OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Charity Registration No. 1028947

RAINFOREST CONCERN

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

RAINFOREST CONCERN

CONTENTS

Page
Trustees' report 1 - 9
Statement of trustees' responsibilities 10
Independent auditor's report 11 - 14
Statement of financial activities 15 - 16
Balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19 - 33

RAINFOREST CONCERN

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed , the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2019) . Rainforest Concern is a Charity registered with the Charity Commission under Registration Number 1028947.

Trustees A Pulido Cruz
M Gardner
M van Nieuwenhuyse
M C B Syed
O Whalley
Advisory board Dr John Hemming CMG
Professor Sir Ghillean Prance FRS VMH
Prof Antonio Lara
Andrew Mitchell
Chief executive and honorary secretary Peter J Bennett
Principal address 66 Great Pulteney Street
Bath
BA2 4DL
website:www.rainforestconcern.org
Auditor Begbies
9 Bonhill Street
London
EC2A 4DJ
Bankers Barclays Plc
Epsom Branch
PO Box 96
82-84 High Street
Epsom
Surrey
TK19 8BH

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Trustees and Organisational Structure

Rainforest Concern is a non-governmental, non-political, non-religious organisation constituted under a Trust Deed dated 15th November 1993. It is registered as a Charity with the Charity Commission.

The Trust Deed describes that there should not be less than three trustees, with no maximum number. New Trustees are appointed following formal interviews with the Trustees and the Honorary Secretary with the Board looking particularly for people with experience in conservation, scientific research and fund-raising initiatives.

The charity’s Honorary Secretary is responsible for the day to day operation of the charity and manages the staff of the charity on behalf of the Trustees.

The charity has its principle office in Bath and a wide range of partner organisations with whom it delivers its programme. The principle partner organisations are as detailed in the activities, achievements and performance.

General purpose and approach

Rainforest Concern was established in 1993 for the purpose of:

Fundamental to Rainforest Concern’s philosophy is the establishment of strong partnerships with conservation NGOs in the countries in which the charity operates . Sound local knowledge and regular communication is vital to success in the field. Over 25 years Rainforest Concern has been instrumental in helping protect over 2.2 million hectares of native forest ecosystems and the vast biodiversity they contain. It has worked with 21 partner organisations and 8 indigenous tribes in 12 different countries, Colombia, Ecuador, Brazil, Peru, Chile, Surinam, Costa Rica, Panama, Uganda, India, Sri Lanka and Romania. The Charity has over 2000 members and is a member of IUCN.

The methods and activities for conservation include:

Rainforest Concern is not limited to the conservation of rainforest as described in the Charity’s Trust Deed. Its principle guiding aim is protection of natural ecosystems with their dependent biodiversity and indigenous peoples. The charity aims to conserve strategically important critically endangered ecosystems (that often include rainforest). Ecosystems by nature are not separated and include a wide range of habitats across ecological gradients - inherent in watersheds, mountains, rivers and coast for example. The charity does not aim to protect single species unless they are ‘flagship’ species that facilitate the protection of habitat. Wherever possible the charity tries to help protect, restore and research to prevent fragmentation and degradation, striving for connectivity.

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

RAINFOREST CONCERN

Decision making and operation

Rainforest Concern has a small team with only two full time staff. A small team allows us to dedicate the majority of our income directly to projects. This had allowed the charity to support conservation of significant areas of threatened ecosystems and indigenous land. Funding decisions are made with weekly meetings and constant dialogue with particularly active board of trustees. The charity is also strongly guided by the needs of partners and their adaptive management requirements whilst addressing immerging threats including logging, land invasion, mining and climate change. The trustees advise both on strategic conservation priorities and potential donors. If needed they are provided with conservation or project briefs produced by the staff. Trustees are selected for the expertise and experience that they can bring to bear, as they follow the activities and progress of the charity. They require little induction and are encouraged to work alongside and occasionally make trips to projects for capacity building. The charity seeks out local partnership with experienced teams and groups on the ground (near or adjacent to the ecosystem). The key partnership criteria are: local experience, science-based, social inclusion and the ability to work effectively without support. Over recent years the charity is seeking partnerships to develop more social and biological science based, conservation actions in light of rapid change. Staff pay and remuneration is proportional to responsibility operating in a flexible way, encouraging autonomy. The pay of the director and office manager are benchmarked against average pay levels in other comparable organisations. Volunteers and trustees can be remunerated for travel and subsistence expenses.

Specific objectives and activities

The Charity’s objectives are to protect threatened natural habitats, the biodiversity they contain and the indigenous people who still depend on them for their survival. At present the charity has 13 conservation projects in 9 countries: Ecuador, Peru, Chile, Colombia, Brazil, Costa Rica, Belize, India and Romania. The Charity works closely with local conservation organisations in these countries to protect forests threatened natural habitats. The charity's current partners include:

ADEPT (Romania), Amazon Watch (Brazil), Carpathia Foundation (Romania), Corporación Bosques de Zapallar (Chile), DECOIN (Ecuador), ECOAN (Peru), ANIA (Peru), FORECOS Foundation (Chile), Fundacion Entropika (Colombia), Fundación Gaia Amazonas (Colombia), Gurukula Botanical Sanctuary (India), Parques Para Chile (Chile), ProAves (Colombia), ANIA (Peru), Universidad Austral de Valdivia (Chile). Royal Botanic Gardens, Edinburgh (RBGE, UK) and Los Cedros (Ecuador)

Central to Rainforest Concern’s philosophy is the establishment of strong partnerships with local small yet dynamic organisations in the countries where it operates. Such long-term partnerships have repeatedly underpinned success of projects. Likewise, the charity seeks the guidance of scientists to identify research and conservation priorities and provide in-situ training.

The Charity's conservation work falls into four categories:

Conservation is central to our operations towards the protection and management of critically important ecosystems, including forested land and natural habitat to create protected reserves integrated to needs of local people. This sometimes includes the purchase of land, usually in the name of the local NGO, Rainforest Concern or the local community. The Charity places particular emphasis on the legal recognition of indigenous territory particularly in Colombia and Brazil.

Particular emphasis is placed on the creation of forest corridors that connect existing protected areas thereby reducing fragmentation. This greatly assists the effectiveness of these reserves by enabling species to move freely from one to another. Reforestation or habitat restoration of degraded ecosystems (with native local provenance species) also falls into this category. The charity recognizes forest dynamics and biodiversity may require a degree of management, especially in the absence of large animals.

Programmes for alternative income generation, health and education are developed with the local communities living near the projects. These are designed to reduce the negative human impact on forests and ecosystems arising from firewood extraction and cattle ranching for example. Examples of these projects include sustainable small-scale horticulture (for example cultivation of shade grown coffee), forest products, production of handicrafts and responsible ecotourism.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Research, including ecological and biodiversity studies are encouraged. These can focus on baseline species inventory and mapping; species taxonomy and discovery; key species ecology and conservation science. European and national scientists as well as students from national and international universities have undertaken and continue to undertake research at several of our projects. Results are presented in the annual review, scientific papers and on the charity’s website.

Campaigning is essential to give a voice to indigenous communities and scientists. The charity seeks to maximize collaboration and join forces to protect critically important ecosystems and indigenous peoples. This include supporting advocacy champions for areas and people otherwise ignored.

Ensuring success

The principle measure of success is the protection of threatened ecosystems; gauged by the size and strategic location of ecosystems, as well as biodiversity conservation ‘value’ (such as endemism or rarity of species/habitats). This is dependent on income raised, where donors require the charity to direct as much income as possible to tangible conservation outcomes. The charity’s short-term aim is to delimit and protect; setting up reserves with the aim of stemming fragmentation and consolidating habits as functional landscape units in close collaboration and involvement of local people and government. The long-term aim is for ecosystem conservation to be culturally absorbed into local communities and policy, working to engage schools and regional administration for example. The charity is increasingly aware of the need to monitor reserves with mapping systems and closer dialogue with local communities, whilst the effects of climate change, plant pathogen, logging and human migration are on the increase.

Competitive grant making is not especially relevant as the charity seeks out strategic local partners that are already set-up to conserve, protect and restore land for both biodiversity and people. Grants do not require high levels of stipulated compliance and reporting. However, the charity recognises that in an environment of ever more legislative change around land protection, there is a greater need to ensure more detailed reporting and published research. The charity continues to use locally paid and pro-bono lawyers of high integrity to ensure that changes around land ownership and tax, are adjusted and adhered to for land purchase and management. No conservation land was purchased during the year.

Conservation work is undertaken either directly by the charity and their associates, or by supporting students locally with grant funding channelled through local NGO. Grants paid to projects in the year totalled £163,379 and work undertaken directly £97,348.

The Trustees have considered the Charity’s objects and activities during the year and believe that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Commission.

Voluntary help

The charity has well established volunteer programmes and benefited from numerous volunteers during the year. These include groups of gap year students as well as mature volunteers who work on projects that include tree planting, trail maintenance and data collection. The charity has not provided in the accounts for an estimate of the value given by volunteers as the work they undertake, does not fall within the SORP recommendation for the valuation of gifts in kind.

ACHIEVEMENTS AND PERFORMANCE

Ecuador

Neblina Reserve: although the global pandemic severely restricted many activities in Ecuador, the team managed to continue patrolling and protecting the Neblina Reserve.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

They were also able to complete the two year research project funded by the PTES into the presence of Andean bears in the reserve. The Andean bear was chosen as an umbrella species as they are critical to the ongoing health of the cloud forest ecosystem. 17 individual bears were identified, including four juveniles. In total, 18 different mammal species were recorded on camera taps, of which 18 are listed on the IUCN Red List. From the findings, the principal investigator concluded that the Neblina Reserve is in a good state of conservation and enabling the mobility of many species across the forest landscape - making it ‘one of the most important ecological corridors in the province’.

Chile

At the El Boldo reserve, our partners CBZ started the construction of a nursery for endemic plant species. Due of the pandemic, the park was closed for almost six months and the construction was delayed, but it was still possible to build the main structures. Educational materials were renewed and four new guidebooks were produced for students and visitors. During the year work started on an ecological restoration project at Cerro La Cruz, a newly protected peninsula located next to the town of Zapallar, Legal procedures also started to secure a Derecho Real de Conservación (a legal process which enables owners of threatened habitats to obtain protection of their land in perpetuity) over La Judea property, thereby protecting 360 hectares of ‘Meditteranean’ forest. It is hoped this will eventually be joined to El Boldo reserve by encouraging the owners of land between the two to follow this example.

At the 1,600 hectare Nasampulli Reserve in southern Chile, during the year rangers and interns worked on maintaining and repairing the trails inside the reserve as well as doing ecological restoration, also a census of fallen trees and repairing signs. Two university students from Universidad de Valdivia studied forest dynamics for their PhD theses. Throughout the year ten camera traps inside the reserve have been collecting data on wildlife at the reserve.

Costa Rica

The 2020 nesting season at Urpiano was by far the most successful since the charity started to support this turtle protection project. By May the nursery had to be enlarged due to the high number of nests protected from poaching. Of 773 leatherback turtle nests a total of 330 nests were saved, so 43% compared to 26% the previous year.

A total of 21,711 eggs were collected and protected at the nursery, of those 13,296 hatchlings were released to the sea, an increase of 42% compared with the previous year.

A total of 14 local villagers were supported by the charity, including four women helped to rebuild and protect the hatchery and patrol the beach against poachers. The economic conditions of locals and nearby areas were affected by Covid. which made it more difficult to patrol the beach with a higher presence of opportunistic turtle egg poachers.

Colombia

Rainforest Concern’s project to help Gaia Amazonas’ protect the Yuruparí territories of the Colombian Amazon was completed. With funding from The Waterloo Foundation and The Staples Trust, the project set out to strengthen the legal and political defence of the territory from legal and illegal gold mining.

The project worked with indigenous authorities to formulate baseline protocols to help ensure the right to prior consultation and consent; analysed and created an action plan and recommendations for Colombian public policy regarding gold mining in the Colombian Amazon, as well as preparing legal actions and documentation for the constitutional protection of indigenous people’s fundamental rights in the face of mining activities. This included the documentation by indigenous peoples of the social and cultural impacts of mining in the Indigenous Territory. As a result, the legal action was selected for review by the Constitutional Court and the legal actions are in progress.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Rainforest Concern responded quickly to the threat of the risk of the unmanageable spread of COVID-19 within indigenous communities in Colombia, raising emergency funding from The Waterloo Foundation and via a crowdfunding project. Gaia Amazonas, identified that immediate action was needed to save the lives of many indigenous groups in the region and to help protect their extraordinary generational knowledge. Working with tribal leaders Gaia Amazonas identified that isolation is the most effective measure to prevent rapid spread, along with training, supplies and equipment. The funds provided over 1,500 families with "isolation support kits" to help them continue hunting, harvesting and fishing without needing to travel to towns.

Brazil

With funding from the same sources, in Brazil the charity helped long term partners Tribes Alive provide essential supplies to help communities of the Xingu region, in particular the Kayapo people, increase their capacity to grow food and catch fish without needing to leave their villages. They also provided medical equipment, including oxygen machines.

India

Of all the projects the charity supports the Gurukula Botanical Sanctuary in India suffered the most due to the pandemic. This is perhaps unsurprising in view of the high levels of Covid in the country. Nevertheless, the Sanctuary maintained its work with much reduced staff. It was however impossible to make any progress with the nursery for the newly acquired Thiriyannara Refuge on the Nilgiri Plateau. Before the pandemic arrived in the arrived in the area it was possible for the Sanctuary to receive a number of school visits. By the end of the year there was sadly no sign of the situation changing.

Romania

As recorded on 2019 report, the charity donated £30,000 to Fundatia ADEPT Transylvania in late 2018 for the protection of Transylvania’s threatened biodiversity-rich grassland and mixed forest-grassland habitats. ADEPT used these funds in 2019 to restore 20 hectates of haymeadow; to carry out agri-environment training in the Târnava Mare protected area (Natura 2000 site); and to prepare an application for Angofa Valley demonstration farm, which will be a training centre to assist farmers in Târnava Mare to carry out profitable biodiversity-friendly management. By summer 2020 the results of the 2019 (and continued in 2020) haymeadow restoration were visible, and measurable, by significantly increased diversity of wildflower species. Farmer training led to higher incomes and better management. Further, the preparation of the Angofa Valley demonstration farm enabled ADEPT in 2020 to make a bid to Planet Foundation, sponsored by the charity, for a grant of €153,750 for restoration of the farm buildings and associated grasslands. The result of this application will be heard in April 2021.

Belize

Despite travel restrictions the Oak Foundation funded project in Belize continued in 2020 with the installation of four acoustic sensors at the Pooks Hill Nature Reserve in January. During the year the project was joined by Secure Forests CIC, who’s have taken on the role of monitoring the protected forest using the acoustic sensors and satellites.

With headquarters in Mount Edgcumbe Country Park in Cornwall, Secure Forests monitor the sensors 24 hrs a day in order to help the local rangers protect the forests from illegal loggers and poachers. The exact location of the sound’s origin can be identified and this is relayed immediately with the rangers on the ground to take action. In addition a satellite monitoring Geographical Information System platform known as the Ecometrica Lab can pinpoint any changes or loss of forest down to a single old growth tree.

More detailed information on these projects may be found on the Charity’s website: rainforestconcern.org

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Dissemination

Traffic to the website was stable without showing a marked increase as could be measured with Google Analytics. However we continued to receive favourable comments.

As a result of the difficulty in publishing a paper magazine because of the pandemic, the charity made the decision to publish four monthly on-line newsletters. Typically, these shorter editions cover 3 or 4 projects. It is hoped to resume publication of the annual magazine once the office can return to normal activity.

Schools

Due to the pandemic our education programme both in the UK and abroad had to be placed on hold in 2020.

FINANCIAL REVIEW

As shown in the Statement of Financial Activities, the charity’s principal funding source is grants and donations. As a result of the pandemic the Charity’s income for 2020 showed a considerable decrease over the previous year to £372,331 (2019: £851,264) Similarly expenditure made in direct execution of the Charity’s objectives of direct and grant funded activities decreased to £438,832 (2019: £686,047).

In the pursuit of its objectives, Rainforest Concern buys land for conservation of rainforests and other threatened habitats. The great majority of land is bought in the name of our partner organisations or local communities. However, in special cases the Charity buys land in its own name and therefore holds title to forested land which is included in Heritage Assets. No land was purchased in the current year (2019: £126,017), but £30,000 has been raised during the year to further extend the Neblina and the Nasampulli Reserve once suitable sites are identified. Support costs amounted to £134,275 (2019: £153,139), and are apportioned as shown in the Statement of Financial Activities.

Since the charity operates to achieve high conservation impact with low overhead costs, it has not expended a high percentage of resources to monitor changes in protection status of vulnerable ecosystems. Our approach has been to seek and find experienced trustworthy in-country partners with necessary ecological monitoring capacities and deep local knowledge of socio-economic conditions. However, the charity monitors carefully the expenditure and legal compliance to ensure funds are used for the conservation outcomes for which they were raised. Our trustees realise that it is incumbent upon them to look for ways to build our capacity for science-based monitoring and risk assessment across the gamut. Most ecosystems and rural livelihoods are being affected by climate change, and the charity is increasingly aware of the need to assess and monitor: biodiversity, flood and fire risk, change to carbon stocks, impact of human migrant, amongst others.

The Charity’s Trustees held an AGM on 8 October 2020.

Investment policy

The Trustees have the power to invest in such assets as they see fit. However, the charity’s current policy is to keep any surplus liquid funds in short-term deposits which can be accessed readily. The charity obtains an average return of approximately 0.05% in interest on these deposits. The charity is would like to improve its interest rate return however this has proved difficult when funds are often required at short notice.

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

RAINFOREST CONCERN

Risk management

The major risks to which Rainforest Concern is exposed are reviewed annually and systems have been established to mitigate those risks. Whenever possible this aspect is covered by insurance. As required the charity has Employers Liability Insurance. The charity ensures all partners, volunteers and employees are aware of the UK Bribery Act of 2010 and operate in a transparent fashion. The Trustees and staff are experienced in the countries in which the charity operates, as such partnerships are forged solely with known trustworthy organisations and individuals. All employees and volunteers are thoroughly briefed before working with overseas partners, insured before travel with immunisation updates and follow UK Foreign and Commonwealth Office travel advice. Funds are only transferred through international in-country bank branches. Land purchase funds are not transferred to the local partners/NGO’s. Funds are handled by the charity’s (often long-standing) legal representatives, and only transferred at the time of sale. Management and project funds are transferred to partners in quarterly transfers and only through international banks. UK banking is low-risk and held in several accounts.

The charity is aware of the possibility of illegal land invasion or government expropriation, and in 25 years have not suffered in this way. The charity endeavours to reduce risk to conservation areas held or supported, by maintaining long-term dialogue with partners and an awareness to governmental policy change, instability and adjustments. As referred to, the key risk reduction strategy is to ensure that local people benefit from the establishment of conservation areas (and projects) with ecosystem services and resources. This also includes land ownership with government level land title registration and national support for conservation concessions.

Reserves policy

It is the policy of the Trustees to retain reserves equivalent to approximately one year’s operating expenditure and to cover any committed grant funding for the forthcoming year. At the year end the reserves held by the charity totalled 1,658,147. Of the total reserves held £80,569 were restricted in their use and £1,577,578 are unrestricted.

Of the unrestricted funds £1,229,879 is invested in rainforest land and a further £2,245 in the charity’s functional fixed assets such as office computers and so accordingly is not available to freely spend on the charity’s day to day activities. These allocations leave £345,454 available for general charity use.

There were no committed grants at the charity’s year end the operating expenditure (expenditure excluding discretionary grants) in 2020 totalled £275,453. The free reserves of the charity exceed this target figure and the trustees consider that the charity has sufficient reserves to be able to cover short-term income fluctuations and to carry out the plan for future action detailed in this report.

Grant making policy

The Trustees consider grant making an effective means of delivering aid using local partners. Local partners have access to facilities, expertise, staff or other resources, in the field and they may be better placed to deliver, speedily and effectively. The projects which the Charity chooses to support are recommended to us, in particular by our partner organisations.

Plans for the future

The Charity will develop and support its existing projects whilst looking for and responding to new conservation priorities and opportunities in the coming year with funding sought for these purposes. The charity’s website will be regularly updated on at least a monthly basis and with emphasis to provide an imagerich and educational website.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees are clear that short-term achievements are high and even exceptional when benchmarked against other conservation organisations of similar size. However due the rapidly developing global volatility around climate change, food supply and ecological population displacement, amongst other issues, they are also clear that the charity needs to develop a clear vision and strategy for long-term conservation outcomes, that include ensuring conservation benefits are enjoyed by local people. This requires the charity to look for additional research support, to demonstrate how ecosystem services sustain livelihoods and agriculture and wellbeing.

Fundraising

In January (2020) we hired a professional fundraiser but unfortunately after 9 months this proved to be unsuccessful. The charity does not contract with any commercial fundraising agencies. Accordingly, no member of the charity or agency acting on its behalf is a member of a fundraising regulatory body or bound by a regulatory standard, and the charity does not have regulatory procedures in place covering fundraising. No complaints have been received by the charity from its fundraising.

The charity only sends fundraising material and updates on the charity’s work to individuals who have actively opted in to receive contact of this nature from the charity in order to protect the public from intrusion. We aim to protect vulnerable members of the public from persistent contact by ensuring that updates on the charity’s activities are not too frequent, and are controlled at chief executive level.

Our approach to fundraising is that we never cold call members of the public as potential donors although we do reach out to corporate entities and charitable trusts. We reach the public through the production of our Rainforest Review and aim to raise funds by valuing long term relationships with our funders.

Auditor

In accordance with the company's articles, a resolution proposing that Begbies be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' r eport was approved by the Board of Trustees.

.............................. O Whal l ey Trustee Dated: .........................

RAINFOREST CONCERN

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RAINFOREST CONCERN

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RAINFOREST CONCERN

Opinion

We have audited the financial statements of Rainforest Concern (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, 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:

Basis for opinion

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.

Conclusions relating to going concern

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 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.

RAINFOREST CONCERN

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RAINFOREST CONCERN

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees 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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

RAINFOREST CONCERN

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RAINFOREST CONCERN

Extent to which the audit was 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 material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

– Agreement of the financial statement disclosures to underlying supporting documentation to assess compliance with those laws and regulations having an impact on the financial statements;

– Enquiries and confirmation of management and the trustees as to their identification of any non-compliance with laws or regulations, or any actual or potential claims;

– Review of minutes of the Board meeting during the period;

– incorporating unpredictability into the nature, timing and/or extent of testing.

– Evaluation of the selection and application of the accounting policies chosen by the charity.

– In relation to the risk of management override of internal controls, by undertaking procedures to review journal entries and evaluating whether there was evidence of bias that represented a risk of material misstatement due to fraud; and

– We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion.

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matter s

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

RAINFOREST CONCERN

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RAINFOREST CONCERN

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

25/10/2021 Begbies ......................... Chartered Accountants Statutory Auditor 9 Bonhill Street London EC2A 4DJ

Begbies is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

RAINFOREST CONCERN

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Current financial year
Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
179,083
193,020
Investments - interest
228
-
Total income
179,311
193,020
Expenditure on:
Raising funds
4
18,450
25,380
Charitable activities
Conservation
5
177,003
217,999
Total charitable expenditure
177,003
217,999
Total resources expended
195,453
243,379
Net (expenditure)/income for the year/
Net movement in funds
(16,142)
(50,359)
Fund balances at 1 January 2020
1,593,720
130,928
Fund balances at 31 December 2020
1,577,578
80,569		 Total
2020
£
372,103
228
372,331
43,830
395,002
395,002
438,832
(66,501)
1,724,648
1,658,147		 Total
2019
£
850,780
484
851,264
30,293
655,754
655,754
686,047
165,217
1,559,431
1,724,648

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

RAINFOREST CONCERN

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Prior financial year

Unrestricted
Restricted
funds
funds
2019
2019
Notes
£
£
Income from:
Donations and legacies
3
347,787
502,993
Investments - interest
484
-
Total income
348,271
502,993
Expenditure on:
Raising funds
4
30,293
-
Charitable activities
Conservation
5
204,155
451,599
Total charitable expenditure
204,155
451,599
Total resources expended
234,448
451,599
Gross transfers between funds
75,059
(75,059)
Net (expenditure)/income for the year/
Net movement in funds
188,882
(23,665)
Fund balances at 1 January 2019
1,404,838
154,593
Fund balances at 31 December 2019
1,593,720
130,928		 Total
2019
£
850,780
484
851,264
30,293
655,754
655,754
686,047
-
165,217
1,559,431
1,724,648

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

RAINFOREST CONCERN

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
11
Land for conservation
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
16
Unrestricted funds
Designated funds
17
General unrestricted funds
The accounts were approved by the Trustees on ............		 2020
£
£
2,245
1,229,879
1,232,124
19,218
423,248
442,466
(16,443)
426,023
1,658,147
80,569
1,232,124
345,454
1,577,578
1,658,147
.............		 2019
£
£
3,069
1,229,879
1,232,948
58,313
455,165
513,478
(21,778)
491,700
1,724,648
130,928
1,232,948
360,772
1,593,720
1,724,648

.............................. O Whal l ey Trustee

RAINFOREST CONCERN

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
21
Investing activities
Purchase of tangible fixed assets
Purchase of land for conservation
Interest received
Net cash generated from/(used in)
investing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
-
-
228		 2019
£
£
£
(32,145)
261,192
(1,006)
(126,017)
484
228
(126,539)
(31,917)
134,653
455,165
320,515
423,248
455,165

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Rainforest Concern is an unincorporated organisation constituted under a Trust Deed dated 15th November 1993. It is registered as a Charity with the Charity Commission.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's trust deed, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected.

1.5 Resources expended

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure.

Fundraising costs include those costs incurred in raising the profile of the charity and its work , and other expenses incurred in obtaining funding.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

The charity has only one charitable activity which is conservation.

Direct project costs includes payments to maintain and preserve the charity's own conservation land, undertake other charitable activities and the costs visiting the charity's own projects. Costs are recognised when incurred by the charity. Where costs, such as salaries, are incurred in part for direct activities and in part for support activities an estimate is made of time spent on each activity.

Grants to partner projects are recorded when the partner is informed that they will be receiving funding.

Governance costs are the costs associated with the governance arrangements of the charity.

Support costs are the general costs incurred in support of meeting the charity's objectives and in monitoring and awarding grants. There is a single charitable objective of conservation and all support costs are accounted for within this category.

All cost include any irrecoverable VAT.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment 20% straight line Computers 33% reducing balance Vehicles 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Land for conservation

Land for conservation is land acquired by the charity and is recognised at cost. The freehold land has not been depreciated as allowed by the SORP for assets with indefinite lives. The assets are reviewed annually for impairment

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks .

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

Carrying value of land for conservation

In accordance with FRS 102 the land for conservation is recorded at cost. The charity has not opted for a policy of revaluation with regards to the conservation land owned, but does review for impairment annually. Given the inherent difficulties in valuing such land, and so ensuring the land is not impaired, a level of judgement is required. In considering whether there has been an impairment the physical condition of the land is considered in addition to the continuing legal rights of ownership.

3 Donations and legacies

Unrestricted
Restricted
TotalUnrestricted
Restricted
funds
funds
funds
funds
2020
2020
2020
2019
2019
£
£
£
£
£
Donations and gifts
179,083
193,020
372,103
223,655
502,993
Legacies receivable
-
-
-
124,132
-
179,083
193,020
372,103
347,787
502,993
Raising funds
Unrestricted Restricted
Total
funds
funds
2020
£
£
£
Fundraising and publicity
F undraising and donor events
3,830
-
3,830
Fundraising agents
13,525
-
13,525
Advertising and newsletter
1,095
-
1,095
Staff costs
-
25,380
25,380
18,450
25,380
43,830		 Total
2019
£
726,648
124,132
850,780
Total
2019
£
17,025
9,361
3,907
-
30,293

4 Raising funds

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

5 Charitable activities

Conservation
Activities undertaken directly
Staff costs
Overseas field expenses
Maintenance and protection of owned land
Consultants and freelance fees
Grant funding of activities (see note 7)
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 December 2019
Unrestricted funds
Restricted funds		 2020
£
42,728
5,569
39,706
9,345
97,348
163,379
126,475
7,800
395,002
177,003
217,999
395,002		 2019
£
51,016
9,805
79,925
3,750
144,496
358,119
145,339
7,800
655,754
204,155
451,599
655,754

6 Conservation

Conservation

Grant giving

The charity achieves its objects by awarding grants to partner projects to protect the rainforest and its inhabitants and purchase land for conservation purposes. Grants for conservation purposes and research are identified as grants in these accounts, regardless of whether the activity takes place on the charity's or third party land.

Activities undertaken directly by the charity

Where suitable partners cannot be found for land purchase the charity may purchase this in its own name. Costs for the maintenance and protection of this land along with monitoring this, and all partner projects, are recorded under activities undertaken directly, except when paid as grants to partners.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Grants payable

Grants to institutions:
Urpiano Project - Costa Rica
Munnarakkunnu Trust - India
The Heart of Belize & Selvana - Belize
Los Cedros - Ecuador
Forecos - Chile
Decoin - Ecuador
Spectacled Bear Conservation Society -Peru
Carpathia Foundation - Romania
Indigenous Peoples Cultural Support Trust - Brazil
Gaia Amazonas - Colombia
Fundation Entropica - Colombia		 2020
£
15,330
1,060
74,090
18,826
19,358
5,015
-
-
10,000
19,700
-
163,379		 2019
£
15,655
96,873
57,276
-
52,927
4,672
6,404
450
10,000
79,965
33,897
358,119

Conservation

The charity carries out its charitable objects through grants to third parties, its own research and conservation activities and by land purchases. Accordingly the level of each type of activity varies across years. During the year the charity had acquired title to land for conservation to the value of £0 (2019: £126,017) in addition to making the above payments for grants, and maintenance and research costs detailed in note 5.

The purchase of land for conservation is shown in the accounts as an addition to land for conservation assets, and funds held by third parties for future purchases are shown in other debtors. The cumulative total of land for conservation purchases and grants in 2020 was £163,379 (2019: £484,136).

Commitments

No grants included in the above figures were unpaid at the current or prior balance sheet date, subject to conditions yet to be met by the recipient.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Support costs

Support costs
Governance
costs
£
£
Staff costs
65,561
-
Depreciation
824
-
Consultancy, legal and professional fees
18,326
-
Rent, rates, utilities and service charges
21,285
-
General expenses
19,138
-
Bank charges and fees
1,341
-
Audit fees
-
7,800
126,475
7,800
Analysed between
Charitable activities
126,475
7,800		 2020
£
65,561
824
18,326
21,285
19,138
1,341
7,800
134,275
134,275		 2019
£
75,250
1,520
17,863
21,280
26,763
2,663
7,800
153,139
153,139

Governance costs includes accrued and paid fees to the auditors of £6,500 excluding VAT (2019- £6,500 excluding VAT) for audit, bookkeeping and gift aid return fees.

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration from the charity during the year. No trustees visited the charity's projects and had their flights and other expenses paid by the charity. No trustee claimed general travel expenses during the current or previous year. For other related party transactions please see note 20.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or
more, not including employer's pension contributions, were:
£70,001-£80,000
£80,001-£90,000		 2020
Number
3
2020
£
121,647
9,942
2,080
133,669
2020
Number
1
-		 2019
Number
2
2019
£
113,840
10,754
1,672
126,266
2019
Number
-
1

Employers' pension contributions of £1,314 were made in total for the higher paid employee (£1,188).

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

11 Tangible fixed assets
Fixtures, Computers Vehicles Total
fittings &
equipment
£ £ £ £
Cost
At 1 January 2020 12,921 1,006 17,950 31,877
At 31 December 2020 12,921 1,006 17,950 31,877
Depreciation and impairment
At 1 January 2020 12,921 332 15,555 28,808
Depreciation charged in the year - 225 599 824
At 31 December 2020 12,921 557 16,154 29,632
Carrying amount
At 31 December 2020 - 449 1,796 2,245
At 31 December 2019 - 674 2,395 3,069
12 Land for Conservation
Land for
conservation
£
At 1 January 2020 and at 31 December 2020 1,229,879
Land for conservation assets are areas of rainforest land owned across Ecuador and Chile. The charity
purchases areas of conservation land in its own name when it is not possible for land to be held by local
partners. The land is held is support of Rainforest Concern's charitable objects and the charity works with
local groups in its maintenance and protection.
Five year purchase summary of conservation land
2020 2019 2018 2017
2016
£ £ £ £
£
Purchases - 126,017 141,336 175,641
61,435

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2020
£
15,958
3,260
19,218		 2019
£
55,113
3,200
58,313

Other debtors includes £3,780 (2019: £15,069) held by third parties for land purchases spanning the year end. No legal commitments were outstanding at either year end in respect of these transactions.

14 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals and deferred income		 2020
£
3,406
1,763
11,274
16,443		 2019
£
6,578
3,100
12,100
21,778

15 Retirement benefit schemes

Defined contribution schemes

The charity operates defined contribution pension scheme s for all qualifying employees under the automatic enrolment rules . The assets of the scheme are held separately from those of the charity in independently administered funds.

The charge to profit or loss in respect of defined contribution schemes was £2,080 (2019 - £1,672).

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January
2019

£
Ecuador Fund
-
Chile Fund
40,681
Carbon Forest Credits
-
Peru Fund
6,174
India Fund
98,869
Costa Rica
-
Belize Fund
5,512
Rainforest Concern General
Fund
3,357
Romania Fund
-
Brazil Fund
-
Colombia Fund
-
Fundraising salary
-
Covid Appeal
-
154,593		 Movement in funds 2019
Incoming
resources
Resources
expended
Transfers Conservation
land
purchases
Balance at
1 January
2020

£
£
£
£
£
39,090
(58,252)
39,841
(20,679)
-
53,040
(90,402)
102,019
(105,338)
-
12,144
(12,144)
-
-
-
-
(6,404)
230
-
-
-
(96,873)
-
-
1,996
-
(15,655)
15,655
-
-
143,936
(57,276)
-
-
92,172
134,783
(20,903)
(117,237)
-
-
-
(450)
450
-
-
-
(10,000)
10,000
-
-
90,000
(83,240)
-
-
6,760
30,000
-
-
-
30,000
-
-
-
-
-
502,993
(451,598)
50,958
(126,017)
130,928		 Movement in funds 2020
Incoming
resources
Resources
expended
Transfers
Balance at
31 December
2020
£
£
£
£
35,962
(65,126)
34,164
5,000
25,000
(21,936)
21,936
25,000
6,107
(6,107)
-
-
-
-
-
-
-
(1,060)
-
936
-
(15,330)
15,330
-
-
(74,090)
-
18,082
100,425
(4,651)
(71,430)
24,344
-
-
-
-
-
-
-
-
-
(4,173)
-
2,587
-
(25,380)
-
4,620
25,526
(25,526)
-
-
193,020
(243,379)
-
80,569

Ecuador Fund To fund three partner projects and land purchase across Ecuador Chile Fund To fund three partner projects and land purchase in Chile

Carbon Forest Credits A carbon offsetting scheme for use with specified carbon offset approved programmes

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

16 Restricted funds

(Continued)

Peru Fund To fund a single project in Peru India Fund To fund a single project in India Costa Rica Fund To fund a single project in Costa Rica Belize Fund To fund a single project in Belize Rainforest Concern General Fund To fund rainforest conservation work undertaken by the charity from Sponsor an Acre funds Romania Fund To fund a single project in Romania Brazil Fund To fund a single project in Brazil Colombia Fund To fund a single project in Colombia Fundraising Salary To fund the cost of employing a fundraiser Covid Appeal To help indigenous groups in Colombia and Brazil Further details of all the projects are contained in the trustees report.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

17 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2019
Resources
expended
Transfers
Balance at
1 January 2020
£
£
£
£
Funds represented by land
and other fixed assets
1,107,444
(513)
126,017
1,232,948
1,107,444
(513)
126,017
1,232,948
The funds designated represent that part of the unrestricted reserve which could
ongoing expenditure.
Analysis of net assets between funds
Unrestricted
reserves
Restricted
reserves
TotalUnrestricted
reserves
2020
2020
2020
2019
£
£
£
£
Fund balances at
31 December
2020 are
represented by:
Tangible assets
2,245
-
2,245
3,069
Land for conservation
1,229,879
-
1,229,879
1,229,879
Current assets/
(liabilities)
345,454
80,569
426,023
360,772
1,577,578
80,569
1,658,147
1,593,720		 Resources
expended
Balance at
31 December
2020
£
£
(824)
1,232,124
(824)
1,232,124
not readily be used for
Restricted
reserves
Total
2019
2019
£
£
-
3,069
-
1,229,879
130,928
491,700
130,928
1,724,648

18 Analysis of net assets between funds

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

19 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases for office space rented, which fall due as follows:

Within one year
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
Aggregate compensation including employer's national insurance and
pension		 2020
£
3,100
2020
£
85,457		 2019
£
3,100
2019
£
102,032

20 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

At the year end key management personnel had received a salary advance of £2,059 (2019: £2,685).

The donations for the year include £0 (2019: £53,040) from the Swiss Planet Foundation, an organisation of whose board the Chief Executive of Rainforest Concern is a member. The grants are given for specific projects. Of the £53,040 received in 2019 the entire sum was restricted to land purchases in Chile.

Total unrestricted donations from trustees and their connected parties were in aggregate £48,674 (2019: £69,729).

During the year under review, Oliver Whalley received £3,200 for the production of fundraising materials including a video.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21
Cash generated from operations
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in statement of financial activities
(Gain)/loss on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
(Decrease) in creditors
Cash (absorbed by)/generated from operations
22
Analysis of changes in net funds
The charity had no debt during the year.		 2020
£
(66,501)
(228)
-
824
39,095
(5,335)
(32,145)		 2019
£
165,217
(484)
389
1,131
100,349
(5,410)
261,192