AGM 2024 questions and answers

1.1  Will there be a chance for Members to attend the AGM in person next year? 

The 2024 AGM was held online owing to financial constraints. The online version enables more people from across the country to attend. We do understand that many Members would like an opportunity to meet and to attend a face-to-face AGM. The Board will be reviewing the AGM format for 2025.

2. 1  Regarding finances, will the need for borrowing be explained?

The liquidity available at the time was not sufficient to meet financial obligations in the short term. This situation has now been addressed and the Trust is in a financially sustainable position.

2.2  Please clarify the balance of designated funds excluding operational assets and heritage properties at 31/12/2023.

This information is provided in the Trust’s published Accounts, which are available on the website.

2.3  Is it true various contractors had payments delayed in 2023, and previous finance staff alerted the Board about a growing cash flow crisis as far back as July 2023?

As part of the Finance Lessons Learned report, we are in the process of improving our financial processes.

2.4  Regarding the timing of the accounts, is this not something that expands to fill the time available to it?

No, we have nine months to complete, have audited and sign the company accounts after the year end. This is a legal requirement.

2.5  Why is there no budget this year for policy work?

There is a budget allocation this year for policy work.

2.6  How is actual vs budget in 2024 and how closely are we tracking to budget YTD (year to date)?

Year to date is tracked by the finance team and, to date, we are on target.

2.7  Does reserves equate to cash?

No, reserves cannot be spent in the same way as unrestricted cash.

2.8  Is the Trust planning to start an actual vs budget cash flow forecast on a monthly basis, as part of the reform of the Trust's financial management?

This is already in place, new financial processes are now being introduced, including monthly management accounts.

2.9  In January 2024 the budget for 2024 had not yet been agreed and a target of early February was set. The minutes of the 21 March Board Meeting makes no mention of this happening. When was the budget agreed?

The Trustees unanimously agreed the 2024 Budget on 7 March 2024. 

2.10  I can understand the volatility of income, but not the failure to identify and control the rapid increase in expenditure. Can you say more about why this was not identified earlier and addressed?

This is explained in the Finance Lessons Learned report.

2.11  The Trust briefed the press around 15 March 2024, stating there was a financial crisis, with unrestricted funds well below the policy minimum (£700K as against £1.2m). Why did they do this when Trustees had on 7 March approved the de-designation of funds to above minimum policy level? 

Information provided in response to all press enquiries was accurate at the time enquiries were made.

2.12  Precisely when did the Trust first become aware of the reported £600k budget shortfall? 

The budget shortfall came to light towards the end of 2023.

2.13  What steps is the Trust taking to get back onto a secure financial footing?

This is explained in the Finance Lessons Learned report. 

2.14  Why did you circulate an all-staff email in December 2023 stating the Trust finances remained healthy, and what measures have you put in place to have stronger controls over Trust finances? 

The all-staff email was issued prior to the deficit information emerging. The information provided to staff was accurate at the time. The measures put in place are explained in the Finance Lessons Learned report. 

2.15  Charity finances can be precarious, but please explain how the Trust’s financial affairs went from being in a “healthy position” at the November 2023 AGM to requiring a “Vital Appeal” less than five months later. Please explain how and why the current situation has arisen, and the steps being taken to ensure it doesn’t happen again. 

The information contained within the Finance Report 2023 was believed to be correct at the time. Information relating to the deficit emerged at a later date. The Finance Lessons Learned report contains further information about this. 

2.16  To what extent did the previous auditors draw attention to the weakness of financial systems? Are the new auditors fully able to help the recovery and future success?

The role of the auditors is to professionally audit the accounts compiled by the finance professionals in the Trust’s Finance Team, not to help recovery and future success. The auditors gave the 2023 accounts a ‘clean’ audit.

2.17   At 27 June 2024 (the date of signing the accounts) the Trust seems not to have had a Chief Finance Officer in place. Would the Chair please update us as to how the finances of the Trust are being managed? 

The Trust’s new Chief Finance Officer joined us shortly after the date of signing the accounts.

2.18   The remuneration of key management personnel is set out in Note 12 on page 34. The two top salaries have increased in one year by between 22 per cent and 50 per cent, depending on where starting and finishing salaries were within the bands. Can the Chair explain why such high salary increases were given despite the financial position of the Trust? 

Salaries are commensurate with the roles undertaken.

2.19  Note 15 to the Accounts on page 36 indicates the Trust acquired intangible fixed assets valued at £270,000 in the year, with a depreciation charge in the year of 10 per cent. Will the Chair please explain the nature of this asset and its utility to the Trust?

The Trust’s audited statutory accounts are published on the website. Some of the fine detail is not shared to ensure protection of the Trust’s commercial integrity.

2.20   Note 22 to the accounts on page 40 indicates the Trust took out a loan of £504,275 in the year. This does not seem to be mentioned in the narrative to the accounts. Will the Chair please explain why this was not mentioned in the written text of the report? 

The Trust’s audited statutory accounts are published on the website. The narrative explains the high-level information and does not necessarily include every transaction. 

2.21  Will the Chair please confirm the budgeted group surplus / loss for 2024, for both unrestricted funds and total funds?

This is live financial information, and 2024 audited accounts will be available at year end.

2.22  The Trust seems to have grown over-reliant on legacy income. It seems the financial challenges were due to the level of actual legacy income in 2023. 

The Trust is aware of a dependency on legacy income and the uncertainty associated with both its value and its date of receipt. We are actively exploring other sources of income.

2.23 During 2023 the Board spent about £1,250,000 of its unrestricted investments and took out a loan of £500,000. It did not appear to address the consequences until March 2024 when it announced a financial crisis. What changes have been made to financial monitoring and reporting to ensure that in future the Board will deal with financial problems promptly? 

The Finance Lessons Learned report contains further information in answer to this question.

2.24  It seems odd that the financial lessons learned presentation did not mention the large increases in expenditure such as the increase in staff costs over two years, or the £2m Kylesku purchase. 

The Finance Lessons Learned report highlights the key factors that led to the financial crisis. The purchase of Kylesku was not a contributory factor. 

2.25  We ask that Members be given more information about the financial challenges. We note that the auditors have changed and would like to know whether the previous or current auditors were in place at the point the financial crisis was identified? What financial controls are now in place to ensure that this situation does not arise again? 

The information provided on the Trust’s financial situation was believed to be correct at the time. Information relating to the deficit emerged at a later date. The Finance Lessons Learned report contains further information in answer to this question.

3.1  How does the Trust set its budgeted legacy income?

Legacy budgeting is not an exact science, but we have years of experience and data to draw on – important because one or two large estates can make a huge difference. We budget based largely on a pipeline of notifications. We track actual income, accrued income, estimated future income and anticipated timescale of receipt to inform budgeting – and we revisit the budget throughout the year. Despite the inherent difficulties of legacy income budgeting, 2023 legacy income was 94 per cent accurate versus budget.

3.2  Did the organisation have any European Union Funding before Brexit? 

No.

4.1  Why does the CEO not address the crisis in leadership and the state of the organisation? Does the Board have confidence in David Balharry?

There is no crisis in leadership. Working with the Board, the CEO has provided the leadership that the Trust required following the challenges of the last 10 months. The Board has full confidence in the CEO. The Trust is now on a stronger financial footing, and we have a dedicated team of professionals working efficiently to deliver the Trust’s strategy to protect wild places for the benefit of present and future generations.

4.2 Does the CEO accept any responsibility for the financial and staffing crises that emerged this year and developed under his watch?

The CEO was suspended for almost five months in 2023. This followed the receipt of three separate grievances from now former members of staff. None of these grievances was upheld, and the CEO was fully exonerated. On his return the CEO’s priorities were to ensure the Trust was returned to a sustainable financial position, with a focus on delivering against our charitable objectives. Working with the Board, the CEO has provided the leadership that the Trust required following the challenges of the last 10 months.

4.3  Press reports in November 2023 indicated that the charity watchdog was assessing concerns about the Trust. What is the nature of these concerns and the outcome of the investigations?

This investigation is confidential to OSCR and the Trustees of the Trust. Other than to say it is ongoing, we can make no further comment.

4.4  How often does the Finance Committee meet and what documents does it receive in advance of meetings?

Quarterly, timed to receive the quarterly management accounts.

4.5  In the light of resignations, how can the statement made by the Chair in a letter to members in early 2024 that “we have a strong team at the helm” be justified? Where is that “strong team”?

Following recruitment earlier in the year we have a dedicated team of professionals working efficiently to deliver the Trust’s strategy to protect wild places for the benefit of present and future generations. The Leadership Team comprises the CEO, the CFO, and Directors of Operations, Communications, and Income Generation. We are in the process of appointing a Director of Policy.

4.6  The Chair mentioned recent reports in the press. Yesterday I read the piece on Third Force News (TFN), a charity news website. The piece refers to a 38,000 word paper written by a former staff member which raises many worrying issues - relating to finance, staff morale and turnover, governance and HR matters. In the interests of credibility and transparency will the Board be commenting on all these issues?

The Board is aware of the report, which concerns matters already fully investigated and addressed by the Trustees. It includes inaccurate and outdated information and has distracted from the very positive progress made and the hard work of our staff team. We will not be commenting further.

4.7  Is the negative publicity about the operation and governance of the Trust (which has appeared in the media) likely to affect the ability to attract grants, and retain Members?

There is no evidence to suggest that the Trust is unable to attract grants, indeed, our new strategy provides fresh funding opportunities. Membership fluctuates across the year and plans are in place to attract and retain new and existing Members with updated offers.  

4.8  Will the Trust continue to contract with its CEO  for deer culling? Is it true that the CEO was awarded the sizeable contract for stalking at Quinag to himself and a close personal friend? 

The Trust does not and has never had a contract with its CEO for deer culling. Decisions on deer culling tenders are made following due process and as a result amongst the best contractors are now working for the Trust. Given his background and location it would be unusual for the CEO not to know deer contractors in the north of Scotland. 

4.9  The well-publicised problems within the Trust over the last couple of years have caused great concern among the membership and other interested parties. Would the Chair please explain to the AGM what contact the Trust has had with OSCR in relation to the Trust’s recent problems, and in particular whether there has been any, or is any current, OSCR investigation into the Trust – and the subject and results of any investigation?

This investigation is confidential to OSCR and the Trustees of the John Muir Trust. Other than to say it in ongoing, we can make no further comment.

4.10  Can the Trustees put in place a mechanism by which an ordinary member can canvas the Trust's membership in order that they try to gain the required support of 5 per cent of the membership required to raise a Special Resolution at a General Meeting, be that an AGM or EGM?  (The 5 per cent figure deriving from Clause 6.14.7(a) - " Members Request" - of the Articles of Association). 

This is under consideration.

4.11  Please confirm that financial literacy training includes Trustees.

Yes, financial literacy training will include Trustees. 

4.12  In recent years there has been a most unusual turnover of Trustees, some of whom have remained in post for just a few months. Can you: a) explain this extraordinary rate of resignation; and b) reassure Members that a more settled continuity can be expected from now on?

Trustees resign for a range of reasons, some because they feel unable to support majority Board decisions or the strategic direction of the Trust, others because they are unable to give time against other commitments, and a few because of health concerns. We need to respect the confidentiality of what is an individual decision.

4.13  At the end of March 2024 the Chair wrote to Members about a crisis at the Trust. This letter referred to strong teams of Trustees and Staff being in place to deal with the crisis. 
a) Why were Members not told that five Trustees had resigned that month, nor of the departures of key senior staff? 
b) Why were the four vacancies for Trustee places created by these resignations not advertised and filled in the 2024 Election of Trustees, when they were known of well over 21 days before nominations closed?

We do not announce Trustee or staff resignations. The number of Trustee vacancies advertised was a Board decision. Legal advice was taken to ensure it was consistent with both the Articles and Standing Orders.

5.1  Why did the Trust pause the John Muir Award before a refreshed version was in place?

The Engagement Team is making very good progress with redesign of the Award as part of a wider engagement plan. They recently held a series of workshops for providers and partners. We are aiming to achieve greater efficiency and value for money to be made in how the Award is managed and delivered and to bring its content into line with our strategy. The redesign builds on the Award’s significant success, and we will ensure that it aligns firmly with our charitable purpose to protect and conserve wild places. The redesigned Award will be launched in 2025.

5.2  When the John Muir Award is revamped, will this include a follow up after completion with support and information to encourage an interest in wild places?

Learning about wild places and their attributes will be embedded into the redesigned Award. 

5.3  Will a record be kept in future of how many with an Award become Members of the Trust?

The redesigned John Muir Award will build stronger connections between participants and the Trust. 

6.1  I can see no mention of the current level of membership of the Trust, either in the 2023 Accounts or the 2023 Annual Report. Would the Chair please advise the AGM of the current level of membership, and commit to this being published in future Accounts and Annual Reports?

The Trust currently has 10,441 Members. This compares to 10,837 in September 2023 and 10,552 in January 2023. The Trust has seen a 1per cent reduction in its membership, with a notable number of Members stating financial hardship as their reason for cancelling membership. This is set against a backdrop of challenging times for many charitable organisations, with some recently having published a decline in membership figures. The Trust is willing to commit to including this information in future Finance Reports and Annual Reports.

6.2  Why are the increases in membership rates so low rather than reflecting inflation since 2019?

There is strong evidence to suggest that charities are working in an increasingly competitive market, with supporters reducing the number of charities that they donate to. And although inflation has caused the value of our membership to decrease by more than 20 per cent, this has not been offset by a similar increase in supporter wages and therefore it can’t be assumed that a 20 per cent increase would remain affordable for all our supporters, or potential future supporters.

6.3  What was the effect of the greatly reduced membership fee during the 40th anniversary year, and what has been the renewal rate?

Alongside the Trust’s 40^th anniversary celebration we promoted a special £9.99 annual membership fee. We received upwards of 350 new Members. Approximately 10 per cent have renewed their membership, which is comparable with previous gift membership and discounted membership campaigns.

7.1  What's the average staff turnover within the charity sector?

Industry averages for staff turnover in the UK is 16.8 per cent per year.

7.2  The Financial Report lists eight members of the management team and other key management staff during 2023-24, of whom six left the Trust during the period, leaving a management team of two. Why did so many senior staff leave, and what is being done to address conditions of employment to reduce future staff turnover?

On the issue of staff turnover, excluding fixed term contracts, this was 18 per cent in 2023, this is slightly higher than the sector average of 16.8 per cent. Staff leave for a range of reasons, these are monitored by the Trust’s HR Team, and periodically reviewed by the Board. While some valued colleagues have chosen to leave the Trust, recent recruitment means we have a team of experienced and dedicated professionals in place to deliver our strategy.

7.3  Why have a number of Trustees resigned in the last 18 months?

Trustees resign for a range of reasons, some because they feel unable to support majority Board decisions or the strategic direction of the Trust, others because they are unable to give time against other commitments, and a few because of health concerns. We need to respect the confidentiality of what is an individual decision.

7.4  How much involvement do people that live, work and or grew up near John Muir Trust lands have in helping run and organise the Trust? Or those that have family or ancestoral links to the areas?

We have no data to answer this question but will be consulting with local communities on our property management plans.

7.5  Is the new staff structure published anywhere?

Please see our Meet the Team webpage.

7.6  Is it intended to increase the size of the Policy Team to what it was earlier this year?

We are developing a three-year operational plan including a detailed policy plan. Activity will match resource capacity. We are currently in the process of appointing a Director of Policy.

7.7  Exemplary land management requires on the ground detailed and skilled staff knowledge with close community links. How is it envisaged that the quality of management required, as referenced in the presentations, will be achieved following the recent large reduction in property staff?

Following recruitment earlier in the year we have a dedicated Land Team of professionals working efficiently to deliver the Trust’s strategy to protect wild places for the benefit of present and future generations.

8.1  In the context of the development of the definitions of wild places, what is the Trust’s position with regard to depopulation, particularly in the Highlands and Islands? And if visitor centres are developed in the two areas identified, what consideration is being given to the capacity of the infrastructure in those areas - including roads and transport - to handle the potential influx of those visitors?

The Trust does not have a position on depopulation. Our charitable objectives are to conserve and protect wild places with their indigenous animals, plants and soils for the benefit of present and future generations. We will address the issues raised during the scoping and consultation phases of these projects. All capital investment projects will be consulted on with Local Authorities and communities so that infrastructure is fully taken into account.

8.2  What are the 'Wild Place Attributes'? 

Work in relation to the wild place attributes is at a development stage. An update was provided in the Autumn 2024 issue of the Journal (and on our website). Further detail will be shared as work progresses. 

8.3 Why do the 11 key strategic points of our current Strategy include nothing on our core aim of conserving, protecting and renewing the wild land we own?  How can we fulfil that core aim when we have only one member of conservation staff for our North Region, which includes nearly 90 per cent of the Trust’s land holdings?

Our 11 key strategic objectives align directly with our charitable purpose outlined in our Articles of Association. One of the objectives is “Demonstrate best practice aimed at preserving natural processes on the wild places in our care”. We have a strong staff team in place and are well able to meet our obligations on land management.

8.4  What is the cost of management of the John Muir Way, and how could this additional ongoing cost have been justified in mid-2023, when the financial situation must surely have become evident?

Since December 2023 the Trust has spent £2,124 of restricted funding on maintenance of the John Muir Way website maintenance and updates to interpretation on the route. 

8.5  When will the Trust get back to its core values of protecting wild mountain land in the Scottish Highlands?

Our 11 key strategic objectives align directly with our charitable purpose outlined in our Articles of Association. The Trust aims to advocate for and promote the protection of wild places across the UK.

8.6  Why is the Trust apparently intent on expansion into England and Wales at a time of financial constraint?

Expansion into the rest of the UK is likely to be in partnership with other organisations, and with specific funding. The Thirlmere Resilience Project presented by Isaac Johnson at the AGM is a good example of partnership working.

8.7  Do you share good practice with similar Trusts in Ireland, the Alps or Scandinavia trying to do work in similar environments?

That is an interesting idea and one that we will explore.

8.8   I would like to ask about the impact various recent and ongoing reviews across a range of areas within the Trust’s work - including (a) the Partners scheme, (b) the John Muir Award, (c) the Junior Rangers Programme and (d) management of the John Muir Way - are having on these activities and the wider current programme of activities.

(a) The Partners scheme has undergone an internal review and will be revamped into a new ‘giving circle’ scheme. Membership of the Partners scheme has remained largely static since its inception so the impact of the review on the income it generates has been minimal, but we hope that the new giving circles format will appeal to a larger audience of committed supporters.
(b) This year, the John Muir Award staff team supported 16,000 Awards. The Award was paused at Easter this year to enable the team to focus their attention on the redesign of the Award. The current ‘Discovery’ level of the redesigned John Muir Award will be launched in spring 2025. 
(c) Next year, the Junior Rangers programme will continue on Nevis with Lochaber High School in Fort William. It is a partnership between the John Muir Trust, the Nevis Landscape Partnership and the Woodland Trust. 
(d) The review of the management of the John Muir Way had no effect upon our wider engagement activities. In March 2025 the Board will review arrangements and decide whether the Trust should take on full and permanent responsibility for overall management of the John Muir Way.

8.9  What is the cost of Charterhouse?

The partnership at Charterhouse in Coventry is not yet in place. The only costs so far are in staff time in processing discussions with a potential partner.

8.10  Will the Trust maximise its impact by attending mountain film festivals throughout UK?

That’s an interesting idea and the Trust will explore the cost-benefit of this sort of activity. 

8.11  Since when is building homes (Strathaid) part of a wild places philosophy? (Or is this an aspect of 'engagement'?)

The Trust has no plans to build homes at Strathaird.

8.12  It has seemed over the past few years that the Trust has branched out into a lot of external land management projects and hired a number of new staff in particular in the drive for new membership sales. Can the Trust afford everything it is trying to do, are we overreaching and should we concentrate on our core original aim of purchasing and managing wild land for the future?

The Leadership and wider management teams are currently working on a costed three-year plan to ensure that all planned activity is aligned to the strategy and has associated funding in place.

8.13  Please could you give an update on the push for many more communication masts by Westminster and Holyrood?

The Trust continues to work with the coalition of concern asking the UK Government to pause and review the Total Not Spot element of the Shared Rural Network programme. The campaign revolves around two objectives: supporting community councils and rural communities to lodge objections where appropriate and apply political pressure to trigger the review. We will continue to update Members via emails and physical communications as the campaign progresses.

8.14  Exemplary land management requires on the ground detailed and skilled staff knowledge with close community links. How is it envisaged that the quality of management required, as referenced in the presentations, will be achieved following the recent large reduction in property staff?

Following recruitment earlier in the year we have a dedicated Land Team of professionals working efficiently to deliver the Trust’s strategy to protect wild places for the benefit of present and future generations.

9.1  Glenridding Common was discussed at some length at the October 2023 NW Members Group meeting and subsequently the CEO was to initiate further discussions with the Lake District National Park Authority (LDNPA). An update was requested at the 21 March Board Meeting. Where are we on this?

We have nothing further to add but will follow up once the new CEO of LDNPA is established in post.

9.2  In the Lake District, a funding appeal was launched by Cumbria Wildlife Trust (CWT) on 5 September for the purchase of Skiddaw Forest. Has the Trust been involved in any discussions or been approached for a contribution?

No, there were some early discussions but we understand that CWT were able to raise funds without a contribution from the Trust. 

9.3  Is Thirlmere part of the UNESCO site, which was awarded on the basis of cultural landscape, including the hefted Herdwick grazing? Will reducing the sheep grazing risk delisting from UNESCO status?

Thirlmere sits within the UNSECO World Heritage Site, which was designated In part for its upland sheep grazing. Reductions made to the flock size at West Head Farm will not risk the status of the World Heritage Site. We are committed to maintaining livestock in the Thirlmere catchment as nature friendly farming Is a key guiding principle for the Thirlmere Resilience Partnership. 

9.4  Weren't United Utilities involved in letting sewage get into Lake Windemere and other Lakes? 

The Trust's involvement with United Utilities is as part of the Thirlmere Resilience Project. We cannot comment on other aspects of its work.

9.5  Is Kylesku land managed for conservation?

Yes, the land at Kylesku is adjacent to Quinag and is being managed according to our principles and is part of our conservation and engagement strategy for people living in and visiting the north of Scotland.

9.6  How is Kylesku trading in 2024? How are bookings for 2025? All better than 2023 I trust?

This is live trading and finance information, which will be made available through the JMT Trading Company financial statement at year end. 

9.7  Note 17 to the 2023 accounts shows the Kylesku property as a ‘heritage asset’ of £1m “at cost” but, according to the 2022 Financial Report, it was acquired “at a cost of £2m funded from reserves”. What is the reason for this apparent discrepancy? In 2021 and 2022 the ‘Glenridding Land Fund’ was £995,447 but, according to the 2023 accounts, was “transferred”. Was this used to purchase the Kylesku property?

The Trust’s audited statutory accounts are published on the website. Some of the detail may not be shared in the interests of commercial sensitivity.

9.8  Why did the Trust buy a site for a visitor centre and community hub at Kylesku only one mile from the existing visitor centre of the Northwest Highlands Geopark? Was there a business plan for the purchase at Kylesku? How can the Trust justify spending £2 million, almost all of its funds saved for land purchase, on what is effectively a glamping site at Kylesku?

The Geopark site just down the road is subject to review in the context of Scourie Rocks development. We will be working closely with Scourie Rocks during the development of the project. The purchase of Kylesku was a properly made and documented Board decision following due process, which includes the decision on funds used for the purchase and a plan. The site at Kylesku will become a key part of our conservation and engagement strategy for people living in and visiting the north of Scotland.

9.9  When will the JMT Trading Company be able to pass Kylesku surplus to the charity?

Once the debt on the Trading Company Balance Sheet is eliminated.