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← Community Forest Trust

2024-06-30-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 YEAR ENDED 30 JUNE 2024

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs Alison Ball (Chair) Ms Victoria Merton Prof Alan Simson Mr Benjamin Williams Mrs Debbie Beaven Ms J Morgan Ms C Shaw (Appointed 24 June 2024) Mr C Thomson - Smith Mr G Tucker (Appointed 24 June 2024) Secretary Mr C Vivian (Appointed 2 September 2024) Charity number 1072706 Company number 03598556 Registered office 14th Floor The Plaza 100 Old Hall Street Liverpool England L3 9QJ Auditor Mitchell Charlesworth (Audit) Limited Suites C, D, E & F 14th Floor, The Plaza 100 Old Hall Street Liverpool England L3 9QJ 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 - 9
Statement of trustees' responsibilities 10
Independent auditor's report 11 - 13
Consolidated statement of financial activities 14 - 15
Consolidated balance sheet 16
17
Charity balance sheet
Consolidated statement of cash flows 18
Notes to the financial statements 19 - 42

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 30 JUNE 2024

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 2024.

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

The last 12 months have been another eventful, busy and significant year for CFT and the England’s Community Forests Network. Driven by our mission of supporting, enabling and championing the work of England’s Community Forests , we have supported them to plant over 2.5m 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.

We have also played, and continue to, a leading role in the Spending Review Submission to Government to secure the next programme of funding to follow the Trees for Climate Programme. The ambition is for another 5-year funding programme, to double the levels of output and funding and to do this in partnership with the National Trust and the Woodland Trust.

Following the divestment of the City of Trees (CoT) at the end of the last financial year in support of their ambition to become an independent charity, we have become the Accountable Body for Raise: Cumbria Community Forest. This was to support this new Community Forest at a time of a local government reorganisation that was inhibiting their ability to secure funding, grow the team and deliver their pipeline. This represents another great example of the value of CFT in being a flexible and unrestricted vehicle to support the Forests.

Finally over this calendar year we have seen a changing of the guard across the CFT Trustee group. We have said farewell to Alison Gilbody, Dave Shaw and Christine Burt and soon Debbie Beaven. We have welcomed Gerry Tucker as our new Finance Trustee and Clare Shaw as our new HR Trustee. We have 6 other potential Trustees who have all attended Trustee Meetings and the ECF Conference this year and who we look forward to welcoming to the Board in December 2024.

CFT’s current Business Plan runs to March 2025 and at the time of completing these accounts and writing this report there is some uncertainty about the business model, funding of and focus for CFT going forwards. Work will shortly commence to create some clarity for the next 3-5 year period. Arguably the need for CFT has never been higher.

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 YEAR ENDED 30 JUNE 2024

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)

Forest Recruitment and Employment: CFT recruits and 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, Swindon and Cheshire West and Chester Councils and Forests like the Forest of Mercia.

Fundraising - One Tree Planted: CFT was awarded a multi-year grant from One Tree Planted, a global not-for-profit reforestation charity. One Tree Planted were due to 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. CFT has continue to administer this agreement and manage this relationship throughout 2023/2024.

Land Acquisition and Holding: CFT continues to hold a limited amount of land – Griffen Wood and following the divestment from City of Trees, Lightshaw Meadows. City of Trees have offered to maintain Lightshaw Meadows in the short term but CFT will need to find a permanent management solution.

2 . The Mersey Forest

We have continued to support a number of projects for the Mersey Forest. Arguably the most notable of these is the 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 was completed in the 23/24 season and a naming ceremony and a formal opening is planned for March 2025.

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 200 hectares and over 7000 standard trees delivered. The programme is focusing on parks, farms and new community woodland sites, providing opportunities for volunteering and schools planting events.

Over 200,000 trees have been 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.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

4. Raise: Cumbria Community Forest

In 2023, CFT became the Accountable Body for Raise: Cumbria Community Forest. As mentioned above this is a very good example of the way CFT can support and enable the Community Forests. Raise was a new Community Forest, launched as a commitment to Defra under the Trees for Climate Programme. It was initially hosted within two Local Authorities but they were undergoing a reorganisation and this was delaying the flow of funding and support necessary to get Raise off the ground. CFT have stepped in and became the Accountable Body which requires CFT to hold the Raise funding and support the Management Team. Weekly meetings are held to review pipeline and sites and review operational and financial performance.

Forward Look

The past 4 years have been unprecedented for tree planting. Never before has there been so much focus on and funding for woodland creation and never before has the need for trees been greater as we face nature and climate emergencies. The Community Forests have risen to the challenge planting over 52% of the trees in England last season whilst only covering 20% of the Country. CFT has played a key role in supporting and enabling the Forests to do this.

However this chapter is drawing to an end. The Nature for Climate Programme ends in March 2025 and at the time of writing there is some uncertainty about the funding programme to follow with the spending pressures on the new Government. CFT is playing a pivotal role in negotiating this with Government and the signs are of a settlement that will allow the Forests to continue at a level of delivery at least in line with the current levels. CFT also has a role to play in helping the Forests to navigate this period of uncertainty including retaining staff, maintaining delivery momentum and building new partnerships.

Change brings opportunity and one thing this does highlight is the critical importance of the emerging Green Finance agenda and finding ways to reduce the ECFs dependence on the public purse. CFT is leading this work for the ECFs which has the potential to be transformation for ECFs and the sector as a whole.

Whilst we are in a period of transition, the Forest continue to punch above their weight in terms of delivery and their partnership with CFT and the services and support it provides is becoming increasingly important. I am confident exciting times lie ahead.

Alison Ball

Chair, Community Forest Trust

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

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

At the end of the financial year, unrestricted funds stand at £379,325 group (2023: £305,171) and £277,331 charity (2023: £243,334),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 2.3% (2023: 3%)

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

Reserves Policy and Going Concern

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 in the event of the organisation closing down. This fund would allow a professional and orderly close down if that contingency was ever to be realised. The reserve fund remains at £71,151 (2023: £71,151).

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 2024 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 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 (Resigned 16 December 2023) Ms Victoria Merton Mrs Christine Burt (Resigned 24 May 2024) Prof David Shaw (Resigned 23 August 2024) Prof Alan Simson Mr Benjamin Williams Mrs Debbie Beaven Ms J Morgan Ms C Shaw (Appointed 24 June 2024) Mr C Thomson - Smith Mr G Tucker (Appointed 24 June 2024)

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

Key Personnel

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

Chief Executive & company secretary: Mr C Vivian Finance Manager: Mr B Buggy

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 Prof D Shaw Mr R Rogers (resigned 13 October 2023) Mr R Pearson

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

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 (resigned 13 October 2023) 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 YEAR ENDED 30 JUNE 2024

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

Mitchell Charlesworth (Audit) Limited have agreed to offer themeselves for reappointment as auditors of the Charity.

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2024

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: 31 March 2025

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

FOR THE YEAR ENDED 30 JUNE 2024

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 year.

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 year ended 30 June 2024 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 Mitchell Charlesworth (Audit) Limited 31 March 2025 Accountants Statutory Auditor 14th Floor The Plaza 100 Old Hall Street Liverpool L3 9QJ

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE

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

FOR THE YEAR ENDED 30 JUNE 2024

12 months to 30 June
Unrestricted
Unrestricted
Restricted
funds
funds -
funds
general
designated
2024
2024
2024
Notes
£
£
£
Income from:
Donations and legacies
4
49,055
-
2,500
Charitable activities
5
641,676
-
10,616,774
Investments
6
86,903
-
-
Continuing operations
777,634
-
10,619,274
Discontinued operations - City of Trees divestment
27,855
-
159,242
Total income
805,489
-
10,778,516
Expenditure on:
Charitable activities
7
703,480
-
9,603,562
Continuing operations
703,480
-
9,603,562
Discontinued operations - City of Trees divestment
228,802
-
102,468
Donation to City of Trees following divestment
-
-
-
Total resources expended
932,282
-
9,706,030		 15 months to 30 June
Total
Unrestricted
Unrestricted
Restricted
funds
funds -
funds
general
designated
2024
2023
2023
2023
£
£
£
£
51,555
42,720
-
-
11,258,450
390,960
-
5,665,125
86,903
41,359
-
-
11,396,908
475,039
-
5,665,125
187,097
349,002
-
3,317,279
11,584,005
824,041
-
8,982,404
10,307,042
361,981
-
5,449,202
10,307,042
361,981
-
5,449,202
331,270
96,709
-
3,036,598
-
582,746
-
2,254,661
10,638,312
1,041,436
-
10,740,461		 Total
as
restated
2023
£
42,720
6,056,085
41,359
6,140,164
3,666,281
9,806,445
5,811,183
5,811,183
3,133,307
2,837,407
11,781,897

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE

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

FOR THE YEAR ENDED 30 JUNE 2024

12 months to 30 June
Unrestricted
Unrestricted
Restricted
funds
funds -
funds
general
designated
2024
2024
2024
£
£
£
Net (outgoing)/incoming resources before transfers
(126,793)
-
1,072,486
Gross transfers between funds
200,947
-
(56,774)
Net income/(expenditure) for the year/
Net movement in funds
74,154
-
1,015,712
Fund balances at 1 July 2023
305,171
222,523
1,900,065
Fund balances at 30 June 2024
379,325
222,523
2,915,777		 15 months to 30 June
Total
Unrestricted
Unrestricted
Restricted
Total
funds
funds -
funds
as
general
designated
restated
2024
2023
2023
2023
2023
£
£
£
£
£
945,693
(217,395)
-
(1,758,057)
(1,975,452)
144,173
99,795
(128,975)
81,810
52,630
1,089,866
(117,600)
(128,975)
(1,676,247)
(1,922,822)
2,427,759
422,771
351,498
3,576,311
4,350,580
3,517,625
305,171
222,523
1,900,064
2,427,758

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

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 2024

Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
18
Investments
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
Net current assets
Total assets less current liabilities
Income funds
25
Restricted funds
Unrestricted funds - designated
24
Unrestricted funds - general		 £
6,785,746
-
5,488,581
12,274,327
(8,899,395)		 2024
£
142,693
3,374,932
3,517,625
2,915,777
222,523
379,325
3,517,625		 £
2,935,967
85,000
7,363,699
10,384,666
(8,100,320)		 2023
As restated
£
143,412
2,284,346
2,427,758
1,900,064
222,523
305,171
2,427,758

The financial statements were approved by the Trustees on 31 March 2025

Mrs Alison Ball (Chair)

Trustee

Company Registration No. 03598556

COMMUNITY FOREST TRUST COMPANY LIMITED BY GUARANTEE CHARITY BALANCE SHEET

AS AT 30 JUNE 2024

Notes
Fixed assets
Tangible assets
14
Investments
Current assets
Debtors
19
Investments
20
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
Unrestricted funds - general		 £
6,774,885
-
3,428,422
10,203,307
(6,949,941)		 2024
£
129,636
1
129,637
3,253,366
3,383,003
2,896,206
209,466
277,331
3,383,003		 £
2,926,798
85,000
5,319,797
8,331,595
(6,152,141)		 2023
As restated
£
130,355
1
130,356
2,179,455
2,309,811
1,857,011
209,466
243,334
2,309,811

The financial statements were approved by the Trustees on 31 March 2025

Mrs Alison Ball (Chair)

Trustee

Company Registration No. 03598556

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

FOR THE YEAR ENDED 30 JUNE 2024

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand
Short term deposits included in current asset
investments		 2024
£
£
(2,044,891)
(2,130)
86,903
84,773
-
(1,960,118)
7,448,699
5,488,581
5,488,581
-		 £
(621)
41,359		 2023
£
1,472,586
40,738
-
1,513,324
5,935,375
7,448,699
7,363,699
85,000

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

FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

Charity information

Community Forest Trust is an incorporated company limited by guarantee incorporated in England an Wales. The registered office is 14th Floor The Plaza, 100 Old Hall Street, Liverpool, England, L3 9QJ.

1.1 Reporting period

The financial statements have been prepared for the year 1 July 2023 to 30 June 2024. In comparison, the period covered in the last set of accounts was 1 April 2022 to 30 June 2023.

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 or grantors 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 YEAR ENDED 30 JUNE 2024

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 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).

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

FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

(Continued)

1.10 Debtors

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

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.

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

FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

(Continued)

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.

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.

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

FOR THE YEAR ENDED 30 JUNE 2024

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.

4 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2024
2024
£
£
Donations and gifts
52,274
2,500
Donations and gifts
UBU Environment
4,200
-
Peel L&P
-
-
Barcham Trees
2,000
-
Together Financial Services
-
-
Stonewater
32,000
-
Footasylum
-
-
Other
14,074
2,500
52,274
2,500		 Total
Unrestricted
funds
general
2024
2023
£
£
51,555
319,812
4,200
14,000
-
12,766
2,000
27,630
-
100,000
32,000
48,150
-
78,304
13,355
38,962
51,555
319,812		 Total
2023
£
319,812
14,000
12,766
27,630
100,000
48,150
78,304
38,962
319,812

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

FOR THE YEAR ENDED 30 JUNE 2024

4
Donations and legacies
Analysis by operation:
Continuing operations
Discontinuing operations
5
Charitable activities
Other charitable income
Service contract income
CFT projects
City of Trees
DEFRA grants
Mersey Forest
Raise: Cumbria Community Forest
Trees of Yorkshire
Analysis by fund
Unrestricted funds - general
Restricted funds
Analysis by operation:
Continuing operations
Discontinuing operations		 49,055
3,219
52,274		 2,500
-
2,500		 51,555
3,219
54,774		 (Continued)
42,720
42,720
277,092
277,092
319,812
319,812
Charitable
Activities
Charitable
Activities
2024
2023
£
£
127,977
322,328
513,699
140,542
882,790
1,313,501
159,242
1,611,156
8,146,745
3,452,894
1,574,207
2,259,037
-
200,000
13,302
145,816
11,417,692
9,445,274
641,676
462,870
10,776,016
8,982,404
11,417,692
9,445,274
11,258,450
6,056,085
159,242
3,389,189
11,417,692
9,445,274		 (Continued)
42,720
42,720
277,092
277,092
319,812
319,812
Charitable
Activities
Charitable
Activities
2024
2023
£
£
127,977
322,328
513,699
140,542
882,790
1,313,501
159,242
1,611,156
8,146,745
3,452,894
1,574,207
2,259,037
-
200,000
13,302
145,816
11,417,692
9,445,274
641,676
462,870
10,776,016
8,982,404
11,417,692
9,445,274
11,258,450
6,056,085
159,242
3,389,189
11,417,692
9,445,274
319,812
Charitable
Activities
2023
£
322,328
140,542
1,313,501
1,611,156
3,452,894
2,259,037
200,000
145,816
9,445,274
462,870
8,982,404
9,445,274
6,056,085
3,389,189
9,445,274

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

FOR THE YEAR ENDED 30 JUNE 2024

6 Investments

Unrestricted Unrestricted
funds funds
general general
2024 2023
£ £
Interest receivable 86,903 41,359

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

FOR THE YEAR ENDED 30 JUNE 2024

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
Raise: Cumbria Community 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
2024
£
569,838
331,270
1,489,776
10,696
955
59,876
337,397
-
2,799,808
7,540,233
277,152
21,119
10,638,312
932,282
9,706,030
10,638,312
10,307,042
331,270
10,638,312		 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

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

FOR THE YEAR ENDED 30 JUNE 2024

8 Grants payable

Grants to institutions:
CFT Projects
City of Trees
Mersey Forest
White Rose Forest
Raise: Cumbria Community Forest
9
Support costs
Support costs
Governance
costs
£
£
Depreciation
2,851
-
Accommodation &
Administration
274,301
-
Audit fees
-
9,045
Accountancy
-
12,074
277,152
21,119
Analysed between
Charitable activities
277,152
21,119		 Charitable
Activities
2024
£
5,329,056
-
1,535,046
-
676,131
7,540,233
2024 Support costs
Governance
costs
£
£
£
2,851
5,185
-
274,301
148,118
-
9,045
-
9,540
12,074
-
7,528
298,271
153,303
17,068
298,271
153,303
17,068		 Charitable
Activities
2023
£
2,220,168
428,324
1,650,630
2,628
4,592
4,306,342
2023
£
5,185
148,118
9,540
7,528
170,371
170,371

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 YEAR ENDED 30 JUNE 2024

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 year was:
Employment costs
Wages and salaries
Social security costs
Other pension costs
Salford Council personnel		 2024
£
6,615
2,430
2024
Number
36
2024
£
1,078,938
107,421
63,393
-
1,249,752		 2023
£
9,540
2,240
2023
Number
55
2023
£
1,693,195
165,772
78,486
65,759
2,003,212

There were no employees whose annual remuneration was between £60,000 and £69,999 (2023: 4). There were no employees whose annual remuneration was between £70,000 and £79,999 (2023: 1). There was 1 employee whose annual remuneration was between £100,000 and £109,999 (2023: 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 YEAR ENDED 30 JUNE 2024

13
Tangible fixed assets - group
Freehold land
Fixtures and
fittings
£
£
Cost
At 1 July 2023
139,245
26,254
Additions
-
2,132
At 30 June 2024
139,245
28,386
Depreciation and impairment
At 1 July 2023
-
22,087
Depreciation charged in the year
-
2,851
At 30 June 2024
-
24,938
Carrying amount
At 30 June 2024
139,245
3,448
At 30 June 2023
139,245
4,167		 Total
£
165,499
2,132
167,631
22,087
2,851
24,938
142,693
143,412

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 999-year 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 YEAR ENDED 30 JUNE 2024

14
Tangible fixed assets - charity
Freehold land
Fixtures and
fittings
£
£
Cost
At 1 July 2023
126,188
26,254
Additions
-
2,132
At 30 June 2024
126,188
28,386
Depreciation and impairment
At 1 July 2023
-
22,087
Depreciation charged in the year
-
2,851
At 30 June 2024
-
24,938
Carrying amount
At 30 June 2024
126,188
3,448
At 30 June 2023
126,188
4,167		 Total
£
152,442
2,132
154,574
22,087
2,851
24,938
129,636
130,355

15 Fixed asset investments - charity

Other
investments
£
Cost or valuation
At 1 July 2023 & 30 June 2024 1
Carrying amount
At 30 June 2024 1
At 30 June 2023 1

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

FOR THE YEAR ENDED 30 JUNE 2024

16 Subsidiaries

Details of the charity's subsidiaries at 30 June 2024 are as follows:

Name of undertaking Registered Nature of business Nature of business Class of % Held % Held
office shares held Direct Indirect
Community Forest Land Trust England & Wales To promote and support the Company 100.00
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 (2,629) 23,749
Mersey Forest Foundation 19,302 110,873
Community Forest Trust
(Trading) Limited - 1
17 Financial instruments - group 2024 2023
£ £
Carrying amount of financial assets
Debt instruments measured at amortised cost 12,270,451 10,296,813
Carrying amount of financial liabilities
Measured at amortised cost 6,791,531 5,751,225
Financial instruments - parent 2024 2023
Carrying amount of financial assets
Debt instruments measured at amortised cost 10,200,877 8,330,271
Equity instruments measured at cost less impairment 1 1
10,200,878 8,330,272
Carrying amount of financial liabilities
Measured at amortised cost 6,773,389 5,742,518

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

FOR THE YEAR ENDED 30 JUNE 2024

18
Debtors - group
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
19
Debtors - charity
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
20
Current asset investments
Unlisted investments
21
Creditors: amounts falling due within one year - group
Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals		 2024
2023
£
£
1,529,406
476,328
9,139
3
5,247,201
2,459,635
6,785,746
2,935,966
2024
2023
£
£
1,529,267
476,328
9,139
3
5,236,479
2,450,467
6,774,885
2,926,798
2024
2023
£
£
-
85,000
2024
2023
As restated
£
£
39,762
121,454
2,068,102
2,227,641
533,913
686,286
18,144
2,536,907
6,239,474
2,528,032
8,899,395
8,100,320		 2023
£
476,328
3
2,459,635
2,935,966
2023
£
476,328
3
2,450,467
2,926,798
2023
£
85,000
8,100,320

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

FOR THE YEAR ENDED 30 JUNE 2024

22
Creditors: amounts falling due within one year - charity
Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals		 2024
2023
As restated
£
£
39,762
121,454
136,790
288,168
524,549
685,908
18,144
2,536,907
6,230,696
2,519,704
6,949,941
6,152,141		 2024
2023
As restated
£
£
39,762
121,454
136,790
288,168
524,549
685,908
18,144
2,536,907
6,230,696
2,519,704
6,949,941
6,152,141
6,152,141

23 Deferred income - group

Deferred income is included in the financial statements as follows:

Deferred income is included within:
Current liabilities
Deferred income at 1 July 2023
Released from previous periods
Resources deferred in the year
Deferred income at 30 June 2024
Deferred income - charity
Deferred income is included within:
Current liabilities
Movement in the year:
Deferred income at 1 July 2023
Released from previous periods
Resources deferred in the year
Deferred income at 30 June 2024		 2024
£
2,068,102
2,227,641
(159,539)
-
2,068,102
2024
£
136,790
288,168
(151,378)
-
136,790		 2023
£
2,227,641
2,363,351
(380,668)
244,958
2,227,641
2023
£
288,168
423,878
(380,668)
244,958
288,168

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

FOR THE YEAR ENDED 30 JUNE 2024

24 Designated funds - group

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Balance at 1 Transfers Balance at Balance at
April 2022 1 July 2023 30 June 2024
£ £ £ £
Land & Property fund 139,245 - 139,245 139,245
Salary fund 42,753 (42,753) - -
Reserves policy 169,500 (98,349) 71,151 71,151
MF - Newlands - 12,127 12,127 12,127
351,498 (128,975) 222,523 222,523

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 case of an 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 previous 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 YEAR ENDED 30 JUNE 2024

24 Designated funds - group

(Continued)

Designated funds - charity

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Balance at 1 Transfers Balance at Balance at
April 2022 1 July 2023 30 June 2024
£ £ £ £
Land & Property fund 126,188 - 126,188 126,188
Salary fund 42,753 (42,753) - -
Reserves policy 169,500 (98,349) 71,151 71,151
Mersey Forest - Newlands - 12,127 12,127 12,127
338,441 (128,975) 209,466 209,466

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 previous 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 YEAR ENDED 30 JUNE 2024

25 Analysis of Charitable Funds

As restated

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 2022
£
422,771
351,498
3,576,311
4,350,580		 Movement in funds
Incoming
resources
Resources
expended
£
£
824,041
(1,041,436)
-
-
8,982,404
(10,740,461)
9,806,445
(11,781,897)		 Transfers
£
99,795
(128,975)
81,810
52,630		 Balance at
1 July 2023
£
305,171
222,523
1,900,064
2,427,758		 Movement in funds
Incoming
resources
Resources
expended
£
£
805,489
(932,282)
-
-
10,778,516
(9,706,030)
11,584,005
(10,638,312)		 Transfers
£
200,947
-
(56,774)
144,173		 Balance at
30 June 2024
£
379,325
222,523
2,915,777
3,517,625

The transfer of funds this year out of unrestricted and restricted reserves relates to moving City of Trees income and expenditure to other debtors. See note 30 for explanation as to why comparative figures have been restated.

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

FOR THE YEAR ENDED 30 JUNE 2024

25 Analysis of Charitable Funds

(Continued)

Restricted funds:

Restricted funds:
CFT
City of Trees
Mersey Forest
White Rose Forest
Raise: Cumbria Community Forest
Subsidiary: Mersey Forest Foundation		 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
£
£
£
2,682,235
(2,557,141)
(146,105)
3,317,279
(5,291,259)
-
2,637,075
(2,677,464)
275,620
145,815
(166,709)
(47,705)
200,000
(47,888)
-
-
-
-
8,982,404
(10,740,461)
81,810		 Balance at
1 July 2023
£
594,406
-
1,006,154
104,338
152,112
43,054
1,900,064		 Incoming
resources
£
6,022,036
159,242
2,783,968
13,302
1,789,308
10,660
10,778,516		 Movement in funds
Resources
expended
Transfers
£
£
(5,496,775)
-
(102,468)
(56,774)
(3,024,823)
-
(59,876)
-
(1,013,527)
(8,560)
-
(9,706,029)
(56,774)		 Balance at
30 June 2024
£
1,119,667
-
765,299
57,764
927,893
45,154
2,915,777

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

White Rose Forest - 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.

Raise: Cumbria Community 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 YEAR ENDED 30 JUNE 2024

26 Analysis of Charitable Funds (Charity)

As restated

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 2022
£
399,037
338,441
3,533,257
4,270,735		 Movement in funds
Incoming
resources
Resources
expended
£
£
780,197
(1,035,696)
-
-
8,982,405
(10,740,461)
9,762,602
(11,776,157)		 Transfers
£
99,795
(128,975)
81,810
52,630		 Balance at
1 July 2023
£
243,334
209,466
1,857,011
2,309,811		 Movement in funds
Incoming
resources
Resources
expended
£
£
757,719
(924,668)
-
-
10,793,438
(9,697,469)
11,551,157
(10,622,137)		 Transfers
£
200,947
-
(56,774)
144,173		 Balance at
30 June 2024
£
277,331
209,466
2,896,206
3,383,003

The transfer of funds this year out of unrestricted and restricted reserves relates to moving City of Trees income and expenditure to other debtors. See note 30 for explanation as to why comparative figures have been restated.

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

FOR THE YEAR ENDED 30 JUNE 2024

26 Analysis of Charitable Funds (Charity)

(Continued)

Restricted funds:

Restricted funds:
CFT
City of Trees
Mersey Forest
White Rose Forest
Raise: Cumbria Community Forest		 Balance at 1
April 2022
£
615,416
1,973,980
770,923
172,938
-
3,533,257		 Movement in funds
Incoming
resources
Resources
expended
£
£
2,682,235
(2,557,141)
3,317,279
(5,291,259)
2,637,076
(2,677,464)
145,815
(166,709)
200,000
47,888
8,982,405
(10,740,461)		 Transfers
£
(146,105)
275,620
(47,705)
81,810		 Balance at
1 July 2023
£
594,405
-
1,006,155
104,339
152,112
1,857,011		 Movement in funds
Incoming
resources
Resources
expended
£
£
6,022,036
(5,496,776)
159,242
(102,468)
2,809,551
(3,024,822)
13,302
(59,876)
1,789,308
(1,013,528)
10,793,439
(9,697,470)		 Transfers
£
-
(56,774)
-
-
(56,774)		 Balance at
30 June 2024
£
1,119,665
-
790,884
57,765
927,892
2,896,206

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

White Rose Forest - 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.

Raise: Cumbria Community 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 YEAR ENDED 30 JUNE 2024

27 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 (2023: £Nil) but expenses were paid to the Trustees during the financial year totalling £615 (2023: £Nil).

Key management, consisted of the 4 individuals (2023: 5 individuals) who worked the equivalent of 4.0 full time equivalent on the management of the Charity (2023: 4.6 FTE). The costs of the key personnel on the management of the Charity is paid during the period gross £254,709 (2023: £239,359).

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.

During the year, Mersey Forest Foundation made donations to Community Forest Trust, the parent charity, of £25,584.

During the year, Community Forest Trust entered into a commercial arrangement with Roger Pearson, a trustee of Community Forest Land Trust and Mersey Forest Foundation, who provided consultancy services to the charity through a company he is director of, Abbeystead Partners Ltd. The total value of these services amounted to £44,367 during the financial year. The transactions were conducted at arms length.

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 2024, City of Trees owes Community Forest Trust £9,139 (2023: balance owed to City of Trees of £2,490,828) for its share of restricted and unrestricted reserves.

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

FOR THE YEAR ENDED 30 JUNE 2024

28
Analysis of net assets between funds - group
As restated
Unrestricted
funds
Designated
funds
2024
2024
£
£
Fund balances at 30 June 2024 are represented by:
Tangible assets
-
142,693
Current assets/(liabilities)
379,325
79,830
379,325
222,523		 Restricted
funds
2024
£
-
2,915,777
2,915,777		 Total
Unrestricted
funds
Designated
funds
2024
2023
2023
£
£
£
142,693
-
143,412
3,374,932
305,171
79,111
3,517,625
305,171
222,523		 Restricted
funds
2023
£
-
1,900,064
1,900,064		 Total
2023
£
143,412
2,284,346
2,427,758

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

FOR THE YEAR ENDED 30 JUNE 2024

29 Operating lease commitments - group & charity

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

Within one year
Between two and five years		 2024
£
-
-
-		 2023
£
5,142
1,463
6,605

30 Prior year restatement

The prior year figures have been re-stated to recognise transfers between restricted reserves projects after the charity performed a reconciliation exercise.

A transfer of £29,180 was also made from unrestricted reserves to restricted reserves to cover a £29,180 deficit after making the above transfers.

A transfer of £52,630 was made out of the City of Trees restricted fund to other creditors as City of Trees divested at 30 June 2023 leaving a balance of £nil in restricted funds for City of Trees.

31 Cash generated from operations
Cash generated from operations 2024 2023
£ £
Surplus/(deficit) for the year 1,089,865 (1,975,452)
Adjustments for:
Investment income recognised in statement of financial activities (86,903) (41,359)
Depreciation and impairment of tangible fixed assets 2,851 5,185
Movements in working capital:
(Increase) in debtors (3,849,780) (62,529)
Increase in creditors 958,614 3,682,451
(Decrease) in deferred income (159,538) (135,710)
Cash (absorbed by)/generated from operations (2,044,891) 1,472,586