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2023-06-30-accounts

Charity Registration No. 1072706

Company Registration No. 03598556 (England and Wales)

COMMUNITY FOREST TRUST

COMPANY LIMITED BY GUARANTEE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2023

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mrs Alison Ball (Chair) Mrs Alison Gilbody Ms Victoria Merton Mrs Christine Burt Prof David Shaw Prof Alan Simson Mr Benjamin Williams Mrs Debbie Beaven

Secretary Mr Sarfraz Ali Charity number 1072706 Company number 03598556 Registered office Unit 3 Discovery Works Third Avenue Trafford Park Manchester M17 1BW Auditor BWM Suite 5.1 12 Tithebarn Street Liverpool L2 2DT Bankers Triodos Bank Deanery Road Bristol BS1 5AS The Co-operative Bank Olympic House Delf House Skelmersdale WN8 6WT Flagstone Investment Management 1st Floor Clareville House 26-27 Oxenden Street London SW1Y 4EL

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE CONTENTS

Page
Trustees' report (incorporating the Chair's Report) 1 - 11
Statement of trustees' responsibilities 12
Independent auditor's report 13 - 15
Consolidated statement of financial activities 16 - 17
Consolidated balance sheet 18
19
Charity balance sheet
Consolidated statement of cash flows 20
Notes to the financial statements 21 - 44

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE PERIOD ENDED 30 JUNE 2023

The trustees of Community Forest Trust (CFT), who are also directors of the Company, present their annual report and accounts for the period ended 30 June 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Chair's Report

As Chair it gives me great pleasure to report on another successful year for CFT. We have made great progress with our mission and strategic goals – supporting, enabling and championing the work of England’s Community Forests. During this period we secured over £3million of funding for the Forests, supported them to plant over 1.3m trees and continued to lead on and enable a number of high profile delivery projects such as the Northern Forest and the Royal Mail Woodland.

In addition we supported the City of Trees (CoT) in their ambition to become an independent charity. CFT extended the accounting period of April 2022 to March 2023 to end on 30th June 2023 the date at which CFT divested CoT. The financial statements presented are, therefore, for 15 months and are presented to show the continued and discontinued operations of CFT. CFT continues to have a strong future, supporting England’s Community Forests with a common purpose of enhancing and protecting the environment, and in delivering against its purpose.

Objectives and activities

The objects of the Charity are to promote for the benefit of the public generally any charitable purpose within the NW of England and beyond connected with the enhancement and improvement, maintenance and protection of the environment and landscape and in particular to:

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

Delivering on CFT’s purpose

Throughout the period CFT continued to provide it core services, expanding in some and increasing its influence at policy level:

1. Community Forest Trust (core activities)

One Tree Planted : CFT was awarded a multi-year grant from One Tree Planted, a global not-for-profit reforestation charity. One Tree Planted will pay $1 a tree which could be worth up to $4.5million over a 3 year period. In the first year of the planting season the ECF network planted 1.2million trees. However, the challenging global macro-economic environment has impacted One Tree Planted and the trees they will fund for year 2 of the agreement has been reduced from 1.5million trees to 375k trees.

Natural Course : CFT continued work on a three-year LIFE+ project across The Mersey Forest and City of Trees areas. The project focuses on the use of Urban Catchment Forestry to deliver integrated water management solutions and multiple ecosystem services in urban areas. A series of case studies for Crompton Moor, Smithills, Rochdale and New Mills are included on the Natural Course website.

Six leaky dams were installed in the Old Brook water course on Crompton Moor to slow the flow of water and to help reduce flood risk down catchment. BBC's Countryfile programme covered the installation of one of the leaky dams and interviewed team members from City of Trees and partner organisations.

Forest Employment : CFT employs staff to support and enable the Forests to deliver their work and projects. One such project is the Trees for Climate Programme. CFT works with key Local Authority stakeholders such as Kirklees, Gateshead, Swindon and Newcastle Council.

2 . The Mersey Forest

Urban GreenUP : This five-year €10million Horizon 2020 European funded project started in June 2017. The Mersey Forest Team is working with colleagues at Liverpool City Council and the University of Liverpool to deliver a £3.4million programme of interventions in the city. During 2019/20 a number of 'Nature Based Solutions' were installed across the city, including 150 large street trees along The Strand with sustainable urban drainage systems, a pollinator roof at the Royal Court Theatre and a number of appearances of the PopUp Forest. The year-long baseline environmental monitoring concluded in 2023 and the results are being analysed by the Mersey Forest and partners.

Urban Tree Challenge Fund: £2.2million from The Urban Tree Challenge Fund was secured to plant large urban trees across Merseyside and North Cheshire within The Mersey Forest over a 2 year period. The partners managed to deliver over 5,600 standard trees across St. Helens, Knowsley, Liverpool, and Sefton at the end of claim 2. The Urban Tree Challenge fund planted 890 standards in Greater Manchester.

Green Recovery : Green Recovery will boost nature recovery and connect more people to nature in Merseyside and Cheshire. CFT has received £1,326,700 to deliver 'More From Trees’ over 2 and half years of the programme. The Green Recovery programme came to an end in June 2023

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

The programme has improved biodiversity by creating new green corridors in Liverpool city centre, developed a specialist tree nursery for native tree species, improved habitats for a range of species, and deployed natural flood management in two catchments in Cheshire.

The programme has also created a new green task force of retrained military veterans, and offers a range of nature-based activities to improve the health and well-being of local people.

'More from Trees' is one of ninety nature projects across England that have been awarded grants ranging from £68,100 to £1,950,000. Among them they aim to create and retain more than 1,000 green jobs, backed by the Government's £80million Green Recovery Challenge Fund.

Royal Mail Woodland (Middlefield Farm): This is a joint Mersey Forest, CFT and Royal Mail project as part of the Queen’s Green Canopy initiative. Royal Mail have acquired a 9 hectare site in the Mersey Forest and the Mersey Forest Team and CFT are creating a new Royal Mail Wood on the site. Planting is due to commence in the 23/24 season.

3. Northern Forest

This is one of the flagship 25 year programmes: CFT, in partnership with the Woodland Trust and the Northern Forest's four Community Forests, is playing a key role in the development of the Northern Forest initiative. CFT is the Accountable Body for the Community Forest delivery roles and for a major portion of the government funding to facilitate planting and landowner engagement. Planting to date has delivered 110 hectares and over 2700 standard trees delivered. The programme is focusing on parks, farms and new community woodland sites, providing opportunities for volunteering and schools planting events.

Over 150,000 trees were planted, exceeding the target, and a healthy pipeline of schemes will carry this programme strongly into the coming years. CoT delivered Northern Forest planting projects across Greater Manchester, involving a range of community groups and schools across all 10 districts of Greater Manchester. New areas of woodland and community orchards were planted. The other planting partners of the program are Cheshire West and Chester Council, Kirklees Council and Humber Council.

4. Manchester City of Trees (Discontinued operations)

City of Trees (CoT) was a key Forest and part of the CFT structure, employing 28 members of staff who have been TUPE’d over to the new charitable trust.

On the 30[th] June 2023 CFT divested CoT as part of an agreed strategy allowing it to operate as a standalone charity, developing a stronger local presence and brand and generating more funds to support and scale its work and impact.

At the time of the divestment, reserves for CoT totalled £2,837,407 of which £2,254,661 were restricted and £582,746 unrestricted. These values are being transferred to CoT in accordance with the terms of the Transfer Agreement.

During the year CFT managed the funding streams for projects run by the CoT, more details can be found below. Following the divestment all of these will be funded directly by CoT’s new charity.

Trafford Countryside Management Partnership : involves a wide range of organisations in resourcing, managing, and using Trafford's Countryside, as well as supporting volunteer days on the 250 hectares of land the partnership being managed. CoT secured additional funding for site improvements, including a Veolia Landfill Tax funded project at Wellacre. This will involve path, signage and waymarking improvements as well as habitat enhancement works such as woodland wildflower planting. Following the divestment CFT will no longer be involved in this partnership.

Oglesby Charitable foundation : Supports the CoT movement with a grant of £295K per annum, which funds the activity of the CoT core team and the employment of a Green Job Project Manager. Ogelsby funds helped achieve a pathway to green jobs with the kickstart program and local initiative with Trafford Housing Association Following the divestment this fund will be transferred to CoT.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

Fundraising activities : CoT have had great success in engaging corporate sponsors through numerous fundraising activities such as CSR day and Trees100 club. The income, which is unrestricted, exceeded £200K in the reporting period. Key partners being footlocker and Stonewater Housing.

Urban Tree Challenge Fund (UTCF) : Urban trees offer a range of benefits, including temperature moderation, flood risk mitigation, and improved wellbeing – particularly when in close proximity to large populations. The UTCF contribute to delivering these benefits through the targeted planting thousands of large and small trees and in urban and peri-urban areas.

The UTCF supports planting of large ‘standard’ trees and street trees, making an immediate impact to communities and ensuring other organisations who provide planting for smaller trees can continue to do so. The fund aims to level-up access to nature, planting trees in socially deprived urban areas with low canopy cover. Following the divestment CFT will no longer operate the Urban Tree Challenge Fund and this will be transferred to CoT.

Kickstart : Helps access Government funding to create job placements for young people. The scheme was launched by the Department for Work & Pensions (DWP), the Kickstart Scheme has created high quality 6-month work placements for young people aged 16 to 24 who are deemed to be at risk of long-term unemployment due to the Coronavirus pandemic. The Scheme funds 100% of the National Minimum Wage for 25 hours per week, plus associated National Insurance contributions and minimum automatic enrolment contributions.

NHS Social Prescribing : Social prescribing provides much needed help and support in local communities, whilst sharing learning across the city region and nationally. Green social prescribing projects are selected by a panel led by Greater Manchester Health and Social Care Partnership. The projects are rooted in the community – being run and staffed by volunteers and used by local people.

The aim is to engage with individuals most at risk of developing poor mental health and create the activities and support they need, whilst making the most of the natural environment. Social prescribing schemes have continued to expand at pace during the Covid-19 outbreak and become an essential part of the emergency response effort.

Post divestment of CoT, CFT will operate business as usual and will continue to support the Mersey Forest and CFT core activities. In April 2023 Cumbria Community Forest (CCF) started operating within the CFT structure having moved from the Cumbria County Council. Capital and revenue from the Trees for Climate programme will flow via CFT to CCF from 2023 onwards in addition to other CCF funding streams for example £100K from the Nuclear Decommission Authority.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

Forward Look

The climate emergency is the cause of our generation. To go some way towards addressing it, the UK has pledged to be carbon neutral by 2050. 25% of the carbon sink to deliver this ambition will be delivered through tree planting with 30,000 hectares of trees being delivered every year from 2024 to 2050. These are levels of afforestation never before seen in our history and England’s Community Forests (ECFs) have a huge part to play in delivering this.

The ECFs biggest current commitment is the Trees for Climate Programme with a target to plant 6,700 hectares of new woodland between 2020 and 2025. The levels of planting nearly double year on year during this period, breaking all annual planting records, before levelling off in the final year. This requires rapid evolution, bold innovation, delivery excellence, pathological focus and unwavering optimism across the ECFs. And to add to the urgency, beyond the environmental imperative, the social and economic impact founding principles of the ECFs are also becoming ever more critical once again.

This is where CFT has such a significant role to play. CFT’s charitable purpose and mission (to champion, support and enable the work of England’s Community Forests) focus on supporting and enabling the ECFs to achieve their goals. With its roots in the North West, CFT is being asked to support the ECFs more broadly as they enter the most ambitious years of their current planting programmes. It is important to note that beyond the Trees for Climate Programme, CFT is the accountable body for a number of other significant woodland creation initiatives eg: Grow Back Greener and One Tree Planted and these represent very important income streams to CFT.

Alison Ball

Chair, Community Forest Trust

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

Mission, Vision and Values

Mission

Our mission is to champion and support the work of community forestry organisations across England and communicate the wide range of benefits that trees and woods deliver.

Vision

Our vision is for a strong, resilient network of community forestry organisations across England that enhance the environment for both people and wildlife.

Values

During the period to June 2023 Community Forest Trust directly supported the delivery of The Mersey Forest, City of Trees (previously Red Rose Forest), White Rose Forest and HEYwoods. Community Forest Trust also promoted and advocated the benefits and opportunities for delivery on behalf of the sector to strengthen the case for future funding and resources aligned to the Government's 25-year Environment Plan.

Statement of Public Benefit

In meeting these objects, the Charity's public benefit aims to maintain, complete and apply for funding that supports projects as detailed above. The Charity has met its objectives by sticking to the guidelines of the grants applied for .

In setting out policy and planning these activities the trustees have given consideration to the Charity Commission's general guidance on public benefit.

The Charities Act identifies thirteen charitable purposes as being for the public benefit. Community Forest Trust meets the public benefit principles by focusing on three of those charitable purposes:

Achievements and performance

Financial review

The current period of activity in the core funds stand at £334,351 group (2022: £422,771) and £272,513 charity (2022: £399,038), at the year end for the continuing business of CFT.

Investment Policies

The Charity has a policy of keeping any surplus funds in short term deposits, which can be accessed readily. This also spreads the banking risk as the guaranteed amount under FSCS remains at £85K per bank. An on-line cash investment platform assists the monitoring of these accounts with a view to achieving best interest rates for amounts held on deposit whilst at the same time ensuring cash flow requirements are met. Due to wider economic circumstances deposit rates continue to be depressed during the period to June 2023. The invested funds held on deposit achieved an average of 3% (2022: 1%)

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

Reserves Policy and Going Concern

Unrestricted Reserves are considered to be that part of the Trust's funds which are freely available for its general purpose after it has met its commitments and covered its other planned expenditure. These unrestricted funds are needed to bridge the gap between the spending and receiving of income and to cover administrative, fundraising and support costs without which the Trust could not function. A designated fund is maintained as a reserve policy and 3 months of operating cost are held in the event of unforeseen event arising. The reserve fund has reduced to £71,151 (2022: £169,500) as a result of the reduced level of employees and costs to close.

The level of unrestricted funds is monitored and reviewed by the Trustees during the year. The Trustees consider a financial projection prior to reviewing financial reserve levels for the following year and the preparation and approval of an annual budget. Financial forecasts are updated for each Board meeting, held quarterly. In the year to 30th June 2023 the Trust continued to address the need to develop reserves and its available funds were retained in its current bank account, with a view to investing surplus cash in short term deposit accounts to maximise the return on income. Since the year end there has been no material unexpected expenditure, and the viability of the Charity remains financially sound.

Plans for Future Periods

Our future activities are likely to include:

Mersey forest foundation received a grant of £1.94 million in January 2022, which is to be used over the next 32 years. This is for biodiversity and infrastructure contribution. Priority is to be given to planting within the Bold Forest Park Area and for Bold Forest Park Infrastructure Contribution. It shall be used for initiatives and projects to improve parks in the Bold Forest Park including but not limited to sites such as Clock Face Country Park, Maypole Farm, Griffin Wood and the links between them.

Structure, governance and management

The directors of the charitable company (the Charity) are its trustees for the purpose of charity law. The Trustees serving during the year and since the year end were as follows:

Mrs Alison Ball (Chair) Mrs Alison Gilbody Ms Victoria Merton Ms Karen Hands (Resigned 3 October 2023) Mr William Baldwin-Cantello (Resigned 28 November 2023) Mrs Christine Burt Prof David Shaw Prof Alan Simson Mr Benjamin Williams Mrs Debbie Beaven Ms Joanne Harrison (Resigned 5 April 2022)

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

Key Personnel

Key management personnel, in addition to the Board, are as follows:

Chief Executive: Mr C Vivian Company Secretary: Mr S Ali Finance Manager: Mr S Ali

Structure and Governing Documents

Community Forest Trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated July 1998, amended 22nd May 2013 and was incorporated on 15[th] July 1998. It was registered as a charity with the Charity Commission on 2[nd] December 1998.

Community Forest Trust's members are the trustees and the liability of the members is limited and each member agrees to pay £1 in the event that the Charity is dissolved.

Organisational Structure

Community Forest Trust is the holding company for several organisations:

The subsidiary trading company, Community Forest Trust (Trading) Limited was set up and incorporated on 29th October 2012 with an unpaid share capital allotted of £1. The holder of this share is Community Forest Trust. The Company number is 08272345. The trustees, who are also Directors for the purpose of company law who served during the year, and to date, are:

Mr P Nolan (Chair)

The primary objective of the subsidiary Community Forest Trust (Trading) Limited is to have unlimited capacity under section 31 of the Companies Act 2006. Notwithstanding the generality of this provision and for the avoidance of doubt the company's objects include carrying on business as a general commercial company to raise funds including donating with the benefit of gift aid any profits and carry out any other activities which may be considered to be for the benefit of the Charity. Community Forest Trust (Trading) Limited has remained dormant since its incorporation to date.

A second subsidiary organisation - Community Forest Land Trust was set up as a company limited by guarantee, incorporated on 29th October 2013 and was granted charitable status on 28th February 2014. Community Forest Trust is the sole member. The Company number is 08752839 and Charity number is 1155979. The trustees, who are also directors for the purpose of company law who served during the year, and to date, are:

Mr P Nolan (Chair) Mr D McAleavy Mr R Rogers Prof D Shaw Mr R Pearson

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

The primary objective of the subsidiary charity Community Forest Land Trust as laid out in its Memorandum and Articles of Association is to promote for the benefit of the public generally any charitable purpose within the North West of England or elsewhere as the Trustees shall determine connected with the enhancement and improvement, maintenance and protection of the environment and landscape. Community Forest Land Trust Limited commenced financial activities in March 2014.

A third subsidiary organisation - Mersey Forest Foundation was set up as a company limited by guarantee, incorporated on 30th July 2014 and was granted charitable status on 9th March 2015. Community Forest Trust is the sole member. The Company number is 09153749 and the Charity number is 1160790. The trustees, who are also directors for the purpose of company law who served during the year, and to date, are:

Mr P Nolan (Chair) Mr D McAleavy Mr R Rogers Prof D Shaw Mr R Pearson

The primary objective of the subsidiary charity Mersey Forest Trust Limited as laid out in its Memorandum and Articles of Association is to promote for the benefit of the public generally any charitable purpose within the North West of England or elsewhere as the Trustees shall determine connected with the enhancement and improvement, maintenance and protection of the environment and landscape. Mersey Forest Foundation commenced financial activities in July 2014.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

Appointment of Trustees

The current trustees were appointed (and may be removed) by the Board of Community Forest Trust. There should be a minimum of five trustees and are recruited to ensure that the board of trustees has the requisite range of experience and skills to effectively manage the Trust. Induction processes include sitting on the Board for 2 meetings prior to being appointed by a majority vote. Documents are circulated to prospective trustees and their input is valued. Training is offered where required.

Organisation

The board of trustees administers the Charity and meets quarterly. Information is prepared and presented by the interim chief executive, forest director, finance manager, and several project development officers. A precis of the reports from Mersey Forest Foundation and Community Forest Land Trust are presented to the quarterly board meetings of Community Forest Trust.

Related parties and co-operation with other organisations.

Risk Management

The monitoring and management of risk is a dynamic process and the Charity faces some level of risk in the activities, events and contracts that it engages in.

The trustees have a risk management strategy which comprises:

Governance risks - eg inappropriate organisational structure, difficulties recruiting trustees with relevant skills, conflict of interest.

Financial risks - eg accuracy and timeliness of financial information, adequacy of reserves and cash flow, diversity of income sources.

External risks - eg public perception and adverse publicity, demographic changes, government policy.

Compliance with law and regulation - eg breach of trust law and regulatory requirements of particular activities such as fund-raising.

The Charity's review of its risk management will continue to help ensure:

Auditor

BWM have agreed to offer themselves for reappointment as auditors of the Charity.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

Disclosure of information to auditor

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

Small Companies Provisions

This report has been prepared in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.

The trustees' report was approved by the Board of Trustees.

Mrs Alison Ball (Chair)

Chair Dated: 14 February 2024

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE PERIOD ENDED 30 JUNE 2023

The trustees, who are also the directors of Community Forest Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 charity 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:

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

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.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF COMMUNITY FOREST TRUST

Opinion

We have audited the financial statements of Community Forest Trust (the 'charity') and it's subsidiaries for the period ended 30 June 2023 which comprise the consolidated statement of financial activities, the consolidated and parent balance sheet, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group of charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY FOREST TRUST

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to 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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY FOREST TRUST

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Louise Casey ACA (Senior Statutory Auditor) for and on behalf of BWM 12 March 2024

Chartered Accountants Statutory Auditor

Suite 5.1 12 Tithebarn Street Liverpool L2 2DT

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING THE CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 30 JUNE 2023

15 months to 30 June
Unrestricted Unrestricted
Restricted
funds
funds -
funds
general
designated
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
4
42,720
-
-
Charitable activities
5
390,960
-
5,665,125
Investments
6
41,359
-
-
Continuing operations
475,039
-
5,665,125
Discontinued operations - City of Trees divestment
349,002
-
3,317,279
Total income
824,041
-
8,982,404
Expenditure on:
Charitable activities
7
361,981
-
5,449,202
Continuing operations
361,981
-
5,449,202
Discontinued operations - City of Trees divestment
96,709
-
3,036,598
Donation to City of Trees following divestment
582,746
-
2,254,661
Total resources expended
1,041,436
-
10,740,461		 12 months to 31
Total
Unrestricted
Unrestricted
funds
funds -
general
designated
2023
2022
2022
£
£
£
42,720
54,951
-
6,056,085
10,694
-
41,359
6,255
-
6,140,164
71,900
-
3,666,281
200,221
-
9,806,445
272,121
-
5,811,183
51,025
-
5,811,183
51,025
-
3,133,307
24,446
-
2,837,407
-
-
11,781,897
75,471
-		 March
Restricted
funds
2022
£
10,000
3,272,203
-
3,282,203
4,244,743
7,526,946
2,755,665
2,755,665
3,033,315
-
5,788,980		 Total
as
restated
2022
£
64,951
3,282,897
6,255
3,354,103
4,444,964
7,799,067
2,806,690
2,806,690
3,057,761
-
5,864,451

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING THE CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 30 JUNE 2023

15 months to 30 June
12 months to 31 March
Unrestricted Unrestricted
Restricted
Total
Unrestricted
Unrestricted
Restricted
funds
funds -
funds
funds
funds -
funds
general
designated
general
designated
2023
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
£
Net (outgoing)/incoming resources before
transfers
(217,395)
-
(1,758,057)
(1,975,452)
196,650
-
1,737,966
Gross transfers between funds
128,975
(128,975)
-
-
-
-
-
Net (expenditure)/income for the year/
Net movement in funds
(88,420)
(128,975)
(1,758,057)
(1,975,452)
196,650
-
1,737,966
Fund balances at 1 April 2022
422,771
351,498
3,576,311
4,350,580
226,121
351,498
1,838,345
Fund balances at 30 June 2023
334,351
222,523
1,818,254
2,375,128
422,771
351,498
3,576,311		 Total
as
restated
2022
£
1,934,616
-
1,934,616
2,415,964
4,350,580

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

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2023

Notes
Fixed assets
Tangible assets
13
Investments
15
Current assets
Debtors
19
Investments
21
Cash at bank and in hand
Creditors: amounts falling due within
one year
22
Net current assets
Total assets less current liabilities
Income funds
26
Restricted funds
Unrestricted funds - designated
25
Unrestricted funds - general		 £
2,935,967
85,000
7,363,699
10,384,666
(8,152,950)		 2023
£
143,412
-
143,412
2,231,716
2,375,128
1,818,254
222,523
334,351
2,375,128		 £
2,873,439
375,000
5,360,375
8,608,814
(4,606,209)		 2022
as restated
£
147,975
200,000
347,975
4,002,605
4,350,580
3,576,311
351,498
422,771
4,350,580

The financial statements were approved by the Trustees on 14 February 2024

Mrs Alison Ball (Chair)

Trustee

Company Registration No. 03598556

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE CHARITY BALANCE SHEET

AS AT 30 JUNE 2023

Notes
£
Fixed assets
Tangible assets
14
Investments
16
Current assets
Debtors
20
2,926,798
Investments
21
85,000
Cash at bank and in hand
5,319,797
8,331,595
Creditors: amounts falling due within
one year
23
(6,204,771)
Net current assets
Total assets less current liabilities
Income funds
27
Restricted funds
Unrestricted funds - designated
Unrestricted funds - general		 2023
2022
as restated
£
£
£
130,355
134,918
1
200,001
130,356
334,919
2,872,313
375,000
3,345,601
6,592,914
(2,657,098)
2,126,824
3,935,816
2,257,180
4,270,735
1,775,201
3,533,257
209,466
338,440
272,513
399,038
2,257,180
4,270,735		 2023
2022
as restated
£
£
£
130,355
134,918
1
200,001
130,356
334,919
2,872,313
375,000
3,345,601
6,592,914
(2,657,098)
2,126,824
3,935,816
2,257,180
4,270,735
1,775,201
3,533,257
209,466
338,440
272,513
399,038
2,257,180
4,270,735
334,919
3,935,816
4,270,735
3,533,257
338,440
399,038
4,270,735

The financial statements were approved by the Trustees on 14 February 2024

Mrs Alison Ball (Chair) Trustee

Company Registration No. 03598556

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 JUNE 2023

Notes
Cash flows from operating activities
Cash generated from operations
32
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Relating to:
Cash at bank and in hand
Short term deposits included in current
asset investments
Long term deposits included in fixed asset
investments		 £
(621)
41,359		 2023
£
1,472,586
40,738
-
1,513,324
5,935,375
7,448,699
7,363,699
85,000
-		 £
(1,076)
6,252		 2022
£
3,624,483
5,176
-
3,629,659
2,305,716
5,935,375
5,360,375
375,000
200,000

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2023

1 Accounting policies

Charity information

Community Forest Trust is an incorporated company limited by guarantee incorporated in England an Wales. The registered office is Unit 3, Discovery works Third Avenue, Trafford Park, Manchester, M17 1BW.

1.1 Reporting period

The financial statements have been prepared for the period 1 April 2022 to 30 June 2023. In comparison, the year covered in the last set of accounts was 1 April 2021 to 31 March 2022.

1.2 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4 Charitable funds

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

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.5 Income

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

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

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

1 Accounting policies

(continued)

Donated Services and Facilities

Donated professional services and donated facilities are recognised as income when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Charity of the item is probable and that the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Deferred income

Income from donations and grants, including capital grants, and contract income is included in income when these are receivable except when the donor specifies that donations and grants given to the Charity must be used in future accounting periods, the income is deferred until these periods.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

1.6 Expenditure

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 as expenditure on charitable activities including grants payable and other administration costs to further the purposes of the Charity.

1.7 Tangible fixed assets

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

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

Freehold land and buildings Not depreciated Fixtures and fittings 10% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8 Fixed asset investments

Fixed asset investments are measured at transaction price excluding transaction costs.

1.9 Impairment of fixed assets

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

1.10 Debtors

Debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid at the end of the year.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

1 Accounting policies

(continued)

1.11 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.13 Taxation

Taxation and VAT

Community Forest Trust, Community Forest Land Trust and Mersey Forest Foundation are recognised as charities by HM Revenue & Customs and accordingly are potentially exempt from taxation in respect of income or gains applied exclusively to charitable purposes.

Community Forest Trust is registered for VAT and can reclaim input VAT only where the expenditure is purchases out of vatable income. The subsidiaries are not VAT registered. All irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Corporation Tax

As a registered charity, the Company benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

1 Accounting policies

(continued)

1.14 Creditors

Creditors and accruals are recognised where the Charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

1.15 Pension costs

The company operates a defined contribution scheme for all eligible employees. The pension costs charged represent the contributions payable. Differences between contributions payable in the year end contributions paid are shown as either accruals or prepayments in the balance sheet.

1.16 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.17 Group Financial Statements

The financial statements consolidate the results of the Charity and its subsidiaries on a line by line basis. A separate Statement of Financial Activities, and income and expenditure account, for the Charity itself are not presented because the Charity had taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

1.18 Fund Accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Charity's work.

2 Critical accounting estimates and judgements

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

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

Accruals

A provision is made in the accounts for any goods / services received in the year where payments are not processed until after the year-end date.

Deferred and accrued Income

A provision is based on the timing of differences for income received and earned. If income has been received relating to work performed in subsequent periods then amounts will be deferred. For work done in the financial period but not invoiced until after the financial period, income will be accrued.

3 Legal Status

The Charity is a company limited by guarantee and has no share capital, In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

4 Donations and legacies

Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
general
2023
2022
2022
£
£
£
Donations and gifts
319,812
175,776
10,000
Donations and gifts
UBU Environment
14,000
-
-
Peel L&P
12,766
-
-
Barcham Trees
27,630
-
-
Together Financial Services
100,000
-
-
Stonewater
48,150
63,500
-
Karl Vella Group
-
-
10,000
Footasylum
78,304
40,375
-
Energy systems catapult
-
5,000
-
Pentland Brands
-
11,920
-
Other
38,962
54,981
-
319,812
175,776
10,000
Analysis by operation:
Continuing operations
42,720
54,951
10,000
Discontinuing operations
277,092
120,825
-
319,812
175,776
10,000		 Total
2022
£
185,776
-
-
-
-
63,500
10,000
40,375
5,000
11,920
54,981
185,776

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

5 Charitable activities

Charitable Charitable
Activities Activities
2023 2022
as restated
£ £
Other charitable income 322,328 27,289
Service contract income 140,542 62,801
CFT projects 1,313,501 209,523
City of Trees 1,611,156 2,692,896
DEFRA grants 3,452,894 2,933,822
Mersey Forest 2,259,037 1,384,466
Cumbria Costal Forest 200,000 -
Trees of Yorkshire 145,816 296,239
9,445,274 7,607,036
Analysis by fund
Unrestricted funds - general 462,870 90,090
Restricted funds 8,982,404 7,516,946
9,445,274 7,607,036
Analysis by operation:
Continuing operations 6,056,085 3,282,897
Discontinuing operations 3,389,189 4,324,139
9,445,274 7,607,036

6 Investments

Unrestricted Unrestricted
funds funds
general general
2023 2022
£ £
Interest receivable 41,359 6,255

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

7 Charitable activities

CFT projects
City of Trees
Mersey Forest
Mersey Forest Foundation project cost and grants payable
Community Forest Land Trust subcontractor and general costs
Trees of Yorkshire
Cumbria Costal Forest
City of Trees Divestment
Grant funding of activities (see note 8)
Share of support costs (see note 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds - general
Restricted funds
Analysis by operation:
Continuing operations
Discontinuing operations		 Charitable
Activities
2023
£
438,921
2,791,373
1,028,462
1,217
427
166,709
40,668
2,837,407
7,305,184
4,306,342
153,303
17,068
11,781,897
1,041,436
10,740,461
11,781,897
5,811,183
5,970,714
11,781,897		 Charitable
Activities
2022
as restated
£
169,650
2,824,690
453,988
1,951
658
155,356
-
-
3,606,293
2,184,439
52,845
20,874
5,864,451
75,471
5,788,980
5,864,451
2,806,690
3,057,761
5,864,451

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

8 Grants payable

Charitable Charitable
Activities Activities
2023 2022
as restated
£ £
Grants to institutions:
CFT Projects 2,220,168 98,457
City of Trees 428,324 208,625
Mersey Forest 1,650,630 748,696
Trees for Yorkshire 2,628 1,128,661
Cumbria Costal Forest 4,592 -
4,306,342 2,184,439

9 Support costs

Depreciation
Accommodation &
Administration
Audit fees
Accountancy
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
5,185
-
148,118
-
-
9,540
-
7,528
153,303
17,068
153,303
17,068		 2023Support costs Governance
costs
£
£
£
5,185
4,272
-
148,118
48,573
-
9,540
-
5,500
7,528
-
15,374
170,371
52,845
20,874
170,371
52,845
20,874		 2022
£
4,272
48,573
5,500
15,374
73,719
73,719

Support costs include the cost of premises, management, fundraising & marketing and governance. These costs are collectively called the support costs and have been allocated as shown above.

Support costs have been allocated as a proportion of the number of financial transactions recorded in the financial year. The exception to this is that support costs for the subsidiaries have been allocated in relation to the number of hours allocated to active projects.

Governance costs relate to the direct running of the Charity allowing the Charity to operate and generate the information required for public accountability.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

10
Net movement in funds
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial
statements
Independent examiner's fees paid for work carried out in relation to
subsidiaries
11
Employees
The average monthly number of employees during the period was:
Employment costs
Wages and salaries
Social security costs
Other pension costs
Salford Council personnel		 2023
£
9,540
2,240
2023
Number
55
2023
£
1,693,195
165,772
78,486
65,759
2,003,212		 2022
£
5,500
3,900
2022
Number
37
2022
£
1,037,777
96,497
64,028
60,538
1,258,840

There were 4 employees whose annual remuneration was between £60,000 and £69,999 (2022: None). There was 1 employee whose annual remuneration was between £70,000 and £79,999 (2022: None).

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

13 Tangible fixed assets - group

Tangible fixed assets - group
Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 April 2022
139,245
25,632
Additions
-
622
At 30 June 2023
139,245
26,254
Depreciation and impairment
At 1 April 2022
-
16,902
Depreciation charged in the period
-
5,185
At 30 June 2023
-
22,087
Carrying amount
At 30 June 2023
139,245
4,167
At 31 March 2022
139,245
8,730		 Total
£
164,877
622
165,499
16,902
5,185
22,087
143,412
147,975

Middlefield Farm was acquired in 2006 for £78,079 and was revalued by P Wilson & Co Chartered Surveyors on 31 March 2007 at £91,750. The land is now called Griffin Wood.

The land at Viridor Wood was acquired in 2000, for £350,367 and revalued by P W Smith BSc FRICS FAAV on 31 March 2000 at £1,250. The land at Horrocks Hill and Hurst Farm was acquired during 2002, for £317,642, and was revalued by P Wilson & Company on 31 March 2002 at £750 and £1,100 respectively. The land at Horrocks Hill is now called Horrocks Wood. Similarly, the land at Hurst Farm is now called Hurst Wood.

999-year leases were granted to the Minister of Agriculture Fisheries and Food (acting on behalf of Forest Enterprise) over each piece of land. The leases place onerous obligations on use, consistent with the aims and objectives of the Trust.

The land at Lightshaw Meadows was purchased for £109,927 and £1,351 for the costs of purchasing the access strip to the Meadow. The majority of this land has been leased to Lancashire Wildlife Trust on a 999year lease so has been revalue accordingly to reflect the remaining land held by CFT at the year end (£31,338).

The land owned by the subsidiary Community Forest Land Trust, was purchased in June 2014 for £13,057 and remains at cost.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

14
Tangible fixed assets - charity
Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 April 2022
126,188
25,632
Additions
-
622
At 30 June 2023
126,188
26,254
Depreciation and impairment
At 1 April 2022
-
16,902
Depreciation charged in the period
-
5,185
At 30 June 2023
-
22,087
Carrying amount
At 30 June 2023
126,188
4,167
At 31 March 2022
126,188
8,730		 Total
£
151,820
622
152,442
16,902
5,185
22,087
130,355
134,918
15 Fixed asset investments - group
Long term
deposits
£
Cost or valuation
At 1 April 2022 200,000
Disposals (200,000)
At 30 June 2023 -
Carrying amount
At 30 June 2023 -
At 31 March 2022 200,000

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

16 Fixed asset investments - charity

Other Long term Total
investments deposits
£ £ £
Cost or valuation
At 1 April 2022 1 200,000 200,001
Disposals - (200,000) (200,000)
At 30 June 2023 1 - 1
Carrying amount
At 30 June 2023 1 - 1
At 31 March 2022 1 200,000 200,001
2023 2022
Other investments comprise: Notes £ £
Investments in subsidiaries 17 1 1

17 Subsidiaries

Details of the charity's subsidiaries at 30 June 2023 are as follows:

Name of undertaking Registered Nature of business Nature of business Class of % Held
office shares held Direct Indirect
Community Forest Land England & Wales To promote and support the Company 100.00
Trust development of community Limited by
forestry and gree infrastructure Guarantee
Mersey Forest Foundation England & Wales To promote and support the Company 100.00
Mersey Forest Limited by
Guarantee
Community Forest Trust England & Wales Dormant Ordinary £1 100.00
(Trading) Limited
Name of undertaking Profit/(Loss) Capital and
Reserves
£ £
Community Forest Land
Trust 3,438 26,378
Mersey Forest Foundation 34,665 91,571
Community Forest Trust
(Trading) Limited - 1

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

18
Financial instruments - group
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
Financial instruments - parent
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
19
Debtors - group
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
20
Debtors - charity
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
21
Current asset investments
Unlisted investments		 2023
£
10,296,813
5,803,854
2023
8,330,271
5,795,148
2023
£
476,329
3
2,459,635
2,935,967
2023
£
476,328
3
2,450,467
2,926,798
2023
£
85,000		 2022
£
8,782,266
2,180,838
2022
6,365,450
1,769,369
2022
as restated
£
2,012,288
-
861,151
2,873,439
2022
as restated
£
2,012,196
-
860,117
2,872,313
2022
£
375,000

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

22 Creditors: amounts falling due within one year - group

Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals and deferred income
Creditors: amounts falling due within one year - charity
Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals		 2023
2022
as restated
£
£
121,454
62,019
2,227,641
2,363,351
686,286
756,901
2,589,537
431
2,528,032
1,423,507
8,152,950
4,606,209
2023
2022
as restated
£
£
121,454
62,019
288,168
423,878
685,908
756,901
2,589,537
431
2,519,704
1,413,869
6,204,771
2,657,098		 2023
2022
as restated
£
£
121,454
62,019
2,227,641
2,363,351
686,286
756,901
2,589,537
431
2,528,032
1,423,507
8,152,950
4,606,209
2023
2022
as restated
£
£
121,454
62,019
288,168
423,878
685,908
756,901
2,589,537
431
2,519,704
1,413,869
6,204,771
2,657,098
2,657,098

23 Creditors: amounts falling due within one year - charity

24 Deferred income - group

Deferred income is included in the financial statements as follows:

Deferred income is included within:
Current liabilities
Movements in the period:		 2023
£
2,227,641		 2022
£
2,363,351

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

24
Deferred income - group
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the period
Deferred income at 30 June 2023
Deferred income - charity
Deferred income is included within:
Current liabilities
Movement in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 30 June 2023		 (continued)
2,363,351
323,478
(380,668)
(7,064)
244,958
2,046,937
2,227,641
2,363,351
2023
2022
£
£
288,168
423,878
423,878
323,478
(380,668)
(7,064)
244,958
107,464
288,168
423,878

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

25 Designated funds - group

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

Balance at Balance at Transfers Balance at
1 April 2021 1 April 2022 30 June 2023
£ £ £ £
Land & Property fund 139,245 139,245 - 139,245
Salary fund 42,753 42,753 (42,753) -
Reserves policy 169,500 169,500 (98,349) 71,151
MF - Newlands - - 12,127 12,127
351,498 351,498 (128,975) 222,523

Land & Property – the land that has been purchased out of grant monies has a corresponding designated fund. The total land purchased/valued comes to £139,245 so this is the same value in this designated fund. Unless more property is purchased, or existing land revalued this fund will not move in value.

Salary fund – a reserve to enable CFT as an employer to offer better terms of employment for example to give enhanced parental pay or sick pay over and above the statutory levels. To date 2 female employees from enhanced maternity pay.

Reserves policy – this is to fund 3 months of operational activities for CFT core services. This is held in unforeseen event occurring, CFT will have funding to run 3 months of operational activity and an orderly wind up.

MF Newlands – Historic reserves linked to the Newlands project to be designated to the Mersey Forest.

A proportion of designated reserves for Community Forest Trust were transferred to general unrestricted reserves during the financial year following a reassessment of reserves as a result of the City of Trees divestment.

Designated funds - charity

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

Balance at Balance at Transfers Balance at
1 April 2021 1 April 2022 30 June 2023
£ £ £ £
Land & Property fund 126,188 126,188 - 126,188
Salary fund 42,753 42,753 (42,753) -
Reserves policy 169,500 169,500 (98,349) 71,151
Mersey Forest - Newlands - - 12,127 12,127
338,441 338,441 (128,975) 209,466

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

25 Designated funds - group

(continued)

Land & Property – the land that has been purchased out of grant monies has a corresponding designated fund. The total land purchased/valued comes to £126,188 so this is the same value in this designated fund. Unless more property is purchased, or existing land revalued this fund will not move in value.

Salary fund – a reserve to enable CFT as an employer to offer better terms of employment for example to give enhanced parental pay or sick pay over and above the statutory levels. To date 2 female employees from enhanced maternity pay.

Reserves policy – this is to fund 3 months of operational activities for CFT core services. This is held in case of unforeseen event occurring, CFT will have funding to run 3 months of operational activity and an orderly wind up.

MF Newlands – Historic reserves linked to the Newlands project to be designated to the Mersey Forest.

A proportion of designated reserves for Community Forest Trust were transferred to general unrestricted reserves during the financial year following a reassessment of reserves as a result of the City of Trees divestment.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

26 Analysis of Charitable Funds

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

Unrestricted fund
Designated fund
Restricted fund		 Balance at
1 April 2021
£
226,121
351,498
1,838,345
2,415,964		 Movement in funds
Incoming
resources
Resources
expended
£
£
272,121
(75,470)
-
-
7,526,946
(5,788,980)
7,799,067
(5,864,450)		 Balance at
1 April 2022
£
422,771
351,498
3,576,311
4,350,580		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
30 June 2023
£
£
£
£
824,041
(1,041,436)
128,975
334,351
-
-
(128,975)
222,523
8,982,404
(10,740,461)
-
1,818,254
9,806,445
(11,781,897)
-
2,375,128		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
30 June 2023
£
£
£
£
824,041
(1,041,436)
128,975
334,351
-
-
(128,975)
222,523
8,982,404
(10,740,461)
-
1,818,254
9,806,445
(11,781,897)
-
2,375,128
2,375,128

The transfer of funds this year between unrestricted and designated and funds relates to a transfer of Community Forest's designated reserves to unrestricted reserves.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

26 Analysis of Charitable Funds

(continued)

Restricted funds:

Restricted funds:
CFT
City of Trees
Mersey Forest
Trees for Yorkshire
Cumbria Costa Forest
Subsidiary: Mersey Forest Foundation		 Balance at
1 April 2021
£
674,001
762,552
254,156
113,726
-
33,910
1,838,345		 Movement in funds
Incoming
resources
Resources
expended
£
£
209,523
(268,107)
4,244,743
(3,033,315)
1,719,451
(1,202,684)
1,343,229
(1,284,018)
-
-
10,000
(856)
7,526,946
(5,788,980)		 Balance at
1 April 2022
£
615,417
1,973,980
770,923
172,937
-
43,054
3,576,311		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
30 June 2023
£
£
£
£
2,682,235
(2,557,141)
-
740,511
3,317,279
(5,291,259)
-
-
2,637,075
(2,677,464)
-
730,534
145,815
(166,709)
-
152,043
200,000
(47,888)
152,112
-
-
-
43,054
8,982,404
(10,740,461)
-
1,818,254
1,818,254

City of Trees - City of Trees is delivering a green recovery and tackling the climate emergency head on, through planting trees and restoring woodlands for the people and wildlife of Greater Manchester. At 30 June 2023, City of Trees divested.The resources expended figure includes the donation creditor balance to be transferred to City of Trees.

Mersey Forest – Growing and creating woodland across Cheshire and Mersey side and tackling climate emergency through woodland creation

Trees for Yorkshire - is the community forest for North and West Yorkshire, working in partnership with local authorities, landowners, businesses and communities to increase woodland across the region and improve our natural environment.

Cumbria Costal Forest - Cumbria Community Coast Forest (CCCF) joined CFT in April 2023. The income stream for CCCF is from Trees for Climate capital and revenue.

CFT - Deliver core services to support and enable to communtiy forests, CFT adminsters the Northern Forest, One Trees Planted and Northern Gas Network

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

27 Analysis of Charitable Funds (Charity)

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

Unrestricted fund
Designated fund
Restricted fund		 Balance at
1 April 2021
£
198,400
338,441
1,804,435
2,341,276		 Movement in funds
Incoming
resources
Resources
expended
£
£
268,189
(67,552)
-
-
7,516,946
(5,788,124)
7,785,135
(5,855,676)		 Balance at
1 April 2022
£
399,037
338,441
3,533,257
4,270,735		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
30 June 2023
£
£
£
£
780,197
(1,035,696)
128,975
272,513
-
-
(128,975)
209,466
8,982,405
(10,740,461)
-
1,775,201
9,762,602
(11,776,157)
-
2,257,180		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
30 June 2023
£
£
£
£
780,197
(1,035,696)
128,975
272,513
-
-
(128,975)
209,466
8,982,405
(10,740,461)
-
1,775,201
9,762,602
(11,776,157)
-
2,257,180
2,257,180

The transfer of funds this year between unrestricted and designated and funds relates to a transfer of Community Forest's designated reserves to unrestricted reserves.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 JUNE 2023

27 Analysis of Charitable Funds (Charity)

(continued)

Restricted funds:

Restricted funds:
CFT
City of Trees
Mersey Forest
Trees for Yorkshire
Cumbria Costal Forest		 Balance at
1 April 2021
£
674,000
762,552
254,156
113,727
-
1,804,435		 Movement in funds
Incoming
resources
Resources
expended
£
£
209,523
(268,107)
4,244,743
(3,033,315)
1,719,451
(1,202,684)
1,343,229
(1,284,018)
-
-
7,516,946
(5,788,124)		 Balance at
1 April 2022
£
615,416
1,973,980
770,923
172,938
-
3,533,257		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
30 June 2023
£
£
£
£
2,682,235
(2,557,141)
-
740,510
3,317,279
(5,291,259)
-
-
2,637,076
(2,677,464)
-
730,535
145,815
(166,709)
-
152,044
200,000
(47,888)
152,112
8,982,405
(10,740,461)
-
1,775,201
1,775,201

City of Trees - City of Trees is delivering a green recovery and tackling the climate emergency head on, through planting trees and restoring woodlands for the people and wildlife of Greater Manchester. The resources expended figure includes the donation creditor balance to be transferred to City of Trees.

Mersey Forest – Growing and creating woodland across Cheshire and Mersey side and tackling climate emergency through woodland creation

Trees for Yorkshire - is the community forest for North and West Yorkshire, working in partnership with local authorities, landowners, businesses and communities to increase woodland across the region and improve our natural environment.

Cumbria Costal Forest - Cumbria Community Coast Forest (CCCF) joined CFT in April 2023. The income stream for CCCF is from Trees for Climate capital and revenue.

CFT - Deliver core services to support and enable to communtiy forests, CFT adminsters the Northern Forest, One Trees Planted and Northern Gas Network.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

28 Related party transactions

Some of the trustees have been nominated by the organisations who created and/or fund the Charity. A significant number of transactions, particularly relating to funding, are therefore related party transactions. It is not practical to list these in the notes to the financial statements.

The Trustees did not receive remuneration during the financial period (2022: £Nil) and no expenses were paid to the Trustees during the financial year (2022: £Nil)

Key management, consisted of the 5 individuals (2022: 6 individuals) who worked the equivalent of 4.6 full time equivalent on the management of the Charity (2022: 3 FTE). The costs of the key personnel on the management of the Charity is paid during the period gross £239,359 (2022: £185,515).

The Charity has taken advantage of the exemption in Financial Reporting Standard 102 Paragraph 33.1A from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared.

City of Trees Divestment

At 30 June 2023, City of Trees divested.

The divestment is considered a discontinued operation as City of Trees is a charitable activity of the company.

The income and expenditure relating to City of Trees has been split into the discontinued operations - City of Trees divestment line in the statement of financial activities and split further in notes 4 to 7 of the financial statements.

At 30 June 2023, Community Forest Trust owes City of Trees £2,543,458 for its share of restricted and unrestricted reserves.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

29
Analysis of net assets between funds - group
Unrestricted
funds
Designated
funds
Restricted
funds
2023
2023
2023
£
£
£
Fund balances at 30 June 2023 are represented by:
Tangible assets
-
143,412
-
Investments
-
-
-
Current assets/(liabilities)
334,351
79,111
1,818,254
334,351
222,523
1,818,254		 Total
Unrestricted
funds
Designated
funds
2023
2022
2022
£
£
£
143,412
8,730
139,245
-
200,000
-
2,231,716
214,041
212,253
2,375,128
422,771
351,498		 Restricted
funds
2022
£
-
-
3,576,311
3,576,311		 Total
2022
£
147,975
200,000
4,002,605
4,350,580

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2023

30 Operating lease commitments - group & charity

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

Within one year
Between two and five years		 2023
£
5,142
1,463
6,605		 2022
£
20,503
21,562
42,065

31 Prior year restatement

The prior year figures have been re-stated to include recognition of accrued income and expenditure of £401,831 in respect of Mersey Forest grants. The adjustment increases both income and expenditure in the Statement of Financial Activities by £401,831 resulting in a Nil effect on the surplus for the year.

The Balance sheet has also been restated in order to recognise the accrued income debtor balance of £401,831 as well as the accrual for expenditure within creditors for the same amount.

32

Cash generated from operations 2023 2022
£ £
(Deficit)/surpus for the period (1,975,452) 1,934,616
Adjustments for:
Investment income recognised in statement of financial activities (41,359) (6,254)
Depreciation and impairment of tangible fixed assets 5,185 4,272
Movements in working capital:
(Increase) in debtors (62,529) (1,833,411)
Increase in creditors 3,682,451 1,485,387
(Decrease)/increase in deferred income (135,710) 2,039,873
Cash generated from operations 1,472,586 3,624,483