses, vast new areas of housing and HS2. The risks are made worse by the lack of ecological expertise in local authorities, cuts to the government agencies, and weakened planning policy in England. Damaging infrastructure such as HS2 is also exempt from having to meet biodiversity net gain requirements. In mitigation we are actively engaged in influencing central and local Government planning policy and decisions, campaigning publicly where necessary. We continue to engage with forward looking developers.

Trust in charities remains high and Wildlife Trusts are generally well-trusted, helped by the fact that we are local and have 650 trustees (giving a strong reach into local communities and an unusually close governance eye on day to day activities). We always want to exceed the expectations of our members and supporters in everything we do, but we know that there may be times when we do not meet our own high standards. To address this, we have a clear and transparent Complaints Policy to enable us to rectify any mistakes and learn from them. We are working to increase the diversity of our staff, trustees and volunteers so that we better represent the communities where we work. We are regularly monitoring our diversity and progress against our Equality, Diversity and Inclusivity strategy, with an annual formal report scheduled each year. Our governance review will also seek to improve the diversity within our own trustee board. We are expressing our beliefs and explaining how our organisation works more effectively to the public and members, through our website.

Pension deficit payments remain high despite our Final Salary scheme closing in 2005. We have funds centrally to meet these needs and have set aside a designated fund to cover the deficit payments that are due under the current Schedule of Contributions, which is due to end in August 2026.

As with any organisation we are exposed to the risk of loss of income, failures in executive or governance performance and loss of key trustees or senior staff. Loss of ICT functionality is another ongoing risk. We have a full business continuity plan and our ICT systems are kept very up to date, and consistently and comprehensively backed up. This was demonstrated by how effectively we were able to move to homeworking in March 2020 with the outbreak of COVID-19, and how successful this move has been for staff.

Our principal funding from individual Trusts is a key threat due to the uncertainties of their own funding in light of COVID-19, and the implications of this for their current and future willingness and ability to pay. In view of this, we are working on various future models and contingency plans.

Finally, our new Chief Executive joined in April 2020. Although he has been unable to visit many Trusts due to COVID-19, he has brought the movement together through a very inclusive strategy reset process, quarterly “Wildlife Trusts’ Town Hall” events and countless Zoom calls. Furthermore, he is supported by an excellent senior team.

This Trustees’ Report was approved by Council and signed on its behalf.

Peta Foxall Chair 21 July 2021

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Royal Society of Wildlife Trusts AUDITORS’ REPORT for the year ended 31 March 2021

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF THE ROYAL SOCIETY OF WILDLIFE TRUSTS

Opinion

We have audited the financial statements of Royal Society of Wildlife Trusts (the ‘parent charity’) for the year ended 31 March 2021 which comprise a consolidated statement of financial activities, group and charity balance sheets, a consolidated statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

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Royal Society of Wildlife Trusts AUDITORS’ REPORT for the year ended 31 March 2021

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 5, the trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

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 auditors’ 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with management and the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with management and updating our understanding of the sector in which the charity operates.

Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, guidance issued by the Charity Commission for England and Wales and the provisions of the Royal Charter of 2 March 1976, as amended.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

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Royal Society of Wildlife Trusts AUDITORS’ REPORT for the year ended 31 March 2021

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the 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 charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.

for and on behalf of Saffery Champness LLP

71 Queen Victoria Chartered Accountants and Street Statutory Auditors London EC1V 4BE

Date: 21 September 2021

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Royal Society of Wildlife Trusts ACCOUNTING POLICIES for the year ended 31 March 2021

Accounting convention

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

The charity constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. Whilst COVID-19 has undoubtedly caused delays to several of our projects, we have been working closely with our funders and the Government to reduce the impact of the pandemic upon our finances. Reviewing roles and priorities, and moving to new ways of working (such as digital fundraising and online project delivery) has also helped to mitigate the risks faced by the charity in light of COVID-19.

Basis of consolidation

RSWT’s active wholly owned trading subsidiary, The Wildlife Trusts Services Limited, has been consolidated on a line-by-line basis in the SOFA and balance sheet.

Incoming resources

Income is generally recognised on a receivable basis and is reported gross of related expenditure, where there is entitlement and the amount is reasonably certain and when there is adequate probability of receipt. The specific bases used are:

Resources expended

Expenditure is accounted for on an accruals basis and has been allocated to the appropriate heading in the accounts.

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Royal Society of Wildlife Trusts ACCOUNTING POLICIES for the year ended 31 March 2021

Grants paid and payable are included as a liability when a constructive obligation is entered into by RSWT, being the date a grant offer is communicated to the grant recipient and any conditions relating to the grant are outside the control of RSWT.

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

Volunteer help

Honorary Officers and Trustees provide support to RSWT and The Wildlife Trusts. It is not practical or feasible to place a value on the time volunteered in this respect by these persons or other temporary or occasional volunteers.

Fund accounting

General funds can be used in accordance with the RSWT’s charitable objects at the discretion of the Trustees.

Designated funds are funds set aside by the Trustees out of unrestricted funds for specific purposes or projects.

Unrestricted funds are the total of general and designated funds.

Restricted funds are funds set aside for undertaking an activity specified by the donor.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs

RSWT, together with a number of other employers, operates The Wildlife Trusts Pension Scheme (WTPS). This is a multi-employer hybrid scheme, the defined benefit section of which was closed in October 2005.

The defined benefit scheme amount charged in resources expended is the net of the interest cost and interest income relating to the Society’s share of the assets in the scheme. Re-measurements are recognised immediately in Other recognised gains and losses.

The WTPS is funded, with the assets of the scheme held separately from those of the Society, in pension trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the scheme’s liabilities. The Society’s share of the resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet. Full actuarial valuations for the scheme are obtained triennially.

Pension contributions are allocated across unrestricted and restricted funds in line with salary costs. RSWT also contributes to a group personal pension plan on behalf of eligible employees. The contributions to this scheme are accounted for on an accruals basis.

Full details of RSWT’s pension arrangements are given in Note 28.

Tangible assets

Tangible fixed assets are capitalised and included at cost. The minimum capitalisation value for an individual fixed asset is £250.

Fixed assets, with the exception of freehold land, are depreciated so as to write off the cost, less estimated residual value, in equal annual instalments over their useful economic lives, as follows:

Property fixtures and fittings 5-15 years
Computer hardware 3 years
Computer software 3-5 years
Furniture and other office equipment 5 years
Vehicle 6 years

Investments

RSWT’s investment in its trading subsidiary is stated at the lower of cost and net asset value and is treated as a fixed asset investment.

Marketable investments are stated at mid-market price at the balance sheet date. The movement shown in the consolidated statement of financial activities comprises both realised and unrealised gains and losses.

The gain or loss on investments is calculated after charging transaction costs but before deducting investment management fees, which are shown separately on the Statement of Financial Activities.

Concessionary Loans

The carrying amount of loans to Trusts is calculated from the original loan value adjusted for any repayments. As programme-related investments, no effective rate of interest is applied.

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Royal Society of Wildlife Trusts ACCOUNTING POLICIES for the year ended 31 March 2021

Current investments

Current investments represent funds held in interest bearing deposit accounts with notice periods of more than one day and less than 12 months.

Deferred income

Income which has been received, or is receivable, but which is subject to conditions which prevent its recognition in the current financial year is recognised as a liability in the balance sheet until the relevant accounting period in which RSWT is allowed by the condition to expend the resource.

Stock

Stock is valued at the lower of cost and net realisable value.

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.

Finance leases

Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Operating leases

Rentals under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

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.

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 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.

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Royal Society of Wildlife Trusts CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2021

----- Start of picture text -----
2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds 2021 Funds Funds 2020
Notes £'000 £'000 £'000 £'000 £'000 £'000
Incoming from:
Donations and legacies 1 3,314 27 3,341 2,416 10 2,426
Charitable activities 2 1,050 10,392 11,442 1,067 12,152 13,219
Other trading activities 3 3,208 - 3,208 4,107 - 4,107
Investments 4 48 4 52 82 30 112
Other income 5 15 - 15 - - -
Total income 7,635 10,423 18,058 7,672 12,192 19,864
Expenditure on:
Raising funds 6 433 - 433 380 - 380
Charitable activities 7 8,159 10,182 18,341 6,284 11,036 17,320
Total expenditure 8 8,592 10,182 18,774 6,664 11,036 17,700
Net gains/(losses) on investments 15 226 - 226 (40) - (40)
Net income/(expenditure) (731) 241 (490) 968 1,156 2,124
Transfers between funds 22 559 (559) - 399 (399) -
Other recognised gains/(losses):
Moved to defined benefit accounting for pensions 28 - - - 803 - 803
Actuarial gains/(losses) on defined benefit pension 28 55 - 55 (1) - (1)
scheme
Net movement in funds (117) (318) (435) 2,169 757 2,926
Reconciliation of funds
Total funds brought forward 7,306 3,162 10,468 5,137 2,405 7,542
Total funds carried forward 7,189 2,844 10,033 7,306 3,162 10,468
----- End of picture text -----

The statement of financial activities contains all gains and losses for the year and all activities relate to continuing operations.

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Royal Society of Wildlife Trusts CONSOLIDATED AND SOCIETY BALANCE SHEETS as at 31 March 2021

----- Start of picture text -----
2021 2020
Group Charity Group Charity
Notes £'000 £'000 £'000 £'000
Fixed assets
Tangible assets 14 80 80 71 71
Investments 15 1,303 1,353 1,081 1,131
Social investments 16 254 254 213 213
Total fixed assets 1,637 1,687 1,365 1,415
Current assets
Stock 7 7 6 6
Debtors 17 3,164 3,046 2,304 2,186
Investments 18 3,355 3,355 5,934 5,934
Cash at bank and in hand 8,841 8,294 6,603 5,895
Total current assets 15,367 14,702 14,847 14,021
Liabilities
Creditors: amounts falling due within one year 19 6,384 5,873 5,186 4,445
Net current assets 8,983 8,829 9,661 9,576
Total assets less current liabilities 10,620 10,516 11,026 10,991
Creditors: amounts falling due after more than one year 19 263 200 54 54
Net assets before pension provision 10,357 10,316 10,972 10,937
Pension provision 28 324 324 504 504
Total net assets 23 10,033 9,992 10,468 10,433
The funds of the charity:
General funds 1,667 1,626 1,525 1,490
Designated funds 21 5,522 5,522 5,781 5,781
Total unrestricted funds 7,189 7,148 7,306 7,271
Restricted income funds 22 2,844 2,844 3,162 3,162
Total funds 10,033 9,992 10,468 10,433
----- End of picture text -----

The accompanying accounting policies and notes form an integral part of these financial statements.

The financial statements were approved by Council on 21 July 2021 and signed on its behalf by:

Genevieve Landricombe Hon. Treasurer

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Royal Society of Wildlife Trusts CONSOLIDATED CASH FLOW STATEMENT

for the year ended 31 March 2021

2021 2020
Group Notes £'000 £'000
Cash flows from operating activities:
Net cash (used in) / provided by operating activities 24 (359) 544
Cash flows from investing activities:
Dividends received 36 44
Interest received 15 52
Money market fund income received 1 16
Proceeds from sale of property, plant and equipment 20 -
Purchase ofproperty, plant and equipment (54) (24)
Net cash provided by investing activities 18 88
Change in cash and cash equivalents in the reporting periods (341) 632
Cash and cash equivalents at the beginning of the reporting period 12,537 11,905
Cash and cash equivalents at the end of the reporting period 24 12,196 12,537

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Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

1. DONATIONS AND LEGACIES

----- Start of picture text -----
2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds 2021 Funds Funds 2020
£'000 £'000 £'000 £'000 £'000 £'000
Legacies 995 - 995 428 - 428
Wildlife Trusts' contributions 1,840 - 1,840 1,840 - 1,840
Donations 479 27 506 148 10 158
Total income from donations and legacies 3,314 27 3,341 2,416 10 2,426
----- End of picture text -----

The estimated value of legacies notified, but not included within the accounts, amounted to £793,000 (2020: £827,000), of which £48,000 (2020: £127,000) relates to life interests. The balance of £745,000 (2020: £700,000) relates to residual legacies, where the value of the legacy cannot yet be accurately ascertained.

Donations include a gift in kind for legal services which have been valued in the accounts at £105,000.

2. CHARITABLE ACTIVITIES

2. CHARITABLE ACTIVITIES
Unrestricted Restricted
Total
Funds
Funds
2021
£'000
£'000
£'000
Income from charitable activities:
Biffa Award (Landfill Communities Fund)
-
3,919
3,919
Red Squirrels United - SciuriousLIFE
-
(0)
(0)
Our Bright Future (National Lottery Community Fund)
-
4,446
4,446
Nature Friendly Schools (Defra/DfE)
-
1,480
1,480
Grants Team
-
9,845
9,845
Magazine Income
214
-
214
Government grants -Coronavirus Job Retention Scheme
15
-
15
Other income
821
547
1,368
RSWT (England & UK functions)
1,050
547
1,597
2021		 Unrestricted Restricted
Total
Funds
Funds
2020
£'000
£'000
£'000
-
4,388
4,388
-
483
483
-
5,873
5,873
-
1,234
1,234
-
11,978
11,978
222
-
222
-
-
-
845
174
1,019
1,067
174
1,241
2020
Total income from charitable activities
1,050
10,392
11,442		 1,067
12,152
13,219

The funding objectives of the Grants Team's funding bodies are set out in the Trustees' Report. RSWT (England & UK functions) income represents funds arising from the charitable activities of RSWT, acting in its capacity as the co-ordinating body of the England and UK functions of The Wildlife Trusts. Contributions made by individual Wildlife Trusts to RSWT are included within voluntary income, as detailed in Note 1.

3. OTHER TRADING ACTIVITIES

3. OTHER TRADING ACTIVITIES
Income from other trading activities:
Royalties
Subsidiary trading income
People's Postcode Lottery (PPL) income		 Unrestricted Restricted
Total
Funds
Funds
2021
£'000
£'000
£'000
354
-
354
222
-
222
2,632
-
2,632
2021		 Unrestricted Restricted
Total
Funds
Funds
2020
£'000
£'000
£'000
268
-
268
182
-
182
3,657
-
3,657
2020
Total income from other trading activities 3,208
-
3,208		 4,107
-
4,107

Page | 33

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

3. OTHER TRADING ACTIVITIES (Cont.)

During the year RSWT received the proceeds of lotteries held by PPL from four draws (2020: six draws). RSWT has no ability to alter the price of tickets, determine the prizes or reduce the management fee. As such, PPL is treated as acting as the principal and not RSWT. Therefore, only net proceeds due to RSWT are recognised under People's Postcode Lottery (PPL) income in the statement of financial activities. The net proceeds received are analysed as follows:

----- Start of picture text -----
2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds 2021 Funds Funds 2020
£'000 £'000 £'000 £'000 £'000 £'000
Ticket Value 8,224 - 8,224 11,430 - 11,430
Prize Fund (3,284) - (3,284) (4,572) - (4,572)
- -
Management Fee (2,308) (2,308) (3,201) (3,201)
Net proceeds received 2,632 - 2,632 3,657 - 3,657
----- End of picture text -----

4. INVESTMENTS

Unrestricted Restricted
Total
Funds
Funds
2021
£'000
£'000
£'000
Income from investments:
Dividends - UK
36
-
36
Loan Interest - SDF
-
-
-
Bank interest - UK
12
3
15
Money market fund income - overseas
-
1
1
2021		 Unrestricted Restricted
Total
Funds
Funds
2020
£'000
£'000
£'000
44
44
2
2
36
14
50
16
16
2020
Total income from investments
48
4
52		 82
30
112

Money market fund income relates to income from the Deutsche Global Liquidity Series' Deutsche Sterling Managed Fund. The company is listed in Ireland.

5. OTHER INCOME

5. OTHER INCOME
Other income
Profit on sale of fixed assets		 Unrestricted Restricted
Total
Funds
Funds
2021
£'000
£'000
£'000
15
-
15
2021		 Unrestricted Restricted
Total
Funds
Funds
2020
£'000
£'000
£'000
-
-
-
2020
Total other income 15
-
15		 -
-
-
6. EXPENDITURE ON RAISING FUNDS
Unrestricted Restricted
Total
Funds
Funds
2021
£'000
£'000
£'000
Costs of obtaining donations, legacies and grants
213
-
213
Fundraising trading: costs of goods sold and other costs
216
-
216
Investment management costs
4
-
4
2021*		 Unrestricted Restricted
Total
Funds
Funds
2020
£'000
£'000
£'000
194
-
194
178
-
178
8
-
8
2020
Total expenditure on raising funds
433
-
433		 380
-
380

*Expenditure relates primarily to supporting individual Wildlife Trusts with their fundraising but corresponding income is not shown here as it is reported in individual Wildlife Trust accounts.

Page | 34

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

7. EXPENDITURE ON CHARITABLE ACTIVITIES

----- Start of picture text -----
2021 2020
Unrestricted Restricted TotalUnrestricted Restricted Total
Funds Funds 2021 Funds Funds 2020
Expenditure on charitable activities by fund £'000 £'000 £'000 £'000 £'000 £'000
Administering major grant programmes 298 9,682 9,980 333 10,852 11,185
Policy, campaigns and government influence 1,258 96 1,354 1,124 48 1,172
The Wildlife Trusts organisational support 1,217 5 1,222 922 - 922
Promoting The Wildlife Trusts’ cause 646 12 658 796 6 802
Managing key relationships and grants (inc PPL) 4,613 358 4,971 2,750 130 2,880
Driving collective governance, strategy & evidence 239 29 268 467 - 467
Other 13 - 13 33 - 33
- -
Movement of pension deficit provision (125) (125) (141) (141)
Total expenditure on charitable activities 8,159 10,182 18,341 6,284 11,036 17,320
----- End of picture text -----

8. TOTAL EXPENDITURE

Expenditure on raising funds
Investment management costs
Raising Funds
Expenditure on charitable activities:
Biffa Award (Landfill Communities Fund)
Our Bright Future (National Lottery Community Fund)
Nature Friendly Schools (Defra/DfE)
Grants Team
Policy, campaigns and government influence
The Wildlife Trusts organisational support
Promoting The Wildlife Trusts’ cause
Managing key relationships and grants (inc PPL)
Driving collective governance, strategy & evidence
Other
Movement ofpension deficitprovision
RSWT (England & UK functions)		 Direct
Other
Govern-
Staff
direct
Grants
Support
ance
Total
costs
costs expended
costs
costs
2021
£'000
£'000
£'000
£'000
£'000
£'000
138
238
9
38
6
429
-
4
-
-
-
4
138
242
9
38
6
433
142
120
3,601
109
9
3,981
226
231
3,905
74
12
4,448
146
29
1,317
51
8
1,551
514
380
8,823
234
29
9,980
751
226
146
198
33
1,354
386
426
270
121
19
1,222
296
225
-
118
19
658
303
453
4,106
94
15
4,971
155
66
3
38
6
268
-
13
-
-
-
13
(125)
-
-
-
-
(125)
1,766
1,409
4,525
569
92
8,361
2021
Total expenditure 2,418
2,031
13,357
841
127
18,774

Page | 35

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

8. TOTAL EXPENDITURE (Cont.)

----- Start of picture text -----
Comparative information: 2020
Direct Other Govern-
Staff direct Grants Support ance Total
costs costs expended costs costs 2020
£'000 £'000 £'000 £'000 £'000 £'000
Expenditure on raising funds 97 232 - 37 6 372
Investment management costs - 8 - - - 8
Raising Funds 97 240 - 37 6 380
Expenditure on charitable activities:
Biffa Award (Landfill Communities Fund) 176 135 3,488 120 10 3,929
Red Squirrels United - SciuriousLIFE 87 63 343 30 5 528
Our Bright Future (National Lottery Community Fund) 216 210 5,376 69 10 5,881
Nature Friendly Schools (Defra/DfE) 143 38 612 47 7 847
Grants Team 622 446 9,819 266 32 11,185
Policy, campaigns and government influence 620 259 109 159 25 1,172
The Wildlife Trusts organisational support 272 534 - 101 15 922
Promoting The Wildlife Trusts’ cause 324 355 - 107 16 802
Managing key relationships and grants (inc PPL) 258 509 2,025 76 12 2,880
Driving collective governance, strategy & evidence 97 18 329 20 3 467
Other 31 2 - - - 33
Movement of pension deficit provision (141) - - - - (141)
RSWT (England & UK functions) 1,461 1,677 2,463 463 71 6,135
Total expenditure 2,180 2,363 12,282 766 109 17,700
----- End of picture text -----

The RSWT Grants Team distributes funds provided through major funding programmes. The detailed objectives for each of these programmes are included within the Trustees' report. Details of the grants offered within each programme are shown in Note 10. Full details are included within Note 29.

The Society's activities on behalf of The Wildlife Trusts aim to ensure that the interests of the movement are represented at a UK and England level when a strong collective voice is required, and to provide leadership for its development.

An element of staff costs is contained within support and governance costs.

Total Expenditure includes: 2021 2020
£'000 £'000
Operating lease rentals:
Land & buildings 38 38
Cars & office equipment 8 8
Auditor's remuneration:
Fees payable to the Charity’s auditor for the audit of the Charity’s annual accounts
The audit of the Charity’s subsidiary, pursuant to legislation
Accountancy services
All other services		 13
4
0
8		 13
6
1
4
Depreciation:
On owned assets		 40 37
Payments to Trustees:
Trustees expenses		 1 7

Four Trustees were reimbursed for reasonable and necessary expenses incurred in the performance of their duties (2020: 14). No Trustees were remunerated for their services during the year (2020: none).

Page | 36

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

9. ANALYSIS OF SUPPORT COSTS

----- Start of picture text -----
2021
Premises
and
administ-
General rative Govern- Total
management Finance HR IT support ance 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Expenditure on raising funds 8 8 6 9 7 6 44
Expenditure on charitable activities:
Biffa Award (Landfill Communities Fund) 11 11 8 13 66 9 118
Our Bright Future (National Lottery Community Fund) 14 16 11 18 15 12 86
Nature Friendly Schools (Defra/DfE) 10 12 8 13 8 8 59
Grants Team 35 39 27 44 89 29 263
Policy, campaigns and government influence 40 45 31 52 30 33 231
The Wildlife Trusts organisational support 24 26 18 29 24 19 140
Promoting The Wildlife Trusts’ cause 23 25 17 29 24 19 137
Managing key relationships and grants (inc PPL) 19 20 14 23 18 15 109
Driving collective governance, strategy & evidence 7 8 6 9 8 6 44
RSWT (England & UK functions) 113 124 86 142 104 92 661
Total support costs 2021 156 171 119 195 200 127 968
----- End of picture text -----

Support costs are allocated to activities on the basis of the weighted average number of staff directly engaged in those activities.

----- Start of picture text -----
Comparative information: 2020
Premises
and
administ-
General rative Govern- Total
management Finance HR IT support ance 2020
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Expenditure on raising funds 6 7 7 8 9 6 43
Expenditure on charitable activities:
Biffa Award (Landfill Communities Fund) 10 12 13 14 71 10 130
Red Squirrels United - SciuriousLIFE 4 6 6 7 7 5 35
Our Bright Future (National Lottery Community Fund) 11 14 13 15 16 10 79
Nature Friendly Schools (Defra/DfE) 7 10 10 11 9 7 54
Grants Team 32 42 42 47 103 32 298
Policy, campaigns and government influence 24 34 33 38 30 25 184
The Wildlife Trusts organisational support 15 20 19 22 25 15 116
Promoting The Wildlife Trusts’ cause 16 22 20 25 24 16 123
Managing key relationships and grants (inc PPL) 11 15 15 17 18 12 88
Driving collective governance, strategy & evidence 3 4 4 5 4 3 23
RSWT (England & UK functions) 69 95 91 107 101 71 534
Total support costs 2020 107 144 140 162 213 109 875
----- End of picture text -----

Page | 37

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

10. ANALYSIS OF GRANTS EXPENDED

----- Start of picture text -----
2021
Activities Grants to Grants to Administ-
undertaken Wildlife other ration and Total
directly Trusts institutions support costs 2021
Programme £'000 £'000 £'000 £'000 £'000
Biffa Award (Landfill Communities Fund) - 1,713 1,888 380 3,981
Our Bright Future (National Lottery Community Fund) - 1,263 2,642 543 4,448
Nature Friendly Schools (Defra/DfE) - 813 504 234 1,551
Strategic Development Fund - 273 - 85 358
People's Postcode Lottery Fund (People's Postcode Lottery) 147 1,935 - 36 2,118
Climate Fund (People's Postcode Lottery) 17 1,660 - 2 1,679
Campaigns (People's Postcode Lottery) 69 32 - 13 114
30 by 30 Campaign 133 78 - - 211
JustGiving donations distribution to Trusts - 9 - 1 10
Healthy Minds (Cadent Foundation) - 226 - 5 231
Distribution of royalties (Vine House Farm) 3 286 - 1 290
Marine Protected Areas Fighting Fund (Tubney) - 15 12 2 29
Water Voles Database - 5 - - 5
Offshore Wind (Esmée Fairbairn Foundation) 29 3 - - 32
Total grants expended 398 8,311 5,046 1,302 15,057
----- End of picture text -----

RSWT does not issue grants to individuals. A full list of grants expended during the year is included in Note 29.

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Comparative information:|2020| |Activities|Grants to|Grants to|Administ-| |undertaken|Wildlife|other|ration and|Total| |directly|Trusts|institutions|support costs|2021| |Programme|£'000|£'000|£'000|£'000|£'000| |Biffa Award (Landfill Communities Fund)|-|1,029|2,459|441|3,929| |Red Squirrels United - SciuriousLIFE|-|163|180|185|528| |Our Bright Future (National Lottery Community Fund)|-|1,550|3,826|505|5,881| |Nature Friendly Schools (Defra/DfE)|-|376|236|235|847| |Strategic Development Fund|-|329|-|23|352| |People's Postcode Lottery Fund (People's Postcode Lottery)|99|1,865|-|37|2,001| |Campaigns (People's Postcode Lottery)|94|88|-|10|192| |Distribution of royalties (Vine House Farm)|-|160|-|-|160| |Marine Protected Areas Fighting Fund (Tubney)|-|(4)|(1)|2|(3)| |CaBA Programme (Rivers Trust)|-|19|-|1|20| |Water Voles Database|-|5|-|-|5| |Living Seas|-|2|-|-|2| |Total grants expended|193|5,582|6,700|1,439|13,914|

----- End of picture text -----

11. STAFF COSTS

----- Start of picture text -----
||||| |---|---|---|---| |2021|2020| |The movement in the year is after charging:|Note|£'000|£'000| |Wages & salaries|2,313|2,075| |Holiday pay accrual|29|1| |Social Security costs|230|203| |Pension costs|28|477|456| |RSWT Staff|3,049|2,735| |Seconded staff costs|46|10| |Total|3,095|2,745|

----- End of picture text -----

Page | 38

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2021

11. STAFF COSTS (Cont.)

----- Start of picture text -----
The average number of employees, calculated on a head count 2021 2020
basis, analysed by function was: Number Number
The Wildlife Trusts (England & UK functions) 35 25
Grants Team 12 16
Fundraising & Trading 5 5
Support & Governance 21 19
Total staff (Headcount) 73 65
Total staff (FTE basis) 69 63
The number of employees whose emoluments (including taxable benefits in kind but 2021 2020
excluding employer pension costs) exceeded £60,000, was as follows: Number Number
£120,000 - £129,999 1 -
£80,000 - £89,999 1 1
£60,000 - £69,999 2 -
Total over £60,000 4 1
----- End of picture text -----

Of the charity's employees, seven members of staff classify as key management personnel (2020: seven). The total amount of employee benefits received by key management personnel during the year for their services to the charity was £499,793 (2020: £453,971). One of these individuals moved out of a key management role during the year and one joined the organisation during the year.

During the year the charity made termination payments totalling £nil (2020: £1,377).

12. SUBSIDIARY COMPANY

RSWT's wholly owned trading subsidiary, The Wildlife Trusts Services Limited (company number: 02540956), provides a range of services to Wildlife Trusts and RSWT. Its trading performance and balance sheet are summarised as follows:

Profit and loss account

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£'000|£'000| |Turnover|560|595| |Cost of sales|(419)|(452)| |Gross profit|141|143| |Administrative expenses|(100)|(111)| |Operating profit|41|32| |Interest received|-|2| |Profit for the year before and after tax|41|34| |Assets, liabilities and funds| |Assets|674|843| |Liabilities|(583)|(759)| |Total net assets and shareholder's funds|91|84|

----- End of picture text -----

WTS Ltd made a profit of £41,000 in the year (2020: £34,000 profit).WTS Ltd gift aids its profits to RSWT.

RSWT charged WTS Ltd £91,000 (2020: £98,000) in the year for staff and administration charges. WTS Ltd also purchased a group life assurance deal for RSWT and eight other Trusts and finance software services for RSWT and 16 other Trusts. RSWT paid WTS Ltd for its share of these costs.

The inter-company balance WTS Ltd owed to RSWT at the accounting date was £8,000 (2020: £19,000).

RSWT has two other wholly owned trading subsidiaries, Natural Solutions Services Limited and Wilder Futures Services Limited. These are both currently dormant.

Page | 39

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2021

13. RSWT CHARITY RESULTS (EXCLUDING SUBSIDIARY)

----- Start of picture text -----
2021 2020
The summarised results of the parent charity are as follows: £'000 £'000
Total incoming resources 17,623 19,465
Total resources expended (18,346) (17,235)
Net incoming resources (723) 2,230
Holding gains/(losses) 227 (40)
Actuarial gains on Defined pension schemes 55 802
Net movement in funds (441) 2,992
Funds brought forward 10,433 7,441
Funds carried forward 9,992 10,433
----- End of picture text -----

14. TANGIBLE FIXED ASSETS

14. TANGIBLE FIXED ASSETS 14. TANGIBLE FIXED ASSETS
Fixtures,
Freehold
Fixtures,
Fixtures,
Freehold
Fixtures,
fittings &
Land &
fittings &
fittings &
Land &
fittings &
equipment
buildings
equipment
equipment
buildings
equipment
Total
(finance lease)
(owned)
(owned)
2021
(finance lease)
(owned)
(owned)
2020
Group
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost
1 April
22
10
494
526
22
10
472
504
Additions
-
-
54
54
-
-
24
24
Disposals
-
(5)
(1)
(6)
-
-
(2)
(2)
2020
2021
31 March
22
5
547
574		 22
10
494
526
Depreciation
1 April
22
-
433
455
Disposals
-
-
(1)
(1)
Charge for the year
-
-
40
40		 22
-
398
420
-
-
(2)
(2)
-
-
37
37
31 March
22
-
472
494		 22
-
433
455
Net book value
Preceeding 31 March
-
10
61
71		 -
10
74
84
31 March
-
5
75
80		 -
10
61
71
Fixtures,
Freehold
Fixtures,
Fixtures,
Freehold
Fixtures,
fittings &
Land &
fittings &
fittings &
Land &
fittings &
equipment
buildings
equipment
Total
equipment
buildings
equipment
Total
(finance lease)
(owned)
(owned)
2021
(finance lease)
(owned)
(owned)
2020
Charity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost
1 April
22
10
410
442
22
10
388
420
Additions
-
-
54
54
-
-
24
24
Disposals
-
(5)
(1)
(6)
-
-
(2)
(2)
31 March
22
5
463
490		 22
10
410
442
Depreciation
1 April
22
-
349
371
Disposals
-
-
(1)
(1)
Charge for the year
-
-
40
40		 22
-
314
336
-
-
(2)
(2)
-
-
37
37
31 March
22
-
388
410		 22
-
349
371
Net book value
Preceeding 31 March
-
10
61
71		 -
10
74
84
31 March
-
5
75
80		 -
10
61
71

Page | 40

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2021

15. INVESTMENTS

----- Start of picture text -----
2021 2020
Group Charity Group Charity
Investments in subsidiaries £'000 £'000 £'000 £'000
- - - -
The Wildlife Trusts Services Limited and other subsidiaries - £1 ordinary shares
The Wildlife Trusts Services Limited - 5% preference shares - 50 - 50
Total subsidiary investment - 50 - 50
Other investments relects holdings at market value 1,303 1,303 1,081 1,081
Total investments 1,303 1,353 1,081 1,131
Analysis of movements in other investments 2021 2020
Unrestricted Total Unrestricted Total
Funds 2021 Funds 2020
Group and charity £'000 £'000 £'000 £'000
Market value at 1 April 1,081 1,081 1,128 1,128
Less: Investment management fees (4) (4) (8) (8)
Add: Net gain on revaluation 226 226 (39) (39)
Market value at 31 March 1,303 1,303 1,081 1,081
----- End of picture text -----

Other investments reflects holding in both CCLA COIF Charities Ethical Investment Fund and Sarasin & Partners’ Climate Action Endowment Fund.

16. SOCIAL INVESTMENTS

Amounts falling due within one year
Loans to Trusts due within one year
Loans to Trusts due after more than one year		 Charity
£'000
£'000
97
157
Group
2021
97
157		 Group
Charity
£'000
£'000
208
208
5
5
2020
Total 254
254		 213
213

The loans to Trusts balance relates to eight Trust loans from the Strategic Development Fund. Repayment schedules vary between loans. In 2020/21 one Trust was charged interest on its loan at Bank of England base rate. The other loans being interest free. If loans are repaid late interest is charged at Bank of England base rate plus 7%.

17. DEBTORS

17. DEBTORS
Amounts falling due within one year
Trade debtors
Amounts due from group undertakings
Other debtors
Prepayments and income receivable		 Charity
£'000
£'000
423
8
1
2,609
529
-
1
2,629
2021
Group		 Group
Charity
£'000
£'000
498
380
-
19
1
1
1,805
1,786
2020
Total 3,041
3,159		 2,304
2,186
Amounts falling due after more than one year
Prepayments and income receivable		 Charity
£'000
£'000
5
Group
2021
5		 Group
Charity
£'000
£'000
-
-
2020
Total 5
5		 -
-

Page | 41

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2021

18. SHORT-TERM INVESTMENTS

----- Start of picture text -----
2021 2020
Group Charity Group Charity
£'000 £'000 £'000 £'000
Market value at 1 April 5,934 5,934 6,498 6,498
Net additions (2,579) (2,579) (564) (564)
Market value at 31 March 3,355 3,355 5,934 5,934
----- End of picture text -----

Short-term investments represent monies held on Deutsche Bank's Dublin based money market funds and interest-bearing deposit accounts at UK banks, with notice periods of up to 12 months.

19. CREDITORS

Amounts falling due within one year
Trade creditors
Other taxes and social securities
Other creditors
Accruals
Grants payable
Deferred income		 Group
Charity
£'000
£'000
348
251
111
107
27
27
365
263
5,188
5,188
345
37
2021		 Group
Charity
£'000
£'000
376
267
56
56
25
24
277
116
3,962
3,962
490
20
2020
Total 6,384
5,873		 5,186
4,445
Amounts falling due after more than one year
Deferred income
Grants payable		 Group
Charity
£'000
£'000
63
-
200
200
2021		 Group
Charity
£'000
£'000
-
-
54
54
2020
Total 263
200		 54
54

20. ANNUAL OPERATING LEASE COMMITMENTS

Total operating lease commitments of the group
and charity:
Within one year
Between one and five years		 Land &
buildings
Other
£'000
£'000
38
5
77
5
2021		 Land &
buildings
Other
£'000
£'000
38
8
114
10
2020
Total 115
10		 152
18

Page | 42

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

21. DESIGNATED FUNDS

----- Start of picture text -----
2021
Balance Movement in Funds Balance
1 April Incoming Expended Transfers 31 March
2020 resources in year in year 2021
Group and charity £'000 £'000 £'000 £'000 £'000
----- End of picture text -----

Strategic Development Fund 591 8 (358) 966 1,207
Futures Fund 250 - - 150 400
Tubney Closure Fund 105 - - - 105
Marketing Fund 10 - - (10) -
National Legacy Campaign Fund 200 998 (203) (795) 200
Property Reinstatement Fund 140 - - 10 150
The Wildlife Trusts ICT Systems Projects 295 40 (111) 115 339
Development Strategy Fund 434 3 (187) 71 321
People's Postcode Lottery Fund (People's Postcode Lottery) 2,488 635 (2,144) (210) 769
Climate Fund (People's Postcode Lottery) - 1,997 (1,678) - 319
Campaigns (People's Postcode Lottery) 295 4 (101) 44 242
Campaigns (30 by 30 and Action for Insects) - 171 (213) 200 158
Community Fundraising 46 - (13) - 33
Living Seas Marine Protected Areas (Michael Uren Foundation) 30 - - (15) 15
The Wildlife Trusts Development and Training Fund 12 8 (11) - 9
Conferences and Seminars - - - 14 14
Landscape Recovery - - - 70 70
Digital Transformation - - - 100 100
Strategy Reset - - - 200 200
Wildlife Trusts Wales - 7 (7) - -
Pension Deficit Provision 732 - - 24 756
Strategic Development Projects 153 - (109) 71 115
Total Designated Funds 5,781 3,871 (5,135) 1,005 5,522

The Strategic Development Fund supports strategically important initiatives for The Wildlife Trusts movement. £765,000 of legacy income was credited to the Fund this year, and a further £272,000 was transferred to increase emergency funding available for Trusts needing financial assistance. The current projects will go on for between one and three years. £279,000 of grants were made to Wildlife Trusts during the year. The fund also provides loans to Wildlife Trusts, reducing the cash available in the fund to £953,000. Where projects are managed by RSWT the funds are shown in Strategic Development Projects . £71k was allocated to these projects during the year.

The Futures Fund sets aside funds to meet future needs. £150,000 was added to the fund from General funds during the year.

The Tubney Closure Fund was created from funds arising on the transfer of Tubney Charitable Trust’s remaining assets to RSWT in March 2012. It is anticipated that this fund will continue to be gradually released over the next two years to support the operations of the charity.

The Marketing Fund supports the costs of our marketing campaigns. £10,000 was released to General funds during the year.

The National Legacy Campaign Fund supports the costs of our legacy campaign.

The Property Reinstatement Fund sets aside funds to meet the costs of refurbishing or relocating at the end of the charity’s Newark office lease.

The ICT Systems Project sets aside funds for future development of The Wildlife Trusts ICT systems, including a new Customer Relationship Management system and intranet.

The Development Strategy Fund provides funds to assist with the implementation of the 2020 strategy across the Wildlife Trusts.

The People's Postcode Lottery Fund supports the Forest Schools initiative delivered by Trusts, campaigns and strategy. During the year £50,000 was transferred to General funds, £44,000 to Campaigns, £96,000 to Development Strategy Fund and £20,000 towards Strategic Development Fund emergency funding. £1,935,000 was given out in grants to Trusts. The current balance of the fund will be used over the coming year.

Page | 43

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

21. DESIGNATED FUNDS (Cont.)

The Climate Fund was set up through funding from People's Postcode Lottery draws. £1,660,000 was given out in grants to Trusts during the year.

The Campaigns (People's Postcode Lottery) fund received transfers from People's Postcode Lottery. It is funding the Wilder Future campaign. Wildlife Trusts are able to apply for a portion of money from the fund.

£200,000 of Tubney restricted funds was transferred to Campaigns (30 by 30 and Action for Insects) . The campaigns raise funds to be used towards the target of seeing that at least 30% of land and seas be connected and protected for nature's recovery by 2030.

The Community Fundraising Fund was set up using donations from corporates, and will be used to support Trust fundraising.

The Michael Uren Foundation donated £30,000 to RSWT in 2019/20 which has been designated towards Livings Seas Marine Protected Areas.

The Wildlife Trusts Development and Training Fund is to fund salaries and Trust wide training.

£14k Conferences and Seminars income has been designated to support face to face events in the future.

£70k of income from corporates has been designated for use on Landscape Recovery.

The Digital Transformation fund has been set up to support the movement in securing funding for digital upgrades.

The Wildlife Trusts movement is currently undergoing a Strategy Reset and £200k has been set aside to fund the outcomes.

The Wildlife Trusts Wales designated project was set up to ensure that costs incurred on behalf of Wildlife Trusts Wales are charged against related income.

The Pension Deficit Provision has been created to set aside funds to cover the difference between the FRS 102 valuation of the pension deficit and the value of the payments due under the schedule of contributions (see Note 28 for further details).

----- Start of picture text -----
Comparative information: 2020
Balance Movement in Funds Balance
1 April Incoming Expended Transfers 31 March
2019 resources in year in year 2020
Group and charity £'000 £'000 £'000 £'000 £'000
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Strategic Development Fund 773 2 (352) 168 591
Futures Fund 300 - - (50) 250
Tubney Closure Fund 158 - - (53) 105
Marketing Fund 30 - - (20) 10
National Legacy Campaign Fund 200 428 (200) (228) 200
Property Reinstatement Fund 130 - - 10 140
The Wildlife Trusts ICT Systems Projects 328 45 (152) 74 295
Development Strategy Fund 184 - (145) 395 434
People's Postcode Lottery Fund (People's Postcode Lottery) 1,550 3,657 (2,001) (718) 2,488
Campaigns (People's Postcode Lottery) 200 14 (192) 273 295
Community Fundraising - 46 - - 46
Living Seas Marine Protected Areas (Michael Uren Foundation) - 30 - - 30
The Wildlife Trusts Development and Training Fund - - - 12 12
Pension Deficit Provision - - - 732 732
Strategic Development Projects 122 - (29) 60 153
Total Designated Funds 3,975 4,222 (3,071) 655 5,781

Page | 44

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

22. RESTRICTED FUNDS

----- Start of picture text -----
2021
Balance Movement in Funds Balance
1 April Incoming Expended Transfers 31 March
2020 resources in year in year 2021
Group and charity £'000 £'000 £'000 £'000 £'000
Biffa Award (Landfill Communities Fund) 1,284 3,923 (3,696) (307) 1,204
Our Bright Future (National Lottery Community Fund) 58 4,446 (4,448) - 56
Nature Friendly Schools (Defra/DfE) 403 1,480 (1,538) - 344
Grants Team funds 1,745 9,849 (9,682) (307) 1,605
Building Momentum for A Living Landscape (Tubney) 1,085 - - (250) 835
Marine Protected Areas Fighting Fund (Tubney) 184 - (27) (2) 155
John Ellerman Fisheries (John Ellerman Foundation) 32 - (1) - 31
Marine Projects (Tubney Marine Protected Area Fighting Fund) 11 - (1) - 10
Wildflowers on the Verge (Rees Jeffreys Road Fund) 4 - - - 4
Henocq Law Trust Restricted Donation 25 10 (12) - 23
Local Partnerships Development Fund (Aggregate Industries) 56 - (49) - 7
Network for Natures Recovery (Highways England) 8 81 (78) - 11
Rethink HS2 (Catalyst Foundation) 2 - (2) - -
CaBA Programme (Rivers Trusts) 10 1 (4) - 7
Healthy Minds (Cadent Foundation) - 254 (231) - 23
Nature Based Solutions (Samworth Foundation) - 97 (27) - 70
Offshore Wind (Esmée Fairbairn Foundation) - 67 (32) - 35
Website development (National Lottery Heritage Fund) - 28 (28) - -
Wild School Award (UPS) - 17 - - 17
Funding Nature (The Prism Charitable Trust) - 10 (5) - 5
Badger Campaign - 7 (1) - 6
Nature Recovery Networks (Natural England) - 2 (2) - -
RSWT (England & UK functions) 1,417 574 (500) (252) 1,239
Total Restricted Funds 3,162 10,423 (10,182) (559) 2,844
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Biffa Award funds are contributed by Biffa Group Ltd under the Landfill Communities Fund. In 2020/21 £297,000 was transferred from the fund to General funds to cover the administration costs of the programme. A further £10,000 of the fund contributed to the Designated Property Reinstatement Fund.

Our Bright Future is a grants programme funded by the National Lottery Community Fund which has a portfolio of 31 projects across the UK.

RSWT is one of 11 partners working together to deliver the Nature Friendly Schools project, which is funded by Defra and DfE. The project will support the delivery of increased outdoor learning in recruited schools.

Tubney Charitable Trust made a substantial contribution to our work on A Living Landscape and Living Seas , prior to its closure in March 2012. £200k was used in the year to support the 30 by 30 campaign.

The Henocq Law Trust Restricted Donation is restricted for use towards education, £12,000 of the fund was spent during the year on educational activities.

The Cadent Foundation provided £254,000 for the Healthy Minds project. Four Wildlife Trusts are delivering the projects which connect people with nature to improve health and wellbeing.

The Samworth Foundation provided three years of funding to support our work in publishing and evidencing how Nature Based Solutions can tackle the global climate crisis and benefit communities and the economy.

Three years of funding has been secured from the Esmée Fairbarin Foundation to support work on Offshore Wind , working to minimise the harm to the marine environment resulting from expansion of offshore wind farms.

Page | 45

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

22. RESTRICTED FUNDS (Cont.)

----- Start of picture text -----
Comparative information: 2020
Balance Movement in Funds Balance
1 April Incoming Expended Transfers 31 March
2019 resources in year in year 2020
Group and charity £'000 £'000 £'000 £'000 £'000
Biffa Award (Landfill Communities Fund) 840 4,417 (3,606) (367) 1,284
Red Squirrels United - SciuriousLIFE 62 483 (528) (17) -
Our Bright Future (National Lottery Community Fund) 65 5,874 (5,881) - 58
Nature Friendly Schools (Defra/DfE) 5 1,234 (836) - 403
Grants Team funds 972 12,008 (10,851) (384) 1,745
Building Momentum for A Living Landscape (Tubney) 1,085 - - - 1,085
Marine Protected Areas Fighting Fund (Tubney) 179 - 5 - 184
John Ellerman Fisheries (John Ellerman Foundation) 36 - (4) - 32
Marine Projects (Tubney Marine Protected Area Fighting Fund) 14 - (3) - 11
Natural Service Stations (Rees Jeffreys Road Fund) 6 - (6) - -
Wildflowers on the Verge (Rees Jeffreys Road Fund) 4 - - - 4
Henocq Law Trust Restricted Donation 30 10 - (15) 25
Local Partnerships Development Fund (Aggregate Industries) 79 74 (97) - 56
Network for Natures Recovery (Highways England) - 42 (34) - 8
Rethink HS2 (Catalyst Foundation) - 28 (26) - 2
CaBA Programme (Rivers Trusts) - 30 (20) - 10
RSWT (England & UK functions) 1,433 184 (185) (15) 1,417
Total Restricted Funds 2,405 12,192 (11,036) (399) 3,162
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Page | 46

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

23. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Fund balances at 31 March 2021 are represented by:

----- Start of picture text -----
2021
Unrestricted Total
General Designated Restricted Funds
Group Note £'000 £'000 £'000 £'000
Tangible fixed assets 14 80 - - 80
Investments 15 1,303 - - 1,303
Social investments 16 - 254 - 254
Fixed assets 1,383 254 - 1,637
Stock 7 - - 7
Debtors: amounts falling due within one year 17 748 347 2,064 3,159
Debtors: amounts falling due after more than one year 17 5 - - 5
Short-term investments 18 - 1,000 2,355 3,355
Cash and bank 951 5,522 2,368 8,841
Current assets 1,711 6,869 6,787 15,367
Grants payable: amounts falling due within one year 286 1,468 3,434 5,188
Other creditors: amounts falling due within one year 754 127 315 1,196
Current liabilities 19 1,040 1,595 3,749 6,384
Long term liabilities 19 63 6 194 263
Pension deficit 28 324 - - 324
Total net assets 1,667 5,522 2,844 10,033
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Comparative information:
Group
Tangible fixed assets
Heritage assets
Investments
Social investments
Fixed assets
Stock
Debtors: amounts falling due within one year
Short-term investments
Cash and bank
Current assets
Grants payable: amounts falling due within one year
Other creditors: amounts falling due within one year
Current liabilities
Long term liabilities
Pension deficit		 Total
General
Designated
Restricted
Funds
£'000
£'000
£'000
£'000
71
-
-
71
-
-
-
-
81
1,000
-
1,081
-
213
-
213
152
1,213
-
1,365
6
-
-
6
645
65
1,594
2,304
1,500
1,000
3,434
5,934
896
3,792
1,915
6,603
3,047
4,857
6,943
14,847
167
191
3,604
3,962
1,003
84
137
1,224
1,170
275
3,741
5,186
-
14
40
54
504
-
-
504
Unrestricted
2020
Total net assets 1,525
5,781
3,162
10,468

Page | 47

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

24. NOTES TO THE CASH FLOW STATEMENT

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2021 2020
Group £'000 £'000
Reconciliation of net (expenditure) / income to net cash (used in) / provided by operating activities
Net (expenditure) / income for the reporting period (as per the statement of financial activities) (490) 2,124
Depreciation 40 37
(Gain) / loss on investments (226) 40
Investment management fees 4 8
Investment income (52) (112)
New loans issued to Trusts (199) -
Loan repayments received 158 104
Gain on sale of fixed assets (15) -
Increase in stock (1) -
Increase in debtors (860) (437)
Increase / (decrease) in creditors 1,282 (1,220)
Net cash (used in) / provided by operating activities (359) 544
2021 2020
Analysis of cash and cash equivalents £'000 £'000
Cash at bank and in hand 8,841 6,603
Cash deposits 3,355 5,934
Net cash and cash equivalents 12,196 12,537
2021
At 1st April Cashflow At 31 March
Movements in cash and cash equivalents £'000 £'000 £'000
Cash at bank and in hand 6,603 2,238 8,841
Cash deposits 5,934 (2,579) 3,355
Net cash and cash equivalents 12,537 (341) 12,196
Comparative information: 2020
At 1st April Cashflow At 31 March
Movements in cash and cash equivalents £'000 £'000 £'000
Cash at bank and in hand 5,407 1,196 6,603
Cash deposits 6,498 (564) 5,934
Net cash and cash equivalents 11,905 632 12,537
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25. CONTINGENT ASSETS

Future legacy income notified but not yet included within these financial statements is detailed in Note 1.

26. CONTINGENT LIABILITIES

There are no contingent liabilities.

27. RELATED PARTY TRANSACTIONS

The charity, RSWT has one active wholly owned subsidiary, The Wildlife Trusts Services Limited. An overview of transactions between the two organisations can be found in Note 12.

RSWT’s governing body, Council, includes a number of Trustees and Chief Executives from individual Wildlife Trusts across the federation of The Wildlife Trusts. No individual Trust benefits from their representation on the Council.

Page | 48

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

28. PENSION COSTS

The Society operates two pension arrangements: a Royal London group personal pension, and The Wildlife Trusts Pension Scheme. Auto-enrolment into the group personal pension scheme commenced in July 2014.

The Wildlife Trusts Pension Scheme (WTPS)

The WTPS is a multi-employer scheme with RSWT acting as the lead employer on behalf of 12 other Wildlife Trusts. The defined contribution section of the Scheme, which included further Trusts, was closed with effect from 31 March 2019.

The defined benefit or ‘final salary’ category closed to future accrual of benefits in October 2005. This section of the Scheme provides retirement benefits based on members’ salaries when they left employment. The assets of the Scheme are held in a separately administered fund and the Scheme is administered by the Trustee (independent of the Employers) who is responsible for ensuring that the Scheme is sufficiently funded to meet current and future obligations. However, the assets and liabilities are not segregated between the Employers.

The liabilities set out in this note have been calculated based on the preliminary results of the full Scheme Funding Assessment as at 31 March 2019, updated to 31 March 2021. The present value of the defined benefit obligation was measured using the projected unit credit method. 2020 was the first year that the Society was able to report the obligation in this way, having previously accounted for the Scheme as if it were a defined contribution scheme. This change in approach generated a significant reduction in the value of the pension liability recognised in the balance sheet between 2019 and 2020.

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2021 2020
£'000 £'000
-
Pension liability at 31 March 2019 calculated on old basis 1,447
Change to Defined Benefit method of accounting for pension (recognised as a gain within Other recognised gains/(losses) - (803)
Pension liability at 1 April 504 644
Contributions paid (199) (182)
Costs included in Net income/(expenditure) 74 41
Movement of pension deficit provision (Note 7) (124) (141)
Remeasurements included in Other recognised gains/(losses) (55) 1
Pension provision at 31 March on Defined Benefit basis 325 504
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The Employers have agreed a funding plan with the Trustee. A Designated Fund (£756,000) exists to cover the difference between the FRS102 valuation at 31 March 2021 (£324,000) and the net present value of the deficit recovery payments at the same date (£1,080,000), up to the end of the current Schedule of Contributions which is August 2026.

The following disclosures are based on calculations carried out as at 31 March 2021 by an independent qualified actuary. RSWT moved to defined benefit accounting during the year ending 31 March 2020 and, in accordance with FRS 102, the change of accounting was accounted for in that year rather than by restating the prior year.

Changes in the present value of the defined benefit obligation

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|||| |---|---|---| |2021|2020| |£'000|£'000| |Defined benefit obligation at start of year|3,909|4,036| |Benefits paid|(144)|(164)| |Administration expenses|63|28| |Interest expense|87|95| |Remeasurements - actuarial gains and (losses)|422|(86)| |Defined benefit obligation at end of year|4,337|3,909|

----- End of picture text -----

Page | 49

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2021

28. PENSION COSTS (Cont.)

Changes in the fair value of assets

----- Start of picture text -----
2021 2020
£'000 £'000
Fair value of assets at start of year 3,405 3,392
Interest income 76 82
Remeasurements - return on Scheme assets excluding interest income 477 (87)
Employer contributions 199 182
Benefits paid (144) (164)
Fair value of assets at end of year 4,013 3,405
Costs relating to defined benefit scheme included in the SOFA
2021 2020
£'000 £'000
Interest expense (87) (95)
Interest income 77 82
Administration expenses (64) (28)
Costs included in Net income/(expenditure) (74) (41)
Return on Scheme assets excluding interest income 477 (87)
Actuarial gains and (losses) (421) 86
Remeasurements included in Other recognised gains/(losses) 56 (1)
Net defined benefit liability recognised in the balance sheet
2021 2020
£'000 £'000
Fair value of Scheme assets 4,013 3,405
Defined benefit obligation (4,337) (3,909)
Defined benefit liability recognised in the balance sheet (324) (504)
Principal assumptions
2021 2020
per annum per annum
Discount rate 1.95% 2.25%
Retail Prices Index (RPI) Inflation 3.45% 2.70%
Consumer Prices Index (CPI) Inflation 2.65% 1.70%
Future increases to deferred pensions 2.65% 1.70%
Rate of increase to pensions in payment:
Fixed 5% per annum 5.00% 5.00%
RPI max 5% per annum 3.20% 2.65%
2021 2020
years years
Life expectancy of a male aged 65 at the Balance Sheet date 22.7 22.5
Life expectancy of a male aged 65 in 20 years from the Balance Sheet date 24.0 23.9
Life expectancy of a female aged 65 at the Balance Sheet date 25.0 24.8
Life expectancy of a female aged 65 in 20 years from the Balance Sheet date 26.4 26.2
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Mortality (before and after retirement) assumptions for both years: Males: 96% of S3PA, Females: 95% of S3PA. CMI_2018 / CMI_2019 with a long term rate of improvements of 1.25% per annum and initial addition to mortality improvements of 0.5%.

Page | 50

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

28. PENSION COSTS (Cont.)

Cash commutation assumptions for both years: Members are assumed to take 25% of their pension as tax-free cash, subject to HMRC restrictions, using cash commutation factors currently in force.

For the avoidance of doubt, the financial assumptions above are in absolute terms. They are single equivalent rates, however in practice full yield curves are used.

Asset breakdown

The major categories of Scheme assets as a percentage of total Scheme assets are:

----- Start of picture text -----
2021 2020
UK Equities 4.3% 4.0%
Overseas Equities 29.9% 22.3%
Diversified Growth Funds 23.5% 22.4%
UK Government Fixed Interest Bonds 14.3% 18.8%
UK Government Index Linked Bonds 14.7% 16.9%
UK Corporate Bonds 9.7% 10.3%
Property 2.1% 2.5%
Cash 1.5% 2.8%
Total 100.0% 100.0%
----- End of picture text -----

The pension scheme has not invested in any of the Royal Society of Wildlife Trusts' own financial instruments, nor in properties or other assets used by the Royal Society of Wildlife Trusts. The assets are all quoted in active markets.

Pension contributions in the year

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£'000|£'000| |Wildlife Trusts Pension Scheme - RSWT|190|182| |Wildlife Trusts Pension Scheme - Section 75 allocation|8|-| |Group personal pension scheme|287|274| |Total employer pension contributions|485|456|

----- End of picture text -----

Employer contributions include contributions in respect of salary sacrifice arrangements made available to employees from August 2017.

The charity makes contributions to the scheme deficit in accordance with an agreed recovery plan. The charity paid contributions of £199,000 in the year ended 31 March 2021 (2020: £182,000). The amount paid by the charity exceeds the expense for the year as calculated on an actuarial basis by £125,000 (2020: £141,000). This difference is separately presented as a reduction in expenditure in Note 7.

Pension contribution liabilities

The following pension contributions were payable at the year-end and are included within creditors:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£'000|£'000| |Wildlife Trusts Pension Scheme|16|15| |Group personal pension schemes|26|24| |Total pension contribution liabilities|42|39|

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Page | 51

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

29. GRANT EXPENDITURE

----- Start of picture text -----
RSWT Grants 2021 2020
People's Strategic People's Strategic
Grand Grand
Postcode Develop- Other Postcode Develop- Other
Total Total
Lottery ment Fund Lottery ment Fund
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Alderney Wildlife Trust 20 - - 20 - - - -
Avon Wildlife Trust 86 24 8 118 67 12 1 80
Berkshire, Buckinghamshire & Oxfordshire
Wildlife Trust 20 6 23 49 10 35 11 56
Cheshire Wildlife Trust 106 - 8 114 70 - 3 73
Cornwall Wildlife Trust 20 5 - 25 9 17 - 26
Cumbria Wildlife Trust 150 - 6 156 1 - 2 3
Derbyshire Wildlife Trust 40 - 102 142 1 10 3 14
Devon Wildlife Trust 155 - 13 168 66 62 6 134
Dorset Wildlife Trust 25 - 5 30 - - 3 3
Durham Wildlife Trust 20 - 5 25 - - 2 2
Essex Wildlife Trust 47 - 15 62 - - 6 6
Gloucestershire Wildlife Trust 20 15 10 45 - 79 5 84
Gwent Wildlife Trust 23 - 3 26 - - 3 3
Hampshire and Isle of Wight Wildlife Trust 41 - 20 61 - - 12 12
Herefordshire Wildlife Trust 20 6 4 30 - 8 3 11
Hertfordshire & Middlesex Wildlife Trust 20 - 11 31 - - 4 4
Isles of Scilly Wildlife Trust 20 18 - 38 - 16 - 16
Kent Wildlife Trust 23 - 13 36 - 3 3
Leicestershire & Rutland Wildlife Trust 86 - 6 92 67 - 3 70
Lincolnshire Wildlife Trust 20 - 19 39 1 - 7 8
London Wildlife Trust 86 10 27 123 71 - 6 77
Manx Wildlife Trust 20 - - 20 - 18 - 18
Montgomeryshire Wildlife Trust 20 45 1 66 - - - -
Norfolk Wildlife Trust 20 - 11 31 - - 6 6
North Wales Wildlife Trust 20 10 4 34 10 - 2 12
Northumberland Wildlife Trust 225 - 4 229 208 - 2 210
Nottinghamshire Wildlife Trust 106 - 3 109 72 - 2 74
Radnorshire Wildlife Trust 30 - - 30 - - -
Scottish Wildlife Trust 530 (3) 17 544 500 - 9 509
Sheffield Wildlife Trust 106 - 27 133 66 15 1 82
Shropshire Wildlife Trust 20 5 4 29 5 12 20 37
Somerset Wildlife Trust 121 28 6 155 4 - 3 7
Staffordshire Wildlife Trust 20 - 6 26 5 - 3 8
Suffolk Wildlife Trust 20 - 10 30 - - 4 4
Surrey Wildlife Trust 20 - 11 31 5 - 5 10
Sussex Wildlife Trust 181 - 16 197 - 15 8 23
Tees Valley Wildlife Trust 23 - 1 24 - - - -
The Wildlife Trust for Bedfordshire,
Cambridgeshire and Northamptonshire 46 - 19 65 5 - 7 12
The Wildlife Trust for Birmingham and the
Black Country Ltd 86 23 40 149 66 - 2 68
The Wildlife Trust for Lancashire,
Manchester & North Merseyside 136 - 81 217 116 20 4 140
The Wildlife Trust of South & West Wales 45 61 8 114 30 - 4 34
Ulster Wildlife 20 - 1 21 - - - -
Warwickshire Wildlife Trust 86 - 7 93 66 - 3 69
Wildlife Trusts Wales 200 - - 200 205 - - 205
Wiltshire Wildlife Trust 24 20 7 51 1 10 3 14
Worcestershire Wildlife Trust 20 - 6 26 1 - 3 4
Yorkshire Wildlife Trust 434 - 34 468 225 - 8 233
Grants to Non-Trusts Under £25,000 - - 12 12 - - (1) (1)
Total RSWT grants 3,627 273 634 4,534 1,953 329 181 2,463
----- End of picture text -----

Figures in brackets indicate grants previously offered which have been underspent or withdrawn by the Fund

Page | 52

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

29. GRANTS EXPENDITURE (Cont.)

Biffa Award Grants

2021
£'000
Association of Independent Museums
-
Avon Wildlife Trust
20
Belbroughton Recreation Centre
33
Berkshire, Buckinghamshire & Oxfordshire
Wildlife Trust
34
Birkenhead Youth Club
-
Boston Spa Village Hall
51
Trust
-
Cheshire Wildlife Trust
43
Clayton Brook Community Church
-
Clifford Village Hall
-
Clifton Campville Village Hall
-
Cogenhoe & Whiston VHMC
41
Colliers End Village Hall
15
Copsale Village Hall
-
Creeting St Mary Diamond Jubilee Hall
11
Crondall Village Hall
75
Deafness Resource Centre
-
Derbyshire Wildlife Trust
(1)
Devon Wildlife Trust
41
Dunston Activity Centre
44
Durham Wildlife Trust
75
Eccleshall Cricket Club
-
Essex Wildlife Trust
264
Gloucestershire Wildlife Trust
66
Grange Park Centre
-
Hall for Gwinear
-
Harbury Village Hall
66
Hartsholme Community Trust
-
Heads Together Productions
31
Henbury Village Hall
41
Hilton Village Hall
(2)
Kent Wildlife Trust
-
Kenton Methodist Church & Community
Centre
-
Langley Village Hall
-
Littleworth Community Association
75
Longfield Hall
-
Loughton Methodist Church
-
Manor Church and Community Project
-		 2020
£'000
667
Nedging with Naughton Village Hall and
Community Council
-
Newton Hall Community Partnership
-
North Wales Wildlife Trust
-
Nottinghamshire Wildlife Trust
22
Oulton Institute
-
Pelsall Methodist Church
(122)
ROPETH
-
RSPB
48
Ryde Methodist Church
75
Scotter War Memorial Playing Fields
75
Sedlescombe Village Hall
-
Sheffield Wildlife Trust
-
Somerset Wildlife Trust
75
Spen Valley Civic Society
-
St Marks Church, Stockport<br>-<br>St Marks Church, Wootton
42
St Paul & St Barnabas Parish
75
St Pauls, Winchester
-
Staffordshire Wildlife Trust
-
Standbridge Community Centre
-
Stourbridge & District Scouts/TSA
37
Swannington Play Area Ltd
-
Tees Valley Wildlife Trust
(8)
Thatto Heath Crusaders ARLFC
13
The Freshwater Biological Association
41
The Sheppey Hall Trust
-
The Wildlife Trust for Lancashire, Manchester
& North Merseyside
65
The Woodland Trust
-
Trinity Methodist Church & Community Halls
-
Ulster Wildlife
35
W.I. Community Hall
(2)
Water Orton Methodist Church
30
Westhoughton Active Volunteers Enterprise
10
Wildfowl & Wetlands Trust
-
Wiltshire Wildlife Trust
55
Winchester Science Centre & Planetarium
52
Winterton Bowling & Recreation Club
59
Total Biffa Award grants		 2021
£'000
70
-
-
-
75
74
-
470
-
70
-
-
55
(5)
-
-
-
-
-
-
-
6
-
(15)
-
39

671
550
-
-
-
-
-
-
443
-
75
3,601		 2020
£'000
-
30
(18)
750
-
-
16
-
12
-
43
35
-
-
15
58
74
75
75
70
12
58
(1)
15
(34)
-
111
250
52
11
11
18
41
74
-
292
-
3,489

Figures in brackets indicate grants previously offered which have been underspent or withdrawn by the Fund

Page | 53

Royal Society of Wildlife Trusts NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

29. GRANTS EXPENDITURE (Cont.)

Our Bright Future Grants

Avon Wildlife Trust
Belfast Hills Partnership Trust
Centre for Sustainable Energy
Cornwall Wildlife Trust
Down to Earth Project
Falkland Stewardship Trust
Foundation for Social Entrepreneurs t/a U
Friends of the Earth Trust
Global Feedback Limited
Groundwork London
Hill Holt Wood
Impact Arts (Projects) Ltd
Middlesbrough Environment City Trust Ltd
North Wales Wildlife Trust
NUS
Probe Limited		 2021
£'000
126
92
112
210
132
136
143
167
261
168
162
171
99
219
-
128		 2020
£'000
174
RNIB (formerly Action for Blind People)
120
Sense
223
Shropshire Wildlife Trust
225
St Mungo Community Housing Association
174
Students Organising for Sustainability UK
168
The Learning through Landscapes Trust
223
The National Trust
207
The Wildlife Trust for Lancashire, Manchester
& North Merseyside
50
Ulster Wildlife
233
UpRising Leadership
216
vInspired
235
Wiltshire Wildlife Trust
196
Women's Technology Training Limited
194
Yorkshire Dales Millennium Trust
62
Yorkshire Wildlife Trust
204
Total Our Bright Future grants		 2021
£'000
-
76
147
117
137
-
-

150
177
101
-
109
326
115
124
3,905		 2020
£'000
10
210
140
193
85
50
287
182
210
269
31
192
191
189
233
5,376

Nature Friendly Schools

Devon Wildlife Trust
Essex Wildlife Trust
Federation of Groundwork Trusts
Field Studies Council
Sensory Trust		 2021
£'000
26
72
155
46
152		 2020
£'000
9
Shropshire Wildlife Trust
44
The Wildlife Trust for Birmingham and the
Black Country
104
The Wildlife Trust for Lancashire, Manchester
& North Merseyside
21
Yorkshire Wildlife Trust
97
Young Minds Trust
Total Nature Friendly Schools grants		 2021
£'000
54
174

225
262
151
1,317		 2020
£'000
24
61
145
93
14
612

Red Squirrels United - SciuriousLIFE

Forestry Commission Research Agency
Newcastle University
Northumberland Wildlife Trust
Red Squirrels Trust Wales		 2021
£'000
-
-
-
-		 2020
£'000
32
The Wildlife Trust for Lancashire, Manchester
& North Merseyside
40
The Wildlife Trust of South & West Wales
28
Ulster Wildlife Trust
109
Total Red Squirrels United - SciuriousLIFE		 2021
£'000

-
-
-
-		 2020
£'000
30
10
94
343

Figures in brackets indicate grants previously offered which have been underspent or withdrawn by the Fund

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