Charity No. 328694 Trust for Research and Education on the Arms Trade (TREAT) Report and Accounts For the year ended 30 June 2024 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 2024 The trustees present their report and accounts of the charity for the year ended 30 June 2024. The trustees have complied with the duty lo 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.. Unil 1.9. The Green House, 244-254 Cambridge Heath Road, London E2 9DA Trustees The following served as trustee5 during the year and continue lo serve to the dale of this report unless indicaled otherwise. Helen Close Chris Cole Jon Nott Nicholas Gilby Anna Stavnanakis Secretary Independent Examiner Harry Nicolaou FCA FCCA of Harry Nicolaou & Co Limited Chartered Accountan15 21 Brendon Way, EnT￿Id EN1 2LF Bankers The Ci>operalive Bank 1 High StreeL Islington. London N19TR STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document Trust for Research and Education on the Ams Trade (TREATI is an unincorporated body governed by its Trust Deed dated 27 June 1990 as amended by a Supplemental Trust Deed dated 20 July 2006. 11 wa5 regislered'as a charity on 4 July 1990. On 17 March 2003 the Charity Commission issued a Certificale of Incorporation of the trustees in the name of "The Trustees of the Trust for Research and Education on the Amis Trade-. Recruitment and appointment of trustees In accordance with the Trust Deed the number of irustees musl be at least three and not more than 12. New trustees must be suitably qualified and are appointed by existing trustees. New truslees are provided with suitable material. Organisational structure The trustees meet sever21 limes per year. as and when necessary. They are responsible for the strategic policy and direction of the charity. The day lo day responsibility for the provision of services rests with the Secretary. Trust for Research and Education on the Arms Trade Trustees. Report Forthe Year Ended 30 June 2024 OBJECTIVES The obiect of the charity is to promote research into the intemabonal arms trade and its effects. and to disseminate the results of such research. ACTIVITIES The trustees. in planning the activities for Ihe year. have had dve regard to Charity Commission guidance on public benefit. The charity derives its income mainly frorn grant-gtving bodies and from legacies and donations from supporters. The principal funding sources in the year are given in noles 2 and 3 of the accounts. The charity fuifils its objects primarily through awarding grants to appropriate organisations. The main beneficiary is the Campaign Against Arms Trade (CAAT). FINANCIAL REVIEW Unreslricled funds have decreased by £64,537 which have been subtracted frorn unreslricted funds brought forward, resulting in £23.850 (2023 £85.7001 to carry fonNard. Restricted funds have increased by £18,509 which have been added lo restricted ftsnds broughl forward. resulting in £57.902 (2023 £42.080) to carry forward. RESERVES POLICY Free Reserves are unrestricted funds £23,850 less designated furKls £15.480. that is £8,370. 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 rnanagemenl and other work carried out directly on TREAT'S behalf and for the purchase or hire of reSoUr￿S used by TREAT or on TREATS 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 years funding for all other items. (b> Continuing Work £20.000 This include5 items of work which TREAT is already committed to funding and would wish to continue. including grants made to CA4T and other bodies for ongoing work. We have agreed that réserves are required to ensure we have one years funding for these leems. {c) Working Capital £10.000 This should be sufficient lo 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 proacts'vely seeking new project5 which we would wish to fund. We have agreed that a sum of £IO.000 is at present appmpriate as a guideline figure. but that this should be reviewedperiodicalty. The foregoing would indicate that the approximate levd of our reserves should nomially be in the region of £35.000. As at 30 June 2024 they stood at £8.370. RISK MANAGEMENT The, Iruslees have identified the major rrsks to which the charity is exposed. These are reviewed annually and minimised as far as possible. Approved by the trustees on ... . . and signed on their behalf by.. Nott Trustee and Secretary ## **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 2024 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 reql!ired 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 witl:"I 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 24 April 2025 3 Trust for Research and Education on the Arms Trade Statement of Financial Activities For the ear ended 30 June 2024 2024 Total fund$ 2023 Unre$trlct•d frjnds R•strlct8d fund$ Note Total funds Income from: Donations and legacies Charitable activities Grants Investments Bank interest 3,501 71,860 75,361 4,740 213.830 213,830 268,821 993 993 625 Total income 4,494 285,690 290.184 2T4, 186 Expenditure on: Charitable activities Grants to beneficiaries Support costs Governance cosls 267,181 267,181 400 68,631 276,508 400 (659) 400 68.631- Total resources expended 69,031 267,181 336,212 276,249 Net deficit for the year and nel movement of funds (64,537} 18.509 (46,0281 (2,063) Transfer between funds: prior y•ar adjuslment 2.687 (2.687) RECONCILIA TION OF FUNDS Total funds brought forward 1 July 2023 85,700 42,080 127,780 129,843 Total funds carried forward 30 June 2024 11 23.850 57,902 81.752 127.780 Trust for Research and Education on the Arms Trade Balance Sheet As at 30 June 2024 Note 2024 2023 Current assets Other debtors Cash at bank and in hand 184.051 64.248 109,730 60.038 248.299 169, 768 Creditors: Amounts falling due within one year 10 (166,547) (41, 988) Net current assets and net assets 11 81,752 127,780 The funds of the charity: Unrestricted funds.. General funds Designated funds 8,370 15,480 23.850 57,902 31,320 54,380 85. 700 42,080 12 13 Restricted funds 81,752 127,780 Approved by the trustees on £t w￿lL £oL< and signed on their behalf by: Jon Nott Trustee Trust for Research and Education on the Arms Trade Notes to the Accounts For the Year Ended 30 June 2024 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 othe￿iSe staled 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 Uniled Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The charity constilutes a public benefit entity as defined by FRS 102. The accounts have been prepared on a going concem basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expecled 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 concem. 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. Govemance costs include those costs associated with meeting the constitulional and statutory requirements of the charity. Fund accounting Restricted funds are grants. donations and legacies which are lo be used for specific purposes as laid by the donor. Expenditure which meets these criteria is Gharged to the fund. Designated funds are unrestricted funds put aside by the trustees for specific purposes. Unrestricted funds are grants, donations and Eegacies receivable for the objects of the charity without further specified purpose and are available as general funds. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due. Creditors Creditors and provisions are recognised where the charity has a present obligalion resulting from a past event that will probably resJJlt in Ihe 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 seltlemenl amount after allowing for any trade discounts due. Trust for Research and Education on the Arms Trade Notes to the Accounts For the Year Ended 30 June 2024 Donations and legacies received 2024 2023 Unreslricted: Donalions Legacies 3,501 3.197 3.501 3,197 Restricted: Donations Legacies - Hooper 5,860 66.000 1,543 71,860 1,543 75.361 4, 740 Grants received 2024 2023 Restricted". The Joseph Rownlree Charitable Trust Tolkien Trust Serve Al Trust Southall Trust Cadbury Trust 95,830 105.000 10,000 3.000 112.821 145,000 10,000 1,000 213.830 268. 821 Gonlinued Trust for Research and Education on the Arms Trade Notes to the Accounts For the Year Ended 30 June 2024 Grants to beneflclarles Josoph Rowntree Charltabl Trust Total rgjlicted tunds 2024 Tot81 restircted funds 2023 Serve All Tru*t Southall Trust Hoop•r Legacy R6strlct•d R•strlet•d Tolkl•n Trust Olh•r R8strlct•d Restrl¢t•d Restrlcted R•#trlet*d Institutional grants Grants awarded to CAAT: For research programme For the European Network Against Arms Trade's research project For ils worker in Scotland For ils charilable work For rèference materials For Training & Events For Outreach For Browsers For Unversities 25,161 24.080 9,585 40.091 10,000 75,252 24,080 26,085 50,000 3,351 4,099 26,226 47,937 7,151 128,853 28, 896 24, 324 1,000 2,687 984 24, 325 43,671 76,768 16,500 50,000 3,351 1,929 9,726 18,198 7,151 2,170 16.500 29,739 95,830 105,000 10,000 50,000 3,351 264,181 271,508 Other grants awarded: Demilitarise Education for ils work Drone Wars UK- for its research programme and work 5,000 3,000 3,000 95,830 105,000 10,000 3.000 50.000 3,351 267,181 276,508 Trust for Research and Education on the Arms Trade Notes to the Accounts For the Year Ended 30 June 2024 Support and governance costs 2024 2023 Expenditure incurred on: Administration overheads. postage etc 2,000 2.000 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 Iruslees, papers. staff lime in preparing, postage. etc. In the opinion of the trustees. 20°/0 represerils the support costs of grant4naking from unreslricted funds and 80.￿ of the above costs are attributable to the govemance of the charity. Support costs (20%) 400 400 Governance costs: (80%) Independent examination Legal fees ￿rOpety dispute 'Legal fees - validity of will dispute Olher 1,600 2,700 1.600 2.400 (16.603) 11.100 844 63,910 421 68.631 (659) "Legal fees paid this year have continued to be incurred in securing TREATS interests as residuary beneficiary in the will of Swash. These fees are not recoverable. Trustees. remuneration and expenses The trustees received no remuneration during the year (year to 30 June 2023.. Nil). No expenses were reimbursed to the tNstees (year to 30 June 2023= £160). Taxation Trust for Research and Education on the Arms Trade is a registered charity applying all its income for chantable purposes and consequenlly is not liable to direct taxation. Net outgoing resources for the year 2024 2023 This is slated after charging: Fees payable to the Independent Examiner for.. Accountancy Independent Examination 1.800 900 1,700 900 Total 2,700 2, 600 Trust for Research and Education on the Arms Trade Notes to the Accounts For the Year Ended 30 June 2024 Debtors 2024 2023 Other debtors - legal fees recoverable 184.051 109,730 184.051 109, 730 10. Creditors: amounts falling due within one year 2024 2023 Trade creditors Other creditors 73,847 92,700 34,588 7,400 166,547 41,988 11. Analysis of net assets between funds Unrestricted Restricted funds funds Total funds Other debtors Cash at bank and in hand Creditors of not more than one year 184,051 6,346 (166.547) 184,051 64,248 (166.547) 57.902 Net assets at 30 June 2024 23.850 57.902 81.752 12. Unrestricted funds At 01 July 2023 Incoming resources Outgolng resources At 30 June 2024 General funds Transfer to Swash legacy fund Transfer to restricted funds relating to prK)r year adjustment Designation removed from ENAAT fund 31,320 4,494 (5,121) (55,010) 30,693 (55,010) 2,687 30,000 2,687 30,000 31,320 37.181 160,131) 8.370 Designated funds Swash legacy fund ENAAT fund designation removed Shadow World Investigations (formerly Corruption Watch) - for its project "A Very British Kleptocrac 8,900 30.000 55.010 (63,910) (30.000) 15.480 15.480 15.48a 54.380 55.010 (93.910) Total unrestricted funds 85,700 92,191 (154,041) 23,850 io Trust for Research and Education on the Arms Notes to the Accounts For the Year Ended 30 June 2024 13. Statement of roslrlcted funds Joiop Rowntreo C￿rItable Tru•t V4rloui •¥trf¢lod oth•r Ivgacigs In danAll•n* AL•c•y Total rqitrlctfrd lunL¢• 2024 Toi* f6sin¢r8d lunds 2023 Donor Wllly Bich f•5trlctsd l•oaey Tolkl•h Tlusl 3*rv•￿1 Tiu•t Rèèn* Partridg• r•¥trlEt¢d1•9a¢y l•yaGy 5ouih•llTty•i Hopp•r L•gacy 8alonc8 ai 1 July 2023 2,500.00 1D,000.00 22,764.00 8,816,50 42,080.50 23,932.50 Incoming r8sourcg$ from donor5 Tran5fer%o debtors 95.830.00 105,000.00 10,000.00 3,000.00 66.000.00 $.860 00 285.690.00 270.366 00 16.603 00 Transler from unrè8th¢ted fundi r•1aiing lo prior year adluslment 12,687.001 12,687.001 Resources expended 195,830.001 (105,000.001 110.¢)th).001 13,000.QOI 150,000.001 13,351.001 (267,181.001 1268,821.QOI B4lllnc• at 30 JUM 2024 2,SOO.00 10,000.00 22,764.00 16,000.00 6.838.50 57,902.50 42,080 50 I rgsl¢led funds havè bgen 6xp&ndod for thè purpts¥g8 out In Nol& 4. b•ing th8 purpows for which they wgrg 9iv•n.