**Charity No. 328694**
# **Trust for Research and Education on the Arms Trade (TREAT)**
## **Report and Accounts**
**For the year ended 30 June 2022**
**Unit 1.9 The Green House 244-254 Cambridge Heath Road London E2 9DA**
**Trust for Research and Education on the Arms Trade**
## **Trustees' Report**
## **For the Year Ended 30 June 2022**
The trustees present their report and accounts of the charity for the year ended 30 June 2022.
The trustees have complied with the duty to have due regard to guidance issued by the Charity Commission.
## **LEGAL AND ADMINISTRATIVE INFORMATION**
Charity name: Trust for Research and Education on the Arms Trade also known as TREAT Charity registration number: 328694 Principal office: Unit 1.9, The Green House, 244-254 Cambridge Heath Road, London E2 9DA
## **Trustees**
The following served as trustees during the year and continue to serve to the date of this report unless indicated otherwise:
|Helen Close||
|---|---|
|Chris Cole||
|Jon Nott|Secretary|
|Nicholas Gilby||
|Samantha Rimmer|(To 4 January 2022)|
|Anna Stavrianakis||
|**Independent Examiner**|Harry Nicolaou FCA FCCA of Harry Nicolaou & Co Limited|
||Chartered Accountants|
||21 Brendon Way, Enfield EN1 2LF|
|**Bankers**|The Co-operative Bank|
||1 High Street, Islington, London N1 9TR|
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
Trust for Research and Education on the Arms Trade (TREAT) is an unincorporated body governed by its Trust Deed dated 27 June 1990 as amended by a Supplemental Trust Deed dated 20 July 2006. It was registered as a charity on 4 July 1990.
On 17 March 2003 the Charity Commission issued a Certificate of Incorporation of the trustees in the name of "The Trustees of the Trust for Research and Education on the Arms Trade".
## **Recruitment and appointment of trustees**
In accordance with the Trust Deed the number of trustees must be at least three and not more than 12. New trustees must be suitably qualified and are appointed by existing trustees. New trustees are provided with suitable material.
## **Organisational structure**
The trustees meet several times per year, as and when necessary. They are responsible for the strategic policy and direction of the charity. The day to day responsibility for the provision of services rests with the Secretary.
1
## **Trust for Research and Education on the Arms Trade**
## **Trustees' Report**
## **For the Year Ended 30 June 2022**
## **OBJECTIVES**
The object of the charity is to promote research into the international arms trade and its effects, and to disseminate the results of such research.
## **ACTIVITIES**
The trustees, in planning the activities for the year, have had due regard to Charity Commission guidance on public benefit.
The charity derives its income mainly from grant-giving bodies and from legacies and donations from supporters. The principal funding sources in the year are given in notes 2 and 3 of the accounts. The charity fulfils its objects primarily through awarding grants to appropriate organisations. The main beneficiary is the Campaign Against Arms Trade (CAAT).
During the year grants of £272,362 (2021 £334,246) were awarded to CAAT. Other grants awarded are as shown in Note 4 of the accounts.
## **FINANCIAL REVIEW**
Unrestricted funds have decreased by £25,571 which have been subtracted from unrestricted funds brought forward, resulting in £105,909 (2021 £131,480) to carry forward. Restricted funds have increased by £15,031 which have been added to restricted funds brought forward, resulting in £23,934 (2021 £8,903) to carry forward.
## **RESERVES POLICY**
Free Reserves are unrestricted funds £105,909 less designated funds £45,480, that is £60,429. The trustees have developed the following policy with respect to reserves:
- **(a) Running costs £5,000**
- Including payment for office space which we use, payment for management and other work carried out directly on TREAT's behalf and for the purchase or hire of resources used by TREAT or on TREAT's behalf. _**We have agreed that reserves are required to ensure we are able to pay for office space for one year, and to have one year's funding for all other items.**_
- **(b) Continuing Work £20,000** This includes items of work which TREAT is already committed to funding and would wish to continue, including grants made to CAAT and other bodies for ongoing work. _**We have agreed that reserves are required to ensure we have one year's funding for these items.**_
- **(c) Working Capital £10,000**
- This should be sufficient to ensure that we have the necessary finances to allow for a planned process of funding projects in accordance with our Donation Policy (rather than having to wait until funds arrive before any new projects can be funded). There should also be sufficient funds available to cover small urgent calls on TREAT as a funding body and to allow us to develop our funding strategy by proactively seeking new projects which we would wish to fund. _**We have agreed that a sum of £10,000 is at present appropriate as a guideline figure, but that this should be reviewed periodically.**_
The foregoing would indicate that the approximate level of our reserves should normally be in the region of £35,000. As at 30 June 2022 they stood at £60,429.
## **RISK MANAGEMENT**
The trustees have identified the major risks to which the charity is exposed. These are reviewed annually and minimised as far as possible.
Approved by the trustees on 5 May 2023 and signed on their behalf by:
Jon Nott Trustee and Secretary
2
## **INDEPENDENT EXAMINER'S REPORT To the Trustees of Trust for Research and Education on the Arms Trade**
I report on the accounts of the Trust for the year ended 30 June 2022 which are set out on pages 4 to 11.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner's report**
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently , no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- (1) which gives me reasonable cause to believe that, in any material respect, the requirements:
- to keep accounting records in accordance with section 130 of the 2011 Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Harry Nicolaou FCA FCCA Independent examiner _of_
Harry Nicolaou & Co Limited
21 Brendon Way Enfield EN1 2LF
5 May 2023
3
## **Trust for Research and Education on the Arms Trade**
## **Statement of Financial Activities**
## **For the year ended 30 June 2022**
|**Note**
**Income from:**
Donations and legacies
2
Charitable activities
Grants
3
Investments
Bank interest
**Total income**
**Expenditure on:**
**Charitable activities**
Grants to beneficiaries
4
Support costs
5
Governance costs
5
**Total resources expended**
8
**_RECONCILIATION OF FUNDS_**
Total funds brought forward 30 June 2021
**Total funds carried forward 30 June 2022**
10
**Net deficit for the year and net movement of**
**funds**|**Unrestricted**
**funds**
**£**
17,121
-
257
**17,378**
38,372
400
4,177
**42,949**
**(25,571)**
131,480
**105,909**|**Restricted**
**funds**
**£**
34,134
257,290
-
**291,424**
259,790
-
16,603
**276,393**
**15,031**
8,903
**23,934**|**2022**
**Total**
**funds**
**£**
51,255
257,290
257
**308,802**
298,162
400
20,780
**319,342**
**(10,540)**
140,383
**129,843**|_2021_
_Total funds_
_£_
_16,915_
_189,883_
_509_
_207,307_
_344,746_
_400_
_3,549_
_348,695_
_(141,388)_
_281,771_
_140,383_|
|---|---|---|---|---|
4
## **Trust for Research and Education on the Arms Trade**
## **Balance Sheet**
## **As at 30 June 2022**
**----- Start of picture text -----**
Note 2022 2021
£ £
Current assets
Cash at bank and in hand 190,870 142,283
190,870 142,283
Creditors: Amounts falling due within one year 9 (61,027) (1,900)
Net current assets and net assets 10 129,843 140,383
The funds of the charity:
Unrestricted funds: General funds 60,429 116,000
Designated funds 45,480 15,480
11 105,909 131,480
Restricted funds 12 23,934 8,903
129,843 140,383
**----- End of picture text -----**
Approved by the trustees on 5 May 2023 and signed on their behalf by:
Jon Nott Trustee
5
**Trust for Research and Education on the Arms Trade**
**For the Year Ended 30 June 2022**
## **Notes to the Accounts**
## **1. Accounting policies**
## **Basis of accounting**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
The accounts have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for twelve months from authorising these accounts and have decided that the charity is able to continue as a going concern.
## **Income**
Income is received by way of donations, grants and legacies and is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.
## **Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that a settlement will be required and the amount of the obligation can be measured reliably. Expenditure is inclusive of VAT. Grants to beneficiaries include grants agreed for payment in future periods.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity.
## **Fund accounting**
Restricted funds are grants, donations and legacies which are to be used for specific purposes as laid by the donor. Expenditure which meets these criteria is charged to the fund.
Designated funds are unrestricted funds put aside by the trustees for specific purposes.
Unrestricted funds are grants, donations and legacies receivable for the objects of the charity without further specified purpose and are available as general funds.
## **Creditors**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
6
**Trust for Research and Education on the Arms Trade**
## **Notes to the Accounts**
## **For the Year Ended 30 June 2022**
|**2.**
**Donations and legacies received**
**Unrestricted:**
Donations
Legacies
**Restricted:**
Donations
Legacies
**3.**
**Grants received**
**Restricted:**
The Joseph Rowntree Charitable Trust
Tolkien Trust
Serve All Trust
Polden Puckham
W F Southall Trust
Sigrid Rausing Charitable Trust
Cadbury Trust
Network for Social Change|**2022**
**£**
7,121
10,000
17,121
1,370
32,764
34,134
**51,255**
**2022**
**£**
89,790
145,000
10,000
10,000
2,500
-
-
-
**257,290**|_2021_
_£_
_9,337_
_7,190_
_16,527_
_388_
_-_
_388_
_16,915_
_2021_
_£_
_57,750_
_50,000_
_10,000_
_-_
2,500
_50,000_
_1,000_
_18,633_
_189,883_|
|---|---|---|
_Continued_
7
## **Trust for Research and Education on the Arms Trade**
## **Notes to the Accounts**
## **For the Year Ended 30 June 2022**
## **4. Grants to beneficiaries**
|**Institutional grants**
**Grants awarded to CAAT:**
For research programme
For the European Network Against Arms Trade's research project
For its worker in Scotland
For its charitable work
For reference materials
For Training & Events
For Outreach
For Browsers
For Winding Up Reserve
**Other grants awarded:**
**Drone Wars** **UK**- for its research programme and work
**WRI -**for their work on arms sales to West Papua
**ICES -**for conference participation
**Declassified Media -**for Warton film project
**Omega - f**or database development
**Shoal Collective**- for its work on Turkish arms companies and the
international companies supplying arms to Turkey
For the cost of the European Network Against Arms Trade's employment
of an EU Programme Officer
**Corruption Watch**- Corruption Tracker and UK Undredacted|**Unrestricted**
**funds**
**£**
-
15,000
-
-
-
2,572
-
-
-
-
**17,572**
-
5,000
500
-
10,000
5,000
300
**38,372**|**Joseph**
**Rowntree**
**Charitable**
**Trust**
**Restricted**
**£**
27,750
22,040
-
22,500
17,500
-
-
-
-
-
**89,790**
-
-
-
-
-
-
-
**89,790**|**Tolkien Trust**
**Restricted**
**£**
50,000
-
-
-
75,000
-
5,000
5,000
10,000
-
**145,000**
-
-
-
-
-
-
-
**145,000**|**Serve All**
**Trust**
**Restricted**
**£**
-
-
-
-
5,000
-
-
-
5,000
-
**10,000**
-
-
-
-
-
-
-
**10,000**|**Polden**
**Puckham**
**Restricted**
**£**
-
10,000
-
-
-
-
-
-
-
-
**10,000**
-
-
-
-
-
-
-
**10,000**|**W F**
**Southall**
**trust**
**Restricted**
**£**
-
-
-
-
-
-
-
-
-
-
**-**
5,000
-
-
-
-
-
-
**5,000**|**Total**
**resticted**
**funds**
**2022**
**£**
77,750
32,040
-
22,500
97,500
-
5,000
5,000
15,000
-
**254,790**
5,000
-
-
-
-
-
-
**259,790**|**Total funds**
**2022**
**£**
**77,750**
**47,040**
**-**
**22,500**
**97,500**
**2,572**
**5,000**
**5,000**
**15,000**
**-**
**272,362**
**5,000**
**5,000**
**500**
**-**
**10,000**
**5,000**
**300**
**298,162**|_Total funds_
_2021_
_£_
_72,000_
_35,000_
_18,633_
_22,500_
_120,764_
_5,349_
_15,000_
_15,000_
_20,000_
_10,000_
_334,246_
_-_
_-_
_500_
_5,000_
_5,000_
_-_
_-_
_344,746_|
|---|---|---|---|---|---|---|---|---|---|
8
**Trust for Research and Education on the Arms Trade**
## **Notes to the Accounts**
**For the Year Ended 30 June 2022**
## **5. Support and governance costs**
|**Expenditure incurred on:**
Administration overheads, postage etc|**2022**
**£**
2,000
**2,000**|_2021_
_£_
_2,000_
_2,000_|
|---|---|---|
An annual payment of £2,000, as shown above, is made to Campaign Against Arms Trade. This is a contribution to administrative overheads provided by CAAT including photocopying of minutes and other trustees' papers, staff time in preparing, postage, etc.
In the opinion of the trustees, 20% represents the support costs of grant-making from unrestricted funds and 80% of the above costs are attributable to the governance of the charity.
|**Support costs**
(20%)
**Governance costs:**
(80%)
Independent examination
*Legal fees
Other|**400**
1,600
1,900
16,603
677
**20,780**|_400_
_1,600_
_1,900_
_-_
_49_
_3,549_|
|---|---|---|
Legal fees paid from the Swash restricted fund have been incurred in relation to securing TREAT'S interests as residuary beneficiary of the Estate.
## **6. Trustees' remuneration and expenses**
The trustees received no remuneration during the year (year to 30 June2021: Nil) and no expenses were reimbursed to them (year to June 2021: Nil).
## **7. Taxation**
Trust for Research and Education on the Arms Trade is a registered charity applying all its income for charitable purposes and consequently is not liable to direct taxation.
## **8. Net outgoing resources for the year**
|This is stated after charging:
Accountancy
Independent Examination
**Total**
Fees payable to the Independent
Examiner for:|**2022**
**£**
1,100
800
**1,900**|_2021_
_£_
_1,100_
_800_
_1,900_|
|---|---|---|
9
## **Trust for Research and Education on the Arms Trade**
## **Notes to the Accounts**
## **For the Year Ended 30 June 2022**
**----- Start of picture text -----**
9. Creditors: amounts falling due within one year
2022 2021
£ £
Trade creditors 1,327 -
Other creditors 59,700 1,900
61,027 1,900
10. Analysis of net assets between funds
Unrestricted Restricted Total
funds funds funds
£ £ £
Cash at bank and in hand 141,209 49,661 190,870
Creditors of not more than one year (35,300) (25,727) (61,027)
Net assets at 30 June 2022 105,909 23,934 129,843
11. Unrestricted funds
At 30 June Incoming Outgoing At 30 June
2021 resources resources 2022
£ £ £ £
General funds 116,000 17,378 (42,949) 90,429
- -
Transfer to Designated funds (30,000) (30,000)
116,000 17,378 (72,949) 60,429
Designated funds
Shadow World Investigations (formerly
Corruption Watch) - for its project "A Very
- -
British Kleptocracy" 15,480 15,480
Transfer from General funds - 30,000 - 30,000
-
15,480 30,000 45,480
131,480 47,378 (72,949) 105,909
**----- End of picture text -----**
10
## **Trust for Research and Education on the Arms Trade**
## **Notes to the Accounts**
## **For the Year Ended 30 June 2022**
## **12. Statement of restricted funds**
|**Donor**
Balance at 30 June 2021
Incoming resources from donors
Resources expended
**Balance at 30 June 2022**|**Joseph**
**Rowntree**
**Charitable**
**Trust**
**£**
-
89,790.00
(89,790.00)
**-**|**Tolkien Trust**
**£**
-
145,000.00
(145,000.00)
**-**|**Serve All Trust**
**£**
-
10,000.00
(10,000.00)
**-**|**Polden Puckham**
**£**
-
10,000.00
(10,000.00)
**-**|**W F Southall**
**Trust**
**£**
2,500.00
2,500.00
(5,000.00)
**-**|**A Lacey**
**restricted**
**legacy**
**£**
2,500.00
-
-
**2,500.00**|**Willy Bach**
**restriced legacy**
**£**
-
10,000.00
-
**10,000.00**|**Reena Partridge**
**restricted legacy**
-
22,764.00
-
**22,764.00**|***Swash**
**resticed legacy**
-
-
(16,603.00)
**(16,603.00)**|**Various**
**restricted other**
**legacies and**
**donations**
**£**
3,901.50
1,370.00
-
**5,271.50**|**Total restricted**
**funds**
**2022**
**8,901.50**
**291,424.00**
**(276,393.00)**
**23,932.50**|_Total restricted_
_funds_
_2021_
_132,527.85_
_190,270.50_
_(313,896.85)_
_8,901.50_|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
*The Swash legacy has been included as a restricted fund even though it is in deficit because restricted income is anticipated after the year end to cover the deficit.
All other resticted funds have been expended for the purposes set out in Note 4, being the purposes for which they were given.
11