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 Art￿rICUltural 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 As￿latiOn and ils overarching airn-'lo advance the science ofarbon'cullure for the public benefil.. Reference and Administrative Deta518 The Arboricullural A$S￿l8¢10n is a registered charity {charity number 10838451, incorporated in the United Kingdom as a private company (company number 040703771. 11 is limited by guarantee and accordingly has no share capital. The registered Offi￿ and principle place of bu5ine5s is The Mallhouse, Slroud Green. Standish, Slonehouse, GloucLsletshire. GL10 3DL. The Trustees of the Association, who are also Directors as deflned by the Company's Act 2006, who served during the year or who were In post al the dale of signing these financial statements were.. Michelle Ryan - Chair Navin Semhi - Vice Chair Paul Barton Jaime Bray Alastair Durkin lan Mural Jenny Long Keith Sacre Mike Sankus Alan Simson Laurence Vine Chatterton- Co Opted Treasurer (reS￿ned 151h Jun8 20211 Andrew Longland - Co Opted Treasurer (elected 151h June 2021 > Structure, Govemanc• and Management The Association is govemed through 11$ 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 r￿Ssary 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 mil￿atrOn is in pla￿. In additional to formal Truslee meetings the CEO provides regular written operational U￿ateS 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 a￿ount5 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 Y￿￿nteerS 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 ComM￿ee5. 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 $C￿nce of arbor￿UltUre for the public benefit and in doing so promote excellence in tree care lo consumers, fellow professionals in other disciplines. lo government and lo society. Strategic objectives in support of this are included in the 3-year Strategy covering the period lo 2018- 2020.. the Strategy was subsequently published on the Associalion's website. shared with our partner organisalion5 and di5seminaled lo all Members via indusion in the Arb Magazine lo ensure il is shared with the widest F)ossible audience. Regular updates, of performance against the key slralegi¢ directives, are given lo members al the AGM. cornmillee. working group and branch meetings. Update$ 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. COnfe￿nce 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 Subscript￿nS 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 registe￿d 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 Perfo￿ance {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 def￿11 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 I￿loW1n9 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 ASsocial￿n 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 AsS￿l3110n 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 S￿n￿l¢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 Suff￿lent 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 COr￿ern 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 responsibilit￿5 of the Trustees wilh resp￿1 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 prescrIl￿d 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 preparat￿n 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-compl￿n￿ w¢lh laws and regulations. We design procedures in line with our responsibilities, outlined aL￿ve, 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 su￿ept1bll1IY 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 ac11vil￿S 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 EXpEND￿uRE 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