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## **THE ARBORICULTURAL ASSOCIATION**
**(A company limited by guarantee)**
## **ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS**
**For the Year Ended 31 December 2021**
**Company number: 04070377**
**Charity number: 1083845**
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## **THE ARBORICULTURAL ASSOCIATION CONTENTS**
||**Pages**|
|---|---|
|CHARITY INFORMATION|1|
|TRUSTEES’ ANNUAL REPORT||
|(INCORPORATING THE DIRECTORS’ REPORT)|2 - 7|
|INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS||
|AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION|8 - 10|
|CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES||
|(INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)|11 - 12|
|CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET|13|
|CONSOLIDATED STATEMENT OF CASHFLOWS|14|
|NOTES TO THE FINANCIAL STATEMENTS|15 - 28|
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## **THE ARBORICULTURAL ASSOCIATION CHARITY INFORMATION**
**Company registration number** 04070377
## **Charity registration number**
1083845
## **Trustees and Directors**
Michelle Ryan - Chair Navin Semhi – Vice Chair Andrew Longland - Treasurer Paul Barton Alastair Durkin Keith Sacre Michael Sankus Professor Alan Simson Stephen Westmore
## **Key Management**
John Parker – (Chief Executive Officer) Hanif Bhula – (Finance Manager)
## **Registered Office**
The Malthouse Stroud Green Standish Stonehouse GL10 3DL
## **Auditors**
Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX
## **Bankers**
Natwest Bank Plc 27 Market Place Romsey SO51 8ZH
## **Solicitors**
Harrison Clark Rickerbys Wellington Street Cheltenham GL50 1YD
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## **THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)**
## **Contents**
1. Reference and administrative details
2. Objectives and activities
3. Achievements and performance
4. Financial review
5. Plans for future periods
6. Structure, governance and management
7. Exemptions from disclosure
8. Funds held as custodian Trustee on behalf of others
9. Statement of Trustees’ responsibilities
10. Disclosure of information to the Auditors
**1. Reference and administrative details**
- 1.1 The Arboricultural Association (the Association) is a registered Charity incorporated in the United Kingdom as a private company limited by guarantee and accordingly has no share capital.
- 1.2 Company registration number: 04070377
- 1.3 Charity registration number: 1083845
- 1.4 The Trustees of the Association (the Association) who served during 2021 were:
Michelle Ryan (Chair) Navin Sehmi (Vice Chair) Paul Barton Alastair Durkin Keith Sacre Alan Simson Mike Sankus Steve Westmore (from September 2[nd] 2021) Andrew Longland (Treasurer, Co-opted from June 15[th] 2021) Jaime Bray (until September 2[nd] 2021) Jenny Long (until September 2[nd] 2021) Ian Murat (until November 19[th] 2021) Lawrence Vine-Chatterton (until September 2[nd] 2021)
- 1.5 Day-to-day management of the Association is delegated to the Chief Executive Officer (CEO), head of the key management team. The key management team is:
Stewart Wardrop (CEO until June 30[th] 2021) John Parker (Technical Director until June 30[th] 2021, CEO from July 1[st] 2021) Hanif Bhula (Finance Manager)
- 1.6 Registered Office: The Malthouse, Standish, Stonehouse, Gloucestershire, GL10 3DL.
- 1.7 Auditors: Hazlewoods LLP. Staverton Court, Staverton, Cheltenham, GL51 0UX
- 1.8 Bankers: NatWest Bank PLC. 27 Market Place, Romsey, SO51 8ZH
- 1.9 Solicitors: HCR. Wellington Street, Cheltenham, GL50 1YD
- 1.10 The Trustees submit their Annual Report and the audited financial statements of the Association for the year ended December 31[st] 2021.
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## **THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)**
- 1.11 The Trustees have adopted the provisions of the Statement of Recommended Practice for Charities (Charity) SORP in preparing the Annual Report and financial statements of the Association.
## **2. Objectives and activities**
- 2.1 The charitable objective of the Association is _to advance the science of arboriculture for the public benefit_ . The vision of the Association, as described in the Strategic Plan 2022-24 (adopted on October 20[th] , 2021) is to _inspire, support and promote the tree care community for a society that better appreciates and cares for trees._
- 2.2 The main ways in which the Association delivers its charitable objective and vision are:
- Support and advice for members.
- Online and in-person training.
- Online and in-person events, including the ARB Show and Annual Amenity Conference.
- Publications and best practice guidance for professional arboriculturists and the public.
- Political and public engagement.
- Representation on industry and cross-sector groups and projects.
- International liaison and representation on international industry groups.
- The Approved Contractor and Registered Consultant Accreditation Schemes.
- The Tree Care Supporter subscription.
- Marketing, including two websites – one for arboriculturists and one for the public.
- Career advice and development opportunities.
- 2.3 The Trustees have an understanding of Charity Commission guidance to ensure they meet their objectives with regard to public benefit. Public-facing activity and content includes the free webinar series, guidance documentation for non-professionals, the Tree Care Supporter subscription, help and advice for members of the public and the organisation and attendance of public-facing events.
- 2.4 The Association is grateful for the efforts of all of the volunteers involved in delivering the charitable aims of the organisation. This includes Trustees, members of Committees and working groups, Branch representatives and those who represent the Association at external groups and meetings.
## **3. Achievements and performance**
- 3.1 The key achievements of the Association in 2021 include:
- Continued management of Covid-19 and transition back to many pre-Covid activities and methods of delivery.
- Careful control of expenditure for responsible financial management.
- Gradual repayment of the business interruption loan taken out in 2020.
- Expansion of social media activity, including features such as the Urban Tree World Cup 2021.
- � Retirement in July 2021 of Stewart Wardrop, Chief Executive Officer. The Association would like to put on record its thanks to Stewart for his hard work, dedication and leadership over several years.
- Appointment of John Parker, formerly Technical Director, to role of Chief Executive Officer, in post from July 1[st] .
- Increased recruitment, including to key roles such as Business Development Manager.
- Changes to the Board of Trustees with Jenny Long, Ian Murat, Jaime Bray and Lawrence VineChatterton stepping down and Steve Westmore and Andrew Longland (Treasurer) joining.
- Continuation of webinar series. By end of year 2021, 58 webinars were held with a total audience of more than 16000 people watching from more than 140 countries.
- The online Fungi Symposium was held in March, attracting more than 400 delegates.
- The Amenity Conference was held online for the first time, attracting 178 delegates.
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## **THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)**
- The Annual General Meeting was held online, with members voting to say they preferred future AGMs to be held online rather than in-person.
- Training courses continued online, with some returning to an in-person format where appropriate.
- Usage of the large office space at the Malthouse as an in-house training resource increased.
- � In order to mitigate the loss of office space from the new training room, the lease of one tenant (LSL Housing) was terminated and the Association expanded onto a new floor of the Malthouse.
- Membership continued to increase, with a final 2021 tally of 2901 paying members.
- The Approved Contractor and Registered Consultant Schemes both continued to grow throughout the year.
- The Arboricultural Association Strategic Plan 2022-24 was formally adopted by the Board of Trustees in October 2021.
- Lobbying and political activity continued, including through the All Party Parliamentary Group for Horticulture and Gardening and the Ornamental Horticulture Roundtable Group.
- The Association continues to represent its members on a wide range of industry and cross-sector working parties, committees and projects.
- Publication of two new major texts about fungi: _Fungi on trees_ (Humphries and Wright) and _Trees and Fungi_ (Boddy).
- Publication of a new suite of Technical Guides covering key aspects of arboricultural practice.
- 3.2 These activities and achievements helped the Association meet many of its strategic objectives for 2018-20 (with the production of the most recent Strategic Plan 2022-24 being delayed due to Covid). The current methods of assessing performance are described in Section 5 of this report, _plans for future periods._
## **4. Financial review**
- 4.1 The Consolidated Financial Statements for the year are provided in the following pages. Overheads are not reported separately but have been allocated to each of the principal financial activities of the Association on the basis of estimated staff time attributable to each activity. The financial results of the Association are summarised within the Annual Report, a separate document to the Consolidated Financial Statements. The Annual Report acts as a summary document, predominantly aimed at members of the Association, to summarise the key contents of this Trustees’ Report and the Consolidated Financial Statements. It is available on the Association’s website.
- 4.2 The key revenue streams of the Association are typically membership subscriptions, Accreditation Scheme membership fees, training, events, publications, advertising and sponsorship. The Association has no financial investments other than its bank deposit account and its shareholding in its trading subsidiary, Arboricultural Association Trading Limited (AATL). Its reserves exist in the form of the Malthouse, which is owned by the Association.
- 4.3 The Association’s Draft Reserves Policy (to be ratified by Trustees in August 2022) states that the Association will ensure that it retains sufficient cash reserves in order to be able to continue operating for at least twelve months in adverse trading conditions, such as a major economic downturn or pandemic. The Draft Reserves Policy recommends that the Association should keep a minimum of £260,000 in reserve. Once ratified, the Reserves Policy will be reviewed and ratified annually by Trustees.
- 4.4 As of December 31[st] 2021 the Association held £6,097 in restricted income funds (as compared to £6,097 in 2020) and £865,407 in unrestricted income funds (as compared to £703,750 in 2020).
- 4.5 The Association’s liquid reserves in the form of cash and cash equivalents improved to £471,173 on December 31[st] 2021 (as compared to £385,240 on December 31[st] 2020).
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## **THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)**
- 4.6 The Association is registered with the fundraising regulator. The aim of the regulator is to ensure that fundraising is respectful, honest, open and accountable to the public. All fundraising activities are managed by Association staff. Third parties are not encouraged to raise funds on the Association’s behalf. The Association understands that fundraising should not be unreasonably persistent, apply undue pressure on people or invade their privacy. No complaints have been received with regard to the Association’s fundraising conduct.
- 4.7 The Association made a donation to research of £4,400 in 2021 through the Association’s Research Grant.
- 4.8 The Association made a donation of £1,000 to Charity in 2021 as part of its ongoing commitment to Perennial (Registered Charity number 1155156).
- 4.9 The Association spent £7,400 on political expenditure in 2021 through membership of the Allparty Parliamentary Group on Horticulture and Gardening (APPGHG) and the Ornamental Horticulture Roundtable Group (OHRG).
- 4.10 There is no uncertainty about the Association as a going concern. Whilst the impact of Covid was significant in 2020, the recovery in 2021 was strong and financial performance expectations were exceeded. Cashflow management and budgetary control are key driving forces in the management of the organisation and budgets, cashflow and forecasts are shared with employees and Trustees on a regular basis.
- 4.11 The Association is expecting growth in all areas of operation in 2022 and by the end of quarter two of 2022 all targets are being met. The key areas of uncertainty relate to the two main events of the year, the Annual Amenity Conference and the ARB Show. Conference has not taken place since 2019, and in that time the world has changed considerably. ARB Show is being held in a different format (as part of a separate event, APF) at a different time of year and the financial implications of that will not be fully know until after the events have happened.
## **5. Plans for future periods**
- 5.1 On October 20[th] 2022 the Board of Trustees formally adopted the Strategic Plan 2022-24. This published document set out the vision of the Association as “ _inspiring, supporting and promoting the tree care community for a society that better appreciates and cares for trees_ .”
- 5.2 The vision of the Association feeds into three strategic objectives:
- _Inspire_ . Including inclusivity and diversity, tree champions, succession and volunteers and staff.
- _Support_ . Including membership, accreditations, resources and training.
- _Promote_ . Including events, engagement, tree care supporters, website and communication channels.
- 5.3 The Strategic Plan 2022-24 can be downloaded from the Association’s website, with hard copies available upon request.
- 5.4 The strategic aims and objectives of the Strategic Plan 2022-24 are measured against a comprehensive set of actions in an Operational Action Plan document which contains qualitative and quantitative targets to ensure that the strategic vision of the Association is put into practice and its ambitions successfully delivered. This Operational Action Plan is an internal document which is not published on the Association’s website, but which is available upon request.
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## **THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)**
- 5.5 Certain external factors beyond the control of the Association can be expected to have an impact on the activities of the organisation, such as developments in the Covid pandemic and the escalating cost of living crisis. It is hoped that the impact of another pandemic would be mitigated by the fact that the Association now has considerable experience of online activities such as events, training and meetings. The cost of living crisis could have an impact on membership levels and other activities, and this is being mitigated against through increased diversification of income streams.
## **6. Structure, governance and management**
- 6.1 The Association is governed through its Articles of Association, last updated in 2015. The Trustees have overall responsibility for ensuring the Association has appropriate financial and operational controls in place, and are responsible for the strategic direction of the Association. The Trustees are the Directors of the Association and meet approximately four times per year.
- 6.2 The majority of Trustees are elected to the Board by the membership. In addition to this, there are three Co-opted Trustee positions which are filled by elected Trustee vote. Elected Trustees have a three-year term of office and are permitted to hold office for three consecutive terms before a minimum one-year break. The Chair of Trustees is able to defer election for an additional year if mid-way through their term as Chair. Co-opted Trustees stand for one-year terms. The Association offers an induction to new Trustees, and provides appropriate training for Trustees as required.
- 6.3 Operational management is overseen by the Chief Executive Officer (CEO), the pay and remuneration of which is determined by the Board of Trustees and reviewed annually. The CEO reports to the Board of Trustees and attends Board meetings to provide operational and strategic updates. The CEO and Finance Manager also attend meetings of the Finance Group (formerly the Business review Group), comprised of the Association’s Chair, Vice Chair and Treasurer.
- 6.4 The trading arm of the Association, AATL, predominantly oversees management of the Approved Contractor Scheme. The appointed Directors of AATL are the Association’s Chair, Vice Chair, CEO and Finance Manager. Profits generated by AATL are gift aided to the Association as a registered Charity.
- 6.5 In August/September each year the Association holds an Annual General Meeting (AGM) of members. Up until 2020 the AGM formed part of the Annual Amenity Conference, but was moved online during Covid. At the AGM the members receive the accounts of the Association, receive the report of the Board of Directors and appoint the Auditor. Result of Trustee elections are announced at the AGM.
- 6.6 In addition to the Board of Trustees, the Association is aided in the delivery of its charitable objective and strategic vision by a network of volunteers. This includes Committees (Professional Committee, Education and Training Committee and Media and Communications Committee) and working parties such as the Arborists’ Working Group, Consultant Working Group, Utility Arborists’ Group and the Women in Arboriculture Group. The Association also has ten regional Branches, coordinated by member volunteers and the Association’s staff team.
## **7. Exemptions from disclosure**
- 7.1 The Association claims no exemptions from disclosure.
## **8. Funds held as custodian Trustee on behalf of others**
- 8.1 The Association does not act as a custodian Trustee for others.
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## **THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)**
## **9. Statement of Trustees’ Responsibilities**
- 9.1 The Charity Trustees (of whom the Chair and Vice Chair are also the Directors of the Association and the AATL for the purposes of company law) are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
- 9.2 Company law requires the Charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
- 9.3 The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 9.4 The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **10. Disclosure of information to the Auditors**
- 10.1 In so far as the Trustees are aware at the time of approving our Trustees’ Annual Report:
- There is no relevant information, being information needed by the Auditor in connection with preparing their report, of which the group’s Auditor is unaware, and
- The Trustees, having made enquiries of fellow Trustees and the Auditor, have each taken all steps that they are obliged to take as Trustees in order to make themselves aware of any relevant audit information and to establish that the Auditor is aware of that information.
- 10.2 This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
## ���������
Signed by order of the Board of Trustees on ………………………
………………………………….
**M Ryan - Chair Trustee**
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## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION**
## **Opinion**
We have audited the financial statements of The Arboricultural Association for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- Give a true and fair view of the state of the Group's and the parent Charitable Company's affairs as at 31 December 2021, and of the Group's incoming resources and application of resources, including its income and expenditure, for the year then ended;
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- Have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our Auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION**
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matter prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the Trustees’ Report, which includes the Directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The Directors' report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report included within the Trustees’ Annual Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of Trustees' remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit; or
- � The Trustees were not entitled to prepare the financial statements and the Trustees’ Annual Report in accordance with the small companies' regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of Trustees**
As explained more fully in the statement of Trustees’ responsibilities set out in the Trustees’ Annual Report, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION**
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We obtained an understanding of the legal and regulatory frameworks applicable to the Charity financial statements or that had a fundamental effect on the operations of the Charity. We determined that the most significant laws and regulations included United Kingdom Generally Accepted Accounting Practice and Companies Act 2006.
- We understood how the Charity is complying with those legal and regulatory frameworks by making inquiries of management, and those responsible for legal and compliance procedures.
- � We assessed the susceptibility of the Charity’s financial statements to material misstatement including how fraud might occur. Audit procedures performed by the engagement team included:
- identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
- challenging assumptions and judgements made by management in its significant accounting estimates; and
- identifying and testing journal entries, in particular any journal entries with unusual characteristics.
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/Auditorsresponsibilities. This description forms part of our Auditor's report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
…………………………………. ………………………. 17/08/2022 **Scott Lawrence FCA Date (Senior Statutory Auditor)**
**For and on behalf of Hazlewoods LLP, Statutory Auditor Cheltenham**
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## **THE ARBORICULTURAL ASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**INCOME**
**Income from charitable**
**activities:**
Subscriptions
Other charitable activities
**5**
**Income from trading**
**activities:**
Consultants and
contractors
Advertising
**Income from**
**investments:**
Interest received
**TOTAL INCOME**
**EXPENDITURE**
**Cost of raising funds:**
Fundraising trading
**Expenditure on**
**charitable activities:**
Charitable activities
**TOTAL EXPENDITURE**
**6**
**NET MOVEMENT IN**
**FUNDS**
Total funds brought
forward
**TOTAL FUNDS**
**CARRIED FORWARD**|**Unrestricted**
**funds**
**£**
470,618
519,072
989,690
334,262
44,800
379,062
50
**1,368,802**
315,775
891,370
**1,207,145**
**161,657**
703,750
**865,407**|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
**-**
-
-
**-**
**-**
6,097
**6,097**|**Total**
**2021**
**£**
470,618
519,072
989,690
334,262
44,800
379,062
50
**1,368,802**
315,775
891,370
**1,207,145**
**161,657**
709,847
**871,504**|**Total**
**2020**
**£**
450,614
284,354|
|---|---|---|---|---|
|||||734,968|
|||||285,502
17,515|
|||||303,017|
|||||222|
|||||**1,038,207**|
|||||177,565|
|||||947,758|
|||||**1,125,323**|
|||||**(87,116)**
796,963|
|||||**709,847**|
The statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 15 - 28 form part of these financial statements.
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## **THE ARBORICULTURAL ASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020**
|**INCOME**
**Income from charitable**
**activities:**
Subscriptions
Other charitable activities
**Income from trading**
**activities:**
Consultants and
contractors
Advertising
**Income from**
**investments:**
Interest received
**TOTAL INCOME**
**EXPENDITURE**
**Cost of raising funds:**
Fundraising trading
**Expenditure on**
**charitable activities:**
Charitable activities
**TOTAL EXPENDITURE**
**NET MOVEMENT IN**
**FUNDS**
Total funds brought
forward
**TOTAL FUNDS**
**CARRIED FORWARD**|**Unrestricted**
**funds**
**£**
450,614
284,354
734,968
285,502
17,515
303,017
222
**1,038,207**
177,565
947,758
**1,125,323**
**(87,116)**
790,866
**703,750**|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
**-**
-
-
**-**
**-**
6,097
**6,097**|**Total**
**2020**
**£**
450,614
284,354
734,968
285,502
17,515
303,017
222
**1,038,207**
177,565
947,758
**1,125,323**
**(87,116)**
796,963
**709,847**|**Total**
**2019**
**£**
437,368
675,280|
|---|---|---|---|---|
|||||1,112,648|
|||||318,825
29,027|
|||||347,852|
|||||419|
|||||**1,460,919**|
|||||253,350|
|||||1,164,431|
|||||**1,417,781**|
|||||**43,138**
753,824|
|||||**796,962**|
The statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 15-28 form part of these financial statements.
12
����������������������������������������������������������
## **THE ARBORICULTURAL ASSOCIATION CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Intangible assets
**11**
Tangible assets
**12**
Investments
**13**
**Current assets**
Stock
**14**
Debtors
**15**
Cash and cash equivalents
**Current liabilities**
Creditors due within one year
**16**
Net current assets
Total assets less current liabilities
**Non-current liabilities**
Creditors due after one year
**16**
**Net assets**
**Funds of the group**
Charity restricted income funds
**19**
Charity unrestricted income funds
**18**
Non-charitable reserves
**13**
**Total funds**|**Group**
**2021**
**2020**
**£**
**£**
68,324
91,970
675,345
682,735
-
-
743,669
774,705
31,370
18,356
83,866
103,144
471,173
385,240
586,409
506,740
(315,241)
(388,265)
271,168
118,475
1,014,837
893,180
(143,333)
(183,333)
**871,504**
**709,847**
6,097
6,097
860,498
698,841
4,909
4,909
**871,504**
**709,847**|**Charity**
**2021**
**2020**
**£**
**£**
68,324
91,970
675,345
682,735
1
1
743,670
774,706
31,370
18,356
121,533
92,079
396,007
371,292
548,910
481,727
(282,652)
(368,162)
266,258
113,565
1,009,928
888,271
(143,333)
(183,333)
**866,595**
**704,938**
6,097
6,097
860,498
698,841
-
-
**866,595**
**704,938**|**Charity**
**2021**
**2020**
**£**
**£**
68,324
91,970
675,345
682,735
1
1
743,670
774,706
31,370
18,356
121,533
92,079
396,007
371,292
548,910
481,727
(282,652)
(368,162)
266,258
113,565
1,009,928
888,271
(143,333)
(183,333)
**866,595**
**704,938**
6,097
6,097
860,498
698,841
-
-
**866,595**
**704,938**|
|---|---|---|---|
||||774,706|
||||18,356
92,079
371,292|
||||481,727|
||||(368,162)|
||||113,565|
||||888,271
(183,333)|
||||**704,938**|
||||6,097
698,841
-|
||||**704,938**|
The Trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
���������
The financial statements were approved by the Trustees and authorised for issue on ………………… and signed on its behalf by:
………………………………….
## **M Ryan (Chair)**
The notes on pages 15 - 28 form part of these financial statements.
13
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## **THE ARBORICULTURAL ASSOCIATION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Cash flows from operating activities**
Net movement in funds
Finance income
Finance costs
Depreciation, amortisation and impairment
**11, 12**
Loss on sale of fixed assets
(Increase) / decrease in stocks
Decrease in debtors
(Decrease) / increase in creditors
**Net cash provided by operating activities**
**Cash flows from investing activities**
Interest received
Purchase of tangible fixed assets
**Net cash generated from investing activities**
**Cash flows from financing activities**
Interest paid
Draw down of borrowings
Repayment of borrowings
**Net cash generated from financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at 1 January
**Cash and cash equivalents at 31 December**|**Total**
**funds**
**2021**
**£**
162,657
(50)
5,044
34,371
-
201,022
(13,014)
19,278
(74,319)
**132,967**
50
(3,335)
**(3,285)**
(5,044)
-
(38,705)
**(43,749)**
**85,933**
385,240
**471,173**|**Total**
**funds**
**2020**
**£**
(87,116)
(222)
4,831
51,860
1,503|
|---|---|---|
|||(29,144)|
|||7,858
33,785
42,997|
|||**55,496**|
|||222
-|
|||**222**|
|||(4,831)
200,000
(42,588)|
|||**152,581**|
|||**208,299**
176,941|
|||**385,240**|
See Note 23 for Analysis of Changes in Net Debt
The notes on pages 15 - 28 form part of these financial statements.
14
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**THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1 GENERAL INFORMATION**
The Arboricultural Association a registered Charity, incorporated in England & Wales as a private company. It is limited by guarantee and accordingly has no share capital. It is registered with Companies House under company number 04070377, and with the Charity Commission under reference number 1083845. The registered office and principle place of business is The Malthouse, Stroud Green, Standish, Stonehouse, Gloucestershire, GL10 3DL.
## **2 ACCOUNTING POLICIES**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
These financial statements were prepared in accordance with Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Charities SORP (FRS 102) (effective 1 January 2019), and the Companies Act 2006.
The Arboricultural Association meets the definition of a public benefit entity under FRS 102.
## **Basis of preparation**
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value. The Arboricultural Association has adapted the Companies Act 2006 formats to reflect the special nature of its charitable activities.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
## **Basis of Consolidation**
The consolidated financial statements consolidate the financial statements of the Charity and its subsidiary undertaking drawn up to 31 December.
A subsidiary is an entity controlled by the Charity. Control is achieved where the Charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. Inter-company transactions and balances, between the Charity and its subsidiaries, are eliminated in full. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
## **Going concern**
After reviewing the Charity's forecasts and projections, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future and consider that there are no material uncertainties. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.
15
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**THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2 ACCOUNTING POLICIES (continued)**
## **Critical accounting judgements and key sources of estimation uncertainty**
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
## _**Judgements**_
No significant judgements have been made by the Trustees in preparing these financial statements.
## _**Key sources of estimation uncertainty**_
Other than detailed below for expenditure, no key sources of estimation uncertainty have been identified by the Trustees in preparing these financial statements.
## **Income**
Subscriptions income is included in the period in which it falls due. Income from charitable trading activities is included in the period to which the relevant activity or transaction relates. Resources from activities to generate funds, interest 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 income in creditors.
## **Grants receivable**
Grants receivable are recognised in income on a systematic basis over the life of the grant as the conditions related to the grant are. The grants become repayable when the conditions of the grants are not met.
## **Expenditure**
All expenditure is included when it is incurred. Expenditure is allocated to the particular activity where the cost relates directly to that activity. The cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the basis of estimated staff time attributable to each activity. The nature of the organisation is such that all staff time can be attributed to activities which further the charitable objects. Governance costs are those costs incurred in meeting regulatory requirements and providing the strategic direction of The Arboricultural Association.
## **Grants payable**
Grants payable are payments to third parties 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 to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the control of The Arboricultural Association.
## **Intangible fixed assets**
Trademark, intellectual property and technical guides are initially recorded at cost. They are not depreciated as any amortisation is considered immaterial.
Software costs are initially recorded at cost and are written off over their estimated useful life. Software costs are amortised on cost at 12.5% on a straight line basis.
16
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**THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2 ACCOUNTING POLICIES (continued)**
## **Tangible fixed assets**
All assets costing more than £500 that are acquired for continuing use within The Arboricultural Association are capitalised at their cost to the organisation. Depreciation is provided on expenditure at rates calculated to write off each asset over its estimated remaining life. The rates applied to achieve this are:
Freehold property 100 years straight line Computer equipment 15 - 25% of net book value Fixtures and fittings 20% straight line
## **Investments**
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
## **Trade and other debtors**
Trade debtors are amounts due from members for merchandise sold or services performed in the ordinary course of activity. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Group will not be able to collect all amounts due.
## **Stock**
Stock is stated at the lower of cost and estimated selling price less costs to sell. The cost of finished goods comprises direct material costs. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to sell; the impairment loss is recognised immediately in profit or loss.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits.
## **Trade and other creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of activity from suppliers. Trade creditors are classified as current liabilities if the Group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost.
## **Borrowings**
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interestbearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
## **Funds accounting**
Unrestricted funds are those funds which the Trustees are free to use in accordance with charitable objects. Restricted funds are funds which are given for particular purposes specified by their donors.
Non-charitable reserves are funds held by Arboricultural Association Trading Limited, a noncharitable company.
17
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**THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2 ACCOUNTING POLICIES (continued)**
## **Leases**
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Receipts under operating leases are credited to the Statement of Financial Activities on a straight-line basis over the period of the lease.
## **Pensions**
The Arboricultural Association makes contributions to individual personal pension schemes of eligible employees. These are defined contribution schemes. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.
## **Financial Instruments**
## _**Classification**_
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
## _**Recognition and measurement**_
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
## _**Impairment**_
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence 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 result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
18
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**THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **3 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 respect of the guarantee is limited to £5 per member of the Charity.
## **4 FINANCIAL PERFORMANCE OF THE CHARITY**
The consolidated statement of financial activities includes the results of the Charity’s wholly owned subsidiary, The Arboricultural Association Trading Limited, which undertakes the assessment of Registered Consultants and Approved Contractors for inclusion in the Arboricultural Association’s Directories.
As permitted by section 408 Companies Act 2006, the parent charitable company's statement of financial activities has not been included in these financial statements. Its surplus for the financial year was £161,657 (2020 – deficit of £87,116).
## **5 OTHER CHARITABLE ACTIVITIES**
|Publications
Conference
Workshops and seminars
Other income
Coronavirus Job Retention Scheme grant|**2021**
**£**
230,989
34,090
182,265
58,010
13,718
519,072|**2020**
**£**
72,508
-
92,178
56,467
63,201|
|---|---|---|
|||284,354|
## **Coronavirus Job Retention Scheme grant**
The Coronavirus Job Retention Scheme is a government grant relating to a wage subsidy programme introduced in the United Kingdom in response to the COVID-19 pandemic. The group and charitable company was entitled to the wage subsidy because it had reduced operations in the United Kingdom as a result of the pandemic. The accounting policy adopted is set out in Note 2 to the financial statements; the grant was recognised in the Statement of Financial Activity and the related wages and salaries for furloughed employees were recognised in administrative expenses.
19
����������������������������������������������������������
## **THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **6 TOTAL EXPENDITURE**
|**Direct**
**Staff**
**costs**
**costs**
**£**
**£**
**Costs of raising funds**
Consultants and
contractors
165,734
100,811
**Expenditure on charitable activities**
Subscriptions
9,920
36,411
Publications
91,159
42,670
Conference
-
45,263
Workshops and
seminars
39,972
49,573
Trade fair
6,130
-
Advertising and publicity
-
8,997
Promotion
22,557
38,963
Technical support
704
44,523
Meeting costs
15,338
14,542
Grant making
6,086
-
Newsletter / journal
48,372
23,216
Branch expenditure
-
10,484
Political expenditure
7,399
8,600
Audit fees
10,150
-
Finance and accounts
-
74,188
Committees and
governance
-
19,360
Legal and professional
fees
13,259
-
271,046
416,790
**Total 2021**
436,780
517,601
**Total 2020**
358,950
531,233
* Support costs of £252,764 (2020 - £235,140) include:
Depreciation / amortisation
Impairment of intangible assets
Loss on disposal of fixed assets
Premises costs
Vehicle expenses
Other staff costs
Office running costs
Finance costs
Subscriptions and representation|**Support**
**costs***
**£**
49,230
17,781
20,837
22,104
24,208
-
4,394
19,027
21,742
7,101
-
11,337
5,120
4,200
-
36,229
9,454
-
203,534
252,764
235,140|**Total**
**2021**
**£**
315,775
64,112
154,666
67,367
113,753
6,130
13,391
80,547
66,969
36,981
6,086
82,925
15,604
20,199
10,150
110,417
28,814
13,259
891,370
1,207,145
1,125,323
**2021**
**£**
34,371
-
-
20,157
5,419
26,004
139,712
21,695
5,406|**Total**
**2020**
**£**
177,565
54,492
104,171
81,410
117,397
64,562
11,319
83,912
58,282
52,697
1,481
92,570
28,218
37,343
10,150
108,059
37,604
4,091|
|---|---|---|---|
||||947,758|
||||1,125,323|
||||**2020**
**£**
41,182
10,678
1,504
13,158
17,561
11,542
128,581
16,121
5,491|
All of the above expenditure was paid for via unrestricted funds. There was no expenditure incurred out of restricted funds.
20
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**THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **7 TRANSACTIONS WITH TRUSTEES**
No Trustee received any remuneration from the Association during the year (2020 - £nil).
Travel expenses totalling £6,978 (2020 - £3,990) were reimbursed to eight (2020 - five) Trustees during the year. At the year end £nil (2020 – £nil) was outstanding and owed to Trustees.
## **8 STAFF COSTS**
|**STAFF COSTS**|||
|---|---|---|
|Salaries and wages
Social security
Pension contributions
Redundancy costs|**2021**
**£**
427,466
42,860
24,655
-
494,981|**2020**
**£**
451,011
40,591
28,838
3,893|
|||524,333|
The key management personnel of the Charity are the Trustees, the Chief Executive Officer, The Technical Director and the Finance Manager. The total employee benefits of the key management personnel were £230,683 (2020 - £205,360).
Two employees received employee benefits in excess of £60,000 during the year (2020 – one).
## **9 STAFF NUMBERS**
The average monthly head count was 13 staff (2020 - 15 staff).
## **10 TAXATION**
All income of the charitable company falls within the exemptions afforded to corporate charities and charitable trusts by Sections 478 and 479 Corporation Tax Act 2010 and Sections 524 and 525 Income Tax Act 2007 and there is no corporation tax payable by the Charity's trading subsidiary.
21
����������������������������������������������������������
## **THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11 INTANGIBLE FIXED ASSETS**
## **Group and Charity**
|**Group and Charity**|||||
|---|---|---|---|---|
|**Cost**
At 1 January 2021 and at 31 December
2021
**Depreciation**
At 1 January 2021
Charge for the year
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|**Trademark**
**£**
3,112
-
-
-
3,112
3,112|**Intellectual**
**Property**
**£**
11,678
10,678
-
10,678
1,000
1,000|**Software**
**£**
189,167
101,309
23,646
124,955
64,212
87,858|**Total**
**£**
203,957|
|||||111,987
23,646|
|||||135,633|
|||||68,324|
|||||91,970|
22
����������������������������������������������������������
**THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **12 TANGIBLE FIXED ASSETS**
## **Group and Charity**
|**Cost**
At 1 January 2021
Additions
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|**Freehold**
**property**
**£**
738,869
-
738,869
64,386
6,620
71,006
667,863
674,483|**Computer**
**equipment**
**£**
6,746
3,335
10,081
3,893
2,100
5,993
4,088
2,853|**Fixtures and**
**fittings**
**£**
13,882
-
13,882
8,483
2,005
10,488
3,394
5,399|**Total**
**£**
759,497
3,335|
|---|---|---|---|---|
|||||762,832|
|||||76,762
10,725|
|||||87,487|
|||||675,345|
|||||682,735|
23
����������������������������������������������������������
**THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13 INVESTMENTS**
## **Company**
The wholly owned subsidiary, Arboricultural Association Trading Limited, is a company registered in England and Wales. It is used to operate the non-charitable activities of The Arboricultural Association, which includes the Register of Consultants and Approved Contractors. All profits earned by the subsidiary are donated to The Arboricultural Association.
Arboricultural Association Trading Limited has only one share of £1 in issue, which is held by The Arboricultural Association.
The activities and results of Arboricultural Association Trading Limited were:
|Turnover
Cost of sales
Administrative expenses
Retained profit for year|**2021**
**£**
334,262
(165,734)
(150,041)
18,487|**2020**
**£**
285,502
(80,198)
(97,367)|
|---|---|---|
|||107,937|
A Gift Aid Donation of £18,487 has been paid in respect of the 2021 retained profit post year end Gift Aid donations are recognised as distributions and presented in the Statement of Changes in Equity.
At 31 December 2021, Arboricultural Association Trading Limited had the following assets and liabilities:
|Debtors
Cash at bank and in hand
Creditors: Amounts due within one year
Share capital
Reserves|**2021**
**£**
13,208
75,166
(83,464)
4,910
1
4,909
4,910|**2020**
**£**
28,453
13,948
(37,491)|
|---|---|---|
|||4,910|
|||1
4,909|
|||4,910|
## **14 STOCKS**
||**Group**||**Charity**||
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|Publications and other items for resale|31,370|18,356|31,370|18,356|
24
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## **THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **15 DEBTORS**
|Trade debtors
Other debtors and prepayments
Amounts owed from subsidiary
**CREDITORS**
**Creditors due within one year**
**Note**
Bank loans
**17**
Trade creditors
Social security and other taxes
Other creditors and accruals
Deferred income
**Creditors due after one year**
**Note**
Bank loans
**17**||**Group**
**2021**
**2020**
**£**
**£**
44,582
53,308
39,284
49,836
-
-
83,866
103,144
**Group**
**2021**
**2020**
**£**
**£**
40,000
38,705
40,376
49,843
19,819
56,396
57,486
69,524
157,560
173,797
315,241
388,265
**Group**
**2021**
**2020**
**£**
**£**
143,333
183,333||**Charity**
**2021**
**2020**
**£**
**£**
31,374
24,855
39,284
49,836
50,875
17,388
121,533
92,079
**Charity**
**2021**
**2020**
**£**
**£**
40,000
38,705
25,209
48,690
19,819
56,396
53,689
68,024
143,935
156,347
282,652
368,162
**Charity**
**2021**
**2020**
**£**
**£**
143,333
183,333|
|---|---|---|---|---|
||||||
||||||
## **16 CREDITORS**
Deferred income relates to membership subscriptions, training fees and contractor and consultant fees that are received in advance of the subscription year commencing 1 January. The balance of deferred income has moved in the year as follows:
|Balance at 1 January
Amount released in year
Amount deferred in year
Balance at 31 December|**Group**
**2021**
**2020**
**£**
**£**
173,797
165,525
(173,797)
(165,525)
157,560
173,797
157,560
173,797|**Charity**
**2021**
**2020**
**£**
**£**
156,347
152,562
(156,347)
(152,562)
143,935
156,347
143,935
156,347|**Charity**
**2021**
**2020**
**£**
**£**
156,347
152,562
(156,347)
(152,562)
143,935
156,347
143,935
156,347|
|---|---|---|---|
||||156,347|
25
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## **THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **17 LOANS AND BORROWINGS**
|**Creditors due within one year**
Bank loans
**Creditors due after one year**
Bank loans|**Group**
**2021**
**2020**
**£**
**£**
40,000
38,705
**Group**
**2021**
**2020**
**£**
**£**
143,333
183,333|**Charity**
**2021**
**2020**
**£**
**£**
40,000
38,705
**Charity**
**2021**
**2020**
**£**
**£**
143,333
183,333|
|---|---|---|
The bank loans include a loan secured by a fixed charge over the property owned by The Arboricultural Association and are repayable in monthly instalments. Fixed rate interest is charged on these loans. Bank loans also include a loan drawn down in the year under the Coronavirus Business Interruption Loan Scheme. The loan is repayable by instalments over six years, with £nil (2020 - £23,333) repayable by instalments after more than five years. The CBILS loan incurs interest after 12 months at 3.24% and is secured over the assets of the Charity.
## **18 DEFINED CONTRIBUTION PENSION SCHEME**
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £24,655 (2020 - £28,838). Contributions totalling £2,684 (2020 - £3,302) were payable to the scheme at the end of the year and are included in creditors.
## **19 ANALYSIS OF CHARITABLE FUNDS**
## **Unrestricted funds**
The Charitable Company has unrestricted funds that are free reserves for use in achieving the charities aims and objectives.
During the year, income of £1,368,802 (2020 - £1,038,207) was generated, and expenditure of £1,207,145 (2020 - £1,125,323) was incurred. As at 31 December 2021 the unrestricted fund balance amounted to £865,407 (2020 - £703,750) and includes non-charitable funds of £4,909 (2020 - £4,909).
## **Restricted funds**
The Charitable Company has one restricted fund, the Memorial Research Fund. This Fund is used to support research in the field of Arboriculture by the provision of grants.
During the year, income totalled £nil (2020 - £nil), and grants of £nil (2020 - £nil) were awarded. As at 31 December 2021 the restricted fund balance amounted to £6,097 (2020 - £6,097).
26
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## **THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **19 ANALYSIS OF ASSETS BETWEEN FUNDS**
|**2021**
Intangible fixed assets
Tangible fixed assets
Current assets
Current liabilities
Non-current liabilities
**2020**
Intangible fixed assets
Tangible fixed assets
Current assets
Current liabilities
Non-current liabilities|**Unrestricted**
**funds**
**£**
68,324
675,345
580,312
(315,241)
(143,333)
865,407
**Unrestricted**
**funds**
**£**
91,970
682,735
500,643
(388,265)
(183,333)
703,750|**Restricted**
**funds**
**£**
-
-
6,097
-
-
6,097
**Restricted**
**funds**
**£**
-
-
6,097
-
-
6,097|**Total**
**funds**
**£**
68,324
675,345
580,312
(315,241)
(143,333)|
|---|---|---|---|
||||871,504|
||||**Total**
**funds**
**£**
91,970
682,735
506,740
(388,265)
(183,333)
709,847|
## **20 OPERATING LEASE COMMITMENTS Group and Charity** The total of future minimum lease payments is as follows:
|**Group and Charity**
The total of future minimum lease payments is as follows:|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Not later than one year|978|4,468|
|Later than one year and not later than five years|1,222|917|
||2,200|5,385|
|The amount of operating lease payments recognised as an expense during the year was £4,468|||
|(2020 - £13,564).|||
|The total of future minimum lease receivable is as follows:|||
||**2021**|**2020**|
||**£**|**£**|
|Not later than one year|-|6,815|
|Later than one year and not later than five years|-|4,083|
||-|10,898|
27
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## **THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **21 RELATED PARTY TRANSACTIONS**
The Charity has taken advantage of the exemption under FRS 102 from disclosing related party transactions with other members of the group.
## **Other related party transactions**
During the year, there were no related party transactions that the Charity entered into.
## **22 CONTROL**
The Arboricultural Association is controlled by the Board of Trustees/Directors.
## **23 ANALYSIS OF CHANGES IN NET DEBT**
|**Analysis of changes in net debt**
**Cash and cash equivalents**
Cash
**Borrowings**
Due withing 1 year
Due after 1 year
**Total net debt**|**At 1**
**January**
**2021**
**£**
385,240
385,240
(38,705)
(183,333)
(222,038)
163,202|**Cash**
**flows**
**£**
85,933
85,933
38,705
-
38,705
124,638|**Other non**
**cash**
**changes**
**£**
-
-
(40,000)
40,000
-
-|**At 31**
**December**
**2021**
**£**
471,173|
|---|---|---|---|---|
|||||471,173|
|||||(40,000)
(143,333)|
|||||(183,333)|
|||||287,840|
28