THE ARBORICULTURAL ASSOCIATION (A company limited by guarantee) ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended 31 December 2020 Arboricultural ASSOCIATION trees.org.uk Company number: 04070377 Charity number: 1083845
THE ARBORICULTURAL ASSOCIATION CONTENTS Pages CHARITY INFORMATION TRUSTEES, ANNUAL REPORT IINCORPORATING THE DIRECTORS, REPORT) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION 10-12 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME ANO EXPENDITURE ACCOUNT} 13-14 CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET CONSOLIDATED STATEMENT OF CASHFLOWS 16 NOTES TO THE FINANCIAL STATEMENTS 17-
THE ARBORICULTURALASSOCIATION CHARITY INFORMATION Company registration number 04070377 Charity règistration number 108384S Trustees and DirBctors Michelle Ryan - Chair Navin Semhi - Vice Chair Paul Barton Jaime Bray Alaslair Durkin lan Mural Jenny Long Keith Sacre Mike Sankus Alan Simson Laurence Vine Challerton- Co Opted Treasurer (resigned 15th June 20211 Andrew Longland- Co Opted Treasurer (elected 15ln June 20211 Key Manag•m•nt Stewart Wardrop- ICEOI Hanif 8hula- (Finance Manager) John Parker (Technical Oireclorl Reglstered Offlco The Mallhouse Siroué Green Siandish Slonehouse GL10 3DL Audltors Hazlewoods LLP Siaverton Court Siaverton Chellenham GL51 OUX Bankers Natwesl Bank Pl¢ 27 Market Place Romsey S051 8ZH Solicitors HCR Wellinglon Street Chellenham GL50 1YD
THE ARBORICULTURAL ASSOCIATION TRUSTEES, ANNUAL REPORT (INCORPORATING THE DIRECTORS. REPORTI The Trustees submrt their annual report and Ihe audited financial slalemenls of Ihe ArtrICUltural Association for the year ended 31 December 2020. The Trustees have adopted the PTovisFons of the Statement of Recommended Practice for Charities {Charily SORPI in preparing the annual report and financial statements of IheAssociation. The Charity is grateful for the efforts of all the volunteers involved in so many areas of the Charity's work. These include all the Committee Members. Branch represenlalives, Trustees and others who organise events. attend meetings, contribute lo the Association's aims and attend local shows elc. on our behalf lo promote the AslatiOn and ils overarching airn-'lo advance the science ofarbon'cullure for the public benefil.. Reference and Administrative Deta518 The Arboricullural A$Sl8¢10n is a registered charity {charity number 10838451, incorporated in the United Kingdom as a private company (company number 040703771. 11 is limited by guarantee and accordingly has no share capital. The registered Offi and principle place of bu5ine5s is The Mallhouse, Slroud Green. Standish, Slonehouse, GloucLsletshire. GL10 3DL. The Trustees of the Association, who are also Directors as deflned by the Company's Act 2006, who served during the year or who were In post al the dale of signing these financial statements were.. Michelle Ryan - Chair Navin Semhi - Vice Chair Paul Barton Jaime Bray Alastair Durkin lan Mural Jenny Long Keith Sacre Mike Sankus Alan Simson Laurence Vine Chatterton- Co Opted Treasurer (reSned 151h Jun8 20211 Andrew Longland - Co Opted Treasurer (elected 151h June 2021 > Structure, Govemanc• and Management The Association is govemed through 11$ Artdes and Memorandum ofAs50cialion. These were updated in 2015 to ensure that they are in line wrth the revised strategy and obje¢lives of the Asso¢ialion and the Charily Commission requirements. The Trustees have overall responsibility for ensuring the Assoeialion has in pla appropriate systems and controls, t)oth financial and operational. This includes setting the remunefalion for the CEO position lo ensure the AsscKialion can altract the rSsary calibre of ap$1¢8nlS for this wsilion. During 2020 the Trustees mel 4 limes (2019 - 5 times) on 27th February. 23rd June. 9th September IAGMI and 26th November. The Trustees are responsible for the slralegic ijirection of the Association. Potential new Iruslees are sought via the membership committee and bra structure of the Association in addrtion to the senior team's network of contact5. Operational management during Ihe year was overseen by the CEO. Al each Trustee meeting th& lalesl financial position is shared, together with progress against key Strateg objeclives. Any risks are identified and discussed lo ensure adequate risk milatrOn is in pla. In additional to formal Truslee meetings the CEO provides regular written operational UateS to the trustees. These updale documenls cover all aspects of the key operational and business are85. In 2020 seven updates were provided lo all Trustees.
THE ARBORICULTURAL ASSOCIATION TRUSTEES. ANNUAL REPORT (INCORPORATING THE DIRECTORS. REPORT) The Business Review Group IBRGI mel throughout 2020 and continues to meet in 2021. The BRG purpose is primarily lo oversee the financial and operational performance in addition lo supporting the Chief Executive Olficer. The BRG is made up of the Chair. Vice Chair. Past Chair and Treasurer. Al the AGM held on 9th September 2020 the members: Received the aount5 of the Association for the preceding financial year to 31st December 2019, Received the report of the Board of Directors. September 2019 to Seplemb8r2020- Selected members lo be Trustees lo fill the ansing vacancies; and Appointed Hazlewoods LLP lo be the audilors for the Association for the forthcoming year. There were no EGM'S called during the year 1st January 2020 10 31st December2020. Volunteer resources.. The As50cialion relies heavily up)n member YnteerS lo serve upon ils commillees, working groups and within ils branch network. This resoufce considerably grows the impact, influence and range ol association activities. Volunteers are nol paid for allendance however travel expenses, via the wblished expenses policy. can be reclaimed. Commillees and Workin Grou s.. The busin8ss of th8 Associalion is Split amongst three standing commillees (Education and Training. Media and Communications and Professionall. A member of each standing committee musl be a Trustee however the committee members elect the committee Chair, In addition lo the ComMee5. there are a number of Working Groups.. currently there are four namely,. The Consullanls, Working Group, ICWGI. the Utility Arboricullure Group IUAGI, Women in Arboricullure IWIA} and the Afborisls, Working Group {AWGI. The terms of reference for the respective commillees and working partie5 are regularly reviewed and updated with any changes agreed with the Trustees lo ensure their rernil and focus is aligned lo th8 changing needs of the Association and any revisK)ns lo governance, the AA'S Strategy and Business Plan. Branches.. There are 10 national branches_ The 8ranches play a key role within the Association providing a geographic local point for members and a range of edu¢alional and social aclivilie5. To ensijre their role and the support they require is defined and agreed, and the controls in respect ol their financial arrangements are in place. Branch Rules exist Ilasl updated in 20191 and all Members are allocated lo a Regional Branch. Branch Commillee$ typi¢ally organise regional events with a Branch AGM being held annually. The Association HQ provides administration resource in support of the 8ranch activities. Bud Forecast On an annual basis 8 Budget {Forecast} is drafted by the HQ team consisting of identified primary actions along with supporting budgets and resullanl financial forecasts. The budget is wholly aligned lo and supports the delivery of the strategic plan. This budget is then approved by the Trustees. Commillees, Working Parties and Branches play a key role supporting wtth the implemenialion of the budget. The Budget and Forecast captures ongoing work streams in respe¢l of themed areas namely.. Financial. Governance and systems Communication Marketing and Promotion MerTrbership Training and Events Careers Publications Schemes Branches Resources
THE ARBORICULTURAL ASSOCIATION TRUSTEES, ANNUAL REPORT (INCORPORATING THE DIRECTORS. REPORT) In support of the Strategic Plan, Committees and Working Groups agree those 'projectslaclivilies" on which they will focus each year. This ensures resources in respect of staff. membership and finance are focused. "managed" and co-ordinated lo best effect. The Directors of Arboricullural Assctiation Trading Limiled as defined by the Company's Acl 2006. who seNed dufing the year or who were in post al the date of signing the accounlswere.. AATL Directors- Chair and Vice Chair. as trustee representative plus the CEO and Finance Manager. as staff representslives. Michelle Ryan- Chair Navin Sehmi - Vice Chair Hanif Bhula- Finance Manager Stewart Wardfop - CEO ObJectlv•s and Actlvltl The Association's slated objective is lo advance the $Cnce of arborUltUre for the public benefit and in doing so promote excellence in tree care lo consumers, fellow professionals in other disciplines. lo government and lo society. Strategic objectives in support of this are included in the 3-year Strategy covering the period lo 2018- 2020.. the Strategy was subsequently published on the Associalion's website. shared with our partner organisalion5 and di5seminaled lo all Members via indusion in the Arb Magazine lo ensure il is shared with the widest F)ossible audience. Regular updates, of performance against the key slralegi¢ directives, are given lo members al the AGM. cornmillee. working group and branch meetings. Update$ are also provided via commentary on member lacing so¢ial media and prinle¢J publications, primarily the Arb Magazine. New strategic plans are developed and approved by thè Trustees in conjunction wilh membership and staff. An updated or replacement strategic plan was due lo be published before the end of 2020, however due lo the Covid-19 crisis the Trustees agreed that 2021 would be a recovery year and that a new strategic plan would be agreed in Ihe autumn of 2021 and briefed out lo members al the AGM 2021. The new plan would cover 2022 10 2024- anolher 3-year cyde. Publlc Benefit The Trustees have regard lo Charity Commission guidance lo ensure they meet their objectives on public benefit. To this effect. all newly appointed Trustees have attended an Induction Day with HQ slaff and external training provision to discuss and ensure full underslanding of their slalulory responsibilities and how such Can be best discharged. The website, design and conlenl, ¢onlinues to devdop and evolve in support of the charitable aims of the Association, namely providing public access lo a vehicle lo share information lo all in respect of the lalesl arboricullure news. training courses (open lo non-members) and any tree related alerts. The website also difecls the public, via the directories, towards member5 of our Accredilalion Schemes namely Registered Consultants and Apwoved Conlraclors. The Association continues lo play a key role in respect of the provision of free advice to arborists. In addition, Ihe Association presents at various forums through ils staff and volunteers on the value of trees, to build awareness and understanding through Fts Arb Show. COnfence and 8ran¢hevents.
THE ARBORICULTURAL ASSOCIATION TRUSTEES, ANNUAL REPORT {INCORPORATING THE DIRECTORS, REPORT) Fundraising Actlvities The Association has registered wilh the fundraising regulator. The aim of the regulator is to ensure that fundraising is respectful. honest. open and accounlable lo publ. All fundraising activities are direcuy managed by Association staff. We do not engage third parties lo raise fijnds on our behatf. We are mindful that no fundraising should be unreasonably persislenl or apply undue pressure on anyone or intrude on anyone's privacy. We received no complaints with regard lo any of the associations aclivilies that could be viewed or considered fundraising. The Association raises Ihe majority of its furKling through ils membership SubscriptnS and the provision of services lo ils members and the public. these aclwilies typically include events, training, publicalions and accredilalion schemes. Achlevomgnts and Performanc• The main activitie$ of Ihe Art.CultUral Association in 2020 induded: Management of the Covid 19 impact upon all Association a¢livilie$. whi¢h Saw much of the associations aelivily either curtailed or cancelled. Revenue and cash flow management be¢ame the priority with cash position being measured and slated daily. All expense and costs were carefully controlled and managed- investment was made only when a clear opportunity arose or as a result of a slalulory requirement. We Slrenglhened our reserves by taking up £2¢)0.000 via Ihe govemment business interruption loan scheme. This will begin repayment in autumn 2021 when the current mortgage will have been eompleled. We ulilised the govemmenls fudough scheme al various limes and lo various exlenls during the year however aclivily in adminislratson levels dropped considerably re5ulling in Nvo staff members being made redundant in October 2020. Both the Arb Show Imay 202018nd conferen¢e Isepl 20201 were cancelled. The Arb Show was replaced with a virtual event which was well attended lover 19,000 visitors lo the evenll, Our $ocial media activity remained the key method of contact and engagement with our members and partners," the level of oulpul and timely delivery helped keep the Association engaged with ils membership and partner5 organisalions. Membership numbers held up extremely well with 2020 numbers nearly matching the 2019 record levels. Both the approved contractor and registed consullanl schemes performe(l extremely well with numbers Teaching new record levels. Investment and supporl conlinued lo be made into the QA process and potential applications in the Registered consullanl scheme. Training activity, after a positive start in January and February, ceased in March and April with activity slowly recovering via the launching ol online training. Despite reconfiguring Ha facilities lo allow face lo face training activities CV19 reslriclions meant that it was only used sporadically. A focus therefore remained on the delivery ofonline training activity, something that has continued into 2021 with new conlenl being developed. Through the use of digital webinar technology. we delivered a wide range of member focused activity. a successful part of this was the Wednesday webinar activity delivered by the Technical team. This gave nol only national bul increasingly inlemational exposure for the 85$9ciation's aclivilies. We produced and published regular member facing guidance., this was especially necessary in the early CV19 days as governmental messaging was not clear. We continued active participation within Ihe "All Party Padiamenlary Group on Horticulture and Gardening" IAPPGHGI and the Omamenlal Horticultural Roijndlable Group IOHRGI and the Association continues to be represented on the steering group of Ihe-Planl Health Alliance" and other DEFRA advisory panels.
THE ARBORICULTURAL ASSOCIATION TRUSTEES, ANNUAL REPORT (INCORPORATING THE DIRECTORS. REPORT) AGhigvornents and Perfoance {continugd) The prior year investmenl into and introduction of 'rolling" membership renewal undoubtedly helped with membership relenlion. We ¢onlinued growth and developmenl of the Associations Website content and functionality. Growth of new partnerships and neiworks lo raise the profile of Arboricullure and public awareness of the Indsjslry. AA Research Grant £695 donations were made lo research in 202012019- £5.1KIOI. Polltlcal expondilure- vla m•mb•rshlp of thè All-Party Parllamentary Group on Hortlculturo and Gardenlng {APPGHGI and the Ornamental Horticuliural Roundtablè Group {OHRGI During the year the amount spent on direct political expendilure was £7,41112019 - £13.591). Flnanclal Revl•w During the year the Association's 8usiness Re¥W Group18RGI mel approximately every 10 weeks lo provide support lo the CEO with the Association's finance and operational aclivilies. The Consolidated Slalemenl of Financial Aclivilies for the year is sel oul wilhin the financial slalemenls.. the overheads are not reported separately bul have been allocated lo each of Ihe principal activities of the Asso¢ialion. The financial results of the Aswxialion are sel wl within Ihis Annual Report al financial slalemenls and include an income and expendilure acccyJnl. balance sheet and related noles. The Association generated a def11 in 2020. Currenl forecasts show that, despite Ihe currenl year deficit. the Association can. through careful management of ils activit and resources, repay ils debt and will over lime increase ils cash reserves. Princi alo ional Risks - 2020 Business aclivity in Conjunction with the Associalion's Risk Register was reported upon al each Board and 8RG meeting held dijring the year. The Key nsk in 2020 was idenlrfied as.. Effecl of Covid upon operolrons, income generation. cash and association managemgnl. Fundin Sources The key revenue streams of the Association are normalty.. Subscriptions Accredilalion Scheme membership fees Training & Events Publications The Arb Show (May) The Conference Iseplember) Advertising and sponsorship
THE ARBORICULTURAL ASSOCIATION TRUSTEES, ANNUAL REPORT (INCORPORATING THE DIRECTORS, REPORT) Reserves The Charity had the IloW1n9 reserves as at 31 December 2020.. Reslricled income funds £6,097 Unreslricled incorne funds £703.574 12019- £6.097} 12019- £790.866) The Association has a reserves policy whth is reviewed by the Tru5tee5 annually and in 2020 was sel lo.. Provide a buffer of £2CM).000 representing a sum lo cover ongoing operating costs in the event, for example. of a failufe in subscriptions income due lo a major downturn In the economy,. and Have funds available in the evenl of a major campaign or project, an additional sum of £50,000. The Association had sufficient liquid reserves, in the fonn of cash and cash equivalents, as a131 December 2020 of £385,24012019 - £176,941). Investments The Association has no financial investments other than rls bank deposit account and ils shareholding in ils trading subsidiary. Ils reserves exist in the lorm of The Mallhouse, an asset into which Ihe Association moved in 2012 following extensive refurbishment. Impact of Covld 19 on Oporatlon¥ - Golng Conc•rn 2021 The impact of Covid 19 upon the ASsocialn has been significant. The following commentary summarises thé plans lo be implemented lo ensure the Association continues lo meel ils charitable aims and objectives going forward, whilst remain a going concern. The CEO recommended lo Iruslees Ihal 2021 be a recovery year following the impact ol Covid 19. As such cashflow management and budgelary control became the key business driver in 2020. Budgets, ashflow and forecasts were produced Ihroughoul Ihe end of 2020 and shared with Iruslees and staff on a regular basis. 11 was agreed that a special Iruslee meeting would be convened in April 2021 where the lalesl forecast and budgeis would be shared. along with an operational updale. The meeting dale was sel in April so the effect of Covid 19 upon the Association's Q112021 activities could be more accurately measured. The meeting, held virtually in April 2021. received a primarily FL)silive sel of messages namely.. Membershi . we fully expect lo exceed the record 2019 membership numbers by Q312021. Qualrfied grade membership is the primary growth area and is also the area with the lowest attrition rate. roved Contractor hem s.. we have a rec(Yd numbef of members with a record number of applications., both amenity and utility sectors are growing rapidly. The scheme will need investment to ensure growth and future potential is delivered and maintained. islered Consultant Scheme". a new application process has been delNered and we are now actively promoting Ihe scheme lo prospective members. The Quality Assurance process is both industry and sector leading. Trainin . we have seen a return lo good levels of aclivity albeit primarily via on-line delivery. We do expect a slower return lo Iradiltonal face lo f¥e delNery dunng 2021. Publiealions.. we have seen a signrficant, record level of publThlion activity in early 2021. This is based on the recent publication of Iwo hardback fungi guides and four Isoon to be five) technical guides. Whilst we will have enjoyed the peak of activity in Q1121 we fully expect that publications wll operate al or around historic levels for the remainder of 2021.
THE ARBORICULTURAL ASSOCIATION TRUSTEES. ANNUAL REPORT (INCORPORATING THE DIRECTORS, REPORn Arb Show.. whilst the physical event has been Cancelled for 2021, we have developed an expanded digitsl Arb Show for 2021. We expect thi5 activity to be income generaling, albeit al a relatively low level. Conference.. we are planning lo hold our 2021 conference as a physical event at Loughborough University. although we do have contingency plans should Covid 19 impacl upon the evenl and our budgets have been conservative lo reflect this. Events.. A digital pay lo access event-Fungi symwsium" was verywell attended generaling income ané further pay go access events are planned for 2021. Markelin & Social Media.. our activity and oulpuls conlinue lo grow. both nationally and inlernalionally., our website Is gradually being updated and improved. Slaffin . Adminislralive workload has now returned, and the small residual amount of furlough was ceased as of the end of May 2021,. with the forecast looking suitably oplimistic we are looking lo recruit o apprentices in 2021,. we will ulilise the government's fiscal incentive seheme where appropriate. Following planned relirernenl. the Association has appointed a rew CEO. who slarts in the role from July 2021,. further investment in staffing will be required as the Assoeialion continues ils recovery and growth. ull ok.. The Association's activities are conlinuiryJ lo grow or are cleady showing signs of an early return lo normal levels of activity. Cashflow and forecasts al the start 012021 indicated a small loss for 2021, however revised forecasts produced in March 2021 now indicate that, subject lo no further adverse effect from Covid 19. The Association should deliver a surplus for the year ending 31 Oecember 2021. The currenl mortgage will be fully repaid a5 of August 2021. resulting in The Association being mortgage free. The Associalion holds £21)0,000 funding from the govemmenls, Coronavirus Business Interruption Loan Scheme, which is held lo provKle cash reserves going forward. Having now managed the initial challenges associated wtth the Covid 19 ¢ri$is The Associat has been addressing the slralegic plan which will be required lor 2022 and beyond, with the formation of the Association's strategic plan for the period 2022 10 2024 during Q2 of 2021. Given the degree of uncertainly regarding the level of UK econom aclNity the plans will be based on a range of different business scenarios, with accompanying forecasts, depicting varying levels of activity and income. These foiecasls and plans will be used lo"slress lesl" The Association's activities lo ensure ils fiscal resilience whilsl describing the aelions required under each. 11 is intended that the new slralegic plan will be briefed out 10 members ahead of the 2021 AGM. In summary, the Tru51ees and the AsSl3110n staff are considering and taking all necessary actions lo ensure that the Association continues lo deliver ils charitable aims and objectives, and meet member needs, whilst remaining a fiscally viable going concem.
THE ARBORICULTURAL ASSOCIATION TRUSTEES. ANNUAL REPORT {INCORPORATING THE DIRECTORS. REPORT) Statèmont of Trustees. Responslbllltles The charity Trustees (who are also the Directors of the Association and the AATL for the purposes of company lawl are responsible for preparing a Trustees, Annual Report and financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the charty Iruslees lo prepare financial stslemenls for each year which give a true and fair view of the stale of affairs of the charitable company and the group and of the incoming resources and applicalion of res¢JJrces, induding the income and expenditure, of the charitable 9roup fof that period. In preparing the financial statements, the Trustees are required lo.. Select suitable accounting policies and then apply them consi$lenlly.' Observe the methods and principles in the Charits"es SORP.. Make judgements and eslimales that are reasonable and prudent., Siale whether applicable UK accounting standards have been followed, subjecl lo any material departures disclosed and explained in the financial statements,. Prepare the financial statements on the going concern basis unless il is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping proper aceounling records that disclose with reasonable accuracy al any lime the financial position ol the charity and lo enable them lo ensure that the financial slalemenls comply with the Compantes Act 2006. They are also responsible foi safeguarding the assets of the charity and the group and hence taking reasonable steps foi the prevention and detection of fraud and other irregularilie5. The Trusleè$ are responsible for the maintenance and inlegrty of the ¢orporal8 and financial information included on Ihe chanlable company's website. Legislation in the United Kingdom governing the preparation and disseminalK of financia slalemenls may differ from legislation in other jurisdictions. Dlsclosure of Infomiatlon to the Audliors In so far as the Trustees are aware al the time of approving our Trustees. annualreport.. There is no relevant informatson, being infomlalion needed by Ihe auditor in Connection with preparing their report, ol which the group's auditor is unaware, and The Trustees, having made enquiries of fellow Directors and the group's Auditor that they ought lo have individually laken, have each laken all steps that helshe is obliged lo lake as a Director in order lo make themselves aware of any relevant audil infomialion and lo establish that the Auditor is aware ol that Informalion. This report has been prepared in aeeordan¢e wilh the special provisions relating lo small companies within Part 15 of the Companies Ael 2006. Signed by order of the Board of Trustees on 24.C62)21 Ryan- Chair of Twslees
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURALASSOCIATION Opinion We have audited the financial statements of The Arborieullural Association for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Aclivilies, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Slalemenl of Cash Flows and the notes lo the financial slalemenls. including Snl¢an1 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 8pplicable In the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Praclicel. In our opinion, the financial slalem8nls- Give a true and lair view of the slate of the Group's and the parent Charilable Company's affairs as al 31 December 2020, and of the Gioup's incoming resources and application of resouices. including ils income and expendilure. for the year then ended.. Have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and Have been prepared in accordance with the requirements of Ihe Companies Act 2006 and the Charities Act 2011. 8asl8 for oplnlon We conducted our audii in COrdanCe with Intemalional Standards on Auditing (UK) IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial slalemenls seclion of our repM. We are independent of the group in accordance with the elhical requiremenls that are relevant lo our audit of the financial slalernenls in the UK, including the Financial ReportiThJ Council's Ethical Standard, and we have fulfilled our other ethical responsibililies in accordance with these requirements. We believe thal the audit evidence we have obtsined is Sufflent and appropriate lo provide a basis for ouropinion, Conclu8lons r•latlng to golng con¢•rn In 8uditing the finan¢¢al stalemenls, we have Concluded that the Trustees, use of the going COrern basis of accounting in the preparalion of Ihe finan¢ial statements is appropriate. Based on the work we have performed, we have not idenlrfied any material uncertainlies relating lo events or conditions that, Individually or collectively, may cast signrficanl doubl on the group's ability lo continue as a going concern for a perK)d of al least twelve months from when the financial slalemenls are aulhorised for issue. Our responsibilities and the responsibilit5 of the Trustees wilh resp1 lo going concern are described in the relevant sections of this report. Other inforrnation The Trustees are responsible for the other inforniation. The other information compn5es the information included in the Tru5tees' annual report, olher than the financial slalemenls and our audilor's report Ihereon. Our opinion on the finanual slalemenls does not cover the other information and, except lo the exlent otherwise explicitly slated in our reF4)rt, we do not express any form of assurance conclusion Ihereon. 10
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION In connection with our audit of the financial slatemeftts, our responsibility is lo read the other information and, in doing so, consider whether the olher inlormalion is materially inconsistent with the financial slalements or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we entfy such material inconsistencies or apparent material misstalemenls, we are required lo determine whether there is a material misstatement in Ihe financial slalemenls or a material misslalemenl of the other Informalion. If, based on the work we have performed. we condude that there is a material misslalemenl of Ihis other information. we are required lo report that fact. We have nothing to report in this regard. Opinion on othgr matter prescrIld by thé Companio8 Act2006 In our opinion. based on the work undertaken in the course ol the audit.. The information given in the Trustees, Report, which includes the direclots, report prepared for the purposes of company law, for the financial year for which the financial slalements are prepared Is eonsislenl wilh the finaneial 51alemenls'. and The direetors, report included within the Twslees. Report has been prepared in aecordance with applicable legal requirements. Matter8 on whlch we are requir•d to r•port by exceptSon In the light of the knowledge and understanding of the charity and ils environment obtained in the course of the audit, we have not idenlrfied material misstalemenls in the d*ectcrfs' rewt iThJuded within the Trustees, annual report. We have nothing lo report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us lo report lo you rf, in ouropinion.. adequate and proper accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us., or the financial slalemenls are not in agreement with Ihe accounting records and relums.. or Certain disclosures of Truslee$' remuneralion specified bylaw are not made., or We have not received all the inlormalion and explanations we require for our audit'.or The Trusleos were not enlilled lo prepare the financial slalemen15 and the Trustees. Annual Report in accordance with the small companies. regime and lake advantage of the small companies, exemptions in preparing the Truslees. Report and from the requirement lo prepare a Strategic Report. Responsibilltles of Trusto As explained more fully in the $talemenl of Trustees, responsibilit$ Set out in the Truslees, annual report, Ihe Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparatn of the financial slalemenls and for being satisfied that Ihey give a true and fair view, and for such internal control as the Trustees determine Is necessary lo enable the preparation of financial statements Ihal are free from material misslalemenl. whether due lo fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity's 8bilty lo continue as a going concern, disclosing. as applicable, matters related to going concem and using the going eoncern basis of accounting unless the Trustees either intend lo liquidate the chantable company or to cease operations, or have no realislic allernats.ve bul lo doso. 11
INDEPENDENT AUDITORS. REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION Audilor's rgsponsibilities for the audit of the financialstatgments We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevanl regulatsons made or having effect thereunder. Our objectives are lo oblain reasonable assurance about whether Ihe financial slalemenls as a whole are free from material misstalemenl. whether due lo fraud or error, and lo issue an auditor's report that includes our opinion Reasonable assurance is a high level of assurance bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a malenal misslalemenl when il exists. Misslalemenls can arise from fraud or error and are considered malenal if, indiviéually or in the aggregate, they eould reasonably be expected to influentÈ the economic decisions of users taken on the basis of these financial slatemenl5. Irregularities, including fraud, are instances of non-compln w¢lh laws and regulations. We design procedures in line with our responsibilities, outlined aLve, lo delecl material misslalemenls in respect of irregularities, including fraud. The exlenl lo which oJr procedures are capable of detecting irregularities. including Iraud is detailed below.. We oblaineé an understanding ol the legal and regulatory frameworks applicable lo the company financial sialemenls or that had a fundamental effecl on the operalions of Ihe company. We determined that the most significant laws and regulations induded UK GAAP. UK Companies Ael 2006 and The Charities Acl 2011,. We assessed the suept1bll1IY of the company s financial slalements lo material misslalemenl, including how fraud might occur. Audit procedures performed by the engagement team included challenging assumptions and judgments made by management in ils signrficanl accounling eslimales and identifying and lesling journal entries. In particular any journal entr¢es posted wilh unusual characlerislics. A further description of our r8sponsibililies is available on the Financial Reporting Council's websile al www.frc.org.ukjaudilorsresponsibililies. This description forms part of our auditor's report. U$• of our roport Thi$ report is made solely lo the chaiilable company's members, as a body, in aecordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we mighl slate lo the company s members Ihose mallers we are required lo slate lo them In an audilof's report and for no other purpose. To the fullesl extent permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the chanlable company's members as a body, for our audit work, for this report. or for Ihe opinions we havefomied. 2910612021 D*• Scott Lawrence FCA {Senior Statutory Avditor) For and on behalf of Hazlewoods LLP. Statutory Auditor Cheltenham 12
THE ARBORICULTURALASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTivrriES (INCLUDING CONSOLIDATED INCOME AND EXPENDffURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020 Unrestricted funds Restrlded funds Total 2020 Total 2019 Note INCOME Incomo from charitable actlvlties: Subscriptions Other eharilable ac11vilS 450.614 284,354 450.614 284,354 437.368 675,280 734.968 734.968 1,112,648 Incomè from trading actlvltles.. Consullanls and contractors Advertising 285,502 285,$02 318,825 17.51S 17,515 29,027 303.017 303,017 347.852 Income from Investrnonts: Inleresl received 222 222 419 TOTAL INCOME 1.038.207 1.038,207 1.460.919 EXPENDITURE Cost of ralslng funds: Fundraising trading 177.565 177.565 253,350 ExpendFtur• on ¢harltable actlvltl•s: Charitable aclivilies 947,758 947,758 1,164.431 TOTAL EXpENDuRE 1.125.323 1,125.323 1.417,781 NET MOVEMENT IN FUNDS Total funds brought forward {87.116) 187.1161 43.138 790.866 6.097 796,963 753.824 TOTAL FUNDS CARRIED FORWARD 703,750 6.097 709.847 796.962 The slalemenl of fIna[JaI activities includes all gains and losses recognised in Iheyear. The notes on pages 17- 30 form part of these fivlancial 5talemenls. 13
THE ARBORICULTURALASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTivrriES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNn FOR THE YEAR ENDED 31 DECEMBER 2020 Unrestricted funds Restrlcted funds Total 2019 Total 2018 INCOME Income from charitablo actlvltiès- Subscriptions Other charitable activities 437,368 675.280 437.368 675.280 407,684 648,894 1.112,648 1.112.648 1,056.578 Income from tradlng activlties: Consultants and contractors Advertising 318,825 318,825 292,109 29.027 29,027 7,913 347,852 347,852 300.022 Incom• from Investments: Interest received 419 39 TOTAL INCOME 1,460.908 1,460.919 1,356,639 EXPENDITURE Cost of ralslng funds: Fundraising Irading 253,350 253,350 242,167 Expendlturo on charltabla activitiO8: Charitable activities 1.164,431 1.164,431 1,069,998 TOTAL EXPENDITURE 1.417,781 1.417,781 1,312.165 NET MOVEMENT IN FUNDS Total funds brought forward 43.127 11 43.138 44,474 747,738 6.086 753,824 709,350 TOTAL FUNDS CARRIED FORWARD 790.865 6.097 796.962 753.824 The statement of financial activities includes all gains and losses recognised in the year. The notes on pages 17 - 30 fom part of these financial stalemenls. 14
THE ARBORICULTURALASSOCIATION CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2020 Group Charlty 2020 2020 2019 Irestated) 2019 (rostatedl Note Flxed assets Intangible assets Tangible assets Investments 91.970 682,735 127,344 700,724 91.970 682,735 127,344 700.724 12 13 774.705 828.068 774.706 828,069 CurT•nt ass•ts Stock Debtors Cash and cash equivalents 14 15 18,356 103,144 385,240 26,214 136.929 176.941 18,356 92,079 371.292 26,214 185,272 103,036 506.740 340.084 481,727 314,522 Curr•nt IlabllltSe¥ Creditors due within one year 16 (388.2651 1349.1461 1368.1621 (328.494) Net current assets l{liabililies) 118,475 19.062) 113.565 113,9721 Total assets less current liats'lilies 893.180 819.006 888.271 814,097 Non<urrènt Ilabllltlos Creditors due afte¥ year 16 {183.333) 122.0431 1183,3331 122,043) Net assets 709.847 796.963 704,938 792,054 Funds of the group Charity restricted income funds Charity unreslricled income funds Non-charilable reseNe5 19 19 13 6,097 698,841 4,909 6.097 785,957 4,)9 6,097 698.841 6,097 785,957 Total funds 709.847 796.963 704.938 792,054 The Trustees have prepared group accounts in accordance with section 398 of Ihe Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance wilh the special provisions of Part 15 of the Companies Act relating lo small companies and conslilule the annual accoun15 required by the Companies Acl 2006 and are for circulation to members of the company. The financial statements were approved by the Truslees and authori5ed for issue on 24.06.2021 and signed on ils behalf by.. Aky- Ryan {Chalr) The noles on pages 17- 30 fom part of these finanryal statements. 15
THE ARBORICULTURALASSOCIATION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 Total funds 2020 Total funds 2019 Note Cash flows from operating activities Nel movement in funds Finance income Finance cost$ 187,116 12221 4.831 43,139 14191 6,684 Depreciation, amortisalion and impairment ProfiMos$ on sale of fixed assets 11, 12 51,860 40.044 1,503 604 {29,1441 90,052 Decrease l {increasel in stocks Decrease I lincreasel in debtors Increase in creditors 7.858 33,785 42,997 15,580} 117,526} 6,502 Not cash provid•d by op•ratlng actlvltles 55.496 73.448 Cash flows frorn Inv•stlng aGtSvltl Interest received Purchase of Intangible assets Purchase of tsngible fixed assets 222 419 110,6781 133,5081 N•t cash US In Investlng actlvltles 222 (43,767) Cash flows from flnanclng actlvltles Interest paid Draw down of borrowings Repayment of borrowings 14.8311 200.000 142,5881 16.684} {40,747 Net cash u$gd Sn financlng actlvltl•s 152,581 147.4311 Changg In Gash and cash equivalents In the year 208.299 117.7501 Cash and cash equivalents at 1 January 176,941 194,691 Cash and Cash equlvalents at 31 D9¢•mr 385,240 176,941 See Note 24 for Analysis of Changes in Nel Debt The notes on pages 17 - 30 fom part of these financial statements. 16
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 GENERAL INFORMATION The Arboricullural AssocIatn a registered charity. inc¢xporated in England & Wales as a private company. 11 Is limited by guarantee and accordingly has no share capital. 11 is registered with Companies House under company number 04070377, and with the Charity Commission under reference number 1083845. The regislered office and principle place of business is The Mallhouse, Slroud Green, Slandish. Stonehouse. Glouceslershire. GL10 3DL. ACCOUNTING POLICIES Summary of significant a¢ntIng policies and key accounting estimat•s The principal accounling policies applied in the preparation ol these financial slalemenls are sel out below. These policies have been consislenlly applied lo all the years presented. unless otherwi58 $taled. Statement of compllance These financial slalemenls were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland., the Charities SORP IFRS 1021 leffeclive 1 January 20191. and the Companies Act 2006. as appIable in the United Kingdom and Republic of IrelaThJ. The Arbori¢ullural Association mee15 the definition of a public benefit entity under FRS 102. BaBS$ of proparation These financial slalemenls have been prepared using the historical cost convention except for, where disclosed in these accounting policies, ¢ertain items that are shown al fair value. The Arboricullural Association has adapled the Companies Act 2006 formals lo reftecl the special nature of ils charitable activities. Thé presenlalional CurrerY of the financial slalemenls is Pounds Slefling. being the functional currency of the primary econom environment in which the company operates. Monetary amounts in these financial statements are rounded lo the nearest Pound. Bas1¥ of Consolldatlon The consolidated financial slalemenis consoli(Jate the financial slalèmenls of the Chafily and ils subsidiary undertakirvJ drawn up lo 31 December. A subsidiary is an entity conirolled by the Charity. Control is achieved where the Charity has the power lo govern the financial and operating policS of an entity so as lo obtain benefits from ils a¢livilies. Where necessary, adjuslmellls are made lo the financial slalemenls of subsidiaries lo bring their accounting pIC into line wilh those used by the Group. Inter-company transactions and balances. behveen the Charity and ils subsidiaries. are eliminated in full. Accounting policies of subsidiaries have been changed where necessary lo ensure consistency with the policies adopted by the Group. Prior period restatemont The comparative balances for intangible fixed assets and tangible fixed assets have been reslaled lo recognise software as an Intangible asset separately from computer costs. This ha5 had no impact on the sUltS for the prK)r period rnr the broughl foThvard nel funds. 17
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES (continued) Golng concem As d15closed in the Tnjslee's RepKJrt, the Covid-19 parKlemic has had a signrficant impact on the Charity. In assessing the going concern status of the Charity, the Truslees have given consiéeralion lo the cash on hand and available positn of the Charity al the date of approving the financial slalemenls, prepared detailed cash flow forecasts and projections and applied stress lesl scenari05 lo those forerasls. The Trustees have also tsken into consideration how the Charity has adapted positively lo the effect of Covid-19. including their adapted continued support of members. After reviewing Ihe Charity's forecasts and projections. the Trustees have 8 reasonable expectation that the Charity has adequate resources to continue in operalional existence for the foreseeable future and consider Ihal there are no material uncertainties. The Charity Iherefore continues to adopt the going concern basis in prepanng ils financial statements. Crltlcal accountlng Judggments and key sources of estlmatlon uncertalnty In the application of the Charity's accoLsnling policies. the Trustees are required lo makejudgemenls, eslimales and assumptions about Ihe carrying amounts of assets and Iiabililies that are not readily apparenl from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant Actual results may differ from these eslimales. The eslimales and undertying as$umplKJns are reviewed on an ongoing basis. Revisions lo a¢counling eslimales are recognised in the period in which Ihe estimate is revised if the revision affects only that period, or in the period of the revision and fulure periods if the revision affects both ¢urrenl and future periods. Judgements No signifi¢anl judgements have been made by the Trustees in preparing these financial slalemenls. Key sources olestlmaeion uncertainty Other than detailed below for expenditure, no key sources of eslimalion uncertainly have been identified by the Truslees in preparing these financial slalemenls. In¢ome Subscriptions income is included in the perK)d in which il falls due. Income from charitable trading aclivilies is included in the period lo which the relevant aclivity or transaction relates. Resources from activities lo generate funds, inlerest and other incoming resources are included on a receivable basis. Amounts received in advance are not included in income for the year but are disclosed as deferred ineome in creditors. Grants r•ceivablg Giants receivable are recognised in inrne on a syslemalic basi5 over the life of the grant as the conditions related lo the grant are. The grant5 become repayable when the conditions of the grants are not mel. Expenditur• All expenditure is included when il is incurred. Expenditure 15 alloealed lo the particular activity where the cost relates directly lo Ihal activity. The cost of overall direction and adminislralion of each activity, comprising the salary and overhead costs of the central function, is apportioned on the basis of eslimaled staff lime attributable to each activity. The nalure of the organisalion is such that all staff lime can be attributed lo activities which further the charitable objects. Govemance costs are those costs incurred in meeting regulal¢)ry requirements and provKling the strategic direction of The Arboricullural Association. 18
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES Icontinued) Grants payable Grants payable are payments to third partS in the furtherance of the charitable objectives. Grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed lo pay the grant wilhoul condilion. or the recipient ha5 a reasonable expectation that they will receive a grant and any condition attaching lo the grant 1$ oulside the control of The ArtKsricullural AssoCialn. Intangiblo fixed assets Trademark, intellectual pioperty and technical guides are initially recorded al cost. They are not depreciated as any amortisalion is considered immaterial. Soare ¢osls are inilially recorded al cost and are written off over their eslimaled useful life. Software cos15 are amortised on cost al 12.5% on a slraighl line basis. Tanglblè flx•d assets All assets costing more than £500 that are acquired for continuing use within The Arboricultural Association are capilalised al their cosl to Ihe organisalion. Deprecialion is provided on expenditure al rates calculated lo write off ea¢h asset over 115 eslimaled remaining lrfe. The rates applied lo achieve this are.. Freehold property Computer equipment Fixtures and fillings 1th) years slraighl line 25% of nel t)ook value 200/ty slraighl line Inv•stm•nts Inveslmenls in equity shares which are not wblicly traded and where fair value cannot be measured reliably are measured al cost less impairment. Trad• and oth•r debtor¥ Trade debtors ale amounls due from members for merchandise sold or services perfomied in the ordinary course of aclivily. Trade debtors are recognised initially al the transaction price. They are subsequently measured al amortised cost. less provision for impairment. A provision lor the impairment of trade debtors is established when there is objeclive evidence Ihal Ihe Group will not be able lo collect all amounts due. Stock Stock is slated al the lower of cost and eslimaled selling pri less costs lo sell. The cost of finished good5 comprises direct material costs. Al each reporting dale. stocks are assessed for impairment. If stocks are impaired. Ihe carrying amount is reduced lo ils selling price less costs lo sell,. the impairment Ioss is recognised immediately in profil orloss. Cash and cash equivalents Cash and cash equivalenls comprise cash on hand and call dep0511s, and other short-lerm highly IUld investments that are readily convertible lo a known amount of cash and are subiecl lo an insignrficanl risk of change in value. Trade and other croditor5 Trade creditors are obligations lo pay for goods or services (hal have been acquired in the ordinary course of activity from suppliers. Trade credilors are classified as ctjrrenl liabilities if the GTOUP doe$ not have an unconditional right, at the end of the reporting period. to defer settlement of the creditor for al least Iwelve months after the reporting date. Trade creditor$ are recognised initially 8t the transaction price and subsequently measured al amortised cost. 19
THE AR8ORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES {conlinued) Borrowings Inleresl-bearing IrroWIngS are inrtially recJJrded at fair value. nel of transaction costs. Inleresl- bearing borrowings are subsequently camed al amortised cost. with the difference beeen the proceeds. nel of transaction cosls. and the amount due on redemplion being recognised as a charge to the Slalemenl of Financial Activities over the Peri of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in inleresl payable and similar charges. 8orrowifigs are cl8ssrfied as current liabilities unless the Group has an unconditional right to defer selllement of the liability for al least twelve months after the reporting date. Funds accounting Unreslricled funds are those funds which the Trustees are free lo use in accordance with charitable objects. Reslricled funds are funds which are gNen for particular purposes specified by their donors. Non-charilable reserves are funds held on behalf of Arborthllural AsscKialion Trading Limited. a non- charitable company. L•a8e8 Leases in whsch subslanlially all the risk5 and rewards of ownership are retained by the lessor are classifieé as operating leases. Receipt$ under operating leases are ¢rediled lo the Sialemenl of Financial Activities on a slraighl-line basis over the period of Ihe lease. Pensions The Arboricullural Association makes conlribulion510 indivhjual personal pension schemes of eligible employees. These are defined conlribulion schemes. A defined conlribulion plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or conslruelive obligation lo pay further conlribulions even rf the fund does not hold suffi¢ienl assets lo pay all employees the benefits relaling lo employee service in Ihe current and prior periods. Contributions lo defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed Ihe conlnbulion due for service. the excess is recognised as a prepayment. Pension cosls are allocated lo activit in proportion lo the related staffing costs incurred and are wholly charged lo unreslricled funds. Flnanclal In8trumonts Classificatlon Financial inslrumenls are classified and accounted for according lo the substance of the conlraclual arrangement. as financial assets, financial li8bilitS or equity inslruments. An equity instrument is any contract that evKlences a residu21 interest in the assets of the company after deducting all of 118 Recognition and measurement All financial assets and liabilities are inilially measured al transaction price linduding transaction coslsl, except for those financial assets classified as at fair value through profil or loss. which are inilially measured al fair value (which is normally the transaction price excluding transaction coslsl. unless the affangemersl conslilules a financing Ir8ns8Ction. If an arrangement conslilules a financing Iransaclion. the financial asset or financial liability is measured al the present value of the future paymenls discounted al a market rate of interest for a similar debt instrumenl.
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES (continued) Impalmient Assets, other than those measured al fair value. are assessed for indalOr$ of Impairment al each balance sheel dale. If there is objeclive eviden of impairment, an impairment loss is recognised in profit or loss as described below. A non-financial asset is impaired where there is objective evidence that. as a resvll of one OT more even15 that occurred after Initial recognition. the eslimaled coVer3b1e value of the asset h88 been reduced. The recoverable amount of an asset is the higher of ils fair value less costs lo sell and ils value in use. For financial assets carried al amortised cost. the amount of an impairment is the difference between the asset's carrying amount and the present value ol eslimaled future cash flows, discoLtnled al the financial asset's original effective interest rate. For financial assets carried al cost less impairmenl. th8 impairment loss is the difference betsveen the asset's carrying amount and the best eslimale of Ihe amount that would be received for the asset rf il were lo be sold al the reporting ¢Jale. Where indicators exist lor a decrease in impairment loss. and the decrease can be related objectively lo an event occurring after the impairment was recognised. the prior impairment 105$ 18 lesled lo determine reversal. An impairment loss is reversed on an individual impaired financial asset lo the exlenl that the revised recoverable valtse does not lead lo a revised Carrying amounl higher than the cafrying value had no impaimienl been recognised. LEGAL STATUS OF THE CHARITY 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 respecl of the guarantee is limiled lo £5 pèr member of the Charity. FINANCIAL PERFORMANCE OF THECHARI The consolidated slalemenl of financial activities includes the results of the Charity's wholly owned subsidiary, The Arboricullural Association Trading Limited. which undertakes the assessment of Regislereo Consullanls and Approved Contractors for irKlusion in the Arboricultural Association's Directories. As permitted by section 408 Companies Act 2006, the parent charitable company's slalemenl of financial activities has not been included in these financial stslemenls. Ils deficil for the financial year was £87,11612020- surplus of £43.1381. OTHER CHARITABLE ACTIVITIES 2020 2019 Publications Conference Workshops and seminars Trade fair Other income Coronavirus Job Retention Scheme grant 72,508 61.958 167.540 246.995 127,197 71.590 92,178 56,467 63.201 284,354 675,280 21
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 OTHER CHARITABLE ACTIVITIES (continued) Coronavirus Job Ret•ntlon Scheme grant The Coronaviius Job Retention Scheme is a govemmenl grant relating lo a wage subsidiary programme introduced in the Uniled Kingdom in response lo the COVIO-19 pandemic. The group and charitable company were enlilled lo the wage subsidy because il had reduced operations in the United Kingdom as 8 result of the pandemic. The accotjnling policy adopted is sel out in Note 2 10 the financial slalemenls., the 9ranl was recognised in the Stalemenl of Financial Aclivily and the related wages and salaries for furloughed employees were iecognised in adminislralive expenses. TOTAL EXPENDITURE Dlroct costs Staff osts Support costs" Total 2020 Total 2019 Costs of ralslng fund• Consullanls and conlraclors 80,198 67.493 29.874 177,565 253,350 Expendlture on charltabl• activiti Subscriptions 12,484 Publications 80.561 Conference 5,113 Workshops and seminafs Trade fair Advertising and publicity Promotion Technical support Meeting costs Grant making Newsleller l joumal Branch expenditure Political expendilure Audit fees Finance and accounts Commillee$ and governanee Legal and professional fees 29,119 16.366 52,887 12.889 7.244 23,410 54,492 104,171 81,410 56,192 65,587 169,397 44,655 50,424 22.318 117,397 196.616 8,105 39,135 7.846 39.968 39,079 26,761 17.322 3,473 17,691 17,298 11,845 64,562 11,319 83,912 S8,282 52,697 1.481 92,570 28,218 37,343 10,150 108.059 132,466 10,572 72,340 62,671 68,201 13.794 99.006 22,833 41,704 10.150 106,406 26.253 1.905 14.091 1,481 62,452 20.877 19.560 20.748 9,241 8,658 9,184 7,411 10.150 74.g)4 33.155 11.538 37,604 31,138 4,091 4,091 5,358 278.752 463.740 205,266 947,758 1,164,431 Total 2020 358.950 531.233 235.140 1,125.323 1,417,781 Total 2019 714,618 482.334 220.829 1,417.781 22
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 TOTAL EXPENDITURE Icontinuedl ' Support costs of £235.140 (2019- £220.8291 indude: 2020 2019 Oeprecialion l amortisalion Impairment of intangible assets Loss on disposal of fixed assets Premises costs Vehicle expenses Other 51aff costs Office running costs Finance costs Subscriplions and repre5entslion 41,182 10.678 40,044 605 16,316 20.931 14.666 102,993 21,160 4,115 13,158 17,561 11,542 128,581 16,121 5,491 All of Ihe above expendilure was paKI for via unrestricted funds. There was no expenditure incurred out of reslricled funds. TRANSACTIONS WITH TRUSTEES No Trustee received any remuneration from the Association during the year {2019-£nill. Travel expenses lolallin9 £3.99012019 - £9,933) were reimbursed lo five12019 - eighll Trustees during the year. Al Ihe year end £nil12019- £83} wa$ oul$tanding and owed lo Tfuslees. STAFF COSTS 2020 2019 Salaries and wages Social security Pension contributions Redundancy cosis 451,011 40,591 28.838 3,893 410.984 42.487 26.513 524,333 479,984 The key management personnel of the Charity are the Trustees, the Chief Executive Officer, The Technical Director and the Finance Manager. The lotsl employee benefrts of the key management personnel were £205,36012019 - £200,5931- 1 employee received employee benefits in excess of £60.0) during the year12019- one). STAFF NUMBERS The average monthly head c4wnt was 15 staff12019 - 14 staffl. 10 TAXATION All income of the charitable company falls vrthin the exemptions afforded lo corporate charities and charitable InJsts by Sections 478 and 479 Corporation Tax Act 2010 antj Sections 524 and 525 Income Tax Act 2CNJ7 and there is no corporation tax payable by the charity's trading subsidiary. 23
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 11 INTANGIBLE FIXED ASSETS Group and Charity Trademark Intellectual Property Softwaro Total Cost Al 1 January 2020 {reslated) Disposals 3,112 11.678 191,267 2.1001 206,057 12,100 Al 31 December 2020 3,112 11,678 189.167 203,957 Dapr•ciation Al 1 J8nuary 2020 Charge for the year Impairment Eliminated on disposals 78,713 23,909 78,713 23,909 10,678 11,3131 10.768 11,3131 Al 31 December 2020 10.678 101.309 111,987 Net book value Al 31 December 2020 3,112 1.000 87.858 91,970 Al 31 December 2019 {reslaled) 3.112 11,678 112,554 127,344 24
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2020 12 TANGIBLE FIXED ASSETS Group and Charity Fmhold PTOPgrty Computer equipment Fixtur95 & frttings Total Cost Al 7 January 2020 Irestaledl Additions Disposals 738.869 19.821 47,125 805,815 {13,0751 (33,2431 146,3181 Al 31 December 2020 738,869 6.746 13.882 7S9.497 D•prnclation Al l January 2020 Irestaledl Charge for the year Eliminated on disposals 56,937 14,775 1.813 112,6951 33,319 8,071 {32,7} 105.091 17.273 145,6021 Al 31 December 2020 3.893 8.483 76,762 Net b¢)ok value Al 31 December 2020 674,483 2,853 5,399 682,735 Al 31 Oecembèr 2019 Ireslal&J} 681,872 5.046 13,806 700,724 Freehold property is held for use by the Charity in furthering ils obieclives. Currently a proportion is let externally on short term rental agreements to fully ulilise the asset lo conlribule towards costs. The Charity SORP would normally reqtjire the proportion of the property let externally lo be classified as an investment property and carr1 al fair value,. however, the Trustees are of the opinion that the investment property component cannol be measured liablY wilhoul undue cost or effort. As such they have accounted lor the enlire property as freehold property within tangible fixed assets. 25
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 13 INVESTMENTS Company The wholly owned subsidiary, Arborieultural Association Trading Limited, is a company registered in England and Wales. 11 is used lo operate the non+charilable activities of The Arboricullural Association, which includes the Register of Consultants and Approved Contractors. All profits earned by the subsidiary are donated lo Th& Arboricullural Association. Arboricullural Association Trading Limited has only one share of £1 in issue. which is held by The Arboricullural Association. The activities and results of Arboricullural AssoCialn Trading Limited were.. 2020 2019 Turnover Cost of sales Administrative expenses 285,502 180,1981 197.3671 318.82S (138.9051 1114.4451 Retained profrt for year 107,937 65,475 A Gift Ai¢Y Donation of £107,937 has been paid in respect of the 2020 retained profil post year end Grft Aid donations are recognised as distributions and presented in the Sialemenl of Changes in Equity. Al 31 December 2020, Artfvjncullural Associalron Trading Limited had the following asse15 and 2020 2019 Debtors Cash al bank and in hand Creditors.. Amounts due within one year 28.453 13,948 137.4971 13,138 73,905 182,1331 4,910 4,910 Share capital ReseNes 4,909 4.SY)9 4,910 4,910 14 STOCKS Group 2020 Charlty 2020 2019 2019 Publications and other items for resale 18,356 26.214 18,356 26,214
THE AR8ORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 15 DEBTORS Group 2020 Charity 2020 2019 2019 Trade debtors Other debtors and prepayments Amounts owed from subsidiary 53.308 49.836 57,793 79.136 24,855 49,836 17,388 44,655 79,136 61,481 103,144 136,929 92.079 185,272 16 CREDITORS Cr•dltor8 due wlthln on• year Group 2020 Charlty 2020 2019 2019 Not• 17 Bank loans Trade edItOrS Social security and other taxes Other creditors and accruals Deferred income 38.705 49,843 56,396 69,524 173.797 42,583 38.705 48.690 56,396 68.024 156,347 42,583 54,805 22,945 55,599 152,562 22,945 57,099 165.525 388,265 349,146 368.162 328,494 Crodltorn due after on• year Group 2020 Charlty 2020 2019 2019 Note 17 Bank loans 183.333 22,043 183.333 22,043 Deferred InMe relates lo membership subscriptions. training fees and contractor and consultant fees that are received in advance of the subscnplion year commencing l January. The balance of deferred income has moved in the year as follows". Group Charlty 2020 2019 2020 2019 Balance at l January Amount released in year Amount deferred in year 165.525 1165.525) 173,797 175,019 1175.0191 165,525 152,562 {152,562} 156.347 158,679 (158,6791 1 $2,562 Balance al 31 December 173,797 165,525 156,347 152,562 27
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 17 LOANS AND BORROWINGS Creditors due withln one year Group 2020 Charity 2020 2019 2019 Bank loan5 38,705 42,583 38,705 42,583 crltOrS due after one year Group 2020 Charity 2020 2019 2019 Bank loans 183,333 22,043 183.333 22.043 The bank loans include a loan secured by a fixed charge over the propety owned by The Arboricullural Association and are repayable in monthly inslalmenls. Fixed rale interest Is charged on these loans Bank loans also include a loan drawn down in the year under the Coronaviius Business Interruption Loan Schemè. The loan is repayable by inslalmenls over six years. with £23,33312019 - £nil) repayable by inslalrnenls after more than five years. The CBILS loan incurs interest after 12 months al 3.240/u and is secured over the assets of Ihe Charity. 18 DEFINED CONTRIBUTION PENSION SCHEME The group operates a defined conlribulion pension s¢heme. The pension cost charge for the year represents conlribulitins payable by Ihe group lo Ihe scheme and amounted lo £28,838 12019 £26,513). Contributions lolalling £3.30212019 - £3,346) were payable lo the scheme al the end of the year and are included in creditors. 19 ANALYSIS OF CHARITABLE FUNDS Unr•strl¢led lundi The Charitable Company has unrestricted fund$ that are free reserves for use in achièving the charities aims and objectives. During the year, income of £1,038.207 (2019- £1,460,8) was generaled, and expenditure of £1.125,323 12019 £1.417.7811 was incurred. As al 31 December 2020 the unreslricled fund balance amounted lo £703.75012019- £7.8661. Restrlctgd funds The Charitable Company has one reslricled fvnd, the Memorial Research Fund. This Fund is used lo support research in the field of ArboricUllu by the provision ofgranls. During the year, income lotalled £nil12019- £111. and grants of £nil {2019- £nill We awarded. As al 31 December 2020 the restricled fund balance amounted lo £6.097 {2019 - £6,097). 28
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 19 ANALYSIS OF ASSETS BETWEEN FUNDS 2020 Unrestrlct8d funds Restrictod funds Total funds Intangible fixed assets Tangible fixed assets Current assets Current liabilities Non-currenl liabililies 91,970 682,735 500.643 1388.265) 1183.3331 91,970 682,735 506,740 1388,2651 1183,3331 6.097 703.750 6.097 709,847 2019 Unrestrfded funds Restricted funds Total funds Intangible fixed assets Tangible fixed assets Current assets Current li8bililtes Non<urrenl liabilil*s 14.7 813.278 333.987 {349,1461 {22.043 14,7 813.278 340,084 1349.1461 122,0431 6,097 79).866 6,097 796,963 20 OPERATING LEASE COMMITMENTS Group and charlty The lolal of future minimum lease payments is as follows.. 2020 2019 Not later than one year Later than one year and not18ter than five years 4,468 917 14,626 5,734 5,385 20,360 The amount of operating lease payments recognised a$ an expense during the year was £13.564 12019 - £16,876). The total of future minimum lease receNable is as follows- 2020 2019 Not later than one year Later than one year and rKtrt laler than five years 6,815 4,083 15.650 6,815 10,898 22,465
THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 21 RELATED PARTY TRANSACTIONS The charity has taken advantage of the exemption under FRS 102 from disclosing related party Iransaetions with other members of the group. Other related partytransa¢tlons During the year, there were no related paty transactions that the charity entered into. 22 CONTROL The Arboricullural Association is controlled by the Board ofTrusleeslDirectors. 23 ANALYSIS OF CHANGES IN NET DEBT Other non cash changes January 2020 Cash flows At31 Decembor 2020 Analy818 of chang08 In not debt Cash and cash equlval•nts Cash 176.941 208,299 385,240 176.941 208,299 385,240 Borrowlngs Due wilhing 1 year Due after 1 year (42,583) (22.0431 (157,412) 161.290 (161.2901 138,7051 (183,333) {64.628} (157.4121 {222,0381 Total net debt 112.315 50.887 163,202