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2020-12-31-accounts

Kent Wildlife Trust Annual Report and Accounts 2020

Kent Wildlife Trust A company limited by guarantee Trustees’ report and consolidated financial statements for the year ended 31 December 2020

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Protecting Wildlife for the Future

Contents

Our year in numbers:

£6,448,000 total income

Reference and administrative detail of the charity, its honorary officers and advisers

Honorary officers

Charles Tassell Vice Chair Nigel Steele Treasurer

John Leigh Pemberton President Christopher West Chair

Company registered number

Charity registered number

00633098 Registered office Tyland Barn, Sandling, Maidstone, Kent, ME14 3BD

239992

Chief Executive Officer

Evan Bowen-Jones

Independent auditor BHP LLP, 57-59 Saltergate, Chesterfield, S40 1UL

Bankers

Barclays Bank PLC, 80 High Street, Sevenoaks, Kent, TN13 1LR

Solicitors Anthony Collins, 134 Edmund Street, Birmingham, B3 2ES

Investment managers

Sarasin & Partners LLP, Juxon House, 100 St Paul’s Churchyard, London, EC4M 8BU

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Chairman’s introduction

The story of the last year is dominated by the pandemic. This has impacted lives in so many ways, from losing people we love to anxieties over health and employment, and from children missing school to families being separated. On behalf of all the Trustees, I therefore want to start by expressing my sincere thanks to the management and staff of Kent Wildlife Trust for their commitment, fortitude, and resilience. Not only did everyone cope with new ways of working, but many staff also accepted and adjusted to new furlough arrangements. These challenges were compounded by the tragic death of Tim Callaway, a valued member of the Consultancy team who was hugely respected within the Trust.

Despite the incredibly difficult year, an enormous amount was still achieved. I am pleased to say that the Trust has emerged from the pandemic in a healthy financial situation, in large part because it secured large grants, government support and very generous donations, as well as through the prudent management of costs. Significant progress has been made with the strategy to make a Wilder Kent. To highlight just a few examples, I would point to the preparations for introducing bison at West Blean Woods, plans and consultations related to the much-needed re-development of the Sevenoaks Visitor Centre, and the technical work that under-pins the establishment of Wilder Carbon, in partnership with other Trusts, as a pioneering and enterprising new initiative to tackle both the nature and climate crises.

I want to express my sincere thanks to Mike Bax as the outgoing Chair and say how immensely proud I am to work alongside the other Trustees as well

as a strong team across the entire Trust, all of whom have the ambition, innovation and determination that is vital for ensuring nature’s recovery.

Many people were able to re-connect with nature during lockdown periods in ways that helped both their physical and mental well-being. I do hope that one legacy of the pandemic is to make us all realise just how important it is to spend time outdoors – be it in parks, gardens, or nature reserves. Hopefully, the re-opening of our Visitor Centres and the recommencement of our education activities will help with wider community engagement.

I want to extend my appreciation for all the tremendous support provided by volunteers to the Trust, who were sadly required to cease many of their activities last year due to the lockdowns and social distancing restrictions. I am pleased this year to have attended the recent inaugural Volunteer Task Force to listen to their sensible suggestions on how to enhance areas of collaboration. I look forward to acting upon these ideas, and meeting with volunteers on site now that work can resume.

Finally, I want to thank all our members for their hugely valued and continuing support over what has been a very difficult period for everyone. I hope you all stay safe and well and find ways to enjoy a Wilder Kent.

Christopher West

Trustees’ report including directors’ report and strategic report

The Council of Management (Board of Trustees) present their annual report together with the audited financial statements of Kent Wildlife Trust (hereinafter referred to as “the Trust”) for the period from 1 January 2020 to 31 December 2020. The annual report serves the purposes of both a Trustees’ report and a directors’ report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

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Responding to the Covid-19 pandemic

The global pandemic has been a great leveller in that it has impacted every single person, albeit in very different ways. The beginning of lockdown brought great uncertainty at the Trust and put enormous pressure on leaders to make swift decisions to meet both our charitable objects while also ensuring staff safety and the well-being of staff and volunteers.

between the Board and leadership team helped to ensure that issues were identified and mitigated in an efficient manner, resulting in the Trust emerging from the pandemic in a position of strength and resilience.

The Trust was able to draw upon government support through the Government’s Coronavirus Job Retention Scheme. Consistent with a commitment to being a “good employer”, the Trust extended invitations to furlough to all staff, be they full or part time, on contracts or recent leavers. Numbers of staff on furlough peaked in May, June, and December. Despite also being successful in applying for emergency support from the National Lottery Heritage Emergency Fund, halting certain projects, and reviewing the necessity of other operations, the Trust had to make seven staff redundant following consultation. Seven more fixed term contracts were ended. Redeployments were made wherever possible to mitigate these impacts.

Like many other organisations and charities, the coronavirus outbreak started to impact the Trust’s operations from the end of February 2020. Fortunately, the crisis came at a time when the Trust was in a relatively healthy financial position, and improvements had already been made in areas that were to prove vital to the continuation of essential activities as well as to enable as many staff as possible to work effectively from home.

Trustees and senior staff acted with agility to put in place immediate risk management measures in March, including closing offices, Visitor Centres, and reserves, ceasing work undertaken by volunteers, and reviewing the safety of continuing with all other activities. The Board, together with the leadership team, maintained a careful oversight of all the risks faced by the Trust throughout the pandemic. This was made possible by the Risk and Finance Committee starting to meet bi-weekly, and then monthly (instead of quarterly). This close cooperation

In normal years, the Trust is fortunate to be joined by a team of approximately 1,000 volunteers who help in many ways: working on nature reserves, completing livestock checks and helping young people to engage with wildlife. Losing our ability to engage with volunteers due to the pandemic and subsequent lockdowns had a significant impact on us. Our estates team worked tirelessly to ensure they continued to maintain our sites and complete daily livestock checks; they had to entirely overhaul their programme of work to respond to the significant impact of the

pandemic and to meet the immediate needs that it presented. In consequence, the difficult conditions served to bring out the best in staff, who responded with dedication, commitment, and tireless energy.

“...the Board and leadership team helped to ensure that issues were identified and mitigated in an efficient manner, resulting in the Trust emerging from the pandemic in a position of strength and resilience.”

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Our strategy

In 2019 the Trust set out a five-year strategy to achieve a Wilder Kent. This is based on a 25-year vision of restoring abundant wildlife in 30% of the land and sea, and engaging with one in four people in the county about the importance of nature. This report covers the second year of implementing this strategy and focuses upon the progress made against three main goals.

Goal 1: Bringing wildlife back

Flagship Projects

In July 2020, Kent Wildlife Trust and the Wildwood Trust were awarded £1.125m by the People’s Postcode Lottery Dream Fund to introduce European bison at West Blean Woods in order to create natural environmental system changes that will restore the ecological complexity of the woodland and allow native wildlife to thrive. This flagship project generated significant publicity at a local, national, and international level, and was featured on BBC Countryfile. Kent Wildlife Trust is responsible for the overall management of the project, and in 2020

drew upon £764k of the total restricted donation for the installation and maintenance of infrastructure, including fencing, for the trial area.

Estates Management

The pandemic meant that many of the estate management team were furloughed, and only essential work could take place on our sites. As a result, livestock checking rotas were prioritised and the active management of the 8,000+ acres for which the Trust has responsibility was significantly reduced. The Trust will now carefully evaluate the impact of this reduced management, to consider whether less intensive management techniques may in fact be to the benefit of wildlife at certain sites.

While lockdown led to more people visiting reserves, sadly it also resulted in an increase in anti-social behaviour at certain sites, which added pressure to staff as they worked to resolve the issues.

A number of land acquisitions were delayed or put on hold during the year due to the pandemic, although the Trust was successful in acquiring 17 acres of land on the White Cliffs at Capel-le-Ferne (which cost the Trust £77k); a strategic addition to the portfolio that increases the chalk grassland under our conservation management in the Dover area.

Supporting our Partners

Over 70% of Kent is farmland, reflecting the fact that it has been referred to as the ‘Garden of England’ for hundreds of years. As such, farmers are key to helping the Trust achieve its vision of restoring abundant wildlife on 30% of the land. Farmer Clusters represent one of many successful examples of the partnership between farmers and the Trust. The Upper Beult Farmer Cluster, in partnership with Southern Water, helps farmers protect and improve water quality, soil health and biodiversity. The Marden Cluster has involved farmers using

seed harvested from Marden Meadow nature reserve to improve the floristic diversity of their own meadows. The Farmer Clusters at Romney Marsh and Rother Levels are testing the new government Environmental Land Management Scheme, which is set to roll-out nationally.

In 2020, the Trust signed two service level agreements with Kent County Council to support both the Roadside Nature Reserves project and the development and implementation of the Kent Plan Bee, which will encourage local communities to improve the food sources and general habitat for pollinators in the county. In addition, the Trust worked with Swale Borough Council to develop their approach to Biodiversity Net Gain and are leading on the development of the Kent Nature Recovery Network on behalf of Kent Nature Partnership.

Advocacy and Policy

Throughout the year, the Trust maintained relationships with local MPs with meetings on issues affecting their constituencies; raising awareness of biodiversity and climate and seeking to influence the Environment Bill.

The Trust also focused on linkages with local authorities to influence their own plans and activities, in particular around proposed local infrastructure and planning. In this regard, the Trust has been active in challenging the proposed development of the Lower Thames Crossing and the London Resort, both of which are considered to have significant adverse impacts on areas of high wildlife value.

Awarded £1,125m of funding to release European bison at West Blean Woods

17 acres of land on the White Cliffs successfully acquired

Development and implementation of the Kent Plan Bee

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Blean Woods Ray Lewis
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Successful delivery of several Nature Tots and adult learning sessions

Goal 2: Engaging with people

Visitor Centres

The Trust closed its three Visitor Centres at Romney Marsh, Sevenoaks, and Tyland Barn for the majority of 2020. This provided the Trust with an opportunity to review its operational team and to enhance the centres themselves in ways that fulfil both their engagement and educational objectives while also ensuring they can generate a surplus. For the brief period that the Romney Marsh Visitor Centre was open in 2020, it was pleasing to note that usage and income returned to levels experienced in 2019. The Trust was fortunate to receive a £10k grant from Sevenoaks District Council to mitigate income loss from the closure of the Sevenoaks Visitor Centre and Wildlife Reserve. The Trust progressed plans to redevelop this Visitor Centre and will submit a planning application in 2021.

£25k secured to take lead in developing a Bugs Matter app

Development and creation of volunteer handbook

Volunteering Programme

Volunteers are critical to the delivery of the Trust’s mission, and we value their contribution enormously. As with many of our engagement activities, volunteering was significantly affected by the pandemic. Early in the year, we paused all volunteering in line with Government guidance, but in the final quarter we were able to bring some volunteers back in outdoor roles. The Trust utilised this time to develop its systems and processes, creating a volunteer handbook, taking the first steps to establish a Volunteer Task Force, and refreshing our volunteering proposition to offer more variety, training, and flexibility. The Trust was pleased to recognise the outstanding efforts of seven volunteers with Wilder Kent Volunteer Awards at the AGM.

Education and Engagement

While education activities had to be substantially reduced during the year, the Trust still managed to deliver a number of Nature Tots and adult learning sessions. Feedback received was very positive, both in terms of content and associated Covid-19 safety measures.

The Trust launched a Parish Council newsletter, and also supported Maidstone Borough Council to develop their Biodiversity and Climate Change Action Plan. The Trust also supported Faversham Town Council and their residents’ associations to develop a Neighbourhood Plan, and Berkeley Homes to develop podcasts on Nature and Wellbeing as well as Action for Insects. Donations of £25k were also secured by the Trust to take the lead in developing a Bugs Matter app that will enable citizen scientists to monitor and report the abundance of insects.

An important area of focus was in helping people understand the positive impact that nature can have on their mental health and well-being. The Trust was fortunate to secure a number of grants to support well-being projects in 2020, including £34k for the Take Root project tackling loneliness and isolation, and a ground-breaking partnership with Harmonia Dementia Village in Dover.

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Anthony Launchbury
Ross Hoddinott/2020VISION
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Goal 3: Investing in nature

Marketing and Communications

The importance of marketing and communications was emphasised in 2020 when the pandemic significantly curtailed most engagement activities. One effect of lockdown was that people increased their access to information shared on-line by the Trust; all the Trust’s social media channels recorded large increases in the number of followers. Certain flagship projects, most notably the planned bison release in West Blean Woods, also generated significant coverage at local, national, and international level reaching more than 50m people. 30 Days Wild also provided an important opportunity for the Trust to promote key messages, and sign ups in 2020 were almost double those in 2019.

Membership and Fund-raising

As predicted, 2020 proved to be a challenging year for membership recruitment and retention, with lockdown ending any face-to-face interaction. This absence of new members meant that we lost 800 members overall, despite our level of

Flagship projects generated significant media coverage – bison release story reached 50m+ people

membership attrition being significantly lower than normal. The Trust is therefore hugely grateful to those members who have remained supporters during this very difficult period.

Corporate membership also fell in 2020 as companies found it difficult to justify renewal. Furlough and homeworking also meant that it was difficult for us to organise activities to drive corporate engagement, and, as a result, corporate income was significantly down on budget in 2020. Our revised strategy will see a shift in focus to corporate programmes with emphasis on sustainability and nature-based solutions opportunities.

Fund-raising was also challenging across the charitable sector in 2020. Many grant-makers understandably focused their support in 2020 on helping the people most directly affected by the pandemic, while other grant-makers made the decision to take no new partners, emphasising evermore, the urgency and importance of our third organisational goal for sustainable and diverse income generation. The impact of the fund-raising challenge was compounded by income losses suffered in other areas such as challenge events and community fundraising, neither of which were possible during the lockdowns. As with the charity sector as a whole, the Trust received lower than anticipated legacy income as a result of wider administrative difficulties and slowdowns in the property market. Despite this, Kent Wildlife Trust as a stand-alone charity achieved an overall surplus of £1.283m.

30 Days Wild sign ups in 2020 were almost double those in 2019

Our subsidiaries

Kent Wildlife Enterprises Ltd was established in 1996 to promote a range of trading activities that could generate unrestricted income for the Trust. In common with other charities, the pandemic necessitated trading activities to largely cease in 2020. Visitor Centres were closed for the majority of the year, and while efforts were made to commence on-line sales, overall income generated through retail activities was significantly lower than in previous years. Plans to open two high street retail outlets were put on hold. Both actions reduced costs, and as a result KWE posted a small surplus of £15k for 2020.

KWT Consultancy Services Ltd was established in 2019 to provide ecological services and land management advice in ways consistent with the mission of the Trust, with the associated aim of being able to generate unrestricted income for the Trust. Despite this being a new venture that started its operations in a year dominated by the pandemic, the Consultancy succeeded in generating a net profit of £20k for its first 18 months of trading. This result is testament to the efforts of the small team, who generated income through wide-ranging support to a diversity of both public and private sector clients. Of significance were efforts to promote Biodiversity Net Gain within the county. Against these achievements was the tragic death of Tim Callaway, who during his short time as a Principal Ecologist in the Consultancy, had quickly established an excellent relationship with clients, his colleagues, and staff across the Trust.

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Looking forward

Delivering our Vision

We will continue to focus our efforts on implementing our Wilder Kent strategy. We will push for the inclusion of measures to restore and create natural habitats as part of local plans and for the Nature Recovery Network to be a central pillar of the forthcoming Environment Act. At the heart of the Nature Recovery Network are our nature reserves, which represent some of the most wildlife-rich places in Kent. We will continue to protect and acquire such high value sites, drawing on experience gained from their management during the pandemic. At the same time, we will seek opportunities to purchase marginal land and support the natural restoration of habitats and ecosystems.

In a recent survey of members, a significant majority were supportive of the introduction of car-parking fees at our reserves. In light of this support, we have piloted the introduction of carparking fees across a number of existing reserves, and we will assess their impact on visitor numbers as well as their potential to generate an additional and important source of income for the Trust.

In partnership with the Wildwood Trust, we will progress plans to prepare for the introduction of bison in West Blean Woods. We will share lessons learned about the re-introduction of beaver at Ham Fen, as well as progress plans to re-introduce other native species that historically thrived in the county, including pine marten and chough. Our efforts to create space for nature in urban environments will focus on establishing Wilder Towns and Cities.

We will seek to build on efforts that ensure we encourage more people to connect with nature and act in support of wildlife. We will implement a new Customer Relationship Management system across the Trust, which will link with a new website with the aim of improving our efficiency in membership recruitment, donation and subscription processing, event bookings and email communications.

As social distancing restrictions ease, the Trust will re-open Visitor Centres and re-commence the range of education activities they provide. At the same time, the Trust anticipates the introduction of new ways to engage with the public. This will include new Wilder Kent Safaris that provide guided tours of both West Blean Woods and Ham Fen.

We will also promote Wilder Kent Awards to reward and acknowledge the work of schools and community groups that are taking positive action to restore nature and help adults and children to reconnect with nature.

We hope that our volunteers will be able to re-start a full range of important activities in ways that are safe and productive. We will establish a Volunteer Task Force to enhance co-ordination and linkages between volunteers, as well as between volunteers and the senior management of the Trust and Trustees.

Managing Risk

Despite this ambition, we expect a continued period of risk and uncertainty for the Trust. On the one hand we will need to reflect the expected slow recovery from the pandemic and its continuing impact on operations and staff safety and wellbeing. On the other hand, we will need to manage

post-Brexit changes to government stewardship payment schemes as well as tackling challenges associated with ash die-back. We are therefore planning for the Risk and Finance Committee to continue to meet on a monthly basis to maintain a close oversight of risks and our efforts to manage them. Trustees and the senior management team have assessed the likelihood and potential impact of risks to which the Trust is exposed and are satisfied that systems and procedures are in place to mitigate these risks.

Promoting Innovation

While we may be able to manage risks faced by the Trust, the wider reality is that the nature and climate crises will remain. These require the Trust to accelerate a programme of innovation and to develop new sources of unrestricted income. To this end we look forward to registering Wilder Carbon as a new wholly owned subsidiary of the Trust. Our aim is for Wilder Carbon to establish the technical standards that underpin the restoration

of native habitats and ecosystems in ways that enhance biodiversity, lock up carbon and generate a suite of other benefits. In close partnership and collaboration with other Wildlife Trusts and environmental organisations, Wilder Carbon will then catalyse support for nature-based solutions, not just in Kent but across the UK.

In partnership with local authorities, the Consultancy will seek to harness new opportunities to roll out Biodiversity Net Gain and the nitrate reduction scheme, thus offering wider services to landowners and developers. Consistent with these efforts, the Trust will also seek to build on its existing pool of loyal corporate supporters through increasing engagement with businesses that recognise the urgent need to address both the nature and climate crises.

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Financial report

Investments

Overview

The surplus for the group for the year amounted to £1.263m; a highly satisfactory outcome given the difficult circumstances in which the Trust was operating throughout a substantial part of the year. Alongside this positive outcome was the successful integration and use of the new finance system, Xledger, across the Trust in 2020. The Trust’s principal sources of income are amounts donated by members, mainly through regular subscriptions, donations, and legacies, as well as grants for charitable activities. Included in income is £764k, being the first tranche of the People’s Postcode Lottery Dream Fund grant in relation to the Wilder Blean project which has been taken to a restricted fund in the balance sheet.

The Trust’s Articles of Association enable it to invest monies not immediately needed for its purposes in such investments as may be thought fit and subject to conditions and consents required by law. The Trust’s investment objectives are to achieve the best possible financial return after satisfying the requirement for an appropriate level of risk, liquidity, and diversification of assets.

The Trust’s Ethical Investment Policy is to give preference, as far as is reasonably possible, to investments that are in line with the Trust’s charitable objects. This is achieved in practice by avoiding investment in companies which generate a significant proportion of their turnover from activities that conflict with the Trust’s ethical objectives. When opportunities arise, the Trust will look favourably on investments that promote positive conservation and environmental outcomes.

The Trust also received support through the Government’s Coronavirus Job Retention Scheme which covered approximately £239k of staff costs in 2020, and a grant of £250k for emergency sustainability infrastructure from the National Lottery Heritage Emergency Fund.

The Trustees monitor the Trust’s investment portfolio and other investments closely. The value of these investments increased during the year by £192k.

As with many other charities, the pandemic has adversely impacted the level of legacy income. Nevertheless, the Trust was the beneficiary of a number of generous donations and legacies, and these have assisted the Trust in meeting its objectives. We thank the many people whose foresight and generosity enable us to do the work necessary to safeguard the conservation of wildlife.

Financial Reserves

The Trust manages various restricted, designated, and other unrestricted funds in line with any restrictions or designations imposed on them either by funders or by the Trustees themselves. Major amongst these is the ‘Legacy Stabilisation Fund’, which is managed at Trustee level. It is a designated fund that receives all unrestricted legacy income. It is drawn upon from time to time for any purpose approved by the Trustees.

At the year-end, unrestricted funds and designated funds amounted to £6.355m, and restricted funds amounted to £9.037m.

Financial Reserves Policy

The cash resources of the Trust provide stability and support growth in a challenging environment. To ensure capacity to deal with any unforeseen or catastrophic emergency, the Trustees maintain an ‘Emergencies Fund’. The balance on this fund remains at £1m which is roughly equivalent to 4 months’ core funded employment costs. This would enable the Trust to continue to operate while steps are taken to address the situation.

Compliance

In 2020, the Trust reported no Serious Incidents to The Charity Commission. The Trust continues to operate in compliance with the Fundraising Code of Practice and received no complaints during the reporting period. The Trust has provided further training in respect of its policy on controlling and recording gifts or benefits offered to staff in compliance with the Bribery Act 2010. Health and safety is a standing item at monthly senior management team meetings, with reports made on a quarterly basis to Council. No safeguarding issues were noted, and the Trust will look to strengthen oversight in this important area. Compliance with the General Data Protection Regulation (GDPR) remains a priority for the Trust, and no significant issues were reported.

Audit

During 2020, the Trust went through a review and tender process for audit services. BHP LLP were appointed as the new auditors at the AGM in September 2020. BHP LLP have indicated their willingness to continue in office and will be proposed for reappointment at the AGM in July 2021.

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Trustees’ Responsibility Statement

The Trustees (who are also directors of the Trust for the purposes of company law) are responsible for preparing the Trustees’ annual report (including the strategic 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of Information to the Auditors

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

In approving the Trustees’ annual report, we also approve the strategic report included therein, in our capacity as company directors.

This report is approved by the Council of Management on 25th June 2021 and signed on their behalf by:

Chris West

Chris West (Jun 25, 2021 12:17 GMT+1)

Christopher West Chair

Independent Auditor’s Report to the members of Kent Wildlife Trust

Opinion

We are independent of the Group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We have audited the financial statements of Kent Wildlife Trust (the ‘parent charitable company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

In our opinion the financial statements:

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.

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.

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In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report including the strategic report and director’s report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, 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 the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in

accordance with this Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 noncompliance 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:

testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 pf the Companies Act 2006, and to the charitable company’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Adrian Staniforth (Jun 25, 2021 12:18 GMT+1)

Adrian Staniforth (senior statutory auditor)

for and on behalf of BHP LLP, 57-59 Saltergate, Chesterfield, S40 1UL

25th June 2021

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Consolidated Statement of

Financial Activities (incorporating income and

Consolidated Balance sheet

as at 31 December 2020

expenditure account) for the year ended 31 December 2020

N P Steele

N P Steele (Jun 25, 2021 10:38 GMT+1)

25th June 2021

The notes on pages 26 to 49 form part of these financial statements.

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Company Balance sheet as at 31 December 2020

for the year ended 31 December 2020

Consolidated Statement of Cash Flows

N P Steele

N P Steele (Jun 25, 2021 10:38 GMT+1)

25th June 2021

The notes on pages 26 to 49 form part of these financial statements.

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Notes to the Financial Statements

for the year ended 31 December 2020

1. General information

consolidated on a line-by-line basis.

Kent Wildlife Trust is a charitable company limited by guarantee. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the Company. The address of the registered of these office is given in the charity information on page 3 financial statements.The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements

2.2 Going concern

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation of the financial statements and have concluded that the Group has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Group’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

2. Accounting policies

2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with 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 (FRS 102) (effective 1 January 2019), and the Companies Act 2006.

Whilst the impact of the Covid-19 pandemic has been assessed by the Trustees, so far as is reasonably possible, due to its unprecedented impact on the worldwide economy it is difficult to evaluate with any certainty the potential outcomes on the Group’s future activities. However, taking into consideration the Group’s level of reserves and actions they have undertaken, the Trustees believe that the Group will be able to continue in operational existence for the foreseeable future.

Kent 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.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the Group and rounded to the nearest £000.

2.3 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertakings. The results of the subsidiaries are

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and

the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group’s objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Taxation

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £nil or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Land - Nil

Buildings - Over the life of the lease Furniture, plant & equipment - 15% - 25% on cost Computer equipment - 33% on cost Motor vehicles - 25% on cost

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Notes to the Financial Statements

for the year ended 31 December 2020

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘gains/(losses) on investments’ in the consolidated statement of financial activities.

Provisions are measured at the best estimate of the

amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the consolidated statement of financial activities as a finance cost.

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 Stocks

2.13 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.14 Operating leases

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

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account

2.15 Pensions

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2.17 Employee benefits

When employees have rendered service to the Company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amounts expected to be paid in exchange for that service.

3. Critical accounting estimates and areas of judgment

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions: The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below;

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Support costs: Many of the costs incurred by the Company, such as support staff costs and service costs, are shared between activities. The Company’s policy is to allocate these costs on the basis of the staff numbers involved in these activities.

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Jim Higham
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Notes to the Financial Statements

for the year ended 31 December 2020

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for the year ended 31 December 2020

Notes to the Financial Statements

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for the year ended 31 December 2020

Notes to the Financial Statements

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for the year ended 31 December 2020

Notes to the Financial Statements

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for the year ended 31 December 2020

Notes to the Financial Statements

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for the year ended 31 December 2020

Notes to the Financial Statements

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for the year ended 31 December 2020

Notes to the Financial Statements

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for the year ended 31 December 2020

Notes to the Financial Statements

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Notes to the Financial Statements

for the year ended 31 December 2020

23. Statement of funds (continued)

Designated funds

Land and Property Fund

This fund represents the value of general funds invested in tangible assets other than nature reserves and is therefore not readily available for other purposes.

Property and Maintenance Fund

This fund, originally created to fund the refurbishment of Tyland farmhouse and its surrounds, is now a reserve for any major maintenance to the Group’s portfolio of buildings.

Legacy Stabilisation Fund

All legacy income is transferred into this fund and it is managed at Trustee level. Note is taken where bequests have been made with specific requests as to their usage.

Emergencies Fund

This fund, roughly equivalent to four months’ salary costs, is intended to provide financial stability in the event of a major decline in income.

Medway Valley Project

This project has been funded by Trenport and LaFarge towards the cost of managing land in the Burham and Wouldham area.

Wilding

Net income carried forward.

Heather Corrie in Memory

This is funding received in memory of Heather Corrie, a longtime supporter and friend to the Trust, to acquire new land in her name to be established as Kent Wildlife Trust nature reserves.

Reserves Acquisition and Management Fund

This is a fund derived from legacies and donations for the emergency purchase or management of nature reserves.

North Kent A

This is funding received from London Array in payment for a wayleave over the South Swale Reserve. To be used in the North Kent and coastal areas.

DHHC Acquisition and Management Fund

This is funding received from a major donor to be used in the acquisition and management of nature reserves.

Restricted funds

Appeals

This is funding received by way of donations and legacies obtained on appeal that is restricted to specific purposes.

Delmonden Manor Farm

This represents 20.8 ha of land in the High Weald bequeathed to the Trust in the Will of Joyce Cordero.

Guardians of the Deep fund

This is funding provided by the Heritage Lottery Fund for marine activities in Kent.

H20 Source 2 Sea

This is interreg V (EU) funded wetland/water conservation project with a grouping of UK and French partners led by Kent Wildlife Trust as accountable body.

National Lottery Heritage Emergency Fund

This is Covid response funding from National Heritage Lottery Fund to support the retention of staff and strategies for growing out of Covid, including the development of sustainable income sources.

Mid & West Kent Downs

This is funding for one of our four reserves management areas, covering the area from Medway West to the Darent Valley.

North Kent B

This is funding received from London Array on behalf of Graveney Parish Council to be used in North Kent.

Nature Reserve Holdings

This is the cost of nature reserves funded through grant and appeal income.

Romney Marsh Fifth Continent

This is Heritage Lottery funding for fourteen projects across Romney Marsh over a four-year period

Sandwich and PB

The National Grid Nemo Link Consortium funds this five-year project to enhance the habitats and biodiversity at Sandwich and Pegwell Bay national nature reserve.

Wilder Blean

This is our landmark project funded by People’s Postcode Lottery Dreamfund which will introduce bison into our Blean Woods nature reserve.

Other Restricted Funds

This is other income received to be spent on specific activities as defined by the donor.

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for the year ended 31 December 2020

Notes to the Financial Statements

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Charity Administration and Governance

Charitable Purposes

a team of approximately 1,000 active volunteers who serve regularly in a variety of ways and who benefit from the skills training offered. Like-minded organisations and local authorities for whom the Trust manages sites or provides information also benefit, and the Trust caters at certain sites for the needs of people who have accessibility or other specific needs.

The charitable objects of the Trust are set out in the Articles of Association which were revised and approved at the AGM in September 2020, namely, “For the benefit of the public, to advance, promote and further the conservation, maintenance and protection of the environment”, and “To advance the education of the public in the principles and practice of sustainable development and biodiversity conservation”. In support of these purposes, the Trust “conducts research and publishes these findings”.

Evidence and advice provided by the Trust to local government, private companies, landowners, and communities helps to ensure that decisions on policies relating to land management, development, and public health take full account of the public benefit of wildlife and a healthy environment.

Public Benefit

The Trustees confirm that they have given careful consideration to the Charity Commission’s general guidance on public benefit.

Fund-raising

The Trust manages relationships with approximately 31,000 members. When members are asked for financial contributions, it is done in a responsible, respectful, and ethical manner. The same applies to all our supporters, including those giving one off donations or legacies to the Trust.

The Trust provides multiple benefits for the public which are wide-ranging and long-lasting. Our nature reserves are used extensively by the public for recreation; many have access on clearly marked paths along with information and interpretation for visitors. The land managed by the Trust also provides a range of other public benefits such as flood risk management, carbon storage, amenity value and aesthetic beauty. Through providing advice and assistance to farmers and landowners, the Trust also helps to support the rural economy and wider landscapes valued by the public.

We are always seeking to improve the ways in which we relate to our supporters by developing and sharing best practice. To demonstrate our commitment to ethical fundraising practices, we are members of the Fundraising Regulator and the Chartered Institute of Fundraising and adhere to their recognised standards.

We do not believe in approaching vulnerable people for financial support and we aim to avoid causing distress to anyone by doing so. We always seek to exceed the expectations of our members and supporters in everything we do. However, we know that there may be times when we do not meet our own high standards. When this happens, we

The Trust delivers an extensive education and

engagement programme, inspiring thousands of people of all ages — from schools, colleges, adult groups and the wider public — to enjoy contact with the natural world and benefit from its positive effect on health and wellbeing. Other beneficiaries of the work of the Trust include

want to hear about it, to deal with the situation as quickly as possible and put measures in place to stop it happening again. As such, we have a Complaints Policy in place to enable members and supporters to contact us and express their concerns. Further information on our Complaints Policy can be found on our website. We are also committed to disclosing the number of complaints received. No complaints relating to Trust fundraising practices were received between 1 January 2020 and 31 December 2020.

We actively seek to work with businesses with whom we share common cause, and to do so in a manner compatible with our Corporate Relationships Policy, as can be found on our website.

Structure

The Trust is a registered charity (No. 239992) and a company limited by guarantee in England and Wales (No. 00633098). The Chief Executive Officer, Evan BowenJones, has operational oversight of the 80 staff employed by the Trust. The Trust has two wholly-owned subsidiaries, forming the Group, which both abide by the objects, policies and procedures of the Trust:

The work of both subsidiaries is overseen by separate Boards of directors - each including at least two Trustees – with these Boards being accountable to Council.

Governance

The Trust is governed by a Council of Management (Board of Trustees), made up of members who serve as both Trustees of the charity and directors of the company.

All Trustees are volunteers and are elected by the members at the Annual General Meeting.

Council meets on a quarterly basis. Trustees are responsible for setting the charity’s strategic objectives and policies and for ensuring they are achieved. Trustees are responsible for safeguarding the assets of the Trust and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Council is also responsible for assessing, managing, and monitoring strategic risks to the delivery of the charity’s purposes.

The Council of Management has adopted the principles of good governance promoted by the Charity Commission. As part of this review, the Trust’s Memorandum and Articles of Association were revised and approved by Members at the AGM in 2020.

Recruitment and Trustees Training

Vacancies on the Council of Management are advertised widely, with the necessary skills and experience identified by a Trustee skills audit clearly stated. Each Member of the Trust may seek nomination for election as a Trustee. Trustees and staff welcome potential new Trustees with key professional skills.

All Trustees receive a comprehensive induction training sufficient for them to be able to understand their responsibilities. In addition, several subject specific awaydays, and other opportunities to improve their skills and understanding are held for Trustees, enabling them to keep fully informed of issues affecting the Trust and their role as Trustees.

Related Parties

The Trust is a member of the Royal Society of Wildlife Trusts (registered charity number 207238) along with the 45 other Wildlife Trusts throughout the UK. They are collectively known as The Wildlife Trusts.

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Thank you

Thank you to all our members, staff, volunteers, donors, funders and investors for their commitment to nature conservation. Without your help we would not be able to carry out our vital work in safeguarding and restoring the wildlife of Kent. Together we will create a Wilder Kent.

Our Council 2020:

Mike Bax, Chair ((retired at Council in July 2020, effective from the AGM in September 2020)) Chris West, Chair (appointed at Council in July 2020, effective from the AGM in September 2020) Charles Tassell, Vice-Chair Nigel Steele, Honorary Treasurer

Andrea Byerley Caroline Jessel Richard Kinzler Colin Peters

Vicky Golding (retired at the AGM in September) Graham Hill (retired at the AGM in September) Katherine Jary (appointed February 2020, resigned May 2021) Tamarin Ward (appointed March 2020 ) Liz Lowe (appointed May 2021) Tom Woolgar (appointed May 2021) Jane Ibbotson (appointed May 2021)

Council is assisted by various ‘Task and Finish’ groups and committees.

Risk and Finance committee:

Risk across the Trust is managed on an ongoing basis by the senior leadership team and is overseen by a Risk and Finance Committee of Council. The Trust maintains a comprehensive risk register which is updated regularly, and measures are put in place to minimise or mitigate risk where possible. In responding to the Covid-19 pandemic, a crisis management team was established in April which comprised both a small number of Trustees as well as senior leaders. This team met bi-weekly to both oversee emerging risks and enable an agile response to mitigate these risks. In October 2020, the Risk and Finance Committee assumed these responsibilities and met on a monthly basis. Members of the Risk and Finance Committee during the reporting period included Colin Peters (Chair), Nigel Steele, Chris West, and Katherine Jary.

The HR and Remuneration Committee:

This committee sets the salary for the Chief Executive and key senior personnel following an annual assessment and confidential benchmarking exercise. The Trust uses benchmarking and comparisons with the salaries of other Wildlife Trusts, environmental NGOs, and comparable businesses on a regular basis to attract and retain the best people. Salaries for all senior posts are agreed with Trustees.

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Mark Ollet
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Head Office: Kent Wildlife Trust, Tyland Barn, Sandling, Maidstone, Kent ME14 3BD Tel: 01622 662012 | info@kentwildlife.org.uk | kentwildlifetrust.org.uk

Registered Charity No. 239992. A company limited in England and Wales by guarantee 633098

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210625 Kent Wildlife Trust - Annual Report 2020-21

Final Audit Report

2021-06-25

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