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2022-03-31-accounts

Charity Registration No. 1032154

Company Registration No. 02874642 (England and Wales)

TR�S FOR CITIES

TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

TR�S FOR CITIES (A COMPANY LIMITED BY GUARANT �)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees
 B Bardswell
J Capon (Chair)
S Gray
A MacGillivray
B Miller
A Shah
J Thrift
D Woodbine
S Workman
Chief Executive
D Elliott
Charity number 1032154 (England and Wales)
Company number 02874642 (United Kingdom)
Principal address and Registered officePrince Consort Lodge
Kennington Park Place
London
SE11 4AS
Auditor Sayer Vincent LLP
Chartered Accountants and Statutory Auditor
Invicta House
108-114 Golden Lane London
London
EC1Y 0TL
Bankers The Co-operative Bank p.l.c. (main day to day bankers)
P.O. Box 101
1 Balloon Street
Manchester
M60 4EP
CAF Bank
25 Kings Hill Avenue
Kings Hill, West Malling
Kent
ME19 4JQ
Triodos Bank
Deanery Road
Bristol
BS1 5AS

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TR�S FOR CITIES

CONTENTS

Page

Trustees' report
 3

Independent auditor's report
 12

Statement of financial activities
 16

Balance sheet
 17

Statement of cash flows
 18

Notes to the accounts


 19

2

TR�S FOR CITIES TRUST�S’ REPORT

The Trustees are pleased to present their report and accounts for the year ended 31 March 2022.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102

Our Mission

‘To improve people’s lives by planting trees in towns and cities‘

We are the only UK charity working at a national and international scale to improve lives by planting trees in cities. We get stuck in with local communities to cultivate lasting change in their neighbourhoods – whether it’s revitalizing forgotten spaces, creating healthier environments or getting people excited about growing, foraging and eating healthy food.

Objectives and Activities (including Achievements and Performance)

Our organisational goal is to create healthy, accessible, functional and resilient urban forests created for today and future generations.

Trees for Cities wants to enable and inspire a new generation of individuals and communities who are both resourced and motivated to plant, protect and promote urban trees. We do this by working closely with landowners, partners and funders to deliver transformational change in towns and cities – inspiring the next generation by greening schools, sharing ideas and knowledge and running inclusive community tree planting events across the UK.

Our objects, as set out in our governing document are:

“The Charity is established to advance the education of the public in the appreciation of trees and nature, particularly with regard to their social and environmental value by the planting, protection and promotion of trees and green spaces everywhere and in particular in towns and cities.”

The public benefits that shape our annual activities continue to be environmental protection and improvement, education, and health.

In shaping our objectives for the year and planning our activities, the trustees have given consideration to the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

What we achieved in 2021-22:

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TR�S FOR CITIES TRUST�S’ REPORT

Covid-19 pandemic

During the year, covid restrictions were reduced compared to 2020-21. As such, from all the efforts in 201920 to be flexible in our approach, we were prepared for the restrictions that were in place and were able to deliver our work as planned in the year. As we have moved back towards pre-pandemic conditions, we have implemented hybrid working arrangements for the roles that allow for this. With continued uncertainties about the year ahead and beyond, the following existing strategic initiatives have been useful during the pandemic and we continue to employ them:

  1. Increase focus on multi-annual planning via the securing of more and larger multi-annual grants and partnerships.

  2. Ensure a strategic approach is taken to key funder relationships.

  3. Grow and develop services and programmes to provide more funding options.

  4. Aim to reassess our reserves policy and grow unrestricted where possible.

  5. We have committed to multi year planning in our strategy process and will commit to this in our operational plans.

Plans for future periods

We launched a new strategy “The Turn of Trees” in June 2022. Following from this, a selection of our targets for 2022-23 are:

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TR�S FOR CITIES TRUST�S’ REPORT

Financial Review

The Statement of financial activities (SoFA), Balance sheet and Statement of cash flows have been prepared in accordance with the Charities SORP FRS 102.

Trees for Cities has had a successful year, delivering the largest budget in our history. Our growth has been mainly in our UK programme, which has been largely enabled by a multi year grant from the National Lottery Heritage Fund via the Green Recovery Challenge Fund Forgotten Places grant and other large supporters such as the Queens’ Green Canopy and the Esmée Fairburn Foundation. Our UK work was also boosted by an increase in our offsetting work due to a partnership with Ocado, which will continue into 2022-23. In addition, we fully launched the Trees for Streets programme, giving Trees for Cities a new revenue stream, that we plan to grow over the coming years.

Trees for Cities saw an increase in our total income of £1,125,287 (40%) to £3,915,119 (2020-21: £2,789,832 ). Due to the nature of some of our partnerships, differences arise between when income is recognised in the accounts and when those funds are spent, which can create a surplus or deficit in a given year. In 2020-21, we had planned drawdowns of quite significant amounts of reserves – the two largest of these being £400,021 from our designated funds relating to our Schools Programme, and £172,350 of unrestricted reserves received from the Guardian’s 2019 Christmas charity appeal. In 2021-22, we again drew down on designated funds relating to our Schools Programme (£448,211), but we also received income in advance for our Trees for Streets and Environmental offsetting programmes that we have designated to use in future years. Therefore, whilst levels of activity increased in the year, they did not do so to the same extent as income.

Donations increased in the year by £79,478 to £623,989 (£2019-20: £544,511). This is split into individual donations, corporate donations and core grants. Individual donations increased from £172,019 in 2020-21 to £302,874 in 2021-22, an increase of £130,855. This was due to the success of our Big Give campaigns, a large one-off in memory donation, and an increase in payroll giving. We also saw increases in corporate donations, trust and foundation donations and core grants. Meanwhile, we received £6,701 of core grants relating to the furlough grant scheme in 2021-22, a reduction of £200,621 compared to 2020-21 as the scheme wound down and all our staff returned to work.

Income for our charitable activities increased by £1,061,281 to £3,266,999 in year, with increases in almost every programme. The biggest increase in funding (£861,212) was in our UK Urban Forest work, mainly due to multi year grant funding from the National Lottery Heritage Fund’s Green Recovery Challenge Fund and DEFRA’s Urban Tree Challenge fund, as well as an increase in our environmental offsetting programme (increasing by £227,916) . London urban forests , remained stable, increasing slightly to £631,320 (2020-21 £598,363), with some increases in grants, against reductions in corporate income. International urban forests received a grant from the Lund Trust, as well as some income from corporate partners meaning income increased from £5,000 in 2020-21 to £95,020 in 2021-22.

Trees for Streets , an online community street tree funding platform went live in the year with income of £268,334 (2020-21 £163,200). We received grants from the Green Recovery Challenge Fund (£213,034) and income from eight councils (£55,300). We spent £324,171 in 2021-22, using up restricted funds from 2020-21.

In our Schools programme, income recognised in the year reduced by £28,042 to £619,651 (2020-21: £647,693). The size of our programme and its funding base remained similar in 2021-22 compared to 202021, which is reflected in the income remaining stable.

Other trading activities have changed only slightly, reducing from £20,204 to £14,453. We have reclassified corporate volunteering days and environmental offsetting for 2021-22 and the comparative from 2020-21 as charitable activities as these are primary purpose activities, not non-charitable trading activities, and so the SoFA now fully reflects this.

Expenditure increased in year to £4,041,686 (2020-21: £3,423,236 ). This was driven by increases in the UK Urban Forests programme, as well as the new Trees for Streets programme, The charity spent £349,740 on raising the charity’s total income of £3,915,119. Therefore, for every £1 spent on fundraising, over £11 of revenues were generated.

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TR�S FOR CITIES TRUST�S’ REPORT

For Urban Forests, in London, due to covid restrictions being lifted, more projects were delivered by our teams and volunteers, instead of contractors that had to be used in 2020-21, which was the main contributing factor in reducing expenditure by £189,456 to £738,039 (2020-21 £927,495). For the UK programme, costs increased by £550,928 to £1,099,632 (2020-21: £548,704), this was largely driven by the increased numbers of trees planted – almost 200,000 compared to 130,000 in 2020-21 – mainly due to the Green Recovery Challenge Fund planting and increases in environmental offsetting planting mentioned above. The International programme expenditure increased in year from £15,083 to £116,611, as the grant funding meant we could plant more trees and the reduction in covid restrictions enabled more volunteering activities overseas too.

The Schools programme reduced expenditure by £103,758, spending £1,413,493 (2020-21: £1,517,251 ). The reduction is mainly due to a decrease in the size of the delivery team through streamlining delivery.

Support costs, as detailed in note 7a, increased by £31,218 to £269,596 (2020-21: £238,378). This was largely driven by increases in IT costs as our staff numbers have increased, plus increases in organisation-wide events as we could hold these again, and facilities costs as more people returned to the office.

Investment policy

Trees for Cities may invest funds at the discretion of the board (as per the Memorandum and Articles of Association). The trustees review the charity’s cash levels, and investment opportunities on an ongoing basis. The investment objective for short-term investments (funds accessible within 12 months) is to allow funds to be readily available, and with the minimum risk.

In line with this objective, cash is held in bank accounts that allow instant access. During the year funds were held with The Co-operative Bank and CAF Bank. Cash was also held with Triodos Bank under a 33-day notice period, Shawbrook bank under a 60-day notice period, and with Shawbrook Bank and Triodos Bank under a 12 month fixed term.

Should the trustees consider that cash reserves sufficiently exceed the level required to finance the charity’s forthcoming activities in a sustainable way, funds may be invested on a longer-term basis to generate further cash for the charity.

The investment objective for long-term investments (funds not accessible within 12 months) will be to generate a return in excess of inflation over the long-term, and to minimise risk by spreading investments across more than one asset class.

The trustees have set ethical criteria for long-term investments, primarily that Trees for Cities will not invest in companies whose actions run counter to the charity’s own charitable objectives.

We hold a discretionary investment portfolio of 100% government backed bonds with Quilter Cheviot Limited Jersey, with a value of £487,709 at 31 March 2022. This investment is very low risk and the cash can be withdrawn with a few days notice. Our investment risk level will be reviewed in 2022-23 in light of the current high inflation environment.

Reserves policy and going concern

Plans for 2022-23 and beyond anticipate further growth for Trees for Cities. We were able to secure over 60% of our planned income for 2022-23 by the end of July and expect to secure the balance over the remaining eight month period. Our current forecasts predict a surplus of unrestricted funds at the end of the year. Whilst the external environment is uncertain due to a potential recession and high inflation, we have identified this as a principal risk and are taking steps to reduce its impact as detailed in the principal risks and uncertainties section. We plan to hold reserves in the region of the ideal amount of £1,140,000 through the year and we will continue to monitor our financial performance and future reserves position.

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TR�S FOR CITIES TRUST�S’ REPORT

Accordingly, we consider that the Charity has adequate resources to continue in operational existence for the foreseeable future and we believe that we continue to be a going concern.

Trees for Cities holds unrestricted reserves in order to:

Our reserves policy is hold no less than the cost of winding up the organisation in regards to meeting financial obligations such as redundancy, rent and contract payments.

The maximum level of unrestricted reserves that the organisation will hold will be the equivalent cost of six months of core operating expenditure (e.g. salaries, rent, contracts) plus the cost of winding up the organisation.

The planned level of unrestricted reserves that the organisation will hold will be the equivalent to the cost of three months of core operating expenditure (e.g. salaries, rent, contracts) plus the cost of winding up the organisation.

If the unrestricted reserves exceed the maximum level, the management team will put in place a plan to spend down the additional amount unless such an amount has been ring-fenced for future investment or expansion.

The amounts for 2022-23 of the above-mentioned reserve levels are:

The management team and Trustees will monitor the unrestricted reserve level at quarterly intervals to ensure that it does not fall below the minimum level.

The amounts for each level will be recalculated at the start of each financial year.

The trustees’ policy, after assessing the above requirements and calculating the costs of winding up, is to hold general unrestricted reserves of between £590,000 and £1,690,000. As at the end of 2021-22 general unrestricted reserves held by the charity were £1,046,778.

A designated fund of £106,946 has been set aside by the Trustees for verification and ongoing checks for our offsetting programme, funded by the fee paid by corporates for their offsetting. This will be spent over the first five years after the trees are planted. A designated fund of £55,300 has also been set aside for the Trees for Streets programme, as this was fully grant funded in 2021-22. This represents income from councils and will be used to fund the continuing work of the programme.

At the end of 2021-22 total funds held by the charity were £1,412,512 (2020-21: £1,552,939). This consisted of restricted funds of £203,488 (2020-21: £224,686), designated funds of £162,246 (2020-21: £448,211 ) and general unrestricted funds of £1,046,778 (2020-21: £880,042 ). The charity’s unrestricted free reserves were £1,031,367 (2020-21: £849,065 ). The difference between the unrestricted funds and the free reserves is due to our tangible assets which total £15,411 (2020-21: £30,977 ).

The Trustees are responsible for authorising the application of the charity’s reserves. At all times they will have regard to restrictions placed on the application of these reserves and are responsible for ensuring that they are applied in accordance with the stated restrictions.

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TR�S FOR CITIES TRUST�S’ REPORT

Principal risks and uncertainties

The trustees and senior management team identify and agree the key risks facing the charity at the start of each financial year and these are entered onto a risk register. Each risk is assessed according to its likelihood and potential impact, and appropriate actions and procedures are agreed.

At each board meeting the trustees review the risk register and agree future actions. Should any additional key risks be identified, the trustees will agree how they should be managed and if appropriate will be added to the risk register.

Current principal risks in the risk register, once impact and likelihood have been considered, are as follows:

Risk Mitigation
External
Significant recession within the next 12 months and
a high inflation environment		 Focus on multi annual planning and partnerships,
diverse sources of income, grow and develop
different
services
and
programmes,
review
increase in prices regularly & adjust budgets
accordingly
Financial
Inappropriate use or loss of funds
Loss of key donors		 Ensure ongoing review of financial procedures and
controls to ensure they meet the charity’s needs
Maintain a diverse funding base, build surpluses
into budgets, avoid over-reliance on a single funder
Operational
Loss of staff, particularly of key individuals
Damage (and financial liability) to past projects due
to weather, vandalism, lack of maintenance etc.
Charity grows too quickly		 Encourage sharing of information across the
organisation,
create
succession
plans
for
managers, review salary and benefits policy on a
regular basis.
Ensure reserves include sufficient funds to cover
potential
losses,
ensure
tree
replacements
requirements are clearly stipulated with partners
for UK projects, monitor projects to pick up losses
early, use climate resilient species where possible
Regularly review structure, plans, resourcing and
project delivery. Maintain open communications
with funders

Fundraising

Trees for Cities’ aim is to raise funds in a respectful way that is consistent with our values. The charity is a member of the Institute of Fundraising, and is registered with the Fundraising Regulator. In all of our fundraising we work diligently to comply with the Code of Fundraising Practice and to uphold the standards it promotes. We have received no complaints in the year.

Trees for Cities has a safeguarding policy in place which commits the charity to ensuring that all children and adults who use our services are not abused and that working practices minimise the risk of abuse. All Trees for Cities staff and volunteers have a duty to identify abuse and report it. All staff are given annual training on our safeguarding procedures by our safeguarding officer.

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TR�S FOR CITIES TRUST�S’ REPORT

TfC does not contract out or outsource fundraising activities to third parties – all fundraising is undertaken inhouse. Where a member of the public raises funds for the charity through a self-arranged event, TfC will ensure that any messaging and materials used are in line with organisational standards.

Structure, governance and management

The charity was constituted as a company limited by guarantee, set up on 24 November 1993, and is governed by its Memorandum and Articles of Association.

In the year Trees for Cities continued the Trees for Streets programme jointly with Start With Local, a social enterprise that is a design led delivery agency working to help communities to thrive. We will continue to review the working arrangements for this programme as it evolves.

The board of trustees administers the charity. The trustees are directors for the purpose of company law. All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 10 to the accounts.

In the year, Trees for Cities set up a finance sub-committee, chaired by the treasurer which reviews and makes recommendations to the board of trustees in relation to annual budgets, salaries, cash, investments, reserves, accounting policies and controls.

The Chief Executive is appointed by the trustees to manage the day to day running of the charity and delegates as necessary to the senior management team. The board of trustees are responsible for governance, and assist with strategy and policy.

The Chair of the board of trustees is appointed by the trustees.

The charity’s trustees are:

B Bardswell (appointed 19 April 2022) J Capon (Chair) S Gray A MacGillivray B Miller A Shah J Thrift D Woodbine (Treasurer) S Workman

S Chapleau served during the year and resigned on 23 September 2021.

Trustee recruitment, induction and training

A Board Skills Audit is undertaken approximately every three years, in line with the development of the strategic plan. The audit is used to determine if any new skills and knowledge are required to deliver the new plan.

Should any gaps in skills or knowledge be identified and a new trustee position is required, a recruitment process will be undertaken. Recruitment is open to all sections of the community, and candidates are interviewed by existing trustees and appointed on merit based on a majority decision.

New trustees are made aware of their legal obligations, the content of the Memorandum and Articles of Association, the Charity’s history, culture and philosophical approach, the current year’s business and financial plan. New trustees also receive a copy of the most recent Annual Report and statutory accounts, and appropriate leaflets published by the Charity Commission with the opportunity to discuss them.

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TR�S FOR CITIES TRUST�S’ REPORT

Remuneration policy for key management personnel

Trees for Cities is an equal opportunities employer and applies objective criteria to assess merit. The Board sets the terms and conditions for staff on an annual basis. A benchmarking process is undertaken periodically to assess each role in the external market, to ensure that the charity is paying all employees, including senior management, fairly and competitively for similar roles within the sector.

Data Protection – General Data Protection Regulations

The General Data Protection Regulations (GDPR) became law in May 2018. The regulations set out the responsibilities of all organisations in relation to the personal data that they collect and hold, and are designed to enhance the rights of individuals in controlling their own data.

Trees for Cities places great importance on the security of supporter data and personal information. The charity is registered with the Information Commissioners Office and has introduced a programme that will enable demonstration of compliance with the spirit and intention of GDPR, with the required management structures in place to manage data risks and integrate governance of these risks into daily management.

For information on how the charity uses and protect personal data, please see our Privacy Policy: https://www.treesforcities.org/privacy-policy.

Information Security

The confidentiality, integrity and availability of information, in all its forms, are critical to the charity’s work. In 2018 the information security policy was updated to bring it in line with GDPR legislation.

Anti-Fraud, Bribery and Corruption Policy

Strong internal and financial controls and robust financial management are essential to protect the charity against growing threats from external fraudulent activities and from any internal risk of funding misappropriation. Trees for Cities’ system of internal controls is based on an ongoing process designed to identify the principal risks, to evaluate the nature and extent of those risks, and to manage them effectively. The controls will undergo a full review in 202223.

The charity’s anti-fraud, bribery and corruption policy specifies the controls and procedures required to prevent and detect fraud and dishonesty, investigate any allegations that arise, and take appropriate action where necessary. It also stipulates procedures for due diligence and verifying the end use of charitable funds to minimise exposure to risk when passing charitable funds to external partners.

Statement of responsibilities of the trustees

The trustees (who are also directors of Trees for Cities for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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TR�S FOR CITIES TRUST�S’ REPORT

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2022 was 8 (2021: 9). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP continued as the charitable company's auditor during the year, as approved by the board of trustees.

The trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on date and signed on their behalf by

D Woodbine

Treasurer

Dated: 14 September 2022

11

TR�S FOR CITIES Independent auditor’s report to the members of Tr �s for Cities

Opinion

We have audited the financial statements of Trees for Cities (the ‘charitable company’) for the year ended 31 March 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and 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 charitable company 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 Trees for Cities' 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 trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

12

TR�S FOR CITIES Independent auditor’s report to the members of Tr �s for Cities

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 are set out below.

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TR�S FOR CITIES Independent auditor’s report to the members of Tr �s for Cities

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

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TR�S FOR CITIES Independent auditor’s report to the members of Tr �s for Cities

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Holden (Senior statutory auditor)

5 October 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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TR�S FOR CITIES

Statement of financial activities (incorporating an income and expenditure a �ount) For the year ended 31 March 2022

Note
Income from:
Donations
2
Charitable activities
3
Urban forests - London
Urban forests - Other UK cities
Urban forests - International
Trees for Streets
Schools
Other trading activities
4
Investments
5
Other
6
Total income
Expenditure on:
Raising funds
7a
Charitable activities
Urban forests - London
Urban forests - Other UK cities
Urban forests - International
Trees for Streets
Schools
Total expenditure
Net income / (expenditure) before
net gains / (losses) on investments
Net gains / (losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
£
377,263
404,294
821,711
21,700
55,300
519,751
14,453
9,678
-
2,224,150
274,007
463,882
268,772
30,993
31,352
1,260,513
2,329,519
(105,369)
(13,860)
(119,229)
1,328,253
1,209,024		 Restricted
£
246,726
227,026
830,963
73,320
213,034
99,900
-
-
-
1,690,969
75,733
274,157
830,860
85,618
292,819
152,980
1,712,167
(21,198)
-
(21,198)
224,686
203,488		 2022
Total
£
623,989
631,320
1,652,674
95,020
268,334
619,651
14,453
9,678
-
3,915,119
349,740
738,039
1,099,632
116,611
324,171
1,413,493
4,041,686
(126,567)
(13,860)
(140,427)
1,552,939
1,412,512		 Unrestricted
£
443,720
384,844
547,262
-
-
305,794
20,204
12,118
7,281
1,721,223
283,580
717,031
249,490
10,058
-
1,159,734
2,419,893
(698,670)
2,603
(696,067)
2,024,320
1,328,253		 Restricted
£
100,791
213,519
244,200
5,000
163,200
341,899
-
-
-
1,068,609
47,708
210,464
299,214
5,025
83,415
357,517
1,003,343
65,266
-
65,266
159,420
224,686		 2021
Total
£
544,511
598,363
791,462
5,000
163,200
647,693
20,204
12,118
7,281
2,789,832
331,288
927,495
548,704
15,083
83,415
1,517,251
3,423,236
(633,404)
2,603
(630,801)
2,183,740
1,552,939

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 21a to the financial statements.

16

Company no. 02874642

Balance sh�t As at 31 March 2022

TR�S FOR CITIES

Note
Fixed assets:
Tangible assets
14
Investments
15
Current assets:
Debtors
16
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within one year
17
Net current assets
Total net assets
The funds of the charity:
21a
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Total unrestricted funds
Total charity funds		 £
1,147,252
1,819,406
2,966,658
(2,057,266)
162,246
1,046,778		 2022
£
15,411
487,709
503,120
909,392
1,412,512
203,488
1,209,024
-
1,412,512		 £
690,788
2,286,108
2,976,896
(1,906,672)
448,211
880,042		 2021
£
30,977
451,738
482,715
1,070,224
1,552,939
224,686
1,328,253
1,552,939

Approved by the trustees on 14 September 2022 and signed on their behalf by

D Woodbine Treasurer

17

TR�S FOR CITIES

Statement of cash flows For the year ended 31 March 2022

Cash flows from operating activities
Net income/(expenditure) for the reporting
period
(as per the statement of financial activities)
Depreciation charges
Losses/(gains) on investments
Dividends and interest from investments
Profit on the disposal of fixed assets
(Increase)/decrease in debtors
Increase in creditors
Net cash (used in)/provided by operating
activities
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from the sale of fixed assets
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash (used in)/provided by investing
activities
Change in cash and cash equivalents in the
year
Cash and cash equivalents at the beginning of
the year
Cash and cash equivalents at the end of the
year
Analysis of cash and cash equivalents
Cash at bank and in hand		 2022
£
(140,427)
15,566
13,860
(9,678)
-
(456,464)
150,594
(426,549)
9,678
-
-
135,000
(184,831)
(40,153)
(466,702)
2,286,108
1,819,406
At 1 April
2021
Cash
flows
£
£
2,286,108
(466,702)		 2021
£
(630,801)
15,642
(2,603)
(12,118)
(7,281)
678,300
683,039
12,118
9,925
(11,295)
76,496
(41,915)
Other non-cash
changes
£
-
724,178
45,329
769,507
1,516,601
2,286,108
At 31 March
2022
£
1,819,406

18

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

1 Accounting policies

a) Statutory information

Trees for Cities is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address and principal place of business is Prince Consort Lodge, Kennington Park Place, London, SE11 4AS.

b) Basis of preparation

The financial statements have been prepared 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) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. Please refer to the trustees' annual report, specifically the financial review and the reserves policy where it sets out how the charity is operating within its reserves policy target levels of reserves.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

When donors specify that incoming resources given to the charity must be used in future accounting periods, the income is deferred to those periods.

When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.

When donors specify that incoming resources are for particular restricted purposes, which do not amount to preconditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

19

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

Accounting policies (continued)

f) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Raising Funds 11.99%
Urban forests - London 21.94%
Urban forests - Other UK cities 9.20%
Urban forests - International 2.66%
Trees for Streets 5.19%
Schools 32.73%
Support costs 14.50%
Governance costs 1.80%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

20

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

Accounting policies (continued)

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

plant and machinery 3 years
fixtures, fittings and equipment 3-5 years
motor vehicle 3 years

l) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

m) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

p) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

q) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

r) Pensions

The charity operates a defined contribution pension scheme. Contributions payable for the year are charged in the Statement of Financial Activities as they fall due.

s) Employee benefits

Termination benefits are recognised as an expense when the charity is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the charity has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.

21

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

2 Income from donations

Unrestricted
£
Donations - individuals
290,734
Donations - trusts & foundations
7,000
Donations - corporate partners
50,828
Grants - furlough
6,701
Grants - other
22,000
377,263
3 Income from Charitable activities
Unrestricted
£
Corporate partners
234,794
Grants
-
Local government
169,500
Urban forests - London
404,294
Corporate partners
821,711
Grants
-
Urban forests - Other UK cities
821,711
Corporate partners
21,700
Grants
-
Urban forests - International
21,700
Grants
-
Local government
55,300
Trees for Streets
55,300
Corporate Partners
230,251
Grants
-
Schools
92,250
Local government
197,250
Schools
519,751
Total income from charitable activities
1,822,756		 Restricted
£
12,140
30,500
114,993
-
89,093
246,726
Restricted
£
-
227,026
-
227,026
-
830,963
830,963
-
73,320
73,320
213,034
213,034
-
63,700
36,200
-
99,900
1,444,243		 2022
Total
£
302,874
37,500
165,821
6,701
111,093
623,989
2022
Total
£
234,794
227,026
169,500
631,320
821,711
830,963
1,652,674
21,700
73,320
95,020
213,034
55,300
268,334
230,251
63,700
128,450
197,250
619,651
3,266,999		 Unrestricted
£
169,619
-
63,421
207,322
3,358
443,720
Unrestricted
£
291,844
-
93,000
384,844
547,262
-
547,262
-
-
-
-
-
-
285,594
200
20,000
-
305,794
1,237,900		 Restricted
£
2,400
-
47,597
-
50,794
100,791
Restricted
£
4,994
146,426
62,099
213,519
-
244,200
244,200
-
5,000
5,000
163,200
-
163,200
30,000
178,599
130,550
2,750
341,899
967,818		 2021
Total
£
172,019
-
111,018
207,322
54,152
544,511
2021
Total
£
296,838
146,426
155,099
598,363
547,262
244,200
791,462
-
5,000
5,000
163,200
-
163,200
315,594
178,799
150,550
2,750
647,693
2,205,718

Two government grants were claimed for from the Forestry Commission for two Urban Tree Challenge Funds for the planting and maintenance of trees in the UK. These were allocated to our London and UK Urban Forests programmes, and totalled £281,298 (2020-21: £107,607).

22

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

4 Income from other trading activities

Sponsorship of projects
Income from investments
Fixed interest securities
Bank interest
Other income
Gain on disposal of tangible fixed
assets		 Unrestricted
£
14,453
14,453
Unrestricted
£
6,623
3,055
9,678
Unrestricted
£
-		 Restricted
£
-
-
Restricted
£
-
-
-
Restricted
£
-
-		 2022
Total
£
14,453
14,453
2022
Total
£
6,623
3,055
9,678
2022
Total
£
-
-		 Unrestricted
£
20,204
20,204
Unrestricted
£
7,256
4,862
12,118
Unrestricted
£
7,281
7,281		 Restricted
£
-
-
Restricted
£
-
-
-
Restricted
£
-
-		 2021
Total
£
20,204
20,204
2021
Total
£
7,256
4,862
12,118
2021
Total
£
7,281
7,281

5 Income from investments

6 Other income

23

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

7a Analysis of expenditure (current year)

Staff costs (Note 10)
Depreciation
Fundraising costs
Direct activity costs - grants
Direct activity costs - internal delivery of projects
Direct activity costs - external delivery of projects
Audit
Facilities
HR
Rent
Other costs
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Raising
funds
£
261,928
-
41,279
-
-
-
-
-
-
-
1,514
304,721
38,606
6,413
349,740
331,288		 Urban
forests -
London
£
479,409
7,233
-
-
149,938
19,060
-
-
-
-
-
655,640
70,661
11,738
738,039
927,494		 Charitable activities Charitable activities Schools
£
715,182
7,233
-
-
202,308
365,848
-
-
-
-
-
1,290,571
105,412
17,510
1,413,493
1,517,250		 Governance
costs
£
33,527
-
-
-
-
-
8,200
-
-
-
3,057
44,784
-
(44,784)
-
-		 Support
costs
£
-
1,100
-
-
-
-
-
118,700
34,368
57,375
58,053
269,596
(269,596)
-
-
-		 2022
Total
£
1,862,636
15,566
41,279
346,419
418,065
1,076,454
8,200
118,700
34,368
57,375
62,624
4,041,686
-
-
4,041,686		 2021
Total
£
1,783,565
15,642
44,409
82,048
421,390
827,375
7,800
110,897
30,892
58,190
41,028
Urban
forests -
other cities
£
201,019
-
-
346,419
20,928
496,715
-
-
-
-
-
1,065,081
29,629
4,922
1,099,632
548,705		 Urban
forests -
international
£
58,166
-
-
-
58
48,390
-
-
-
-
-
106,614
8,573
1,424
116,611
15,083		 Trees for
Streets
£
113,405
-
-
-
44,833
146,441
-
-
-
-
-
304,679
16,715
2,777
324,171
83,416
3,423,236
-
-
3,423,236

24

Tr�s for Cities

Notes to the financial statements For the year ended 31 March 2022

7b Analysis of expenditure (prior year)

Staff costs (Note 10)
Depreciation
Fundraising costs
Direct activity costs - grants
Direct activity costs - internal delivery of projects
Direct activity costs - external delivery of projects
Audit
Facilities
HR
Rent
Other costs
Support costs
Governance costs
Total expenditure 2021		 Raising
funds
£
245,993
-
44,409
-
-
-
-
-
-
-
1,506
291,908
33,490
5,890
331,288		 Charitable activities Charitable activities Schools
£
852,368
7,622
-
-
180,338
340,473
-
-
-
-
-
1,380,801
116,043
20,406
1,517,250		 Governance
costs
£
32,602
-
-
-
-
-
7,800
-
-
-
1,520
41,922
-
(41,922)
-		 Support
costs
£
-
397
-
-
-
-
-
110,897
30,892
58,190
38,002
238,378
(238,378)
-
-		 2021
Total
£
1,783,565
15,642
44,409
82,048
421,390
827,375
7,800
110,897
30,892
58,190
41,028
Urban
forests -
London
£
519,774
7,623
-
-
237,974
78,917
-
-
-
-
-
844,288
70,761
12,445
927,494		 Urban
forests -
other cities
£
111,922
-
-
82,048
1,903
334,915
-
-
-
-
-
530,788
15,237
2,680
548,705		 Urban
forests -
international
£
11,521
-
-
-
72
1,645
-
-
-
-
-
13,238
1,569
276
15,083		 Trees for
Streets
£
9,385
-
-
-
1,103
71,425
-
-
-
-
-
81,913
1,278
225
83,416
3,423,236
-
-
3,423,236

25

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

8 Grant making

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |Cost|£|£| |Urban Tree Challenge Fund - Round 1|74,939|82,048| |-| |Urban Tree Challenge Fund - Round 3|143,614| |-| |Green Recovery Challenge Fund - Forgotten Places|127,866| |At the end of the year|346,419|82,048|

----- End of picture text -----

The Urban Tree Challenge Fund is a multi year grant from the Forestry Commission and round one funding was passed to nine partners in both years for the planting and maintenance of trees in the UK, and round three was passed to eight partners for planting in 2021-22. The Green Recovery Challenge Fund is a multi year grant from the National Lottery Heritage Fund and funds were passed to nine partners in the year . The grants are part of our UK activities and support costs are allocated in note 7a and 7b.

9 Net (income) / expenditure for the year

This is stated after charging / (crediting):

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Depreciation|15,566|15,642| |Profit on disposal of fixed assets|(7,281)| |Operating lease rentals payable:| |Property|40,518|50,005| |Other|17,658|15,323| |Auditor's remuneration (excluding VAT):| |Audit|8,200|7,800| |Other services|4,486|1,520|

----- End of picture text -----

26

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

10 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes
Salaries and wages		 2022
£
1,609,828
13,005
153,751
86,052
1,862,636		 2021
£
1,576,127
-
134,212
73,226
1,783,565

Redundancy payments made or committed during the year amounted to £13,005 (2021: £nil).

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

£60,000 - £69,999 2022
2021
No.
No.
1
1
£70,000 - £79,999 -
-
£80,000 - £89,999 1
1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £377,225 (2021: £384,885).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2021: £nil) incurred by members relating to attendance at meetings of the trustees, and costs relating to board meetings and trustee gifts, totalling £2,070 (2021: £35)

11 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 48 (2021: 50).

Staff are split across the activities of the charity as follows (full time equivalent basis):

Urban forests - UK Cities
Urban forests - International
Trees for Streets
Schools
Fundraising and public relations
Urban forests - London		 2022
No.
7.0
12.0
5.0
1.0
3.0
18.0
46.0		 2021
No.
6.0
15.0
2.0
1.0
-
24.0
48.0

27

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

12 Related party transactions

There are no related party transactions to disclose for this financial year (2020: none).

13 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

14 Tangible fixed assets

At the end of the year
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
Disposals in year
At the end of the year
Depreciation
At the start of the year
Cost
At the start of the year
Additions in year		 Motor
vehicles
£
43,396
-
-
43,396
15,322
14,466
-
29,788
13,608
28,074		 Plant &
machinery
£
18,022
-
-
18,022
15,119
1,100
-
16,219
1,803
2,903		 Fixtures,
fittings &
equipment
£
6,348
-
-
6,348
6,348
-
-
6,348
-
-		 Total
£
67,766
-
-
67,766
36,789
15,566
-
52,355
15,411
30,977

All of the above assets are used for charitable purposes.

15 Listed investments

UK fixed interest bonds
Cash
Fair value at the end of the year
Investments comprise:
Additions at cost
Disposal proceeds
Revaluation during the year
Cash held by investment broker pending reinvestment
Fair value at the start of the year		 2022
£
451,738
184,831
(135,000)
(13,860)
487,709
6,696
494,405
2022
£
487,709
6,696
494,405		 2021
£
483,716
41,915
(76,496)
2,603
451,738
51,319
503,057
2021
£
451,738
51,319
503,057

28

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

16 Debtors

Trade creditors
Taxation and social security
Accruals
Deferred income (note 18)
Council sponsorship holdings
Other creditors
Creditors: amounts falling due within one year
Trade debtors
Prepayments and accrued income		 2022
£
743,978
403,274
1,147,252
2022
£
77,688
81,979
888,428
890,538
106,745
11,889
2,057,266		 2021
£
542,226
148,562
690,788
2021
£
211,743
87,072
339,372
1,248,638
-
19,847
1,906,672

17 Creditors: amounts falling due within one year

Council sponsorship holdings is money received for our Trees for Streets programme from sponsors that will be passed to councils, less an administration fee, once the trees they relate to have been planted. This is done on an annual basis.

18 Deferred income

Deferred income comprises funding for projects being delivered in 2022-23, including urban forest projects £226,483 (2021: £229,326), environmental offsetting £466,959 (2021: £761,130), schools £133,133 (2021: £236,460), and other income £96,461 (2021: £21,722)

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2022
£
1,248,638
(1,005,416)
647,316
890,538		 2021
£
752,920
(610,187)
1,105,905
1,248,638

19 Contingent liability

The charity has recognised the replanting of trees due to unforseen events, such as extreme weather or vandalism, as a contingent liability. It is taken into account when planning our unrestricted reserves levels. As the amount cannot be estimated reliably and as the charity may not be liable for the costs, depending on the original planting delivery method, we have not included it as a provision.

29

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

20 Pension scheme

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund as detailed below. Contributions of £24,117 (2021: £9,558) were outstanding at 31 March 2022.

2022 2021
£ £
86,052 73,226

Contributions payable by the charity for the year

Creditors: amounts falling due within one year
Net assets at 31 March 2021
Analysis of net assets between funds (prior year)
Tangible fixed assets
Investments
Net current assets
Investments
Net current assets
Creditors: amounts falling due within one year
Net assets at 31 March 2022
Analysis of net assets between funds (current year)
Tangible fixed assets		 General
unrestricted
£
15,411
487,709
2,600,924
(2,057,266)
1,046,778
General
unrestricted
£
30,977
451,738
2,303,999
(1,906,672)
880,042		 Designated
£
-
-
162,246
-
162,246
Designated
£
448,211
-
448,211		 Restricted
£
-
-
203,488
-
203,488
Restricted
£
-
-
224,686
-
224,686		 Total funds
£
15,411
487,709
2,966,658
(2,057,266)
1,412,512
Total funds
£
30,977
451,738
2,976,896
(1,906,672)
1,552,939

21a Analysis of net assets between funds (current year)

21b Analysis of net assets between funds (prior year)

30

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

22a Movements in funds (current year)

Total restricted funds
Total designated funds
General funds
Total unrestricted funds
Total funds
Designated funds:
Schools - Edible playgrounds
Trees for Streets
Environmental offsetting
Urban forests - International
Trees for Streets
Schools
Donations and legacies
Unrestricted funds:
Restricted funds:
Urban forests - London
Urban forests - UK Cities		 At 1 April
2021
£
10,000
72,500
-
79,785
-
62,401
224,686
448,211
-
-
448,211
880,042
1,328,253
1,552,939		 Income &
gains
£
227,026
830,963
73,320
213,034
99,900
246,726
1,690,969
-
55,300
106,946
162,246
2,061,904
2,224,150
3,915,119		 Expenditure &
losses
£
(237,026)
(781,503)
(73,320)
(282,819)
(99,900)
(237,599)
(1,712,167)
(448,211)
-
-
(448,211)
(1,895,168)
(2,343,379)
(4,055,546)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2022
£
-
121,960
-
10,000
-
71,528
203,488
-
55,300
106,946
162,246
1,046,778
1,209,024
1,412,512

The narrative to explain the purpose of each fund is given at the foot of the note below.

22b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
Total funds
Total unrestricted funds
Schools
Donations and legacies
Unrestricted funds:
Designated funds:
Schools - Edible playgrounds
Restricted funds:
Urban forests - London
Urban forests - UK Cities
Urban forests - International
Trees for Streets		 At 31 March
2020
£
-
117,500
-
-
-
41,920
159,420
848,232
848,232
1,176,088
2,024,320
2,183,740		 Income &
gains
£
213,519
244,200
5,000
163,200
341,899
100,791
1,068,609
-
-
1,721,223
1,721,223
2,789,832		 Expenditure &
losses
£
(203,519)
(289,200)
(5,000)
(83,415)
(341,899)
(80,310)
(1,003,343)
(400,021)
(400,021)
(2,017,269)
(2,417,290)
(3,420,633)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2021
£
10,000
72,500
-
79,785
-
62,401
224,686
448,211
448,211
880,042
1,328,253
1,552,939

31

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2022

22 Movements in funds (continued)

Purposes of restricted funds

Restricted funds for UK Cities relate to the Green Recovery Challenge Fund grant from the National Lottery Heritage Fund. The funds relate to unspent funds for amounts claimed that have been covered by match funding. These will be spent in 2022-23.

The Trees for Streets restricted fund relate to unspent funds in the year for a donation towards the project. The funds will be spent in 2022-23.

Donations and legacy restricted funds comprise a donation in 2021-22 from UPS (£21,528). This is restricted to an electric vehicle purchase, and is planned to be spent in 2022-23. It also includes £50,000 (2020-21: £27,500) for money from the Postcode Green Trust which was awarded for the calendar year 2022 which will be allocated to core projects.

Purposes of designated funds

Two designated fund have been set aside by the Trustees. One for Trees for Streets, relating to surplus funds for the programme from 2021-22, which will be used to fund spend in 2022-23. The other is for our offsetting work, setting aside money for future costs over five years relating to verification and monitoring for trees planted in 2021-22.

23 Operating lease commitments payable as a lessee

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

Less than one year
One to five years		 2022
2021
£
£
41,775
41,775
81,291
29,192
123,066
70,967
Land and buildings		 2022
2021
£
£
7,416
16,053
-
6,742
7,416
22,795
Other

24 Legal status of the charity

The charity is a company limited by guarantee and is under the control of the board of Trustees. The liability of each member in the event of winding up is limited to £1.

32