20
WWT Report and Financial Statements 2012/13
31 March 2013, an improvement on 2011/12 but still
reflecting difficult worldwide economic conditions, and
consequent increase in competitive pressures.
Over the year the number of WWT’s members decreased
by 1% compared with 31 March 2012. Total membership
income over the year was £5.3m representing 31% of
WWT’s total income. WWT has over 211,000 members
who provide valuable support for the charity’s work, and
we expect to continue to increase this total further over
the coming years. To this end, we have maintained
investment in the recruitment of new members outside
our wetland centres, spending £282k in the year. The
overall cost of membership services, including Waterlife
magazine and maintaining membership details, has
remained at the same level as last year.
Visitor numbers at centres in the year were down 10% in
total when compared like-for-like with the previous year,
with paying visitors decreasing by 19% against the prior
year and non-paying, including member visits, decreasing
by 5%. We continue to see weather as a major influence
on the levels of visitation at WWT’s centres, together
with the economic downturn. All visitors are encouraged
to pay the higher ‘Gift Aid’ price, which includes a 10%
donation. For visitors who are UK tax payers, this donation
enables us to recover the tax on the entire admission
fee, which during the year contributed £0.3m. The cost
of staffing the wetland centres’ admission areas and
marketing the centres, events and the charity in general
was £1.4m.
Investments
WWT’s investments are managed by UBS and are
managed in a segregated portfolio. This portfolio
undergoes regular review and screening to ensure as
far as possible that the investments are not in conflict
with WWT’s charitable objectives whilst at the same
time maintaining growth and income. As at 31 March
2013 the market value of WWT’s investments stood at
£9.0m, an increase of £0.6m compared with 12 months
previously. Management fees were £42k, increasing
relative to the size of the portfolio. Total income returns for
the year amounted to £246k.
In addition to its listed investments, WWT owns
investment properties at Martin Mere as a result of the
purchase of farm land to extend the reserve in 2011/12.
Net current assets
Net current assets totalled £3.0m at the end of the year
(2012: £3.5m). Cash has decreased due to strategic
capital investment, but levels remain good and whilst
much is held in higher interest accounts to maximise
interest, some has been kept back to pay for sums that
are committed to.
Pension
In common with many companies and charities, WWT’s
defined benefit pension scheme has reported a deficit
in recent years. Action has been taken to reduce the
liability, closing the scheme to new entrants in 1997 and
ceasing further accrual of future benefits in 2005. An
actuarial valuation is carried out every three years. The
latest, as at 31 March 2012, showed the scheme in
deficit by £3.6m. As a result the charity has agreed with
the Pension Trustees to make annual payments into the
scheme of £255k next year, rising to £275k in 2014/15
and continuing for a period of 20 years. Accounting
regulations require us to report on a pension scheme
valuation based on a different set of assumptions within
these accounts. This valuation shows a deficit of £2.4m
at 31 March 2013 compared with a deficit of £521k at the
end of 2011/12 due to changes in actuarial assumptions.
The increase in the pension deficit has had the biggest
impact on the size of overall reserves during the year.
Further details regarding the pension scheme can be
found in Note 27 to the financial statements.
Reserves
WWT has a number of restricted funds where the
donor restricts the purpose for which the fund can be
used. These total £20.3m as at 31 March 2013, of
which £16.1m relates to capital items, such as land
and buildings, purchased with restricted donations.
The remaining £4.2m is current assets for ongoing
and future projects.
WWT holds £1.8m in a permanent endowment fund.
The income earned is transferred to the general fund
each year, but the capital remains in place subject only
to fluctuations in the market value of the investment
portfolio within which it is held. Along with the rest of the
investments, this fund has seen an increase in value of
£121k for the year.
Unrestricted funds total £7.7m, as at 31 March 2013.
Unrestricted funds include the general fund and funds
designated for a specific purpose by Council.
The Council’s reserves policy includes setting aside
sufficient funds to cover the charity’s unrestricted
essential expenditure for a period of up to six months.
Photo: spoon-billed sandpiper, © Chris Schenk / FotoNatura
