The trustees present their report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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)".
The charity's objects, as set out in Paragraph 3 of its Articles of Associations, is “to advance environmental protection, in particular the long term sustainability of national parks, protected areas and other nature areas in Africa for the benefit of nature and people by supporting the management and financing of national parks, protected areas and other nature areas in Africa, and all that is directly or indirectly related to this or can be conducive to this, all in the broadest sense.”
The charity acts as a fundraising entity in the UK for African Parks Network (‘APN’), a not for profit organisation based in South Africa.
APN takes on the direct responsibility for the rehabilitation and long term management of national parks and other protected areas in partnership with governments and local communities throughout Africa. The aim of APN is to rehabilitate each park under management, making them ecologically, socio-politically and financially sustainable long into the future, for the benefit of people and wildlife. APN secures long-term mandates from the government, typically for 20 years or more, puts in place critical funding solutions to secure money for the parks and installs effective management, including a board that sees representation from APN, the government and local communities.
Accordingly, the charity grants monies it receives to APN in the furtherance of its rehabilitation and long term-management of protected areas in Africa.
Despite the continued challenges resulting from the ongoing Covid pandemic, APN had an overall successful year. The organisation commenced work on the ground in Zambia’s Kafue National Park under a Priority Support Plan and concluded Memorandum of Understandings with the governments of Angola, South Sudan, and Ethiopia in preparation of new management mandates for six large protected areas. We started operations in Rwanda’s Nyungwe National Park, one of the oldest Afromontane rainforests in Africa, and undertook several important translocation projects, including the reintroduction of African Wild Dogs at Liwonde National Park and Majete Wildlife Reserve in Malawi, and Liuwa Plain National Park in Zambia. Towards the end of 2021 APN moved 30 white rhino from South Africa into Akagera National Park in Rwanda.
APN ended the year with 19 parks under management in 11 countries, ensuring 14.7 million hectares of some of the world’s most critical ecosystems are being effectively conserved.
While Covid continues to present challenges, park operations continued and for the second year running not one staff member lost their job due to Covid. Tourism levels remain depressed below 2019 levels but fundraising was strong all across the network. Despite Covid impacting travel and the ability to actively fundraise in the UK, there was been notable support from People’s Postcode Lottery contributing significantly from their Climate Challenge Fund and an Extra Award to soften a transition to quarterly payments from 2022. AP UK has also seen a small number of private donations and aims to continue to ramp up targeted fundraising activities in the UK.
African Parks UK – Update
2021 was the second year of operations of African Parks UK. After a year in which the charity temporarily became a promoting society of UK’s People’s Postcode Lottery’s (‘PPL’), the associated gambling licence was terminated and a new approach was approved by the African Parks UK board, with the purpose of growing and diversifying the charity’s income in the UK by pursuing new market segments. A new chairman, Mr. Jon Zehner, was appointed, assuming the position from Mr. Jonny Hughes, who had very competently led the board in its initial stages and who stepped down on the same date. In November 2021 three additional board members were appointed and plans are currently underway to enhance AP UK’s visibility and awareness to further develop and grow the charity’s income from individuals and foundations.
African Parks was one of 12 beneficiaries of the PPL’s Climate Challenge Fund, with £2 million coming from 3 draws in 2020 going to four protected areas in 2021: Nyungwe National Park in Rwanda, Odzala-Kokoua National Park in the Republic of Congo, Chinko Conservation Area in Central African Republic, Liuwa Plain National Park in Zambia. In 2021 we received an additional £316,030 from unredeemed prizes, which we allocated to a fifth park, Garamba National Park in Democratic Republic of Congo. An impact report is being prepared for PPL, to report on how their funding has helped to build climate resilience in these five wilderness areas.
On top of the Climate Challenge Fund support, an extra award of £1 million was received from the PPL, in preparation of a move towards quarterly distributions in 2022. The extra award was allocated to Liwonde National Park in Malawi and Zakouma National Park in Chad.
The charity’s activities on the ground in the UK have been limited during the period under review. The ongoing pandemic has impacted the ability to travel and to meet with prospective donors and. Still, several smaller and larger gifts were received from individual donors. An employee was transferred from APN to the charity in May 2021 and APN continued to lead the fundraising associated activities in the UK with support from the staff from APN’s European fundraising office in the Netherlands.
The Statement of Financial Activities set out on page 8 of the financial statements shows how incoming resources have been expended.
Incoming resources totaled £1,525,455 (2020: £2,039,038), comprising monies received from the Postcode Planet Trust ('PPT') of £1,000,000, £316,030 (2020: £2,024,038) of monies received from the PPL for the operation of lotteries, donations from APN of £68,400 (2020: £10,000), donations from individuals and other foundations of £122,895 (2020: £5,000) and gift aid receivable of £18,130 (2020: £nil).
Resources expended on charitable activities amounted to £1,434,705 (2020: £2,033,554), of which £49,333 (2020: £nil) was defrayed on raising funds, £1,373,030 (2020: £2,024,038) on charitable expenditure and £12,342 (2020: £9,576) on governance costs.
The resulting surplus for the year was £90,750 (2020: £5,484).
The Statement of Financial Position set out on page 9 of the financial statements shows the financial position of the charity at 31 December 2021.
Total assets less current liabilities amounted to £96,234 (2020: £5,484) which is represented by the closing balances on the unrestricted funds and restricted funds of £5,609 (2020: £484) and £90,625 (2020: £5,000) respectively.
The charity is committed to using resources in pursuit of its charitable objects. It is also committed to maintain a level of reserves that is prudent to meet on-going liabilities, sufficient to ensure that all commitments can be met. At 31 December 2021, the charity had free reserves of £5,609.
AP UK’s trustees feel the level of reserves are appropriate given that the charity has no office and very limited staff on its payroll. Being part of the larger African Parks network, APN signs off on the budgeted expenditures of the charity and provides the funding needed to cover the charity’s expenses.
Despite the impact of Covid on our activities in the UK, the trustees of the charity see no material uncertainties that may cast significant doubt on the charity’s ability to continue as a going concern, as the charity has no recurring liabilities and sufficient cash on hand. Part of the cash on hand includes €16.9 million in free reserves, held by Stichting African Parks in the Netherlands on behalf of APN, that can be used to bridge the funding gap at the end of each year, i.e. to fund costs that African Parks has not been able to meet through donations and revenue generating activities. African Parks has not drawn from this reserve since 2013.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Plans for future periods
Unless the developments of the Covid pandemic cause another setback, the charity intends to expand its fundraising activities in 2022. This would include hiring fundraising staff into the organisation.
The trustees believe that the mission of APN has only grown in importance by the events caused by Covid, and believe its impact in the African landscape will continue to be recognized by donors. PPL has indicated they will continue their support at a level of £1.5 million for the next two years.
Ms Melissa Hall, one of the Trustees, will focus her role on making sure that the charity is compliant. AP UK may consider adding to the board in 2022.
The charity is a company limited by guarantee incorporated in Scotland, with company registration number SC650944. The charity is also a registered charity in accordance with the Charities and Trustee Investment (Scotland) Act 2005, with charity registration number SC050047.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the trustees has any beneficial interest in the charity. All of the trustees are members of the charity and guarantee to contribute £1 in the event of a winding up.
Board members use their own network of contacts to identify suitable candidates possessing the necessary knowledge and skills to act as trustees of the charity. At the present time, the charity has six trustees, which is considered adequate for its purposes. In accordance with paragraph 8 of the charity's Articles of Association the number of trustees shall not be less than three.
Trustees are recruited on the basis of their existing relevant knowledge. Information relating to the charity's legal status, finances and activities are provided in advance of appointment. Trustees are expected to identify their training needs and to take measures to ensure that these needs are met.
The charity's policy is set by the Board of Trustees and the day-to-day management exercised by Sophie Vossenaar.
The trustees may appoint or re-appoint a person who is willing to be a trustee, either to fill a vacancy or as an additional trustee.
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of African Parks UK (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report, which includes the directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:
adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
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.
The extent to which the audit was considered capable of detecting irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant are those that relate to the reporting framework (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 (FRS102)), the charitable company's Memorandum and Articles of Association, the Companies Act 2006, Gambling Commission, Charities and Trustee Investment (Scotland) Act 2005, and the relevant direct and indirect tax compliance regulation in the United Kingdom.
We understood how the charitable company is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation including board meeting minutes and correspondence with regulatory bodies.
We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested specific transactions reconciling to source documentation, ensuring appropriate authorisation of the transactions, and that the income was applied in accordance with the charitable company's Memorandum and Articles of Association and the restricted terms of grants and donations, where applicable.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance, review of grants payable, review of legal and professional expenses and review of board meeting minutes.
The charitable company is a regulated entity under the supervision of the Office of the Scottish Charity Regulator and the Gambling Commission. As such, the Senior Statutory Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate competence and capabilities.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditors' 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, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Other trading activities
Lottery income
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
African Parks UK is a private company limited by guarantee incorporated in Scotland. The registered office is Summit House, 4 - 5 Mitchell Street, Edinburgh, EH6 7BD.
The nature of the charity's operations and principal activities are set out in the Trustees’ Report.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, based on the ongoing financial and operational support from the African Parks Network. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
The charity receives proceeds of lotteries by The People's Postcode Lottery ('PPL'). The charity has no ability to alter the price of tickets, determine the prizes or reduce the management fee. As such, PPL are treated as acting as the principal. Net proceeds due to the charity are recognised under lottery income in the Statement of Financial Activities. The analysis of the proceeds is detailed in note 3.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Basic financial assets, which include bank balances, are initially measured at transaction price including transaction costs.
Basic financial liabilities, including other payables are initially recognised at transaction price.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Lottery income
People's Postcode Lottery ('PPL') income
During the year the charity received the balance of the unredeemed prizes in relation to lotteries held by PPL in 2020. No lotteries were held by PPL on behalf of the charity in 2021.
Fundraising
Bank charges
The analysis of auditor's remuneration is as follows:
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
Included in other payables is £1 owed to a trustee, following monies advanced to the charity during the prior year.
The average monthly number of employees during the year was:
APN Majete Wildlife Reserve
In the prior year the charity received a donation for £5,000 from the Thandizo Foundation solely for the purpose of African Parks Network park management of the Majete Wildlife Reserve. The amounts were granted to African Parks Network during the year, to be applied for the park management of the Majete Wildlife Reserve.
APN Matusadona Park
The charity received donations from an individual and the Corton Hill Trust, of £90,625 (inlcuding gift aid) and £50,000 respectively. These amounts were solely for the purpose of African Parks Network park management of Matusadona Park, The donations from the Corton Hill Trust, of £50,000 was granted to African Parks Network during the year, to be applied for the park management of Matusadona Park.
During the period under review, the charity had the following transactions with African Parks Network ('APN'), a South African based not for profit organisation.
Donations received from APN totalled £68,400 (2020: £10,000)
Grants payable in the period to APN amounted to £1,371,030 (2020: £2,024,035). Included in other payables is £500,000 of grants pledged to APN at the year end.