## **Small Woods Association**
## **Trustees’ Report and Audited Financial Statements**
## **For the year ended 31 March 2024**
Charity Registration Number: 1081874 Company Registration Number: 03919849
**Small Woods Association**
**Trustees’ Report and Financial Statements**
**Year Ended 31 March 2024**
|**Contents**|Page number|
|---|---|
|Reference and administrative information|1|
|Trustees’ Report|2|
|Independent auditor’s report to the members of Small Woods Association|6|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Cash Flow Statement|11|
|Notes to the Financial Statements|12-26|
## **Small Woods Association**
## **Reference and Administrative Information Year ended 31 March 2024**
|**Trustees**|John Blessington|
|---|---|
||Phil Burton (ceased 4thDecember 2023)|
||Christopher Duncan|
||Alyson May|
||Beverly Tyley|
||Philip Tidey|
||Peter Watson (resigned 23rdJune 2023)|
||Gary Battell|
||Liz Newton (appointed 8thDecember 2023)|
||Adam Gillingham (appointed 8thDecember 2023)|
||Ben Howard (appointed 12thApril 2024)|
||Michael Innes (appointed 12thApril 2024)|
|**Company Registered Number**|03919849|
|**Charity Registration Number**|1081874|
|**Registered Office**|Station Road|
||Coalbrookdale|
||Telford|
||Shropshire|
||TF8 7DR|
|**CEO**|Simon James (appointed 1stJanuary 2024)|
||Ian Baker (resigned 31stDecember 2023)|
|**Company Secretary**|Christopher Duncan|
|**Independent Auditor**|James Holyoak & Parker Limited|
||1 Knights Court|
||Archers Way|
||Battlefield Enterprise Park|
||Shrewsbury|
||TF8 7DR|
|**Bankers**|Lloyds Bank plc|
||113 The Border|
||Overdale|
||Telford|
||TF3 4AE|
1
**Small Woods Association**
**Year Ended 31 March 2024**
**Trustees’ Report**
The trustees, who are also the directors of Small Woods Association (Small Woods) for the purposes of company law, present their annual report and the audited financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 3 to the financial statements and comply with the charity's governing documents, 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).
## **Objectives and Activities**
The charity is constituted as a company limited by guarantee and is therefore governed by a memorandum and articles of association. The charity’s object is to advance the conservation of small woodlands. The principal activities are raising awareness about the needs and implications of small woodland management; undertaking projects that promote their sustainability and use; using woodlands for the promotion of human health and wellbeing and the promotion of traditional woodland crafts. This is done through a number of channels: practical projects (often grant funded); training and educational courses; apprenticeships; seminars; events; an annual conference; information, advice and guidance.
## **Achievements and performance**
The charity has continued to undertake a wide range of activities and done so with the support of a committed membership, trustees and staff. The charity was delivering 43 projects across the UK during the year, funded by a £1.84m turnover, which was a 10.5% increase on the previous year. The charity was able to continue supporting people during the year with over 2,370 people supported through health and wellbeing activities, all of whom are dealing with some sort of challenge or crisis, who received help that enabled them to progress in their lives.
The area of woodland represented through our members is now over 32,800 hectares. All of our members have access to advice and information on sustainable woodland management provided by the charity, and 1,778 members had access information, advice and guidance through our increasingly well-regarded magazine and newsletter. The charity continues to deliver webinars and meetings online, with 270 members attending 19 events.
Connecting woodlands and people for wellbeing supported by the Enabling Natural Resources and Well-being scheme drew to a close, a pan Wales project leading on innovative, with substantial participation in health and wellbeing activities in the outdoors. Health and wellbeing engagement for woodland in England and Wales continues through lottery funding and the local authority funded shared prosperity fund.
Small Woods benefited from the efforts of a range of volunteers, both those involved in practical woodland work, such as our coppice volunteers at the Green Wood Centre and Edge Wood, and those able to provide professional input to the charity, such as the volunteers from Cap Gemini who are supporting the charity in the development of its IT. Altogether we are now supported by over 20 regular volunteers.
Woodlands into management continues to be a strong focus. Utilising the Mercian project to engage woodland owners, farmers and local authorities and offering them incentives to make biodiversity gains through a ‘challenge’ model. Further sector engagement achieved through the WIMFIF and NEIRF projects have seen novel programmes of collaborative working with like organisations to bring influence and support to woodland owners, managers and workers to realise more woodland into management.
2
**Small Woods Association**
**Trustees’ Report**
**Year Ended 31 March 2024**
## **Financial review**
It is the aim of the charity that unrestricted funds, which have not been designated for a specific use, should be maintained at a level defined in the Reserves Policy. The Trustees consider that once reserves at this level have been achieved that will ensure that, in the event of a significant drop in funding, the charity will be able to continue its activities, while consideration is given to ways in which additional funds may be raised. The level of reserves required has been approved by the board to cover 3 months of operating expenditure and closure costs. The charity will be working hard to achieve those levels of reserves over the next 3 to 5 years.
Whilst income has increased in the year to £1,841,902 (2023: £1,667,239), expenditure has increased further and a deficit of £142,987 was incurred during the year. This, combined with losses made over the previous 3 years continue to weigh on the charity. The charity is facing inflationary pressures on costs and pay, and the cost of living affects our membership retention and learning pathways take up. There is also uncertainty by funders due to recent general election, downward pressure on levels of management fees chargeable and the tendency of funders to move to short term grants available at short notice.
Cashflow forecast analysis has indicated possible low funds requiring resolution, with the best option being a cash loan. The loan is required where we carry projects financially for extended periods before claim windows open and is available through a drawdown agreement of £250,000 with the Charity Bank. The facility can be drawn down as and when we require the cash to cover cashflow shortfalls.
The charity made a business interruption insurance claim due to Covid restrictions and received a partial payment in 2023/24. This claim is ongoing, but we have not accrued for any further payments.
Small Woods unrestricted funds on the 31[st] March 2024 amounted to £515,832 (2023: £631,711). Small Woods free reserves on the 31[st] March 2024 were £83,692 (2023: £242,899). The trustee’s aim is to increase those reserves over the coming years to achieve the target set in the Reserves Policy.
The charity management and finance teams have devoted resources through the year to addressing the findings from the previous year’s audit report, which has been very helpful. A number of system improvements have been implemented, along with a Financial Management Systems review, which continued into the current year.
The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Plans for future periods**
Small Woods is dedicated to promoting the sustainable management of small woodlands for environmental, economic, and social benefits, we are seeking strategic changes to our goals and initiatives for the next five years to enhance woodland stewardship, increase member engagement, and promote sustainable forestry practices for resilience and well-being. This will enable further stability diverting risk away from public funds to embrace the corporate market for investment in woodlands into management and health and wellbeing activities.
3
**Small Woods Association**
**Trustees’ Report**
**Year Ended 31 March 2024**
## **Structure, Governance and Management**
## _**Governing Documents**_
Small Woods is a company limited by guarantee, governed by its memorandum and articles of association, incorporated on the 4[th] February 2000 and registered with the Charity Commission on the 7[th] August 2000. None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
## _**Method of Appointment of Trustees**_
Potential new trustees are identified by the board and approached as and when required. New trustees are briefed on the operational of the organisation at trustee meetings. An open invitation to the membership of Small Woods has been issued to recruit new members from the membership.
## _**Induction and Training of Trustees**_
New trustees are provided with appropriate information, induction and training, taking into account their previous experience in the charity sector and the nature of Small Woods Association.
## _**Organisational Structure and Decision Making**_
The Board of Trustees administers Small Woods, meets quarterly and is responsible for the strategic direction and policy of the charity. A minimum of three trustees is required for a meeting to be quorate. At present there are ten trustees from a variety of professional backgrounds.
The Board appoints the CEO who manages the day to day operations of Small Woods.
## **Statement of Trustees' Responsibilities in respect of the Financial Statements**
The Trustees, who are the directors of Small Woods for the purposes 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 and charity law require the trustees to prepare financial statements for each financial year that give a true and fair view of Small Wood’s state of affairs and of its incoming and outgoing resources, including the income and expenditure for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Statement of Recommended Practice ‘Accounting and Reporting by Charities’;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that Small Woods will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time, Small Wood’s financial position and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding Small Wood’s assets and hence for taking steps for the prevention and detection of fraud and other irregularities.
4
**Small Woods Association**
**Trustees’ Report**
**Year Ended 31 March 2024**
## **Provision of Information to the Auditor**
The Trustees who held office at the date of approval of this trustees’ report confirm that, so far as they are aware:
- there is no relevant audit information of which Small Wood’s auditor is unaware; and
- they have taken all the steps that they ought to have taken, as trustees, to make themselves aware of any relevant audit information and to establish that Small Wood’s auditor is aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Auditor**
The auditor is James Holyoak & Parker Limited.
## **Approval**
The Trustees have prepared this report in accordance with the provisions applicable to companies subject to the small companies regime. This report was approved by the Trustees on 18[th] September 2024 and signed on their behalf by.
John Blessington Trustee
5
**Small Woods Association**
## **Independent Auditors Report to the Trustees of Small Woods Association**
## **Opinion**
We have audited the financial statements of Small Woods Association (the ‘charitable company”) for the year ended 31[st] March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2024, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Material uncertainty related to going concern**
We draw attention to Note 27 in the financial statements, which indicates that the company incurred significant cashflow issues during the year ended 31 March 2024. Forecasts show that there will be further significant pressures on cashflow going forwards. As stated in Note 27, these events or conditions, along with other matters as set forth in Note 27, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
## **Key audit Matters**
Except for the matter described in the Material uncertainty related to going concern section, we have determined that there are no other key audit matters to be communicated in our report.
## **Other information**
The other information comprises the information included in the trustees' annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be materially
6
**Small Woods Association**
## **Independent Auditors Report to the Trustees of Small Woods Association**
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.
## **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 Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit [; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
7
**Small Woods Association**
## **Independent Auditors Report to the Trustees of Small Woods Association**
We understood how the company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was a susceptibility to fraud. Based on our understanding, our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/descriptionof-the-auditor%E2%80%99s-responsibilities-forThis description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
**Mr Robert Humphreys BEng FCA (Senior Statutory Auditor) for and on behalf of James Holyoak & Parker Limited Date:**
**Chartered Accountants**
1 Knights Court Archers Way Battlefield Enterprise Park Shrewsbury SY1 3GA
James Holyoak & Parker Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
8
## **Small Woods Association**
## **Statement of Financial Activities**
## **Year ended 31 March 2024**
(Incorporating an Income and Expenditure Account)
**----- Start of picture text -----**
Note Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
2024 2023
£ £ £ £ £ £
Income from:
Membership, donations & legacies 4 154,304 20 154,324 135,515 200 135,715
Charitable activities 5 93,959 1,592,191 1,686,150 136,074 1,394,098 1,530,172
Investment Income 6 1,428 - 1,428 1,352 - 1,352
Total Income 249,691 1,592,211 1,841,902 272,941 1,394,298 1,667,239
Expenditure on:
Charitable activities 7 313,411 1,669,698 1,983,109 331,904 1,341,680 1,673,584
Loss on disposal of fixed assets 10 1,780 - 1,780 - - -
Total Expenditure 315,191 1,669,698 1,984,889 331,904 1,341,680 1,673,584
Net Income / (Expenditure) for the year (65,500) (77,487) (142,987) (58,963) 52,618 (6,345)
Transfer In / (Out) of Funds 18 (50,379) 50,379 - 56,678 (56,678) -
Net Movement in Funds (115,879) (27,108) (142,987) (2,285) (4,060) (6,345)
Reconciliation of Funds
Funds brought forward at 01 April 2023 631,711 94,295 726,006 633,996 98,355 732,351
Funds Carried Forward at 31 March 2024 515,832 67,187 583,019 631,711 94,295 726,006
**----- End of picture text -----**
The statement of financial activities shows all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The notes on pages 12 to 26 form part of these financial statements.
9
**Small Woods Association**
**Companies House Registered Number 03919849**
**As at 31 March 2024**
## **Balance Sheet**
**----- Start of picture text -----**
Note 2024 2023
£ £
Fixed Assets
Tangible assets 12 371,370 388,712
Investments 11 100 100
371,470 388,812
Current Assets
Debtors 13 363,966 744,670
Stock 14 1,975 -
Cash at bank & in hand 24 45,390 101,250
411,331 845,920
Current Liabilities
Creditors: Amounts falling
due within one year 15 (199,782) (508,726)
Net Current Assets 211,549 337,194
Net Assets 583,019 726,006
Funds of the Charity
Unrestricted funds 58,792 266,120
Designated funds 17 457,040 515,832 365,591 631,711
Restricted funds 18 67,187 94,295
Total Charity funds 583,019 726,006
**----- End of picture text -----**
These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.
The notes on pages 12 to 26 form part of these accounts. The financial statements were approved and authorised for issue by the Board of Trustees on the 18th September 2024 and were signed on its behalf by:
John Blessington
**Trustee**
10
**Small Woods Association**
## **Cash Flow Statement**
## **For the year ended 31 March 2024**
**----- Start of picture text -----**
Note 2024 2023
£ £
Net cash inflow / (outflow) from operating activities 24 (106,339) (250,071)
Investing activities
Returns on investments and servicing of finance
Interest received 6 1,428 1,352
Income from disposal of fixed assets 10 2,650 -
Payments to acquire fixed assets 12 (3,579) (30,499)
Net cash outflow from investing activities 499 (29,147)
Financing activities
Bank loan 28 49,980 -
Net cash inflow from financing activities 49,980 -
Increase in cash and cash equivalents (55,860) (279,218)
Cash or cash equivalents brought forward 101,250 380,468
Cash or cash equivalents carried forward 45,390 101,250
**----- End of picture text -----**
The notes on pages 12 to 26 form part of these financial statements.
11
**Small Woods Association**
**Notes to the Financial Statements**
**Year ended 31 March 2024**
## **1 General Information**
The company was formed on the 4th February 2000 is limited by guarantee (No 03919849) and is a registered charity (No 1081874). The company is registered in England and Wales and the registered office is Station Road, Coalbrookdale, Telford, Shropshire, TF8 7DR
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.
## **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 associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, where the revision affects only that period, or in the period of the revision and future periods, where the revision affects both current and future periods.
## **3 Accounting Policies**
The principal accounting policies adopted, judgements and key sources of estimation in the financial statements are as follows.
## _**a Basis of Accounting**_
The financial statements have been prepared in accordance with;
- the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) which became effective in January 2019.
- the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS 102.
- the Charities Act 2011.
- the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102.
## _**b Charitable funds**_
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purpose and uses of the restricted funds are set out in the notes to the financial statements.
## _**c Stock**_
Stock for resale is valued at the lower of cost or net realisable value. Stock is sold on a first in first out basis, so the cost value is the cost of the most recent stock.
12
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
## **3 Principal Accounting Policies (continued)**
## _**d Income**_
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably.
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 earlier 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.
## _**e Expenditure**_
Expenditure is recognised once there is a legal or constructive obligation to transfer an economic benefit to the charity, and it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be reliably measured.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared and support costs which are not attributable to a single activity are apportioned to activities on a basis consistent with the use of the resource. Central staff costs are allocated on the basis of the time spent and depreciation charges are allocated based on the use of the asset.
## _**f Tangible Fixed Assets**_
Tangible fixed assets are stated at cost less accumulated depreciation. As a general guide expenditure of less than £1,000 is not capitalised.
Depreciation is provided at rates to write off the cost of the asset over its estimated useful lives, as follows:
Leasehold land and buildings 2% on a straight line basis Plant and equipment 10% on a reducing balance basis Motor vehicles 20% on a straight line basis
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.
## _**g Fixed asset investments**_
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income or expenditure for the year. Transaction costs are expensed when incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the subsidiary so as to obtain benefits from its activities.
13
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
## **3 Principal Accounting Policies (continued)**
## _**h Impairment of fixed assets**_
At each reporting end date, the charity reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered any impairment or loss. If any such indication exists, the value of the asset is estimated to determine the extent of the impairment or loss, if any.
## _**i 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 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 assets and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which includes 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 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.
## _**j**_ **Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity.
14
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
## **3 Principal Accounting Policies (continued)**
## _**k Retirement benefits**_
Payments to the defined contribution retirement benefit schemes are charged as an expense as they fall due.
## _**l Employee benefits**_
Termination benefits are recognised as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Employees are expected to take holiday and use TOIL in the financial year. In exceptional circumstances balances can be carried forward and used within a month of the next financial year. In such circumstances, the Business Manager will approve an extended period of time within which the holiday and TOIL is to be used. This would be managed on a case by case basis.
## _**m Taxation**_
The company is a registered charity and as such is exempt from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year.
15
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
**----- Start of picture text -----**
4 Membership, donations & legacies
Unrestricted Restricted Total Total
Funds Funds Funds Funds
2024 2024 2024 2023
£ £ £ £
Donations and gifts 71,540 20 71,560 43,995
Gift Aid 11,791 - 11,791 10,125
Membership fees 70,973 - 70,973 81,595
154,304 20 154,324 135,715
5 Charitable activity
Income 2024 Unrestricted Restricted Total
Income Funds 2024
£ £ £
Grants from funders 62,079 1,506,103 1,568,182
Training courses 20,309 - 20,309
Other income 11,571 86,088 97,659
93,959 1,592,191 1,686,150
Income 2023 Unrestricted Restricted Total
Income Funds 2023
£ £ £
Grants from funders 70,241 1,263,016 1,333,257
Training courses 15,035 1,874 16,909
Other income 50,798 129,208 180,006
136,074 1,394,098 1,530,172
6 Investment income
Unrestricted Unrestricted
Funds Funds
2024 2023
£ £
Interest receivable 1,428 1,352
1,428 1,352
**----- End of picture text -----**
16
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
**----- Start of picture text -----**
7 Charitable expenditure
Expenditure 2024 Unrestricted Restricted Total
Funds Funds 2024
£ £ £
Staff costs 211,321 918,826 1,130,147
Project costs & associated training 19,191 483,250 502,441
Magazine costs 16,812 - 16,812
Staff, volunteer & apprentice costs 18,904 47,091 65,995
Advertising 3,119 8,587 11,706
Bank charges 7,597 - 7,597
Printing, stationery & postage 7,407 1,275 8,682
Legal, professional & accountancy 28,982 19,596 48,578
Telephone 1,130 1,456 2,586
Rent, power & insurance 39,845 3,550 43,395
Repairs & maintenance & computer supplies 25,023 39,184 64,207
Irrecoverable VAT 16,901 30,426 47,327
Sundries 13,311 3,834 17,145
Depreciation 16,491 - 16,491
Management fees (112,623) 112,623 -
313,411 1,669,698 1,983,109
Expenditure 2023 Unrestricted Restricted Total
Funds Funds 2023
£ £ £
Staff costs 273,690 794,811 1,068,501
Project costs & associated training 33,256 262,565 295,821
Magazine costs 17,032 - 17,032
Staff, volunteer & apprentice costs 10,827 43,274 54,101
Advertising 8,959 12,310 21,269
Bank charges 799 - 799
Printing, stationery & postage 5,133 2,595 7,728
Legal, professional & accountancy 20,613 23,788 44,401
Telephone 788 6,430 7,218
Rent, power & insurance 28,349 5,571 33,920
Repairs & maintenance & computer supplies 18,143 25,052 43,195
Irrecoverable VAT 8,638 22,716 31,354
Sundries 19,068 12,421 31,489
Depreciation 16,756 - 16,756
Management fees (130,147) 130,147 -
331,904 1,341,680 1,673,584
**----- End of picture text -----**
17
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
## **8 Analysis of Staff Costs**
Staff costs were as follows:
**----- Start of picture text -----**
||||
|---|---|---|
|2024|2023|
|£|£|
|Salaries and wages|1,044,121|986,366|
|National insurance costs|66,806|63,775|
|Pension costs|19,220|18,360|
|1,130,147|1,068,501|
**----- End of picture text -----**
There were no employees whose remuneration was more than £60,000, in this or the previous year. The total salary costs of the key employees in the year was £176,222.
The average number of employees during the year was as follows:
**----- Start of picture text -----**
||||
|---|---|---|
|2024|2023|
|Nos|Nos|
|Average full time equivalent|41|37|
|Average head count|59|61|
**----- End of picture text -----**
## **9 Net Income for the Year**
**----- Start of picture text -----**
||||
|---|---|---|
|2024|2023|
|This is stated after charging:|£|£|
|Depreciation|16,491|16,756|
|Auditor's fees for audits|14,000|19,000|
|Auditor's fees for non-audit services|6,691|4,415|
**----- End of picture text -----**
## **10 Disposal of fixed assets**
**----- Start of picture text -----**
||||
|---|---|---|
|2024|2023|
|£|£|
|Cost of assets|7,726|-|
|Depreciation to date|3,296|-|
|Income from disposal|2,650|-|
|Loss on disposal of fixed assets|1,780|-|
**----- End of picture text -----**
## **11 Fixed asset investments**
**----- Start of picture text -----**
||||
|---|---|---|
|Other|
|Investments|
|Cost or valuation|£|
|As at 01 April 2023 & 31 March 2024|100|
|Carrying amount|
|At 31 March 2024|100|
|At 31 March 2023|100|
|Other investments comprise|2024|2023|
|£|£|
|Investments in subsidiaries ( Note 25)|100|100|
**----- End of picture text -----**
18
**Small Woods Association**
**Year ended 31 March 2024**
## **Notes to the Financial Statements (continued)**
## **12 Tangible Fixed Assets**
|**Leasehold**
**land & buildings**
**Cost**
**£**
Brought forward
470,451
Additions
-
Disposals
-
At 31 March 2024
**470,451**
**Depreciation**
Brought forward
138,290
Charge for year
9,409
Disposals
-
At 31 March 2024
**147,699**
**_Net book value_**
At 31 March 2024
**322,752**
At 31 March 2023
332,161|**Plant &**
**Equipment**
**£**
189,105
3,579
7,726
**184,958**
137,324
5,492
3,296
**139,520**
**45,438**
51,781|**Motor**
**vehicles**
**£**
7,950
-
-
**7,950**
3,180
1,590
-
**4,770**
**3,180**
4,770|**Total**
**£**
667,506
3,579
7,726
**663,359**
278,794
16,491
3,296
**291,989**
**371,370**
388,712|
|---|---|---|---|
Leasehold land and buildings were valued on an open market basis by Wiggins Lockett Thompson Limited Chartered Surveyors (regulated by RICS) at a value of £290,000 as at 17 August 2017. The trustees consider that this is materially in line with the reported net book value on a historic cost basis.
|**13 Debtors**
Trade debtors
Prepayments
Other debtors
**14 Stock**
Gift shop stock
**15 Creditors: Amounts falling due within one year**
Social security and other taxes
Trade creditors
Amount owed to subsidiary undertakings
Other creditors
Accruals
Government grants & deferred income
Bank loan|**2024**
**£**
**296,725**
**-**
**67,241**
**363,966**
**2024**
**£**
**1,975**
**1,975**
**2024**
**£**
**24,428**
**42,549**
**1,758**
**-**
**15,889**
**65,178**
**49,980**
**199,782**|2023
£
614,162
1,918
128,590
744,670
2023
£
-
-
2023
£
24,284
28,507
1,758
6,000
7,190
440,987
-
508,726|
|---|---|---|
19
**Year ended 31 March 2024**
## **Small Woods Association**
## **Notes to the Financial Statements (continued)**
## **16 Government grants**
|Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Deferred income at 1 April 2023
Released from previous periods in the year
Resources deferred in the year
**Balance as at 31 March 2024**|**2024**
**£**
65,178
**440,987**
**(440,987)**
**65,178**
**65,178**|2023
£
440,987
323,500
(16,500)
133,987
440,987|
|---|---|---|
Deferred income comprises income received under a contract which relates to work to be completed in future accounting periods and initial up front payments, where the work has yet to be performed or completed. The charity has no entitlement to these funds at the year end and they have therefore been deferred.
## **17 Designated Funds**
The unrestricted funds of the charity include the following designated funds which have been set aside by the trustees for specific purposes.
|Capital fund
Wind up fund
Apprenticeship
Coppice Restoration
Learning Pathways
Lost Woods
Mountain Warehouse
Social Forestry Commercial
Veterans (AFC)
Wesleyan
Capital fund
Wind up fund
Apprenticeship
Coppice Restoration
Learning Pathways
Lost Woods
Wesleyan
Veterans (AFC)|**At 1 April**
**2023**
**£**
**299,803**
**27,191**
**36,931**
**665**
**(21,738)**
**911**
**-**
**-**
**3,097**
**18,731**
**365,591**
At 1 April
2022
£
316,559
27,191
2,945
665
-
399
-
11,413
359,172|**Income**
**£**
**-**
**-**
**-**
**-**
**9,518**
**-**
**17,203**
**9,536**
**500**
**28,353**
**65,110**
Income
£
-
-
44,315
-
15,539
1,361
28,353
9,500
99,068|**Expenditure**
**£**
**-**
**-**
**-**
**-**
**(32,661)**
**-**
**(10,525)**
**(2,564)**
**(259)**
**(3,402)**
**(49,411)**
Expenditure
£
(16,756)
-
(10,329)
-
(37,277)
(849)
(9,622)
(7,768)
(82,601)|**Transfer**
**£**
**71,567**
**(2,191)**
**(36,931)**
**(665)**
**44,881**
**(911)**
**-**
**-**
**-**
**-**
**75,750**
Transfer
£
-
-
-
-
-
-
-
(10,048)
(10,048)|**At 31 March**
**2024**
**£**
**371,370**
**25,000**
**-**
**-**
**-**
**-**
**6,678**
**6,972**
**3,338**
**43,682**
**457,040**
At 31 March
2023
£
299,803
27,191
36,931
665
(21,738)
911
18,731
3,097
365,591|
|---|---|---|---|---|---|
20
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
## **17 Designated Funds (continued)**
**Capital fund:** - To match the value of the net book value of the fixed assets. **Wind up Fund: -** To maintain a fund to enable the payment of redundancy and associated costs if required. **Mountain Warehouse:** - To fund the volunteer day in 2024/25.
**Social Forestry Commercial:** - Activity around delivering various commercial courses and programs. **Veterans (AFC): -** To cover expected costs up to July 2024.
**Wesleyan:** - Match funding for the Willey Estate project, due to take place in 2024/25.
## **18 Analysis of Movements in Restricted Funds**
## **Analysis of Movements in Restricted Funds - Current Year**
|Amser Carers Fund
Anglesey AONB
Anglesey SPF
Apprenticeships
Arts Council Wales
BBO
Blaenau Gwent SPF
Breaking Barriers
Carms SPF (UWTSD)
Energize
ENRaW Green Infrastructure (GI)
ENRaW OH/HAF
FSC
Local Places for Nature Swansea
Lost Peatlands
Lost Woods
Mercian Biodiversity Project
NEIRF EA Carbon Sequestration
NHS Shropshire Young Children
NPT SPF
NPT Third Sector
NRW
Pembrokeshire SPF
Powys SPF Feasibility Study
Reaching Communities
Safer, Stronger Community (T&W)
Social Enterprise
Social Forestry
Swansea Coast
Swansea SPF
T&W Holiday Fund
Veterans Foundation
West Glamorgan RIF
**Sub-total Restricted Funds**|**At 1 April**
**2023**
**£**
**-**
**-**
**-**
**-**
**-**
**(1,700)**
**-**
**-**
**-**
**-**
**-**
**50,942**
**(317)**
**-**
**-**
**-**
**25,161**
**(3,360)**
**3,057**
**-**
**-**
**9,967**
**-**
**-**
**(3,571)**
**-**
**-**
**1,360**
**-**
**-**
**(313)**
**-**
**(171)**
**81,055**|**Income**
**£**
**9,952**
**11,429**
**69,113**
**5,000**
**1,261**
**3,236**
**30,053**
**44,354**
**14,772**
**6,500**
**82,370**
**485,478**
**4,500**
**9,502**
**39,773**
**41,106**
**78,824**
**50,013**
**-**
**53,396**
**25,000**
**163,460**
**30,090**
**46,105**
**78,365**
**2,764**
**-**
**800**
**6,556**
**2,138**
**-**
**8,799**
**37,294**
**1,442,003**|**Expenditure**
**£**
**(9,914)**
**(11,427)**
**(62,549)**
**(38,932)**
**(1,261)**
**(1,264)**
**(29,679)**
**(43,220)**
**(12,091)**
**(5,967)**
**(74,776)**
**(550,354)**
**(4,286)**
**(9,082)**
**(37,238)**
**(32,303)**
**(114,207)**
**(49,731)**
**(4,387)**
**(54,070)**
**(24,144)**
**(168,658)**
**(31,900)**
**(47,272)**
**(64,794)**
**(371)**
**(544)**
**(151)**
**(6,136)**
**(2,138)**
**(62)**
**(8,799)**
**(37,123)**
**(1,538,830)**|**Transfers**
**Funds**
**£**
**(38)**
**(2)**
**-**
**36,931**
**-**
**(272)**
**-**
**(1,134)**
**-**
**(533)**
**(7,594)**
**13,934**
**103**
**(420)**
**-**
**911**
**10,222**
**3,078**
**1,330**
**674**
**(856)**
**(4,769)**
**1,810**
**1,167**
**-**
**(2,393)**
**544**
**(2,009)**
**(420)**
**-**
**375**
**-**
**-**
**50,639**|**At 31 March**
**2024**
**£**
**-**
**-**
**6,564**
**2,999**
**-**
**-**
**374**
**-**
**2,681**
**-**
**-**
**-**
**-**
**-**
**2,535**
**9,714**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**10,000**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**34,867**|
|---|---|---|---|---|---|
21
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
## **18 Analysis of Movements in Restricted Funds (continued)**
|**At 1 April**
**2023**
**£**
WIMFIF Biochar FC
**2,533**
WIMFIF Resillient Networks FC
**3,461**
Wye Valley AONB
**-**
Willey Estate
**7,246**
**94,295**
**sis of Movements in Restricted Funds - Previous Year**
**At 1 April**
**2022**
**£**
AONB
-
BBO
1,578
Biochar
-
Biomass
-
Coed Lleol
61,860
CWM TAF Nature Network
-
FSC
-
Landau Community Grants
1,366
Mercian Biodiversity
14,054
NEIRF
-
NHS Shropshire Young Children
-
NRW
-
Social Enterprise
4,927
Social Forestry Contracts
-
Safer Stronger Community
-
T&W Holiday Fund
-
West Glamorgan RIF
-
WIMFIF Biochar
-
WIMFIF Resilient Networks
-
Willey Estate (Shropshire)
14,570
**98,355**|**Income**
**£**
**61,677**
**67,580**
**20,951**
**-**
**1,592,211**
**Income**
**£**
12,623
53,264
(190)
-
976,147
4,760
-
12,000
126,508
18,529
7,000
84,521
19,261
1,874
1,236
11,030
32,232
14,496
19,007
-
**1,394,298**|**Expenditure**
**£**
**(41,195)**
**(68,982)**
**(20,691)**
**-**
**(1,669,698)**
**Expenditure**
**£**
(10,617)
(56,542)
(2,317)
(634)
(987,065)
(2,603)
(317)
(16,937)
(65,401)
(21,889)
(3,943)
(74,554)
(18,532)
(514)
(1,236)
(11,343)
(32,403)
(11,963)
(15,546)
(7,324)
**(1,341,680)**|**Transfers**
**Funds**
**£**
**-**
**-**
**(260)**
**-**
**50,379**
**Transfers**
**£**
(2,006)
-
2,507
634
-
(2,157)
-
-
(50,000)
-
-
-
(5,656)
-
-
-
-
-
-
-
**(56,678)**|**At 31 March**
**2024**
**£**
**23,015**
**2,059**
**-**
**7,246**
**67,187**
**At 31 March**
**2023**
**£**
-
(1,700)
-
-
50,942
-
(317)
(3,571)
25,161
(3,360)
3,057
9,967
-
1,360
-
(313)
(171)
2,533
3,461
7,246
**94,295**|
|---|---|---|---|---|
## **Analysis of Movements in Restricted Funds - Previous Year**
## **Purpose of Restricted Funds**
## **Core:**
**Apprenticeships: -** Funds received to run apprenticeship schemes in the charity.
## **Woodland Management:**
**FSC: -** Provision of an advisory service to small woodland owners in England and Wales.
**Lost Woods:** - To transform woods in the Weald by community engagement, woodland management promotion and training.
22
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
**18 Analysis of Movements in Restricted Funds (continued)**
**Woodland Management (continued) Mercian Biodiversity:** - Woodland biodiversity development program in Severn and Trent catchment areas. **NEIRF:** - Research into potential financial benefits from woodland management. **Willey Estate:** - Proposal to establish a tree nursery. **WIMFIF Biochar FC:** - Research into making and using biochar. **WIMFIF Resilient Networks FC:** - Research into establishing better links between owners of woodlands and users of woods via networks. **Wye Valley AONB: -** Project aimed at one off engagement sessions to promote AONB and support wellbeing of participants. **Social Forestry: Anglesey SPF & AONB:** - Project to focus on improving skills, community resilience and wellbeing for those furthest from the employment market. **Arts Council Wales:** - Partnership project with Swansea Health Board (Arts in Nature Coordinator), Swansea Print Workshop and Race Council Cymru ‘Arts in Nature on Prescription’. **Breaking Barriers** - To explore access by people from diverse backgrounds to nature based activities in South Wales. **Blaenau Gwent SPF:** - 6-week green crafts / woodland skills programme and one off engagement sessions. **Carms SPF (UWTSD):** - wellbeing projects and monthly engagement sessions to support the development and improvement of the Green Health Hub at Cynefin. **Cwm Taf Nature Network** - Social forestry in Rhondda Cynon Taf. **ENRaW Green Infrastructure:** - Third party to deliver wellbeing programs. **ENRAW OH** - Social forestry project across Wales, supporting health and wellbeing programs, promotion of woodland management and the establishment of woodland hubs. **Lost Peatlands** - Social forestry associated with a peatland restoration project in South Wales. **NPT Third Sector Fund:** - Wellbeing project targeting adults with mental health support needs and neuro diversity. **NPT SPF: -** Wellbeing programmes, offering a series of engagement and volunteering activity days and woodland infrastructure and improvements. **NRW** - Social forestry development program, including infrastructure to support its wider adoption. **Pembrokeshire SPF:** - Project to improve skills, community resilience and wellbeing for those furthest from the employment market. **Powys SPF Feasibility Study:** - A feasibility study project that asks - 'How can the new community hospital and wellbeing centre in Machynlleth act as a springboard for outdoor activities for community health and wellbeing. **Reaching Communities** - Social forestry project focused on mental health improvement through green wood craft. **Swansea SPF:** - Wellbeing projects targeting adults with mental health support needs. **Veterans Foundation** - Project supporting veterans engagement in social forestry. **West Glamorgan RIF** - Young people's project, working with marginalised groups and those not in mainstream education. **Transfers**
Funds have been moved into restricted funds where a project has shown a deficit in the year and there is no expectation of receiving any further funding to cover those costs.
Where a project has been completed, the funders objectives achieved and there is no expectation of further cost or repayment, the funds are moved into the general reserves.
The transfer into the Apprenticeships arose as the previous Designated Fund has been transferred into a Restricted Fund. The ENRaW OH/HAF required a subsidy from the charity to fulfil the objectives of the project.
23
**Small Woods Association**
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
## **19 Analysis of Net Assets Between Funds**
|Fund balances at 31 March 2024
Tangible assets
Investments
Current assets / (liabilities)
**Net assets at 31 March 2024**
Fund balances at 31 March 2023
Tangible assets
Investments
Current assets / (liabilities)
Net assets at 31 March 2023|**General**
**£**
**-**
**100**
**58,692**
**58,792**
**General**
**£**
88,910
100
177,112
266,122|**Designated**
**£**
**-**
**-**
**85,670**
**85,670**
**Designated**
**£**
-
-
38,597
38,597|**Restricted**
**£**
**-**
**-**
**67,187**
**67,187**
**Restricted**
**£**
-
-
94,294
94,294|**Capital**
**£**
**371,370**
**-**
**-**
**371,370**
**Capital**
**£**
299,802
-
27,191
326,993|**Total**
**£**
**371,370**
**100**
**211,549**
**583,019**
**Total**
**£**
388,712
100
337,194
726,006|
|---|---|---|---|---|---|
## **20 Operating Lease Commitments**
As at the 31 March 2024 the charity had the following total minimum lease payments committed under operating leases.
|Operating leases which expire:
Within one year
Within two to five years|**Equipment**
**2024**
**£**
**236**
**765**
**1,001**|2023
£
236
1,001
1,237|
|---|---|---|
The lease is a 5 year contract for the use of a multifunctional printer.
## **21 Related Parties**
No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity in this year or the previous one.
## **22 Pension Commitments**
The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension costs charge represents contributions payable by the charity to the fund and amounted to £19,220 (2023: £18,360). There was a liability at the end of the year of £3,962 (2023: £4,192).
## **23 Trustees' Remuneration**
No remuneration or benefits have been paid to the trustees of the charity in the year under review or in the prior year. Travel expenses were paid to one trustee of £275 (2023 £Nil).
24
**Notes to the Financial Statements (continued)**
**Year ended 31 March 2024**
## **Small Woods Association**
## **24 Reconciliation of Surplus for the year to Net Operating Cash Flows**
|Surplus / (Deficit) for the year
Depreciation charges
loss on disposal of fixed assets
Less interest received
Decrease/(Increase) in debtors
Increase/(Decrease) in creditors
Increase/(Decrease) in Gov Grant deferred income
Increase in stock
**Net Operating Cash Flows**
**Analysis of cash and bank deposits**
Cash in hand
Bank deposits|**2024**
**£**
**(142,987)**
**16,491**
**1,780**
**(1,428)**
**380,704**
**16,885**
**(375,809)**
**(1,975)**
**(106,339)**
**2024**
**£**
**384**
**45,006**
**45,390**|2023
£
(6,345)
16,756
-
(1,352)
(392,094)
15,477
117,487
-
(250,071)
2023
£
111
101,139
101,250|
|---|---|---|
## **25 Subsidiaries**
These financial statements are separate financial statements for the Small Woods Association. Details of the charity's subsidiary at 31 March 2024 are as follows;
|**Name of undertaking**|**Registered**|**Nature of**|**Class of**|**% Held**|
|---|---|---|---|---|
||**Office**|**business**|**Shares**||
|Heartwoods Limited|England & Wales|Dormant|Ordinary|100.00|
|Company Number 04407512|||||
The aggregate capital and reserves and the result for the year of the subsidiary excluded from consolidation was as follows:
|**Name of undertaking**|**Profit / (Loss)**|**Capital &**|
|---|---|---|
|||**Reserves**|
||**£**|**£**|
|Heartwoods Limited|358|100|
## **26 Post Balance Sheet Event**
A number of projects are due to end in the succeeding year. The charity is applying for alternative funding to continue these projects. However as a prudent measure, contingency plans are being put in place if those funding applications are not successful.
## **27 Going Concern**
Projections have shown that there will be some significant pressures on cashflow in the foreseeable future. The
charity is currently undergoing a downsizing exercise and has organised a drawdown arrangement. The charity is applying for further funding and is hopeful that some will be successful. Therefore the charity is confident that it will be able to meet financial obligations as they fall due.
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**Small Woods Association**
**Year ended 31 March 2024**
## **Notes to the Financial Statements (continued)**
## **28 Bank Loan**
The charity took out a bank loan of £49,980 during the year, due to be repaid in March 2025.
A breach of the terms of the loan has been identified in relation to the cash position of the organisation and that interest cover should be 1:1. However, Small Woods have been fully transparent in providing the bank with regular cashflow updates and a revised budget when requesting to extend the loan to December 2025. As a result, financial information has been made available on a variety of occasions which would indicate the cash position being in breach. The bank have agreed the extension in principle and have not indicated a breach of the covenant of the loan. No action has been taken by the bank.
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