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2022-03-31-accounts

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

ANNUAL REPORT

and

FINANCIAL STATEMENTS

for the year ended 31 March 2022

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

ANNUAL REPORT and FINANCIAL STATEMENTS

for the year ended 31 March 2022

CONTENTS Page
Chair’s Annual Report 1
Report of the Trustees 2
- Strategic Report 2
- Financial Review 8
- Future Plans 12
- Structure, Governance and Management 13
- Reference and Administrative Details 16
- Financial Support 18
- Statement of the Board’s Responsibilities 19
Statement as to Disclosure of Information to Auditors 19
Independent Auditor’s Report to the Members of Lincolnshire Wildlife Trust 20
Consolidated Statement of Financial Activities 23
Consolidated and Charity Balance Sheet 24
Consolidated Cash Flow Statement 25
Notes to the Financial Statements 26

CHAIR’S ANNUAL REPORT for the year ended 31 March 2022

This was another year dominated by COVID-19, which continued to have a major impact on all our lives, and on the work of the Trust. Although the vaccine rollout had begun and indoor venues had started to open up, strict social distancing guidelines and limits to public gatherings meant that many Trust activities still could not take place, or were severely curtailed. The majority of staff were still working from home and Zoom meetings continued to be the norm.

Despite these difficult circumstances, the Trust made significant achievements during the year. You can read all about these in the ‘Report of the Trustees’ that follows, but I would like to pay tribute, here, to the hard work and dedication of all our staff and volunteers in meeting and overcoming the challenges, and continuing to deliver for nature in Lincolnshire.

One of the most significant achievements during the year was the acquisition of 128 acres of former farmland at Bourne North Fen, thanks to a Biffa Award grant of £750,000. This exciting project represents a new approach to managing our nature reserves, by delivering a range of nature-based solutions, in addition to increased biodiversity. The site will help regulate water supply during shortages and absorb floodwaters in times of spate. A new system of reedbeds will improve the quality of the Bourne Eau river before it enters the River Glen and increasing amounts of carbon will be captured by the wetland soils and plant life.

Financially, the Trust had an exceptional year, with a total income of £5.9m, compared to £2.8m in the previous year. The main reason for the increase was due to two significant multi-year projects which started this year. Because of strict rules on financial reporting for charities, the funding for these projects must all be reported within the first year, even though the expenditure will occur in subsequent years.

The Trust also saw a sizeable increase in legacy income, receiving over £1m gifts in wills. Legacies are vital to our work and every single gift, however large or small, makes a difference, and helps us protect Lincolnshire’s wild places. We would like to thank all those people who have remembered us in their wills and our thoughts are with the family and friends of those whose legacies we have received.

During the last two years of the pandemic, nature became a source of solace for many, as lockdown rules heightened our appreciation for open green spaces and people developed a deeper connection to nature. This was reflected in an increase in membership and membership income. The marked increase in website visitors we saw in 2021 was maintained and visitors to nature reserves remained higher than pre-pandemic levels. This has been somewhat of a mixed blessing as reserve managers reported higher levels of vandalism on some sites.

Building on the work that started the previous year, the new ten-year strategy for The Wildlife Trusts movement continued to evolve and develop. The focus during the year was to develop our own strategy, reflecting issues relevant to Lincolnshire but aligned with the other 45 Wildlife Trusts and the Royal Society of Wildlife Trusts, giving us a more confident, national and global voice.

Another result of COVID-19 was the need to change to a postal delivery of the Lapwings magazine. Over many, many years, an army of volunteers have saved the Trust thousands of pounds in postage and have acted as our ambassadors, being a point of direct contact with many of our members. Although we have now decided to keep the postal method of delivery going forward, I cannot begin to tell you how grateful we are for the time and effort you have all put in.

At the AGM in October 2021, David Cohen stepped down as Chair, after five years in the role. Prior to that, he served as Honorary Treasurer and had been a member of the Board for 12 years. I was appointed Chair in November 2021 - a role I feel very privileged to hold. I am fully aware that while we have achieved much, there is more to be done. There are many reasons to be optimistic: worldwide, there is an increasing awareness of the importance of nature and a real sense of urgency about reversing climate change and the biodiversity crisis. Our challenge will be to keep that momentum and focus as people’s and politicians’ attention turns, increasingly, towards the cost of living and the economic crisis.

Anita Quigley Chair

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LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

REPORT OF THE TRUSTEES for the year ended 31 March 2022

The Board of Trustees has pleasure in presenting its report together with the audited accounts for the year ended 31 March 2022. The Board has adopted the provisions of the Charities SORP (FRS 102), Accounting and Reporting by Charities: Statement of Recommended practice applicable to charities preparing its accounts in accordance with the Financial Reporting Standard applicable in the UK (effective 1 January 2019), in preparing the annual report and financial statements of the charity. The accounts have been prepared in accordance with the Companies Act 2006.

STRATEGIC REPORT

Principal Activities, Strategies, Achievements and Performance

Our vision is of a thriving natural world, with our wildlife and habitats playing a valued role in addressing the climate and ecological emergencies, and people inspired and empowered to take action for nature.

Our purpose is to bring wildlife back, to empower people to take action for nature, and to create a society where nature matters.

Our approach:

During the year effort has focused on development and delivery of a new strategy, working towards three goals:

The ongoing COVID-19 global pandemic throughout the period had an impact on activity and will influence strategy for years to come. Looking at the three goals:

Nature in Lincolnshire is in Recovery

The Trust has an ambitious but realistic ‘30 by 30’ objective of at least 30% of land and sea actively managed for nature’s recovery by 2030; currently we estimate 7.5% or 54,000ha of land and sea meet this target.

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In November 2021, we celebrated the Environment Act gaining royal ascent after a ten year campaign by The Wildlife Trusts and many others. The Act provides a new framework for environmental protection, including a principle of increasing biodiversity net gain and a new system of spatial planning through Local Nature Recovery Strategies. However, our celebration was tempered by concerns about lack of funding and the publication of targets and a Green Paper which lacked ambition.

Exciting habitat restoration and creation projects were planned at Saltfleetby, Gibraltar Point, Sow Dale and Castle Bytham nature reserves. Habitat management delivered record numbers of natterjack toads calling at Saltfleetby with the highest number in 50 years of recording and 150 more spawn strings than the previous high in 2019. The Dynamic Dunescapes Project is a national project with local delivery jointly with Natural England funded through the European Union’s (EU) LIFE and National Lottery Heritage Fund. At SaltfleetbyTheddlethorpe Dunes National Nature Reserve (NNR) this project delivered major dune restoration and wetland creation. While a major project at Gibraltar Point NNR is still to be completed, habitat work was undertaken using specialist machinery also funded by the Dynamic Dunescapes Project.

Wetland creation can deliver very quick results and this was also the case with projects funded by the Environment Agency (EA) at Woodhall Spa Airfield, Anderby Marsh and Huttoft Marsh nature reserves. Cranes returned to Willow Tree Fen nature reserve for the third year with a breeding pair and a further 20 birds were seen circling overhead in February.

Fencing for improved conservation grazing with traditional native breeds was completed at Gibraltar Point, Sow Dale and Castle Bytham nature reserves. Since new land was acquired at Castle Bytham two years ago, a new hedge has been planted, a new visitor route was established from the public footpath through Lawn Wood and green hay was collected from Robert’s Field SSSI as a seed source for sward enhancement. At Woodhall Spa Airfield the new cattle infrastructure has enabled the expansion of low input grazing, meadow creation and production of valuable high-quality livestock.

Working with Royal Horticultural Society’s Kew and Wakehurst Millennium Seed Bank Team, local provenance, native seeds and plug plants are being supplied to projects through a national Wildlife Trusts’ network, including the Lincolnshire Seed Bank at the Trust’s headquarters. Lincolnshire Wildlife Trust established this network and chairs it, as part of the legacy of Love Lincs Plants, which completed as a NLHF project in December 2021.

The period saw a significant increase in the Trust giving pre-application advice on Nationally Significant Infrastructure Projects and other large developments.

The Trust has joined a Devon Wildlife Trust led project to undertake beaver dam suitability mapping. The University of Exeter will carry out the work across England and Wales which it is hoped will combine with local nature recovery network mapping already being produced for Lincolnshire.

The Greater Lincolnshire Nature Partnership (GLNP) is hosted by the Trust. The Partnership complements the Trust’s advocacy work, particularly on planning, agriculture, tourism and health. An important piece of work has been production of Biodiversity Opportunity Maps for local authorities as part of their evidence base for their Local Plans. GLNP operates the Local Environmental Records Centre (LERC) which now holds over 12.5million records of over 17,000 species. Since its launch there has been a 47% increase in the number of searches on the centre’s online portal. The Greater Lincolnshire Geodiversity Strategy was revised and funding was secured for a review of the Ancient Woodland Inventory.

In the marine environment positive progress has been made with the Dogger Bank fishing and Special Area of Conservation (SAC) windfarm compensation decisions. Seal pups born at Donna Nook NNR were slightly lower than the previous year. The breeding population growth elsewhere in the southern North Sea suggests it might be a terrestrial, rather than marine, issue which is slowing the local expansion of the colony.

People in Lincolnshire are taking action for nature and the climate

The period saw encouraging signs of a return of members and the public able to engage with the Trust’s events and educational programmes, despite the continuing impact of the pandemic. Events such as a Dragonfly Hotspot launch at Whisby, Wildlife Wednesdays at Far Ings and crafts and events such as Breakfast with Santa at Gibraltar Point were all well attended and enjoyed. Beach cleans, trails and other

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Company No: 00461863 Charity No: 218895

outdoor activities were all popular as they could be done safely outdoors as we eased our way back to normality. Watch, Nature Tots and Junior Wardens are all back up and running and home education sessions have been popular too. The 'Sanctuary' Art project at Deeping Lakes helped the local community learn about the nature reserve and a successful Wildlife Photography Competition was held in partnership with the Collection Museum, Lincoln.

Visits to nature reserves by school and university students resumed but at 2,500 from 60 schools this was significantly down on pre-COVID-19 levels. Outreach visits by Trust staff to schools, colleges and universities only reached 1,000 students.

The public engagement element of the Dynamic Dunescapes Project is on course to more than deliver its targets. Wonderfully creative activities included dementia inclusive training and walks, family events, engagement on the beach, engagement with dog walkers, student bursary projects and taster days for young volunteers.

Area Groups’ meetings began to take place again with walks and field trips proving popular. The groups continue to provide a great way for like-minded people to meet, share their love of wildlife and support the Trust. Trust staff delivered talks to the Area Groups and an online evening was well attended.

The three-year National Lottery Heritage Fund project, Love Lincs Plants, in partnership with Lincolnshire Naturalists’ Union, Sir Joseph Banks Society, and the Natural History Museum (NHM) was completed. Through the duration of the project 126 events were held with 86% rating them good or excellent. In addition, the project engaged with over 300 university students, established a core of 20 botanists and safeguarded over 11,000 historic herbarium specimens that are now safely curated with the NHM in London and accessible via a digital portal. The Lincspirational Plants Light Shows proved very popular. This inspirational show, comprising 30 artworks created by members of the public, was screened in a range of venues ranging from a particularly large crowd in Lincoln to the tranquillity of Gibraltar Point at sunset.

Website activity has been maintained following the marked increase in users in 2021 rising by 38% to over 600,000. Social media platforms increased by another 10% this year to 24,657. The additional wildlife enthusiast Twitter account, for up-to-date news and sightings, complements the main and site-specific Facebook accounts. A campaign to generate objections to a planning application which threatened Far Ings National Nature Reserve (#KeepFarIngsWild) reached over 26,000 people on social media and succeeded in generating over 800 responses. The application was subsequently withdrawn. The Wildlife Trusts’ annual campaign, 30 Days Wild, was promoted and saw an increase in participation by people in Lincolnshire with 2,638 sign-ups, a 10% increase.

Volunteers are involved at every level and in every aspect of the charity’s work. Volunteer roles include: membership of the Board of Trustees, running Area Groups, Voluntary Reserve Managers, Wayside Wardens, Watch Leaders, helping at visitor centres, running events, administration and much more. Volunteering activity continued to be significantly curtailed for much of the period due to COVID-19.

Lincolnshire is a key producer of food, growing and processing. Work with a range of food producers, retailers, farmers and landowners has expanded. Staff and Trustees met the team from the rewilding Knepp Estate in Kent at the newly acquired Boothby Wildlands near Grantham. This exciting rewilding project follows on from the success of Knepp and uses innovative capital investment to deliver nature’s recovery on private estates. Like Knepp, the ripple effect could be significant.

The Trust launched the 30 by 30 fundraising campaign with Trevor Millum completing his challenge to write a poem a week for 30 weeks, and Fiona McKenna’s completing her ‘Walk for Wildlife’ on the Viking Way with each raising over £2,000.

Facilities at Far Ings nature reserve have been upgraded with funding from SSE Sustainable Development Fund. Visitors are now welcomed into the centre with a new stairwell-mural designed by the winner of a competition run in collaboration with Lincoln University’s Illustration Course. Other improvements make the centre easier to use encouraging a greater diversity of visitor. Changes to the operation at Gibraltar Point Visitor Centre have enhanced visitor experience at this important National Nature Reserve. Improvements to the old coastguard building and the garden have created new ways to engage people thanks to the support of the Lincolnshire Co-op and The Rotary Club of Skegness.

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Company No: 00461863 Charity No: 218895

The Friends of Queen Elizabeth Park in Grantham, supported by Trust staff, received this year’s Lincolnshire Environment Award in recognition of their work with communities. Support from the Trust to bring nature into communities in other areas has commenced in Boston, Grantham, Baston, Thurlby, Lincoln, Sleaford and Langton and this work will be significantly increased in 2022-23 through the new National Lottery heritage Fund supported Nextdoor Nature project.

Nature in Lincolnshire is playing a central and valued role

A further ground-breaking acquisition of 52 hectares (128 acres) at Bourne North Fen is intended to create a multiple benefits wetland within the South Lincolnshire Fens connecting sites between the River Welland and River Glen catchments. This has been funded by Biffa Award along with the third-party funding (a requirement of Landfill Communities Fund) from Anglian Water and the Trust’s own funds secured from membership and legacies. The Fens Biodiversity Audit (2012) found 25% of the UK’s nationally rare and scarce species were recorded in the Fens in an area that is only 1.6% of the UK’s land mass. This 52 hectare site could be the key to unlocking green investment in the area, potentially resulting in a wetland of more than 1,000 hectares in the Lincolnshire Fens not only supplying public water and farming requirements but also significant biodiversity gain.

The Government’s Environmental Land Management Scheme (ELMS) Test Projects are now underway in the Humberhead Levels and South Lincolnshire Water Partnership areas. Led by the Trust, the projects seek to influence the Government’s long-term approach to this scheme and involved a vision workshop, natural capital assessment of area working with a group of 20 land managers, farm visits, development of 22 outline land management plans and a successful conference in March 2022.

The Trust has worked with the Royal Society of Wildlife Trusts (RSWT) to assess carbon emissions data for the year 2020-21. This second iteration shows a 25% reduction in total emissions by the Trust to 896.81 tCO2e (1194.1 tCO2e in 2019-20) and a 40% reduction to 112.4 tCO2e when excluding livestock. Comparison between the iterations is difficult with the first iteration carried out before the pandemic and the second during. The challenge will be to maintain some of the reductions as we return to pre-COVID-19 pandemic levels of operation.

Green Investment Greater Lincolnshire (GIGL) is a Trust led, Defra and Environment Agency funded project Match funds were also provided by Anglian Water, CATCH Partnership, Humber Nature Partnership and the Trust. This project will help to establish the mechanism for investing in biodiversity, carbon and water in Greater Lincolnshire. Partners include Greater Lincolnshire Local Enterprise Partnership, industry, housing, land owners/managers, as well as the 10 local authorities, Environment Agency and Natural England (NE). A successful start-up conference was held in March 2022.

Lowland peat, with its capacity to store carbon, is becoming increasingly recognised as part of the solution to addressing the climate change crisis. There are two major areas of lowland peatland in Greater Lincolnshire, the Fens and the Humberhead Levels. These areas are incredibly important for food production. However, over time they have seen significant decline in biodiversity and face water resource and flood risk management issues. The Trust works in partnership with others across both areas and as a result many partner organisations have backed our landscape-scale approach to securing and restoring these important peatland areas.

Recent external funding secured by the Trust includes a Nature for Climate Change Discovery Grant of £816K shared between the Trust and its partners in the Fens: The Wildlife Trust for Beds, Cambs and Northants, Norfolk WT, National Trust, Natural England and RSPB. The Trust’s share will go towards the preparation of the evidence base and restoration plans for capital works on sites at Baston, Bourne North Fen, Willow Tree Fen and the Witham peats, along with land management advice to adjacent landowners. Further peatland discovery grant, EU Life, and private investment funds have been secured for the Humberhead Levels area including for land purchase.

Fundraising

The Trust’s approach to fundraising is to be honest and transparent with its donors and supporters about where their money goes and why the charity asks for donations. The Trust publishes information widely about its work and seeks to keep everyone informed. The Trust communicates clearly why it needs donations and the activities on which money will be spent.

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The Trust is a registered subscriber to the Fundraising Regulator and complies with its Code of Fundraising Practice and the six guiding principles identified in CC20, the Charity Commission Guidance for Trustees on Charity Fundraising.

Trustees are very aware of the need to uphold the highest standards of fundraising practice to safeguard the good reputation of the Trust, which it has built up through many years of accumulated good work. Whilst day-to-day responsibility for fundraising is delegated to staff, the Trustees remain ultimately responsible and fundraising practice is regularly discussed through the work of the Board. Membership income targets are set through the budgeting process and with the recruitment company. Fundraising is included on the Trust’s risk register which is monitored by Trustees. There is a process, including escalation to Trustees, to review complaints from members and the wider public to ensure the Trust’s fundraising practice is consistently carried out and any lessons learned.

Together with five other Wildlife Trusts, the Trust has a wholly owned Wildlife Trust membership recruitment company, Wildlife Fundraising (Central) Ltd. The company is managed by a Board of directors which is made up of Wildlife Trust staff, Trustees and other experts. This company is transparent in its fundraising techniques, regulated by the Institute of Fundraising and meets with its member Trusts every 6 months. There is a written agreement between the Wildlife Trusts agreeing fundraising standards, monitoring of fundraisers and compliance. A single membership recruiter is also employed directly by the Trust.

Implementation of the Trust’s new membership database was successfully completed. The new cloud-based ThankQ database will integrate with other Wildlife Trust systems such as the website and is a more modern and secure platform for this critical data.

Public Benefit Statement

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.

The Trust’s public benefit is explicit in the new strategic goal nature in Lincolnshire is playing a central and valued role in helping to address local and global problems and enshrined in its charitable objects as outlined below.

Objects

Lincolnshire Wildlife Trust is required by charity and company law to act within the objects of its Memorandum of Association, which are as follows:

4. The Objects for which the Trust is established are, for the benefit of the public:

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Risk Management

The Trustees continue to keep under review their assessment of the major risks to which the Trust is exposed, and have taken steps to mitigate the risks that have been identified. The risk register, in a format consistent with other Wildlife Trusts for ease of comparison, was reviewed and maintained.

The global pandemic caused by COVID-19 remained a significant issue for the Trust. Policies and procedures for Health & Safety were reviewed to take account of COVID-19 and Government guidance.

Cyber threat to IT increased and tight procedures were maintained.

Significant concerns remain over the implementation of changed agri-environment payment scheme, Environmental Land Management Scheme. This has a bearing on income for the Trust but also impacts on nature conservation in the wider countryside by other landowners.

Overall the highest risk facing the Trust in the medium and long-term is the changing political climate concerning energy, food and economy

Charity Governance

The Trust adopted the Charity Governance Code in 2018, updated in 2020. The aim of the code is “ to help charities and their trustees develop these high standards of governance ”. Although not a legal or regulatory requirement, the code sets out principles and recommended practice for charities and Trustees who wish not only to achieve good governance but strategies to continuously improve and develop. Good governance is ensuring that the charity has adequate policies, systems and procedures in place and that these are followed. It is also about encouraging appropriate attitudes, behaviours and values.

An external Board Effectiveness Review has been undertaken. The Trust has made some changes to adopt recommended practice and established a Governance Development Group to steer and help implement further recommendations.

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FINANCIAL REVIEW

The Trust has had an exceptional year with total income of £5.9m, compared to £2.8m in the year to March 2021. This was despite pandemic restrictions still being in place for part of the period.

Unrestricted income rose from £2.0m to 2.9m, primarily due to an increase in legacy income. We received over £1m from gifts in wills (2021 £341k) and are very grateful for this support which will enable us to do even more valuable conservation work across the county. We received other unrestricted income from a variety of sources, including agri-environment schemes, central and local government funding, income generated from our land holdings and educational and visitor activities. Diversity of income streams assists our financial resilience.

The primary reason for the increase in the Trust’s overall income is due to an increase in its restricted income, which rose from £864k to £3m. This increase is driven by the requirement to follow the accounting rules which apply to charities concerning the timing of income recognition. The Charities Statement of Recommended Practice (SORP) states that income must be recognised in the financial statements when the charity is entitled to the income, it is more likely than not that the income will be received and the monetary value of the income can be measured reliably. Two significant multi-year projects met these requirements and therefore the Trust is obliged to recognise the associated income in the financial statements to March 2022, even though the projects have only just commenced and little or no funds have actually been received nor has significant activity commenced. Income is brought into the financial statements as a debtor and this is reflected in the rise in debtors from £1.1m to £2.4m in March 2022. The projects in question are Nature for Climate Peatland Discovery Grants Fens East Peatland Partnership (£817k) and LIFE Moor Space (£237k).

Bourne North Fen was purchased in the year with the aid of a £750k grant from Biffa Award, a £195k loan agreement with the vendors and the Trust’s funds from legacies and membership. Bourne North Fen aims to restore 50 ha of farmland to Lincolnshire’s lost peat-fenland, becoming a home for a wide variety of wildlife; linking up important nature reserves, creating a multi-purpose wetland which will store water for agriculture and improve water quality for consumers. Bourne North Fen is a pilot landscape-scale project particularly focused on improving water resource management, which could be replicated elsewhere.

Membership income increased slightly from £764k to £775k, reflecting an increase in members from 25,971 to 26,013.

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Trading income improved from £10k to £50k as the retail activities in our Visitor Centres recovered as COVID-19 lockdown restrictions eased.

Unrestricted revenue expenditure increased from £2.3m to £2.5m, due to the increased expenditure on raising funds, which includes recruitment and retail activity. Restricted expenditure increased from £641k to £955k. The expenditure associated with the significant Peatland projects will be incurred during the next few years and hence there is a timing difference between the income recognised this financial year and the funding actually being spent.

In addition to the significant land acquisition, capital expenditure during the year included nature reserve machinery, IT upgrades and replacements, the completion of the transition to the new membership customer relationship management system, improvements to grazing infrastructure and visitor centre enhancements.

Our investments provided a useful contribution to our unrestricted income of £129k (2021 £126k) along with realised and unrealised gains of £361k (2021 £675k). Further details are provided on page 35.

Our gains on investments were added to our Conservation Fund and we were able to add £112k to our Development Fund, which will be drawn on to fund the Dynamic Dunes project and enable us to take advantage of opportunities as they arise.

At the year end the total funds of the charitable group were £19,793,486 (2021: £16,810,919) of which £6,830,480 (2021: £6,237,352) were unrestricted, £2,323,024 (2021: £1,112,507) were restricted and £10,639,982 (2021: £9,461,060) were part of the designated and endowment fund. The free reserves of the charitable group at the year end were £2,328,589 (2021: £2,059,780).

Financial Reserves Policy

The Trust’s reserves are classified between Unrestricted, Restricted Funds and Endowment Funds.

Unrestricted Funds

Unrestricted funds comprise of:

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The Trust’s policy relates to its unrestricted reserves; over which we have full control, i.e. all the above other than the Capital Grants Fund.

The Trust’s policy is that the level of unrestricted funds should be sufficient to cover planned and unforeseen variations in operational income and expenditure. This will be reviewed during every annual budget cycle with consideration of operational risks and external factors. In addition, the Trust needs to help ensure the long-term viability of its considerable portfolio of sites that help conserve wildlife throughout the county.

The Trust’s General Fund comprises unrestricted cash to be used as working capital and an Income Resilience Fund which aims to cover the perceived risks in the Trust’s sources of unrestricted income over the following three years. The year-end target for opening and closing unrestricted cash is currently £350k for use as working capital. This reflects the amount required to ensure the peaks and troughs in cash flow requirements during the course of an annual operating cycle can be met.

The Board has set a target range of £250k-£900k for its Income Resilience Fund . In view of the forthcoming changes to land management grants and volatility in legacy income, the Trust has retained funds at the top of this range.

In order to respond to new opportunities and finance new initiatives, the Trust aims to hold at least £250k and preferably £1m in its Development Fund . This will be used to finance specific programmes of activity over the next three years, including opportunities to acquire land of strategic conservation importance.

In view of the ongoing costs of managing its substantial land holding, most of which is to be managed in perpetuity, the Trust considers it is wise to retain a substantial capital sum that can provide a sustainable source of income towards these ongoing costs, as well as financing any unexpected expenditure, e.g. costs arising from extreme weather events. These needs will be provided by the Conservation Fund and the Trust has set its range at £3.25m-£5.5m.

In total, this creates a target unrestricted reserves range of £4.1m-£7.75m. This is shown in the table below.

Working Capital cash
Income resilience
General Fund
Development Fund
Conservation Fund
Total		 Target
Range
£k
350
250-900
600-1,250
250-1,000
3,250-5,500		 At
31 March 2022
£k
350
900
1,250
921
4,202
4,100-7,750 6,373

If specific funds are below their target range their objective will be to reach their minimum level, as soon as is practicable, subject to competing interests.

In addition, the Trust has two other unrestricted funds that are designated for specific purposes - a Pension Fund (see note 21 on pages 41 to 43) and a Capital Grants Fund which represents grants received for capital assets. Amounts are released over the life of the underlying assets. The value of this fund at the year end was £88k (2021 £34k). The increase was primarily due to the Dynamic Dune assets now being utilised and depreciated.

Restricted Funds

The Trust holds a range of restricted funds related to projects, as well as some restricted legacies and donations. Movements in each significant fund are shown in Note 18 in the accounts.

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Endowment Funds

Apart from the endowment funds represented by the Trust’s land and buildings owned for conservation objectives, described in Note 11 in the accounts, the Trust has one endowment fund that is invested and which is described in more detail in Note 17 in the accounts.

Monitoring and Reviewing this Policy

Reserve levels are reviewed at each Finance Monitoring Group meeting and each Board meeting. The Trust’s policy and target ranges are reviewed as part of the annual budgeting cycle.

Investment Policy and Performance

The Trust’s Memorandum and Articles outline its investment powers. The Board sets the Trust’s investment policy, following recommendations from our Finance Monitoring Group, and engages professional investment managers to undertake the management process and make day-to-day decisions. The Finance Monitoring Group monitors their performance and meets with the Trust’s investment managers at least annually. Their performance is monitored against suitable benchmarks.

The Trust’s unrestricted cash requirements are held with banks and building societies authorised to carry out business in the UK. We make use of the Flagstone Charities Aid Foundation Charity Deposit Platform to provide an increasing diversity of banking providers.

At the start of the financial year, the Trust’s investments were valued at £4.9m with 87.6% in CCLA’s Investment Fund and 12.4% in CCLA’s Ethical Investment Fund. The Trust sold its holding in the Investment Fund in July 2021 with immediate reinvestment of the proceeds in the Ethical Fund, taking advantage of the opportunity to do this at no cost. CCLA is a leader in ethical and responsible investment and their approach can be viewed on their website.

The Trust’s primary investment objective is to optimise total return and CCLA are seeking to achieve a return of 5% pa, after allowing for inflation. For the year to 31 March 2022 CCLA’s Ethical Fund achieved a total return of 10.6% (2021 23.6%).

The Trust sold £250k of units in January 2022 to strengthen our cash reserves before the impact of the war in Ukraine began to affect European and Global economies. At 31 March 2022 our unrestricted investments were valued at £5.0m.

At 31 March 2022 the Trust’s endowment fund, which is managed by CCLA, was valued at £673k (2021 £613k). This is also now invested in CCLA’s Ethical Investment Fund. This delivered a capital gain of 8.7% and a restricted income of £18k, an income yield of 3% (2021: 2.9%). Under the terms of the agreement with the National Lottery Heritage Fund, the capital growth can be drawn down from 1 January 2022 and £33k of this gain was transferred to our unrestricted funds at the year end.

The Trust’s prime ethical consideration is to identify any obvious conflicts of interest between its objectives and the objectives/activities of any company whose shares may be acquired directly for the purpose of investment. The Trust had no direct investment in company shares at 31 March 2022 or 31 March 2021, other than those of its trading subsidiary Lapwings Consultants Limited (see Note 11).

Investment in properties

From time to time the Trust may own freehold or leasehold interests in property. These are sometimes associated with specific bequests with a view to sale at an appropriate time. The Trust reviews its ownership regularly and takes professional advice regarding the marketing and sale of properties to optimise the financial or other benefits for the charity.

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. This relates to 13 Wildlife Trusts and this Trust is responsible for 9.3% of the Scheme’s funding requirement.

In accordance with the schedule of contributions, the Trust’s deficit recovery payments are set to increase by 3% from August 2022, to £6,699 per month and will increase thereafter annually by 3%. The repayment plan anticipates that the deficit will be eliminated by August 2026.

10

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

FUTURE PLANS

During the year ahead, effort will focus on delivery of the new strategy.

When considering these priorities, it should not be ignored that the day-to-day work of the Trust continues and is fundamental to nature’s recovery in the county. This includes maintaining a 3,800 hectare estate of 100 sites, with an estimated 1 million-day visits with the attendant ecological, public engagement and health and safety implications of running an estate of this size and complexity; servicing of the 13,000 memberships; the Trust’s funding, finances and legal processes; along with advocacy, development control, campaigning and communications.

Particular activities planned for 2022-23 include:

11

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Lincolnshire Wildlife Trust is a membership body, a registered charity and a company limited by guarantee. It is governed by its Articles of Association, originally dated 2 December 1948 and last amended on 20 October 2021. Membership of the Trust is open to all, and the total number of subscribing members at 1 April 2022 was 26,013, a small increase from 25,971 in 2021. Each member is committed to contributing £1 in the event of the charity winding up. The charitable company is controlled by its Board of Trustees. The Trust is grateful for the continuing support of so many people in Lincolnshire and beyond.

Appointment of Trustees

The Articles of Association provide for a Board consisting of up to 15 Trustees appointed for a 3-year term with option for re-election. Trustees are elected by the Trust membership at the Annual General Meeting (AGM), usually held in October. At the first meeting of the Board of Trustees after the AGM, the Trustees appoint Honorary Officers (Chair, Treasurer and others if required) from the Board members.

If a Trustee has served for more than nine years, their reappointment is subject to a particularly rigorous review. The Board has no power of co-option but may fill a vacancy until the next AGM, refreshing the Board’s diversity of skills, experience and backgrounds.

During the year David Cohen, Dr David Sheppard, Janet Mellor, Beth Tyrrel and Stef Round stepped down. On behalf of the Board, the staff and the members, the Trust would like to thank them all for devoting so much of their time and energy to the Trust over many years.

Trustee Induction and Training

Trustees’ skills are reviewed regularly to ensure that the balance is suitable. New Trustees are inducted into the charity by discussions between themselves and other Trustees and members of staff, as opportunities arise. They are presented with background information including the Charity Commission’s guidance on the website.

As well as undertaking their governance role on the Board of trustees, some trustees act as volunteers and this helps them engage with many aspects of the Trust’s activities, staff, other volunteers and members. Trustees are encouraged to attend the RSWT open days and online seminars and workshops to connect with The Wildlife Trusts (TWT) and to make use of WildNet, the intranet system that assists communications and learning across the TWT network.

Organisational Structure

The Board of Trustees, of up to 15 members with a quorum minimum of three, meets bi-monthly and is responsible for the governance of the charity. A Finance Monitoring Group is appointed to maintain an overview of financial matters and to advise the Board accordingly. Area Groups represent the interests of members organising local events.

A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity. The staff structure is organised around four Heads of Department: Finance (including membership and administration); Conservation (including the GLNP); Nature Reserves (the majority of this department is field based); and Public Engagement and Communications.

Staff

Good staff and volunteers are fundamental to achieving the Trust’s objectives. The staff structure is kept under regular review in order to ensure that it accords with the Trust’s objectives and strategies. As at 31 March 2022, the Trust employed a total of 67 members of staff (44 full-time and 23 part-time), a small reduction compared to 2021. Of the total, five relate to the GLNP.

12

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

The arrangement for setting staff remuneration is common for all employees. The Trustees agree an annual cost of living increase (with reference to changes in the Consumer Price Index). RSWT carries out internal and external benchmarking of salaries. This information informs the Trust’s approach to remuneration for new and existing staff.

Related Parties

Lincolnshire Wildlife Trust is one of 46 independent Wildlife Trusts covering the UK, Isle of Man and Alderney, which are corporate members of RSWT. RSWT helps to develop UK and national policies, and provides operational advice to the Trusts, and acts as their collective voice. RSWT’s subsidiary Wildlife Trading Services Limited provides services and distributes funds to Trusts, including Lincolnshire Wildlife Trust. The Trust’s Chief Executive is a director of the company.

The Trust has a direct subsidiary, Lapwings Consultants Limited. It exists as a trading company to support the charitable work of the Trust through donation of its profits from retail sales.

The Trust acts as the host partner as well as active member of the GLNP, responsible for the Lincolnshire Biodiversity Action Plan, the Lincolnshire Environmental Records Centre, and the management of the Local Wildlife Sites system.

The Trust, along with five other Wildlife Trusts, is part of Wildlife Fundraising (Central) Limited, a mutual company for the purpose of recruiting members. The Trust’s Chief Executive is a Director and Chair of the company.

Wider Network

The Trust works with a large number of organisations in pursuing its aims. Partnerships with local authorities, statutory agencies and other voluntary bodies are a hallmark of the Trust’s way of working.

Other important partnerships are:

13

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

Several of the Trust’s nature reserves are operated in conjunction with local authorities, notably: Gibraltar Point near Skegness (LCC and ELDC); Whisby Nature Park near Lincoln (LCC and North Kesteven District Council (NKDC); and Snipe Dales near Horncastle (LCC).

The Trust works closely with NE in the management of Saltfleetby-Theddlethorpe Dunes NNR , with the Ministry of Defence in the management of Donna Nook NNR and Wainfleet Range and RSPB at Frampton Marsh.

14

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Name Lincolnshire Wildlife Trust
The organisation is sometimes referred to simply as The Lincolnshire Trust.
Former names were The Lincolnshire Naturalists’ Trust, The Lincolnshire
Trust for Nature Conservation and The Lincolnshire & South Humberside
Trust for Nature Conservation.
Charity number 218895
Company number 00461863
Headquarters and Banovallum House
Registered office Manor House Street
Horncastle
Lincolnshire
LN9 5HF
Tel: 01507 526667
Auditors Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
15 Newland
Lincoln
LN1 1XG
Bankers Barclays Bank plc
65 Lumley Road
Skegness
Lincolnshire
PE25 3LU
Solicitors Chattertons Legal Services Ltd
St Swithin’s Court
1 Flavian Road
Nettleham Road
Lincoln
LN2 4GR
Investment Managers CCLA
One Angel Lane
London
EC4R 3AB
The Board of Trustees Members of the Board are Trustees for the purpose of charity law and are
and Directors also company directors. They are elected at the Annual General Meeting and
are collectively referred to throughout this report as the Trustees. The Board
currently consists of three Honorary Officers and seven others.

15

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

Presidents Geoff Trinder (President) Brian Tear (Vice President) Trustees/Directors David A Cohen resigned as Chair and Trustee 23.10.21 Anita C Quigley appointed as Chair 11.11.21 Julian C Purvis (Honorary Treasurer) Michael J Burgass Emma L Buyers Grace E Corn Kitty E Hamilton Janet Mellor resigned 23.10.21 Robert Oates Stephanie J Round resigned 14.03.22 Timothy S Sands David A Sheppard resigned 23.10.21 Catherine J Sirett appointed Vice Chair 17.03.22 Mark Smith Beth Tyrrel resigned 14.12.21 Company Secretary Paul V Learoyd Senior Staff Chief Executive: Paul V Learoyd Head of Conservation: Tammy M Smalley Head of Finance: Sarah J Smith Head of Nature Reserves: David R Bromwich Head of Public Engagement & Communications: Matthew Capper

16

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

FINANCIAL SUPPORT

We are grateful to the following for substantial financial support in 2021-2022 through donations, grants and the sponsorship of projects:

Anglian Water Services Natural England Defra North Kesteven District Council East Lindsey District Council North Lincolnshire Council Environment Agency People’s Postcode Lottery Esmée Fairbairn Foundation Phillips 66 European Union RSWT FKB Ltd Sea-changers HMRC Coronavirus Job Retention Scheme Severn Trent Water Lincolnshire County Council Skegness Rotary Lincolnshire Co-operative Society Limited T Balfe Construction Ltd Ministry of Defence Tesco National Grid SSE National Lottery Heritage Fund Vine House Farm

Partner contributions to the Greater Lincolnshire Nature Partnership (hosted by Lincolnshire Wildlife Trust) are acknowledged separately and therefore not in this report

The following were Corporate Members during the reporting period:

Anglian Water Services Mortons of Horncastle Limited B A Bush & Son Limited Natureland Seal Sanctuary Cleethorpes Builders Merchants Page Paper Limited Cray Valley Limited Riva Construction Creative Nature Rowhire Limited Crowder & Sons Ltd SCS Technology Solutions Limited Fenland Laundries Limited Sibelco UK Holivans Limited Truelove Property & Construction J E Piccaver & Co Yara (UK) Limited J W Ruddock & Sons Limited Wienerberger Limited John Kinch Group Woodhall Country Park Lindum Group Limited

We are delighted to record our appreciation to the following individuals whose legacies we received or were notified of in the year ended 31 March 2022:

Elizabeth Hill Addison Mary Ambrey Neville Geoffrey Arthurs Edward Backus David George Bramford Lord Martin Hugh Broadbridge Derek Alwyn Clay Aubrey Gordon Collins Joan Florence Cooke Stanley Barker Corden

Peggy Patricia Franklin Eva Frith Margaret Annie Medland C Mary Merivale Thomas Henry Pyatt Alan George Riseborough Sheila Mary Scarbro John David Sewards Jane Ward Shirley Janet White

17

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

STATEMENT OF THE BOARD’S RESPONSIBILITIES

The Trustees (who are also directors of Lincolnshire Wildlife Trust for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

The members of Board who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the members of the Board have confirmed that they have taken all steps that they ought to have taken as members of the Board in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

The Report of the Members of the Board, which includes the Strategic Report on pages 2 to 7, were approved by the Board on 8 September 2022 and signed on its behalf.

By Order of the Board

8 September 2022

A Quigley Chair

18

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LINCOLNSHIRE WILDLIFE TRUST

Opinion

We have audited the financial statements of Lincolnshire Wildlife Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the Group Statement of Financial Activities, the group and the Parent Charitable Company Balance Sheet, the Group Cash Flow Statement 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 group and parent charitable company 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 group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.

19

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Board’s responsibilities statement set out on page 22, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed under the Companies Act 2006 and report in accordance with this.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

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LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and its Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Colcomb FCCA (Senior Statutory Auditor) For and on behalf of Wright Vigar Limited Statutory Auditors, Chartered Accountants and Business Advisors 15 Newland Lincoln LN1 1XG

8 September 2022

21

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating an Income and Expenditure Account) for the year ended 31 March 2022

Notes
Income
Donations and legacies
2
Charitable activities
3
Other trading activities
9
Investments
11
Other
Total
Expenditure
Raising Funds
4
Charitable activities
8
Total
Net gains on investments
11
Net income
Transfers between funds
16-19
Other recognised
gains/(losses)
Actuarial gains on defined benefit
pension schemes
21
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Income
Restricted
Income
Designated
&
Endowment
Fund
£
£
£
1,831,348
76,000
0
602,594
2,907,185
0
50,318
0
0
128,613
19,013
0
295,429
0
0		 Total
2022
Total
2021
£
£
1,907,348
1,156,968
3,509,779
1,440,033
50,318
10,039
147,626
144,662
295,429
70,603
2,908,302
3,002,198
0		 5,910,500
2,822,305
283,969
0
0
2,170,266
955,163
0		 283,969
71,941
3,125,429
2,826,923
2,454,235
955,163
0		 3,409,398
2,898,864
360,875
0
53,865		 414,740
781,095
814,942
2,047,035
53,865
(288,539)
(836,518)
1,125,057		 2,915,842
704,536
0
0
66,725
0
0		 66,725
15,572
593,128
1,210,517
1,178,922		 2,982,567
720,108
6,237,352
1,112,507
9,461,060		 16,810,919
16,090,811
6,830,480
2,323,024
**10,639,982 **		 19,793,486
16,810,919

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

The profit for the purposes of the Companies Act 2006 is the net incoming resources before unrealised losses/ gains.

The notes on pages 26 to 44 form part of these financial statements

22

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

CONSOLIDATED AND CHARITY BALANCE SHEET as at 31 MARCH 2022

Notes
Fixed Assets
Heritage assets
10
Tangible assets
10
Investments
11		 Group
Company
2022
2021
2022
2021
£
£
£
£
9,807,765
8,649,708
9,807,765
8,649,708
1,356,923
1,102,631
1,356,919
1,102,627
5,027,604
4,862,864
5,052,604
4,887,864
Total Fixed Assets 16,192,292
14,615,203
16,217,288
14,640,199
Current Assets
Stocks
12
Debtors
13
Cash at bank and in hand
14		 32,258
37,639
20,465
21,150
2,397,524
1,073,679
2,407,456
1,084,627
1,924,298
1,789,784
1,889,639
1,765,790
Total Current Assets 4,354,080
2,901,102
4,317,560
2,871,567
Liabilities
Creditors
Amounts falling due within one year
15		 430,261
431,902
436,450
429,505
Net Current Assets 3,923,819
2,469,200
3,881,110
2,442,062
Net Assets less Current Liabilities
Creditors
Amounts falling due after one year
15
Pension provision
20
Net Assets		 20,116,111
17,084,403
20,098,398
17,082,261
322,625
146,250
322,625
146,250
0
127,234
0
127,234
19,793,486
16,810,919
19,775,773
16,808,777
The funds of the charity
Endowment and Designated Funds
16
Restricted Endowment Fund
17
Restricted Funds
18
Unrestricted Funds
19
Total		 9,999,834
8,841,777
9,999,834
8,841,777
640,148
619,283
640,148
619,283
2,323,024
1,112,507
2,323,024
1,112,507
6,830,480
6,237,352
6,812,767
6,235,210
19,793,486
16,810,919
19,775,773
16,808,777

The financial statements were approved by the Board of Trustees on 8 September 2022 and were signed on its behalf by:

J Purvis – Honorary Treasurer

A Quigley - Chair

Company Number 00461863

The notes on pages 26 to 44 form part of these financial statements

23

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2022
2022
2022
2021
£
£
£
Cash Flows from operating activities
Net cash provided by (used in) operating activities
1,174,657
Cash Flows from investing activities
Dividends, interest and rents from investments
147,626
144,662
Proceeds from the sale of property, plant and equipment
119,137
0
Proceeds from the sale of investments
4,856,234
913,492
Purchase of property, plant, equipment and heritage assets
(1,556,906)
(90,846)
Purchase of investments
(4,606,234)
(610,000)
Net cash provided by (used in) investing activities
(1,040,143)
Change in cash and cash equivalents in the reporting period
134,514
Cash and cash equivalents at the beginning of the reporting
period
1,789,784		 CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2022
2022
2022
2021
£
£
£
Cash Flows from operating activities
Net cash provided by (used in) operating activities
1,174,657
Cash Flows from investing activities
Dividends, interest and rents from investments
147,626
144,662
Proceeds from the sale of property, plant and equipment
119,137
0
Proceeds from the sale of investments
4,856,234
913,492
Purchase of property, plant, equipment and heritage assets
(1,556,906)
(90,846)
Purchase of investments
(4,606,234)
(610,000)
Net cash provided by (used in) investing activities
(1,040,143)
Change in cash and cash equivalents in the reporting period
134,514
Cash and cash equivalents at the beginning of the reporting
period
1,789,784		 2021
£
635,074
357,308
992,382
797,402
Cash and cash equivalents at the end of the reporting period 1,924,298 1,789,784
Net income for the reporting period
(as per statement of financial activities)
Adjustments for:
Depreciation
(Gains) on investments
Dividends, interest and rents from investments
(Profit) on the sale of fixed assets
Decrease in stock
(Increase)/decrease in debtors
Increase in creditors
Pension contributions paid into defined benefit scheme in period
Other gains on pension scheme in period
Pension interest and expenses
Pension scheme provision in period
Net cash inflow from operating activity		 2,982,567
121,298
(414,740)
(147,626)
(95,878)
5,381
(1,324,149)
175,038
(77,296)
143,391
16,787
(210,116)
1,174,657		 720,108
110,246
(781,095)
(144,662)
0
1,830
698,813
100,370
(83,818)
0
28,854
(15,572)
635,074

The notes on pages 26 to 44 form part of these financial statements

24

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022

1. ACCOUNTING POLICIES

Basis of Preparation

The financial statements have been prepared in accordance with Charity Commission Statement of Recommended Practice - Accounting and Reporting by provisions of the Charities SORP (FRS 102) – Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (effective 1 January 2019) and the Companies Act 2006.

Lincolnshire Wildlife Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements have been prepared under the historic cost convention, with the exception of listed investments which are included at their market value.

None of the group’s activities were acquired or discontinued during the financial year.

The recognised gains or losses of the group are disclosed in the consolidated statement of financial activities.

Lincolnshire Wildlife Trust is a private company, limited by guarantee and is registered in England and Wales. The company’s registered number and registered office address can be found in the Reference and Administrative Details of the Report of the Trustees.

Consolidation

The results of Lincolnshire Wildlife Trust and its wholly owned subsidiary Lapwings Consultants Limited, have been consolidated and group accounts have been presented.

A separate income and expenditure account for the holding company is not presented as permitted by section 230 of the Companies Act 2006.

Voluntary Income

Voluntary income is received by way of donations and gifts, legacies, subscriptions and fundraising activities. This income is credited to the income and expenditure account on the earlier of receipt or when receipt is probable, the value can be ascertained and the Trust gets the legal right to the income. Tax refunds on gift aid income are however accrued as earned.

Legacies

Legacies are recognised when the conditions of ‘entitlement, probability and measurement’ are met. Each bequest is recognised once a reasonable estimate of its value can be made and providing there is no evidence of any significant contentious claims against the deceased’s estate. Where the Trust is left part of the residue of an estate, the deceased’s Will, initial statement of assets and liabilities and draft estate accounts are used to calculate the estimated value of the bequest. This estimate is only recognised as income once the executors have proved the Will (i.e. obtained probate). Probate values will normally be used to measure value.

Grants Received (including Government Grants)

Capital grants received for Fixed Assets are taken to the Capital Grants Fund and are released to the Income and Expenditure Account in instalments relating to the relevant asset lives to match the associated depreciation charge. Grants are treated as restricted whilst restrictions exist on the underlying assets and are transferred to unrestricted when such restrictions cease to apply. Revenue grants are credited to the Income and Expenditure account in the period in which they are receivable.

Investment Income

Income on fixed interest investments is accounted for on an accruals basis. Dividends on investments are also credited to revenue on an accruals basis.

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LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

Deferred Income

Rents received in advance are spread over the expected term of the lease and recognised when the charity gains legal entitlement to the rent.

Expenditure

All expenditure, other than that which has been capitalised, is included in the income and expenditure account. Account is also taken of goods and services received at the year end but not invoiced until after this date. Support costs are allocated to charitable activities and other cost centres with reference to the percentage of payroll costs attributable to each cost centre.

Investment Properties

Investment properties are valued at the lower of cost or fair value at the year end. Any gains or losses arising on revaluation are recognised in the SOFA.

Fixed Assets

Tangible fixed assets costing more than £500 are capitalised and included at cost, including any incidental expenses of acquisition.

Nature reserves incur expenditure on structures such as hides and fencing on land. Such expenditure is not capitalised unless it will enhance the value of the Reserve.

Depreciation

No depreciation is provided on Freehold Land, which is considered to have a useful life of more than 50 years.

The estimated remaining useful life of the Freehold Buildings exceeds 50 years and it is considered that the depreciation charge and accumulated depreciation are immaterial.

Depreciation is provided on a straight-line basis to write off the depreciable value of all other fixed assets over their expected useful lives as follows:

Motor vehicles 25% Plant fixtures and fittings 10-25% Other buildings 0-20% Heritage assets Not depreciated

Stock

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

Permanent Endowment Fund

Transactions and other events which increase or decrease the amount of this fund are not dealt with in the income and expenditure account. The movement is recognised within the Statement of Financial Activities.

Restricted Funds

The charity’s restricted funds are those where the donor or grant giving body has imposed restrictions on their use.

Pensions

The charity offered one pension arrangement during the year, a Royal London Group Personal Pension scheme into which staff were auto-enrolled. Contributions in respect of the Royal London Group Personal Pension scheme are charged to the profit and loss account on an accruals basis. They are allocated across unrestricted and restricted funds in line with the associated salary costs.

Formerly the Trust also offered the Wildlife Trusts Pension Scheme (WTPS), a multi-employer hybrid scheme, which had two types of membership: defined benefit and defined contribution. The defined contribution category of the WTPS was closed at the end of the financial year 2018-19 and existing members were transferred to the Royal London scheme. The defined benefit scheme was closed to new members in October 2005.

27

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

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

The WTPS is funded, with the assets of the scheme, held separately to those of the Trust, 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 at a rate equivalent to the current rate of return on high-quality corporate bonds of equivalent currency and term to the scheme’s liabilities. The Trust’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 are obtained triennially.

Further details of the pension arrangements are given in Note 21 to these accounts.

Investments

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

Heritage Assets

Heritage Assets are nature reserves, capitalised at cost at the date of addition. Any assets donated, where the cost is unknown, are capitalised at valuation at the date of addition. Further details are disclosed within Note 10 to the financial statements.

Financial Instruments

The Trust 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.

2. DONATIONS & LEGACIES

Membership income
Grants and donations
Legacies		 Unrestricted
Restricted
income
income
2022
2021
£
£
£
£
775,369
0
775,369
763,544
41,215
0
41,215
52,539
1,014,764
76,000
1,090,764
340,885
1,831,348
76,000
1,907,348
1,156,968

At 31 March 2022, our estimate of the value of legacies that had been bequeathed to the Trust, but which had not been included in the financial statements, was £220k (2021: £317k).

28

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

3. CHARITABLE ACTIVITIES

3.CHARITABLE ACTIVITIES
Nature Reserves
Environmental Funding
Local Authority Funding
Central Government Funding
Other Grant Income
Donations
Earned Income
Income from properties
Other Incoming resources
Wider Countryside Conservation
Local Authority Funding
Central Government Funding
Other Public Bodies
Other Grant Income
Earned Income
Donations
Inspiring People
Local Authority Funding
Central Government Funding
Other Grant Income
Earned Income		 Unrestricted
Restricted
Total
Total
Income
Income
2022
2021
£
£
£
£
159,479
283,317
442,796
421,574
0
33,895
33,895
30,500
4,729
83,302
88,031
57,975
0
870,864
870,864
125,190
0
452
452
1,360
0
34,593
34,593
36,362
209,992
0
209,992
146,942
0
24,420
24,420
3,896
374,200
1,330,843
1,705,043
823,799
0
67,135
67,135
106,867
4,479
1,187,227
1,191,706
118,004
0
3,415
3,415
2,785
0
224,411
224,411
88,273
0
52,432
52,432
35,760
0
643
643
1,633
4,479
1,535,263
1,539,742
353,322
3,500
5,000
8,500
18,417
17,534
0
17,534
100,934
0
36,079
36,079
47,100
202,881
0
202,881
96,461
223,915
41,079
264,994
262,912
602,594
2,907,185
3,509,779
1,440,033

The charity received government grants totalling £908,063 in the period (2021: £268,258).

4. EXPENDITURE ON RAISING FUNDS

Supporter recruitment
Recruitment overheads
Merchandising
Total		 Unrestricted
Restricted
2022
2021
£
£
£
£
258,717
0
258,717
64,245
109
0
109
107
25,143
0
25,143
7,589
283,969
0
283,969
71,941

29

LINCOLNSHIRE WILDLIFE TRUST

LINCOLNSHIRE WILDLIFE TRUST
Company No: 00461863
Charity No: 218895
5.EMPLOYEE INFORMATION
2022 2021
£ £
The movement in the year is after charging:
Salaries and wages 1,570,115 1,505,867
Social security costs 134,171 124,489
Other pension costs 84,110 77,908
Staff costs for the Company 1,788,396 1,708,264
Staff costs for Lapwings Consultants Limited 0 0
1,788,396 1,708,264
The average number of employees, during the period, was made up as follows:
Full time 44 45
Part time 23 26
Company Totals 67 71
Lapwings Consultants Limited 0 0
Group Total **67 ** 71
The average number of employees, during the period, by activity was made up as follows:
Nature Reserves 24 25
Wider Countryside Conservation 13 13
Inspiring People 21 24
Raising Funds 1 1
Management and Administration 8 8
Company Totals 67 71
Lapwings Consultants Limited 0 0
Group Total 67 71

The Trust operates a Royal London Group Personal Pension defined contribution scheme that all members of staff are eligible to join. The Trust contributes a minimum of 4% of employees' salaries and will match employee contributions to a maximum of 7.5%.

65 members of staff (2021: 62) were members of a scheme at the end of the year.

Pension contributions of £5,709 (2021: £5,663) were made on behalf of higher paid employees.

The total value of employee benefits received by key management personnel (our senior staff) were £303,608 (2021: £302,103).

Employees paid £60,000 or more: 2022 2021
£70,000-£79,999 1 1

30

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

6. TRUSTEE REMUNERATION AND RELATED PARTY TRANSACTIONS

There were no Trustees’ remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

During the year, the Trust paid for specialist environmental consultancy work undertaken by a company in support of an externally funded project. One of the co-directors of this company is a Trustee. This was approved by the Board who agreed that the payment was reasonable in relation to the service provided and was satisfied that the payment was in the best interests of the charity. The total amount paid for services from this company was £2,505 plus VAT.

No travel costs were paid during the year to any member of the Board (2021: nil).

During the year, the Trust paid £1,075 (2021: £1,075) to the Humber Nature Partnership, a not for profit company of which Paul Learoyd, the Chief Executive of Lincolnshire Wildlife Trust, is Chair of the Board of Directors.

The Trust owns a number of residential properties. During the year one of these was let, on arms-length terms, to members of staff.

Wildlife Fundraising (Central) is a joint venture with five other Wildlife Trusts to provide membership recruitment services to the founding members. The Chief Executive of Lincolnshire Wildlife Trust, Paul Learoyd, is Chair of the Board of Directors. Recruitment costs of £215,651 (2021: £31,663) were incurred in the year in respect of services received from Wildlife Fundraising (Central) Limited. £15,148 was owed to them (2021: £7,002 owed by them) as at 31 March 2022 and is included in the Trade Creditors figure in Note 15 on page 36. A loan of £15,000 was made to this company in March 2013 to enable it to commence trade and this loan was repaid in February 2022.

7. ANALYSIS OF SUPPORT COSTS BY CHARITABLE ACTIVITY

Nature Reserves
Wider Countryside Conservation
Inspiring People
Total
Total Support Costs 2021		 Overheads
IT & HR
Finance
Premises
Governance
Total
£
£
£
£
£
£
128,960
17,771
32,733
17,480
16,304
213,248
100,654
13,842
25,495
13,614
12,698
166,303
85,481
12,052
22,197
11,854
11,056
142,640
315,095
43,665
80,425
42,948
40,058
522,191
354,252
35,464
79,224
36,286
25,431
530,657

31

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

8. ANALYSIS OF TOTAL EXPENDITURE

8.ANALYSIS OF TOTAL EXPENDITURE
Direct Support Direct 2022 2021
Employment Costs Costs Total Total
Costs
£ £ £ £ £
Nature Reserves 594,032 213,248 596,795 1,404,075 1,282,669
Wider Countryside Conservation 464,052 166,303 178,486 808,841 666,195
Inspiring People 404,023 142,640 365,850 912,513 878,059
Charitable Activities 1,462,107 522,191 1,141,131 3,125,429 2,826,923
Raising Funds 33,537 109 225,180 258,826 64,352
Merchandising 0 3,126 22,017 25,143 7,589
Total expenditure 1,495,644 525,426 1,388,328 3,409,398 2,898,864
Total expenditure 2021 1,403,623 533,567 961,674 2,898,864
Total resources expended are stated after charging:
Auditor's remuneration
The amounts payable to Wright Vigar were: 2022 2021
£ £
Statutory 10,500 9,950
Tax Advice 260 1,900
10,760 11,850
9.TRADING SUBSIDIARY
Lapwings Consultants Limited 2022 2021
Profit and Loss Account year ended 31 March 2022 £ £
Turnover 50,318 10,039
Cost of sales (22,017) (4,795)
Gross profit 28,301 5,244
Administrative expenses (12,129) (4,804)
Operating Profit 16,172 440
Interest receivable and similar income 3 10
16,175 450
Interest payable and similar expenses (200) (200)
Profit before taxation 15,975 250
Tax on profit 0 0
Profit for the financial year 15,975 250

32

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

Balance Sheet as at 31 March 2022
Notes
Fixed assets
Stock
Debtors
Amounts owed by group companies
Cash at bank and in hand
Creditors: Amounts falling due within one year
Amounts owed to group companies
Net current assets/(liabilities)
Total assets less current liabilities
Capital and Reserves
Share Capital
11
Profit and Loss Account brought forward
Profit for the year
Gift Aid paid to Charity
Profit and Loss Account carried forward		 2022
4
11,793
95
8,673
34,659
55,220
(2,511)
(10,000)
(12,511)
42,709
42,713
25,000
2,142
15,975
(404)
17,713
42,713		 2021
4
16,489
68
0
23,994
40,551
(2,397)
(11,016)
(13,413)
27,138
27,142
25,000
18,509
250
(16,617)
2,142
27,142		 2021
4
16,489
68
0
23,994
40,551
(2,397)
(11,016)
(13,413)
27,138
27,142
25,000
18,509
250
(16,617)
2,142
27,142
55,220
(2,511)
(10,000)		 40,551
(2,397)
(11,016)
(12,511)
2,142
15,975
(404)		 (13,413)
18,509
250
(16,617)
27,142
25,000
2,142
27,142

33

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

10. FIXED ASSETS

Heritage
Assets
Group
Nature
Reserves
£
Cost:
At 1 April 2021
8,649,708
Additions
1,181,057
Disposals
(23,000)
Cost at 31 March 2022
9,807,765
Depreciation:
At 1 April 2021
0
Provided for the period
0
Disposals
0
Depreciation at
31 March 2022
0
Net Book Value
31 March 2022
9,807,765
Net Book Value
31 March 2021
8,649,708
Nature Reserves 2021-2022
Additions:
Bourne North Fen
Disposals:
The Yews
Total:		 Tangible Assets
Fixtures
Banovallum
Other
Motor
Fittings &
House
Buildings
Vehicles
Equipment
£
£
£
£
442,807
393,762
235,767
1,334,537
0
33,697
0
342,152
0
0
0
(25,972)		 Total
Tangible
Assets
£
2,406,873
375,849
(25,972)
442,807
427,459
235,767
1,650,717		 2,756,750
0
141,283
215,904
947,055
0
17,496
10,620
93,182
0
0
0
(25,713)		 1,304,242
121,298
(25,713)
0
158,779
226,524
1,014,524		 1,399,827
442,807
268,680
9,243
636,193		 1,356,923
442,807
252,479
19,863
387,482		 1,102,631
£
1,181,057
(23,000)
1,158,057

Tangible assets with a net book value of £1,356,919 and Heritage assets with a net book value of £9,807,765 are owned by the Parent Company.

The Trustees have consulted a Chartered Surveyor in respect of the net book value of Banovallum House and in their opinion the existing use value exceeds net book value and therefore depreciation is not charged in respect of this property.

The book value shown for nature reserves is based on historical cost and relates to areas of land which the Trust owns and which it manages and maintains. The Trustees believe that the market value of the nature reserves is significantly higher than the book value but they do not propose to carry out a revaluation at the present time since this would be complicated and expensive. The nature reserve values are in any case mostly not realisable and represent a long-term maintenance liability rather than a real asset.

Included within the net book value above is £4 (cost: £17,142; depreciation £17,138) which relates to the Fixtures and Fittings of Lapwings Consultants Limited.

Nature Reserves include properties at book value of £353,922 which are subject to a life tenancy.

34

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

11. INVESTMENTS

Group

Group
Market value at 31 March 2021
Investments made in the year
Disposals
Realised gains on disposal
Net gains on revaluation at 31 March 2022
Market Value at 31 March 2022
Historical cost at 31 March 2022		 2022
2021
£
£
4,862,864
4,385,261
4,606,234
610,000
(4,856,234)
(913,492)
358,872
58,042
55,868
723,053
5,027,604
4,862,864
2,517,875
2,767,875

The above market value can be analysed as follows:

UK Listed Investments unrestricted
UK Listed Investments restricted		 INVESTMENT INCOME
MARKET VALUE
2022
2021
2022
2021
£
£
£
£
128,613
126,469
4,354,456
4,243,581
19,013
18,193
673,148
619,283
147,626
144,662
5,027,604
4,862,864

The investment figure in the company balance sheet also includes £25,000 which is the nominal value of the shares held in its wholly owned subsidiary Lapwings Consultants Limited.

12. STOCK


Goods for resale
Café stock
Livestock
Consumables		 Group
2022
2021
£
£
11,793
16,489
1,565
2,250
13,900
13,900
5,000
5,000
32,258
37,639		 Company
2022
2021
£
£
0
0
1,565
2,250
13,900
13,900
5,000
5,000
20,465
21,150

35

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

13. DEBTORS

13.DEBTORS
Owed by group companies
Trade Debtors
Other Debtors
Prepayments
Legacies Receivable
Assets under Construction		 Group
Company
2022
2021
2022
2021
£
£
£
£
0
0
10,000
11,016
39,800
42,115
39,800
42,115
1,230,095
372,082
1,230,095
372,082
232,358
228,830
232,290
228,762
895,271
341,861
895,271
341,861
0
88,791
0
88,791
2,397,524
1,073,679
2,407,456
1,084,627

The amount owed by Group Companies includes a loan to Lapwings Consultants Limited of £10,000 (2021: £10,000). Interest is payable on the loan at 2% per annum.

14. CASH AT BANK & IN HAND

Bank balances
COIF Charities Deposit Fund
Cash in hand		 Group
Company
2022
2021
2022
2021
£
£
£
£
1,251,053
1,366,539
1,217,164
1,343,315
670,000
420,000
670,000
420,000
3,245
3,245
2,475
2,475
1,924,298
1,789,784
1,889,639
1,765,790

15. CREDITORS

Falling due within one year

Falling due within one year
VAT
Amounts Owed to Group Companies
Trade Creditors
Other Creditors
Accruals
PAYE & Pension
Bank Loan
Bourne North Fen Loan
Deferred Income including Badger Farm
Falling due after one year
Deferred Income including Badger Farm
Bourne North Fen loan – secured loan
(falling due in less than five years)
Bourne North Fen loan – secured loan
(falling due after five years)		 Group
Company
2022
2021
2022
2021
£
£
£
£
7,441
18,511
7,468
18,511
0
0
8,673
0
275,533
107,800
275,006
107,281
7
5
7
5
83,135
188,298
81,151
186,420
45,420
11,663
45,420
11,663
0
100,000
0
100,000
13,000
0
13,000
0
5,725
5,625
5,725
5,625
430,261
431,902
436,450
429,505
Group
Company
2022
2021
2022
2021
£
£
£
£
140,625
146,250
140,625
146,250
52,000
0
52,000
0
130,000
0
130,000
0
322,625
146,250
322,625
146,250

36

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

The Bourne North Fen loan is secured on land which has a carrying value of £1,181,057. The terms of the security provide for the lender to charge interest at 2% above the base rate of Barclays Bank plc in the event of default. In the event of default, the lender requires repayment of the loan in full, including accrued interest and any other amounts falling due.

Deferred Income Resources
Deferred Income:
Deferred Income at 1 April 2021
Amount Released in Year
Amount Deferred in Year
Deferred Income at 31 March 2022		 2022
2021
£
£
151,875
157,659
(5,625)
(5,784)
100
0
146,350
151,875

The deferred income in respect of Badger Farm relates to deferred rent in respect of a lifetime tenancy.

16. PERMANENT ENDOWMENT AND DESIGNATED FUNDS

In accordance with the Trust's accounting policies (see Note 1) the Trust's freehold nature reserves and other heritage assets are capitalised at the date of acquisition. No re-valuation is made subsequently. Most nature reserve acquisitions are made with the assistance of restricted grants and donations. It is the Trust's practice to designate sufficient unrestricted income to top-up the funds to match the historical value. The funds are therefore presented in two parts: endowment (restricted and non-expendable) and designated (unrestricted and theoretically expendable). For all practical purposes the nature reserve assets cannot be disposed of, but the unrestricted portion of the value is theoretically disposable.

Fund balances as at 1 April 2021
Designated from Unrestricted Funds
Designated from Restricted Funds
Designated from Bourne North Fen loan
Disposal of The Yews
Fund balances as at 31 March 2022
The Funds are represented by the following:
Nature Reserves* owned by the charity
Banovallum House (Trust Headquarters) - proportion
Sykes Farm Improvements		 Endowment
£
4,512,248
0
0
0
0		 Designated
Total
£
£
4,329,529
8,841,777
236,057
236,057
750,000
750,000
195,000
195,000
(23,000)
(23,000)
4,512,248 5,487,586
9,999,834
£
9,807,765
117,551
74,518
**9,999,834 **

37

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

17. RESTRICTED ENDOWMENT FUND

In accordance with the funding requirements of the Heritage Lottery Fund (now National Lottery Heritage Fund), the Catalyst Endowments Fund has been accounted for as a separate endowment fund. The funding was given as an endowment with the income to be applied to support the nature reserves of the charity. Any withdrawal of capital must be in line with the terms and conditions of the funding agreement. The Endowment Fund has been available to be drawn down in part since 1[st] January 2022.

Balance
Balance Investment Investment as at
as at Incoming Realised Unrealised 31 March
1 April 2021 Resources Expenditure Transfers Gain Gain 2022
£ £ £ £ £ £ £
Heritage Lottery 619,283 0 0 (33,000)
50,252		 3,613 640,148
Catalyst Fund
Summary of Endowment Funds
Funds balances as at 31 March 2022
Represented by nature reserves and heritage assets
Endowment Funds 4,512,248
Designated Funds 5,487,586
Heritage Lottery Catalyst Fund 640,148
Total 10,639,982

38

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

18. RESTRICTED FUNDS

18.RESTRICTED FUNDS
Balance Balance
as at Incoming Resources Funds as at
31 March 2021 Resources Expended Transfer 31 March 2022
£ £ £ £ £
Coastal Grazing Marshes 19,894 600 (5,175) 0 15,319
Greater Lincolnshire Nature Partnership 276,434 183,948 (146,998) 0 313,384
Fens for the Future 11,120 4,000 (15,589) 0 (469)
Lincolnshire Plants Past & Future HLF 74,095 0 (33,240) (10,855) 30,000
People's Postcode Lottery Carbon Reduction
Strategy 10,000 10,000 (20,000) 0 0
South Lincolnshire Fens 20,515 0 (169) 0 20,346
Viking Link Interconnector 34,268 0 (12,498) 0 21,770
EA Slow the Flow Project 14,500 0 (9,860) 0 4,640
EA CaBA Projects 7,982 18,500 (6,327) 0 20,155
Lincolnshire Co-op Community Champions 16,857 0 (6,482) 0 10,375
Skegness Rotary Gibraltar Point garden 0 5,000 (5,000) 0 0
LCC Coastal Ranger 10,000 10,000 (10,000) 0 10,000
EA Bird Data Project 3,858 192 (5,146) 0 (1,096)
Marine Planning Officer 48,901 46,553 (60,825) 0 34,629
Lincolnshire Plant Propagation 42,000 2,542 (5,480) 0 39,062
Catalyst Fund Income 0 19,013 0 (19,013) 0
Dynamic Dunescapes (13,840) 40,313 (44,766) 0 (18,293)
Dynamic Dunes Capital Grant 70,730 69,550 0 0 140,280
Defra ELMS projects (958) 52,633 (78,958) 0 (27,283)
Castle Bytham donations 1,350 0 0 0 1,350
Heritage Lottery COVID-19 23,946 0 0 (3,791) 20,155
Far Ings SSE SDF Fit for the Future (132) 33,461 (3,329) (30,000) 0
EA Anderby Marsh 24,000 0 (131) (22,859) 1,010
EA Huttoft Marsh 4,900 5,000 0 0 9,900
Legacy - Angela Bates 289,099 0 0 0 289,099
EA Bulldog Bank Gibraltar Point 0 22,500 0 0 22,500
EA Woodhall silt lagoons 0 5,000 0 0 5,000
EA sow Dale Phase 1 & 2 0 27,000 0 0 27,000
Biffa Bourne North Fen 0 750,000 0 (750,000) 0
NE Gibraltar Point saline lagoon 0 4,102 0 0 4,102
STW Isle of Axholme 0 5,285 (19,238) 0 (13,953)
Tesco Bags of Help 0 1,000 0 0 1,000
MOD Saltfleetby Natterjack Toad habitat 0 10,000 (10,000) 0 0
Sea-Changers Coastal Water Fountain 0 1,895 (1,895) 0 0
People’s Postcode Lottery Team Wilder 0 10,000 0 0 10,000
Nature Recovery Network – Biodiversity
Opportunity Mapping		 0 7,550 0 0 7,550
NEIRF Green Investment in Greater Lincolnshire 0 37,583 (28,552) 0 9,031

39

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

Nature for Climate Peatland Scheme Fens East
EU Life Moor Space
EA Lyme Natural Flood Management
Precious Peatlands
Stanley Barker Corden legacy for reserve
purchase
John David Sewards legacy for reserve
improvement and extension
Environmental Funding
Local Authority Funding
Central Government Funding
Other funds
Total		 Balance
as at
31 March 2021
Incoming
Resources
Resources
Expended
Funds
Transfer
Balance
as at
31 March 2022
£
£
£
£
£
0
817,036
(64,979)
0
752,057
0
236,725
0
0
236,725
0
15,000
(5,536)
0
9,464
0
111,593
0
0
111,593
0
26,000
0
0
26,000
0
50,000
0
0
50,000
0
283,317
(283,317)
0
0
3,321
55,093
(53,569)
0
4,845
243
9,700
(9,910)
0
33
119,424
14,514
(8,194)
0
125,744
1,112,507
3,002,198
(955,163)
(836,518)
2,323,024

The transfer made in respect of the Catalyst Fund relates to the release of income to support the management of the Trust’s nature reserves in line with the Heritage Lottery Fund (now National Lottery Heritage Fund) requirements.

40

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

19. UNRESTRICTED FUNDS

Working Capital
Income Resilience Fund
General Fund
Development Fund
Conservation Fund
Capital Grant Fund
Pension Fund
21		 Balance
Incoming
Resources
Funds
Balance
31 March 2021
Resources
Expended
Transfer
31 March 2022
£
£
£
£
£
350,000
2,908,302
(2,400,387)
(507,915)
350,000
900,000
0
0
0
900,000
1,250,000
2,908,302
(2,400,387)
(507,915)
1,250,000
809,142
0
(40,105)
151,870
920,907
3,841,032
360,875
0
0
4,201,907
5,900,174
3,269,177
(2,440,492)
(356,045)
6,372,814
33,990
0
(13,743)
67,506
87,753
303,188
66,725
0
0
369,913
6,237,352
3,335,902
(2,454,235)
(288,539)
6,830,480

20. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Fund Balances at 31 March 2022
are represented by:
Heritage assets
Tangible assets
Investments
Current assets
Current liabilities
Long term liabilities
TOTAL NET ASSETS		 Unrestricted
Restricted
Designated
Endowment
Total
Funds
£
Funds
£
Funds
£
Funds
£
Funds
£
0
0
5,406,847
4,400,918
9,807,765
1,164,854
0
80,739
111,330
1,356,923
3,659,662
727,794
0
640,148
5,027,604
2,759,154
1,545,230
0
0
4,304,384
(430,565)
0
0
0
(430,565)
(322,625)
0
0
0
(322,625)
6,830,480
2,273,024
5,487,586
5,152,396
19,743,486

21. PENSION ARRANGEMENTS

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

The Wildlife Trust Pension Scheme (WTPS)

The WTPS is a multi-employer scheme with the Royal Society of Wildlife Trusts acting as the lead employer on behalf of 11 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 provided 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 Trustees (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 1 April 2019, updated to March 2022. The present value of the defined benefit obligation was measured using the project unit credit method. This is consistent with the approach taken last year. This report shows the position for accounting purposes moving from a deficit of £127,234 to a surplus of £143,391. The recommendation from the actuary is to record a nil asset value in the Trust’s accounts as the future recoverability of this book surplus is in doubt. This surplus is not recognised in note 19. Therefore, as at 31 March 2022, the surplus in the Retirement Benefits Scheme was £143,391 (2021: a deficit of £127,234). In accordance with s7.12 of the Statement of Recommended

41

LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

Practice FRS102 (S28.22 of FRS102), this surplus has not been recognised in the Trust’s accounts which instead report a position of no surplus nor deficit.

2022 2021
£ £
Pension provision at 1 April 2021 127,234 197,770
Contributions paid by the Trust (77,296) (81,205)
Contributions (Section 75 allocation) 0 (2,613)
Costs included in Net income/(expenditure) 16,787 28,854
Movement of pension deficit provision (60,509) (54,964)
Remeasurements included in Other recognised gains/(losses) (210,116) (15,572)
Defined benefit (asset)/liability following actuarial valuation (143,391) 127,234
Recoverability of pension asset doubtful hence not recognised 143,391 0
Pension provision at 31 March 2022 on the Defined Benefit basis 0 127,234

The Employers have agreed a funding plan with the Trustees. A Designated fund has been set up (opening value £287,616) to cover the difference between the FRS 102 valuation at 31 March 2020 (£197,770) and the net present value of the deficit recovery payments at the same date (£485,386), up to the end of the current Schedule of Contributions which is August 2026. Remeasurements in year are taken to or set against this fund (March 2022 £369,913. Under the current Schedule of Contributions, the discounted value of deficit contribution payments is £349,637.

The following disclosures are based on calculations carried out as at 31 March 2022 by an independent qualified actuary.

Changes in the present value of the defined benefit obligation 2022 2021
£ £
Present value of defined benefit obligation at start of year 1,700,874 1,532,889
Benefits paid (63,066) (56,554)
Administration expenses 14,911 25,061
Interest expense 32,700 34,138
Remeasurements - actuarial gains and (losses) (169,628) 165,340
Defined benefit obligation at end of year 1,515,791 1,700,874
Changes in the fair value of assets 2022 2021
£ £
Fair value of assets at start of year 1,573,640 1,335,119
Interest income 30,824 30,345
Remeasurements - return on Scheme assets excluding interest income 40,488 180,912
Employer contributions 77,296 83,818
Benefits paid (63,066) (56,554)
Fair value of assets at end of year 1,659,182 1,573,640
Costs relating to defined benefit scheme included in the SOFA 2022 2021
£ £
Interest expense (32,700) (34,138)
Interest income 30,824 30,345
Administration expenses (14,911) (25,061)
Costs included in Net income/(expenditure) (16,787) (28,854)
Return on Scheme assets excluding interest income 40,488 180,912
Actuarial gains and (losses) 169,628 (165,340)
Increase in irrecoverable surplus (143,391) 0
Remeasurements included in Other recognised gains/(losses) 66,725 15,572

42

Company No: 00461863 Charity No: 218895

LINCOLNSHIRE WILDLIFE TRUST

Net defined benefit liability recognised in the balance sheet 2022 2021
£ £
Fair value of Scheme assets 1,659,182 1,573,640
Defined benefit obligation (1,515,791) (1,700,874)
Increase in irrecoverable surplus (143,391) 0
Defined benefit liability recognised in the balance sheet 0 (127,234)
Principal assumptions 2022 2021
Discount rate 2.65% 1.95%
Retail Prices Index (RPI) Inflation 3.65% 3.45%
Consumer Prices Index (CPI) Inflation 2.85% 2.65%
Future increases to deferred pensions 2.85% 2.65%
Rate of increase to pensions in payment:
Fixed 5% per annum 5.00% 5.00%
RPI max 5% per annum 3.35% 3.20%
Life expectancy of a male aged 65 at the Balance Sheet date 22.4 22.7
Life expectancy of a male aged 65 in 20 years at the Balance Sheet date 23.7 24.0
Life expectancy of a female aged 65 at the Balance Sheet date 24.9 25.0
Life expectancy of a female aged 65 in 20 years at the Balance Sheet date 26.3 26.4

Mortality (before and after retirement) assumptions for both years: Males: 96% of S3PA, Females: 95% of S3PA, CMI_2020 and CMI_2019 with a long-term rate of improvements of 1.25% per annum and initial addition to mortality improvements of 0.5% and w2020 of 15%.

Cash commutation assumptions for both years: Members are assumed to take 25% of their pension as taxfree 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 majority categories of Scheme assets as a percentage of total Scheme assets are:

2022 2021
UK Equities 4.7% 4.3%
Overseas Equities 31.5% 29.9%
Diversified Growth Funds 23.0% 23.5%
UK Government Fixed Interest Bonds 12.5% 14.3%
UK Government Index Linked Bonds 15.3% 14.7%
UK Corporate Bonds 8.6% 9.7%
Property 2.5% 2.1%
Cash 1.9% 1.5%
Total 100.0% 100.0%

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

Contributions to Royal London Group Personal Pension Scheme

Pension contributions in the year 2022 2021
£ £
Group personal pension scheme 84,110 77,908
Pension contribution liabilities
Group personal pension scheme 12,499 11,663

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LINCOLNSHIRE WILDLIFE TRUST

Company No: 00461863 Charity No: 218895

22. OPERATING LEASE COMMITMENTS

At 31 March 2022, the Trust is committed to making the following payments in respect of operating leases:

Leases which expire:
Within one year
Within two to five years
Over five years		 2022
2021
£
£
2,100
0
8,401
0
525
0
11,026
0

23. CAPITAL COMMITMENTS

At 31 March 2022, the Trust had commitments for expenditure not provided in the financial statements in respect of a tractor and a truck amounting to £55,000 (2021: commitments of £17,000 for the membership software).

24. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments from:
Donations and legacies
Charitable activities
Other trading activities
Investments
Other
Total income
Expenditure
Raising funds
Charitable activities
Other
Total expenditure
Net gains/(loss) on investments
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses):
Actuarial gains on defined benefit
pension schemes
Other gains - move to defined
benefit accounting for pensions
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Designated &
Income
Income
Endowment
Total
Total
Fund
2021
2020
£
£
£
£
£
1,156,968
0
0
1,156,968
1,684,312
594,602
845,431
0
1,440,033
1,472,615
10,039
0
0
10,039
67,034
126,469
18,193
0
144,662
181,916
70,603
0
0
70,603
100,913
1,958,681
863,624
0
2,822,305
3,506,790
71,941
0
0
71,941
234,842
2,185,767
641,156
0
2,826,923
2,926,462
0
0
0
0
0
2,257,708
641,156
0
2,898,864
3,161,304
674,885
0
106,210
781,095
(288,060)
375,858
222,468
106,210
704,536
57,426
167,993
(168,193)
200
0
0
15,572
0
0
15,572
4,420
0
0
325,238
559,423
54,275
106,410
720,108
387,084
5,677,929
1,058,232
9,354,650
16,090,811
15,703,727
6,237,352
1,112,507
9,461,060
16,810,919
16,090,811

44