Charity Registration No. 1032154
Company Registration No. 02874642
**TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
|Trustees
|I Bardswell (appointed 19 April 2022)|
|---|---|
||J Capon (Chair)|
||S Gray|
||A MacGillivray|
||B Miller|
||J Thrift|
||D Woodbine|
||S Workman|
|Chief Executive|
K Sheldon (appointed 1 February 2023)|
||D Elliot (resigned 31 January 2023)|
|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|
||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|
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||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|
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The Trustees are pleased to present their report and accounts for the year ended 31 March 2023.
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 2022-23:
- Planted 213,499 urban trees comprising:
- 30,311 trees in London across 14 woodland, estate and park projects.
- 182,344 trees, across 33 towns and cities across the UK, including in a number of ‘forgotten places’ enabled by Defra’s Green Recovery Challenge Fund and the Forestry Commission’s Urban Tree Challenge Fund programme.
- 844 fruit trees in Nairobi, Kenya.
- In schools, we worked on 61 projects, carrying out build (30 projects) and/or engagement activities in Healthy Playgrounds, Edible Playgrounds, Planting Healthy Air, Trees for Schools, and Sustainable Drainage System (SuDS) projects. These were carried out in Bradford, Cardiff, Leicester and London.
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- Grew the Trees for Streets programme, increasing the number of Councils using the platform to 16. Growth was assisted by a grant from the Mayor of London. In total almost 1,600 trees were sponsored, including 822 through the Mayor of London grant.
- We engaged 8,716 people in London and the UK through our urban forests programme. We also engaged 24,558 pupils and 2,220 staff members in schools.
## Plans for future periods
A selection of plans for 2023-24 include:
- Plant at least 153,000 urban trees comprising:
- at least 30,000 trees across 15 community projects in London including estate greening projects, park projects and woodland creation projects.
- at least 123,000 trees in 20 towns and cities across the UK comprising a planting mix of whips, standards and fruit trees. Further develop and expand the Coastal Urban Forest programme into towns and cities around the UK and secure a major national multi-year grant, building on the legacy of assets developed through the Green Recovery Challenge Fund.
- Develop, design and deliver at least 35 schools projects in 5 cities across the UK (London, Cardiff, Glasgow, Bradford, Portsmouth), comprising a mix of Healthy Playgrounds, Edible Playgrounds, Planting Healthy Air, Trees for Schools, and Sustainable Drainage System (SuDS) projects.
- Continue to on board new Councils for Trees for Streets to secure partnerships with 34 local authorities by the end of the year (18 new) to plant circa 2,875 street trees. Complete the delivery of the Mayor of London programme.
## 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 very successful year, delivering the largest income in our history and exceeding an ambitious planned budget. We have seen growth across all but one of our programmes, with the most substantial increases relating to our UK programme, which has been largely enabled by a multi year grant from Defra via the Green Recovery Challenge Fund administered by the National Lottery Heritage Fund for our Forgotten Places programme, the Urban Tree Challenge Fund and other large supporters such as the Queen’s Green Canopy and Golden Acre Foods. In addition, the Trees for Streets programme continued to grow, more than doubling in size during the year.
Trees for Cities saw an increase in our total income of £2,732,916 (70%) to £6,648,035 (2021-22: £3,915,119). 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 2021-22, we 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 carbon offsetting programmes that we designated to use in future years (£162,246). In 2022-23, we received substantial amounts of restricted funding in advance, totalling £486,862, and reduced our designated funds slightly as these were drawn down. Therefore, whilst levels of activity increased in the year, they did not do so to the same extent as income.
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Donations increased in the year by £411,612 to £1,035,601 (2021-22: £623,989). This is split into individual donations, corporate donations and core grants. Individual donations reduced from £302,874 in 2021-22 to £203,404, a decrease of £99,470. This was mainly due to a large in memory donation and other one off donations in 2021-22 not being replicated in 2022-23, although the success of our Big Give campaigns, were replicated. We also saw increases of £497,136 in corporate donations, with two organisations donating restricted funds of £200,000 each, which related to schools projects, and other new corporate partners donating money to us.
Income for our charitable activities increased by £2,313,540 to £5,580,539 in year (2021-22: 3,266,999), with increases in almost every programme. The biggest increase in funding (£1,198,881) was in our UK urban forest work, mainly due to multi-year grant funding from DEFRA’s Green Recovery Challenge Fund administered by the National Lottery Heritage Fund’s and the Forestry Commission’s Urban Tree Challenge Fund. London urban forests , increased by £273,946 to £905,266 (2021-22 £631,320), with increases across all types of income. International urban forests was unable to secure significant new grants in year, but we received corporate funding to enable us to carry out some work, resulting in a reduction from £95,020 in 2021-22 to £76,820 in 2022-23.
Trees for Streets , an online community street tree funding platform, continued to grow in the year, with income of £613,101 (2021-22 £268,334). We received grants from the Green Recovery Challenge Fund (£169,566) and the Mayor’s Tree Programme (£240,024) and fees from sixteen councils (£147,930). We spent £722,031in 2022-23 (2021-22: £324,171), using up designated funds from 2021-22.
In our Trees for Schools programme, income recognised in the year increased by £429,263 to £1,048,914 (2021-22: £619,651). Part of the reason for this is that designated funds (£448,211) were used up in 2021-22, which were included in income in 2020-21. Increased funding was also allocated to schools projects from restricted corporate donations (£401,481) (2021-22: £43,000).
Other trading activities have changed only slightly, increasing from £14,453 to £19,458.
Expenditure increased in year to £6,212,016 (2021-22: £4,041,686). This was driven mainly by increases in the UK Urban Forest programme, the Trees for Streets programme , charity wide increases to costs due to the increased size of the charity and inflation. The charity spent £458,814 on raising the charity’s total income of £6,648,035. Therefore, for every £1 spent on fundraising, over £14 of revenues were generated.
Fundraising costs increased by £109,075 to £458,815 (2021-22: £349,740). This was mainly a result of investment in the individual giving team in order to boost future individual giving income, as set out in our individual giving strategic plan.
For Urban Forests in London, costs increased by £180,085 to £918,124 (2021-22 £738,039), due to three additional projects being delivered. For the UK programme, costs increased by £1,433,659 to £2,533,291 (2021-22: £1,099,632), this was largely driven by an increase of £731,930 in pass through of grant funds relating to the Green Recovery Challenge Fund and Urban Tree Challenge Fund. The remaining increases relate to increased internal and external costs relating to more internally delivered projects, as well as increased staff costs due to the expansion of the programme. The International programme expenditure reduced in year from £116,611to £64,942, as we were unable to carry out as many grant funded activities in the year compared to 2021-22.
The Trees for Schools programme increased expenditure by £100,543, spending £1,514,036 (2021-22: £1,413,493). There has been a shift towards more external delivery of projects, reflected in reduced staff costs and increased contractor costs. Increases in costs are largely driven by increased overheads and inflation.
Support costs, as detailed in note 6a, increased by £76,540 to £346,136 (2021-22: £269,596) This was largely driven by increases in HR and IT costs as a result of organisation growth, to ensure delivery continues to be well supported, plus increases in organisation-wide events as COVID restrictions were fully lifted.
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## 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. A new account was set up with the platform Flagstone, which enables organisations to place deposits on fixed and variable terms with a number of banks, without having to set up accounts with each bank individually. Funds were placed on deposit with six different banks with terms of up to 12 months.
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 £339,463 at 31 March 2023. This investment is very low risk and the cash can be withdrawn with a few days notice.
Our investment risk appetite was reviewed by the trustees in 2022-23, as our bond investments were yielding insufficient funds to maintain real value, in light of the current high inflation environment. The trustees approved an increase in our risk appetite, and approved amounts to be invested over a period of at least five years, which should deliver capital growth even if some short term volatility is experienced. After a review of the market, taking into account risk and liquidity needs, the trustees authorised investing in a medium risk fund with Sarasin Investment Funds Limited from April 2023. Deposits with Quilter Cheviot Limited Jersey will be drawn down as they mature.
## Reserves policy and going concern
Plans for 2023-24 and beyond anticipate further growth for Trees for Cities. We were able to secure over 50% of our planned income for 2023-24 by the end of August 2023 and expect to secure the balance over the remaining seven month period. Our current forecasts predict a surplus of unrestricted funds at the end of the year. We plan to hold reserves in the region of the ideal amount of £1,370,000 through the year and we will continue to monitor our financial performance and future reserves position.
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:
- mitigate against unexpected reductions in income
- provide working capital
- allow for operational deficits when future planning
- assist with cash flow
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- purchase capital items
- allow for possible future expansion.
Our reserves policy is to 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 2023-24 of the above-mentioned reserve levels are:
- Minimum: £710,000
- Ideal: £1,370,000
- Maximum: £2,040,000
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 £710,000 and £2,040,000. As at the end of 2022-23 unrestricted free reserves held by the charity were £1,207,370.
A designated fund of £128,511 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.
At the end of 2022-23 total funds held by the charity were £1,837,890 (2021-22: 1,412,512). This consisted of restricted funds of £486,862 (2021-22: £203,488), designated funds of £128,511 (2021-22: £162,246) and general unrestricted funds of £1,222,517 (2021-22: £1,046,778). The charity’s unrestricted free reserves were £1,207,370 (2021-22: £1,031,367). The difference between the unrestricted funds and the free reserves is due to our tangible assets which total £15,147 (2021-22: £15,411).
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.
## 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.
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Current principal risks in the risk register, once impact and likelihood have been considered, are as follows:
|Risk|Mitigation|
|---|---|
|External
Change of government or leadership of existing
government|Maintain regular contact and strong relationships
with
government
departments
and
officials.
Maintain diverse funding portfolio|
|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.
Insufficient sites available to deliver projects
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
Broaden partnerships with landowners and local
authorities and develop multi year arrangements.
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.
Trees for Cities does not contract out or outsource fundraising activities to third parties – all fundraising is undertaken in-house. Where a member of the public raises funds for the charity through a self-arranged event, Trees for Cities will ensure that any messaging and materials used are in line with organisational standards.
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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 9 to the accounts.
The board of trustees may use sub committees to consider some areas in more detail. The board remains the decision maker and considers all areas as recommended by the Charities Commission. Trees for Cities operates 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:
I Bardswell (appointed 19 April 2022) J Capon (Chair) S Gray A MacGillivray B Miller J Thrift D Woodbine (Treasurer) S Workman
A Shah served during the year and resigned on 24 May 2023.
## 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. The last audit was undertaken in May 2022.
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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## 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 are undergoing a full review in 2023.
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).
- Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
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- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
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:
- There is no relevant audit information of which the charitable company’s auditor is unaware
- The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information
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 2023 was 9 (2022: 8). 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: 27 September 2023
.
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## Opinion
We have audited the financial statements of Trees for Cities (the ‘charitable company’) for the year ended 31 March 2023 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:
- Give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- • Have been prepared in accordance with the requirements of the Companies Act 2006
## 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.
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## Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The trustees’ annual report has been prepared in accordance with applicable legal requirements.
## 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:
- Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- The financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit; or
- The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.
## 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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## 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:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to;
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
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.
14
## 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)
## 9 October 2023
for and on behalf of Sayer Vincent LLP, Statutory Auditor
Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
15
## Trees for Cities
## Statement of financial activities (incorporating an income and expenditure account) For the year ended 31 March 2023
|For the year ended 31 March 2023|For the year ended 31 March 2023||||||
|---|---|---|---|---|---|---|
|Unrestricted
Note
£
Income from:
2
345,251
3
389,202
957,821
37,920
162,635
638,500
4
19,458
5
12,437
2,563,224
6a
402,062
383,472
412,852
49,942
262,391
899,860
2,410,579
152,645
(10,641)
142,004
Reconciliation of funds:
1,209,024
1,351,028
Urban forests - Other UK cities
Donations
Charitable activities
Urban forests - London
Urban forests - Other UK cities
Urban forests - International
Trees for Streets
Trees for schools
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Urban forests - London
Urban forests - International
Trees for Streets
Trees for Schools
Total expenditure
Net income / (expenditure) before net
gains / (losses) on investments
Net losses on investments
Net movement in funds
Total funds brought forward
Total funds carried forward||Restricted
£
690,350
633,223
1,893,734
7,500
449,590
410,414
-
-|2023
Total
£
1,035,601
1,022,425
2,851,555
45,420
612,225
1,048,914
19,458
12,437
6,648,035
458,815
918,124
2,533,291
64,942
722,031
1,514,813
6,212,016
436,019
(10,641)
425,378
1,412,512
1,837,890|Unrestricted
£
377,263
404,294
821,711
21,700
55,300
519,751
14,453
9,678|Restricted
£
246,726
227,026
830,963
73,320
213,034
99,900
-
-|2022
Total
£
623,989
631,320
1,652,674
95,020
268,334
619,651
14,453
9,678|
||2,563,224|4,084,811||2,224,150|1,690,969|3,915,119|
|||56,753
534,652
2,120,439
15,000
459,640
614,953||274,007
463,882
268,772
30,993
31,352
1,260,513|75,733
274,157
830,860
85,618
292,819
152,980|349,740
738,039
1,099,632
116,611
324,171
1,413,493|
||2,410,579|3,801,437||2,329,519|1,712,167|4,041,686|
||152,645
(10,641)|283,374
-||(105,369)
(13,860)|(21,198)
-|(126,567)
(13,860)|
||142,004
1,209,024|283,374
203,488||(119,229)
1,328,253|(21,198)
224,686|(140,427)
1,552,939|
||1,351,028|486,862||1,209,024|203,488|1,412,512|
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
## Trees for Cities
## Balance sheet As at 31 March 2023
|Balance sheet
As at 31 March 2023|Balance sheet
As at 31 March 2023||||
|---|---|---|---|---|
|Note
£
Fixed assets:
13
14
Current assets:
15
1,866,828
500,010
2,063,060
4,429,898
Liabilities:
16
(2,946,617)
21a
128,511
1,222,517
Total unrestricted funds
Tangible assets
Investments
Debtors
Short term deposits
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total net assets
Restricted income funds
Unrestricted income funds:
Designated funds
The funds of the charity:
General funds
Total charity funds||2023
£
15,147
339,462|£
1,147,252
250,000
1,569,406|2022
£
15,411
487,709|
|||354,609
1,483,281||503,120
909,392|
||4,429,898
(2,946,617)||2,966,658
(2,057,266)||
||128,511
1,222,517||162,246
1,046,778||
|||1,837,890||1,412,512|
|||486,862
1,351,028||203,488
1,209,024|
||||||
|||1,837,890||1,412,512|
Approved by the trustees on 27 September 2023 and signed on their behalf by
D Woodbine Treasurer
17
## Trees for Cities
## Statement of cash flows
## For the year ended 31 March 2023
|Cash flows from operating activities
Short term deposits
Cash at bank and in hand
Cash and cash equivalents
Loss on the disposal of fixed assets
Net income/(expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Losses on investments
Dividends and interest from investments
Increase in debtors
Increase in creditors
Net cash provided by/(used in) 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 provided by/(used in) investing activities
Cash and cash equivalents at the end of the year
Analysis of cash and cash equivalents
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year|£
£
425,378
16,711
10,641
(12,437)
1,553
(719,576)
889,351
611,621
12,437
2,000
(20,000)
137,606
-
132,043
743,664
1,819,406
2,563,070
At 1 April
2022
Cash flows
£
£
250,000
250,010
1,569,406
493,654
1,819,406
743,664
2023|£
£
425,378
16,711
10,641
(12,437)
1,553
(719,576)
889,351
611,621
12,437
2,000
(20,000)
137,606
-
132,043
743,664
1,819,406
2,563,070
At 1 April
2022
Cash flows
£
£
250,000
250,010
1,569,406
493,654
1,819,406
743,664
2023|£
£
(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
Other
non-cash
changes
At 31 March
2023
£
£
-
500,010
-
2,063,060
-
2,563,070
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
Other
non-cash
changes
At 31 March
2023
£
£
-
500,010
-
2,063,060
-
2,563,070
2022|
|---|---|---|---|---|
|||611,621
132,043||(426,549)
(40,153)|
||At 1 April
2022
£
250,000
1,569,406||Other
non-cash
changes
£
-
-||
|||743,664
1,819,406||(466,702)
2,286,108|
|||2,563,070||1,819,406|
|||Cash flows
£
250,010
493,654||At 31 March
2023
£
500,010
2,063,060|
||1,819,406|743,664|-|2,563,070|
18
Trees for Cities Notes to the financial statements For the year ended 31 March 2023
## 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 pre-conditions 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
## Trees for Cities Notes to the financial statements For the year ended 31 March 2023
- 1 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:
- ˜ Costs of raising funds are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.
- ˜ Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support the activities of the charity.
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|14.89%|
|---|---|---|
|˜|Urban forests - London|25.08%|
|˜|Urban forests - Other UK cities|21.35%|
|˜|Urban forests - International|1.76%|
|˜|Trees for Streets|5.72%|
|˜|Trees for schools|31.20%|
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
## Trees for Cities Notes to the financial statements For the year ended 31 March 2023
- 1 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 vehicles 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
## Trees for Cities
## Notes to the financial statements
## For the year ended 31 March 2023
## 2 Income from donations
|Income from donations|||||||
|---|---|---|---|---|---|---|
|Donations - individuals
Donations - trusts & foundations
Donations - corporate partners
Donations - schools
Grants - furlough
Grants - other|Unrestricted
£
178,210
30,859
59,984
-
-
76,198|Restricted
£
25,194
2,500
602,973
2,000
-
57,683|2023
Total
£
203,404
33,359
662,957
2,000
-
133,881|Unrestricted
£
290,734
7,000
50,828
-
6,701
22,000|Restricted
£
12,140
30,500
114,993
-
-
89,093|2022
Total
£
302,874
37,500
165,821
-
6,701
111,093|
||345,251|690,350|1,035,601|377,263|246,726|623,989|
## 3 Income from charitable activities
|Income from charitable activities|||||||
|---|---|---|---|---|---|---|
|Corporate partners
Grants
Local government
Urban forests - London
Corporate partners
Grants
Local government
Urban forests - Other UK cities
Corporate partners
Grants
Urban forests - International
Corporate partners
Grants
Local government
Trees for Streets
Corporate Partners
Grants
Schools
Local government
Trees for Schools
Total income from charitable
activities|Unrestricted
£
186,983
-
202,219|Restricted
£
280,749
304,846
47,628|2023
Total
£
467,732
304,846
249,847|Unrestricted
£
234,794
-
169,500|Restricted
£
-
227,026
-|2022
Total
£
234,794
227,026
169,500|
||389,202
922,821
-
35,000|633,223
-
1,893,734|1,022,425
922,821
1,893,734
35,000|404,294
821,711
-
-|227,026
-
830,963
-|631,320
821,711
830,963
-|
||957,821
37,920
-|1,893,734
-
7,500|2,851,555
37,920
7,500|821,711
21,700
-|830,963
-
73,320|1,652,674
21,700
73,320|
||37,920
14,705
-
147,930|7,500
-
449,590|45,420
14,705
449,590
147,930|21,700
-
-
55,300|73,320
-
213,034|95,020
-
213,034
55,300|
||162,635
86,600
-
208,900
343,000|449,590
-
410,414
-
-|612,225
86,600
410,414
208,900
343,000|55,300
230,251
-
92,250
197,250|213,034
-
63,700
36,200
-|268,334
230,251
63,700
128,450
197,250|
||638,500|410,414|1,048,914|519,751|99,900|619,651|
||2,186,078|3,394,461|5,580,539|1,822,756|1,444,243|3,266,999|
Three government grants were claimed for from the Forestry Commission for three 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 £587,995 (2022: £281,298).
22
Trees for Cities Notes to the financial statements For the year ended 31 March 2023
|4
Unrestricted
£
19,458
19,458
5
Unrestricted
£
6,369
6,068
12,437
Income from other trading activities
Sponsorship of projects
Income from investments
Fixed interest securities
Bank interest|4
Unrestricted
£
19,458
19,458
5
Unrestricted
£
6,369
6,068
12,437
Income from other trading activities
Sponsorship of projects
Income from investments
Fixed interest securities
Bank interest|£
-
Restricted|2023
Total
£
19,458|Unrestricted
£
14,453|£
-
Restricted|2022
Total
£
14,453|
|---|---|---|---|---|---|---|
||19,458|-|19,458|14,453|-|14,453|
||Unrestricted
£
6,369
6,068|£
-
-
Restricted|2023
Total
£
6,369
6,068|Unrestricted
£
6,623
3,055|£
-
-
Restricted|2022
Total
£
6,623
3,055|
||12,437|-|12,437|9,678|-|9,678|
23
## Trees for Cities
## Notes to the financial statements For the year ended 31 March 2023
6a Analysis of expenditure (current year)
|Staff costs (Note 9)
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 2023
Total expenditure 2022|Raising
funds
£
328,311
-
69,353
-
-
-
-
-
-
-
1,467||Charitable activities|Charitable activities|Charitable activities||Governance
costs
£
39,502
-
-
-
-
-
11,275
-
-
-
3,920|Support
costs
£
-
1,100
-
-
-
-
-
135,291
81,792
54,343
73,610|2023
Total
£
2,244,414
16,711
69,353
1,373,773
701,132
1,444,935
11,275
135,291
81,792
54,343
78,997|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|
|---|---|---|---|---|---|---|---|---|---|---|
|||Urban forests -
London
£
552,992
7,805
-
-
234,050
22,748
-
-
-
-
-|Urban forests -
other cities
£
470,749
-
-
1,078,349
213,260
685,355
-
-
-
-
-|Urban
forests -
international
£
38,806
-
-
10,500
-
8,581
-
-
-
-
-|Trees for
Streets
£
126,121
-
-
284,924
70,615
217,443
-
-
-
-
-|Trees for
Schools
£
687,933
7,806
-
-
183,207
510,808
-
-
-
-
-|||||
||399,131
51,540
8,144|817,595
86,811
13,718|2,447,713
73,900
11,678|57,887
6,092
963|699,103
19,799
3,129|1,389,754
107,994
17,065|54,697
-
(54,697)|346,136
(346,136)
-|6,212,016
-
-|4,041,686
-
-|
||458,815|918,124|2,533,291|64,942|722,031|1,514,813|-|-|6,212,016|4,041,686|
||349,740|738,039|1,099,632|116,611|324,171|1,413,493|-|-|||
24
## Trees for Cities
## Notes to the financial statements For the year ended 31 March 2023
6b Analysis of expenditure (prior year)
|Staff costs (Note 9)
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|Raising
funds
£
261,928
-
41,279
-
-
-
-
-
-
-
1,514||Charitable activities|Charitable activities|||Governance
costs
£
33,527
-
-
-
-
-
8,200
-
-
-
3,057|Support
costs
£
-
1,100
-
-
-
-
-
118,700
34,368
57,375
58,053|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|
|---|---|---|---|---|---|---|---|---|---|
|||Urban forests -
London
£
479,409
7,233
-
-
149,938
19,060
-
-
-
-
-|Urban forests -
other cities
£
201,019
-
-
346,419
20,928
496,715
-
-
-
-
-|Urban
forests -
international
£
58,166
-
-
-
58
48,390
-
-
-
-
-|Trees for
Streets
£
113,405
-
-
-
44,833
146,441
-
-
-
-
-|Schools
£
715,182
7,233
-
-
202,308
365,848
-
-
-
-
-||||
||304,721
38,606
6,413|655,640
70,661
11,738|1,065,081
29,629
4,922|106,614
8,573
1,424|304,679
16,715
2,777|1,290,571
105,412
17,510|44,784
-
(44,784)|269,596
(269,596)
-|4,041,686
-
-|
||349,740|738,039|1,099,632|116,611|324,171|1,413,493|-|-|4,041,686|
25
## Trees for Cities
## Notes to the financial statements For the year ended 31 March 2023
|7
Green Recovery Challenge Fund - Forgotten Places
Green Recovery Challenge Fund - Trees for Streets
Mayor's Tree programme
International grants
At the end of the year
Grant making
Cost
Urban Tree Challenge Fund - Round 1
Urban Tree Challenge Fund - Round 3
Urban Tree Challenge Fund - Round 4|2023
£
42,039
226,764
175,745
633,801
86,000
198,924
10,500|2022
£
74,939
143,614
-
127,866
-
-
-|
|---|---|---|
||1,373,773|346,419|
The Urban Tree Challenge Fund is a multi year grant from the Forestry Commission and round one funding was passed to nine partners and round three to eight partners in both years for the planting and maintenance of trees in the UK. Round four was passed to nine partners for planting in 2022-23. The Green Recovery Challenge Fund was developed by Defra and its Arm'sLength Bodies. It is being delivered by The National Lottery Heritage Fund in partnership with Natural England, the Environment Agency and Forestry Commission. Funds were passed to nine partners in the year for the Forgotten Places grant and nine partners for the Trees for Streets grant. The Mayor's Tree programme is a Greater London Authority multi year grant and funds were passed to nine councils in order to boost street tree planting activity. The grants are part of our UK and Trees for Streets activities and support costs are allocated in note 6a and 6b. There was some overlap of partners between grants, with a total of 31 different council partners, and seven other institutional partners being passed grants.
The grants were split as follows between council partners and other institutional partners:
|Urban Tree Challenge Fund - Round 4
Green Recovery Challenge Fund - Forgotten Places
Green Recovery Challenge Fund - Trees for Streets
Mayor's Tree programme
International grants
Urban Tree Challenge Fund - Round 1
Urban Tree Challenge Fund - Round 3
Total|Number of
council
partners
No.
6
6
8
6
9
9
-|Number of
other
institutional
partners
No.
3
2
1
3
-
-
1|Paid to council
partners
£
21,967
202,694
172,946
384,638
86,000
198,924
-|Paid to other
institutional
partners
£
20,072
24,070
2,799
249,163
-
-
10,500|
|---|---|---|---|---|
||44|10|1,067,169|306,604|
8 Net expenditure/(income) for the year
This is stated after charging / (crediting):
|This is stated after charging / (crediting):|||
|---|---|---|
||2023|2022|
||£|£|
|Depreciation|16,711|15,566|
|Operating lease rentals payable:|||
|Property|41,781|40,518|
|Other|5,548|17,658|
|Auditor's remuneration (excluding VAT):|||
|Audit|11,275|8,200|
|Other services|831|4,486|
26
## Trees for Cities Notes to the financial statements For the year ended 31 March 2023
- 9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
|Staff costs were as follows:|||
|---|---|---|
|Employer’s contribution to defined contribution pension schemes
Salaries and wages
Redundancy and termination costs
Social security costs|2023
£
1,949,663
-
187,344
107,407|2022
£
1,609,828
13,005
153,751
86,052|
||2,244,414|1,862,636|
Redundancy payments made or committed during the year amounted to £nil (2022: £13,005).
The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:
|||2023|2022|
|---|---|---|---|
|||No.|No.|
|£60,000|- £69,999|2|1|
|£70,000|- £79,999|1|-|
|£80,000|- £89,999|1|1|
The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £390,408 (2022: £377,225).
The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).
Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £229 (2022: £nil) incurred by members relating to attendance at meetings of the trustees, and costs relating to board meetings and trustee gifts, totalling £3,912 (2022: £2,070)
## 10 Staff numbers
The average number of employees (head count based on number of staff employed) during the year was 58 (2022: 48).
Staff are split across the activities of the charity as follows (full time equivalent basis):
|Staff are split across the activities of the charity as follows (full time equivalent basis):|||
|---|---|---|
|Trees for Streets
Trees for Schools
Fundraising and public relations
Urban forests - London
Urban forests - UK Cities
Urban forests - International|2023
No.
8.0
14.0
11.5
0.5
3.0
17.0|2022
No.
7.0
12.0
5.0
1.0
3.0
18.0|
||54.0|46.0|
27
## Trees for Cities Notes to the financial statements For the year ended 31 March 2023
## 11 Related party transactions
There are no related party transactions to disclose for this financial year (2022: none).
## 12 Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## 13 Tangible fixed assets
|Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Net book value
At the end of the year
At the end of the year
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
At the start of the year|Motor
vehicles
£
43,396
20,000
(7,995)|Plant &
machinery
£
18,022
-
-|Fixtures, fittings
& equipment
£
6,348
-
-|Total
£
67,766
20,000
(7,995)|
|---|---|---|---|---|
||55,401|18,022|6,348|79,771|
||29,788
15,611
(4,442)|16,219
1,100
-|6,348
-
-|52,355
16,711
(4,442)|
||40,957|17,319|6,348|64,624|
||14,444|703|-|15,147|
||13,608|1,803|-|15,411|
All of the above assets are used for charitable purposes.
## 14 Listed investments
|Listed investments|||
|---|---|---|
|Fair value at the start of the year
Additions at cost
Disposal proceeds
Investments comprise:
UK fixed interest bonds
Revaluation during the year
Cash held by investment broker pending reinvestment
Fair value at the end of the year
Cash|2023
£
487,709
-
(137,606)
(10,641)|2022
£
451,738
184,831
(135,000)
(13,860)|
||339,462
2,870|487,709
6,696|
||342,332|494,405|
||2023
£
339,462
2,870|2022
£
487,709
6,696|
||342,332|494,405|
28
## Trees for Cities
## Notes to the financial statements
## For the year ended 31 March 2023
|15
16
Debtors
Trade debtors
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Prepayments and accrued income
Grant accruals
Other accruals
Deferred income (note 18)
Council sponsorship holdings
Other creditors|2023
£
1,180,289
686,539|2022
£
743,978
403,274|
|---|---|---|
||1,866,828|1,147,252|
||2023
£
122,565
198,782
952,018
815,074
649,244
196,560
12,374|2022
£
77,688
81,979
327,756
560,672
890,538
106,745
11,889|
||2,946,617|2,057,266|
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.
## 17 Deferred income
Deferred income comprises funding for projects being delivered in 2023-24, including urban forest projects £134,300 (2022: £226,483 ), environmental offsetting £196,494 (2022: £466,959), schools £291,051 (2022: £133,133), and other income £7,399 (2022: £96,461 )
|(2022: £96,461 )|||
|---|---|---|
|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|2023
£
890,538
(817,346)
576,052|2022
£
1,248,638
(1,005,416)
647,316|
||649,244|890,538|
- 18 Contingent liability
The charity has recognised the replanting of trees due to unforeseen 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
## Trees for Cities Notes to the financial statements For the year ended 31 March 2023
## 19 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 £15,606 (2022: £24,117) were outstanding at 31 March 2023.
||2023|2022|
|---|---|---|
||£|£|
|Contributions payable by the charity for the year|107,407|86,052|
|20a
Analysis of net assets between funds (current year)
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due within one year
Net assets at 31 March 2023|General
unrestricted
£
15,147
339,462
3,814,525
(2,946,617)|Designated
£
-
-
128,511
-|Restricted
£
-
-
486,862
-|Total funds
£
15,147
339,462
4,429,898
(2,946,617)|
|---|---|---|---|---|
||1,222,517|128,511|486,862|1,837,890|
20b Analysis of net assets between funds (prior year)
|Analysis of net assets between funds (prior year)|||||
|---|---|---|---|---|
|Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due within one year
Net assets at 31 March 2022|General
unrestricted
£
15,411
487,709
2,600,924
(2,057,266)|Designated
£
-
-
162,246
-|Restricted
£
-
-
203,488
-|Total funds
£
15,411
487,709
2,966,658
(2,057,266)|
||1,046,778|162,246|203,488|1,412,512|
30
## Trees for Cities
## Notes to the financial statements For the year ended 31 March 2023
|21a
Total restricted funds
Total designated funds
General funds
Restricted funds:
Urban forests - London
Urban forests - UK Cities
Urban forests - International
Movements in funds (current year)
Trees for Streets
Environmental offsetting
Total unrestricted funds
Trees for Streets
Trees for Schools
Donations and legacies
Unrestricted funds:
Designated funds:
Total funds|At 1 April
2022
£
-
121,960
-
10,000
-
71,528|Income &
gains
£
633,223
1,893,734
7,500
449,590
410,414
690,350|Expenditure &
losses
£
(438,436)
(2,011,351)
(7,500)
(449,590)
(204,210)
(690,350)|Transfers
£
-
-
-
-
-
-|At 31 March
2023
£
194,787
4,343
-
10,000
206,204
71,528|
|---|---|---|---|---|---|
||203,488|4,084,811|(3,801,437)|-|486,862|
||55,300
106,946|52,885|(55,300)
(31,320)|-
-|-
128,511|
||162,246|52,885|(86,620)|-|128,511|
||1,046,778|2,510,339|(2,334,600)|-|1,222,517|
||1,209,024|2,563,224|(2,421,220)|-|1,351,028|
||1,412,512|6,648,035|(6,222,657)|-|1,837,890|
The narrative to explain the purpose of each fund is given at the foot of the note below.
21b Movements in funds (prior year)
|Movements in funds (prior year)||||||
|---|---|---|---|---|---|
|Total restricted funds
Total designated funds
General funds
Restricted funds:
Unrestricted funds:
Designated funds:
Schools - Edible playgrounds
Trees for Streets
Environmental offsetting
Urban forests - London
Urban forests - UK Cities
Urban forests - International
Trees for Streets
Trees for Schools
Donations and legacies
Total funds
Total unrestricted funds|At 31 March
2021
£
10,000
72,500
-
79,785
-
62,401|Income &
gains
£
227,026
830,963
73,320
213,034
99,900
246,726|Expenditure &
losses
£
(237,026)
(781,503)
(73,320)
(282,819)
(99,900)
(237,599)|Transfers
£
-
-
-
-
-
-|At 31 March
2022
£
-
121,960
-
10,000
-
71,528|
||224,686|1,690,969|(1,712,167)|-|203,488|
||448,211
-
-|-
55,300
106,946|(448,211)
-
-|-
-
-|-
55,300
106,946|
||448,211|162,246|(448,211)|-|162,246|
||880,042|2,061,904|(1,895,168)|-|1,046,778|
||1,328,253|2,224,150|(2,343,379)|-|1,209,024|
||1,552,939|3,915,119|(4,055,546)|-|1,412,512|
31
## Trees for Cities Notes to the financial statements For the year ended 31 March 2023
## 21 Movements in funds (continued)
## Purposes of restricted funds
Restricted funds for all Urban Forests programmes relate to funding that has been received in advance for projects that have either been planned for 2023-24, or been delayed to from 2022-23 and will be delivered in 2023-24.
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 2023-24
Restricted funds for Trees for Schools relate to funding that has been received in advance for projects that have either been planned for 2023-24, or been delayed to from 2022-23 and will be delivered in 2023-24.
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 2023-24. It also includes £50,000 (2022: £50,000) for money from the Postcode Green Trust which was awarded for the calendar year 2023 that will be allocated to core projects.
## Purposes of designated funds
The designated fund relates to our offsetting work, setting aside money for future costs over five years relating to verification and monitoring for trees planted in 2021-22 and 2022-23.
## 22 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
|periods|||||
|---|---|---|---|---|
|Less than one year
One to five years|2023
2022
£
£
41,775
41,775
39,517
81,291
81,292
123,066
Land and buildings||2023
2022
£
£
-
7,416
-
-
-
7,416
Other||
||81,292|123,066|-|7,416|
- 23 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