2023-12-31-accounts

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THE ARBORICULTURAL ASSOCIATION

(A company limited by guarantee)

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the Year Ended 31 December 2023

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 - 8
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS
AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION	9-11
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
(INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)	12-13
CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET	14
CONSOLIDATED STATEMENT OF CASHFLOWS	15
NOTES TO THE FINANCIAL STATEMENTS	17 – 30

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THE ARBORICULTURAL ASSOCIATION CHARITY INFORMATION

Company registration number 04070377

Charity registration number 1083845

Trustees and Directors

Michelle Ryan - Chair Neil Davies - Vice Chair Robert Murison - Treasurer Sarah Armstrong Paul Barton Stella Bolam Sarah Kiss Elizabeth Nicholls Keith Sacre 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)

Reference and administrative details
Objectives and activities
Achievements and performance
Financial review
Plans for future periods
Structure, governance and management
Exemptions from disclosure
Funds held as custodian Trustee on behalf of others
Statement of Trustees’ responsibilities
Disclosure of information to the Auditors
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 2023 were:

Michelle Ryan (Chair) Paul Barton (Vice Chair until September 2023) Neil Davies (Vice Chair from September 2023) Keith Sacre Professor Alan Simson Steve Westmore Stella Bolam Rob Murison Sarah Armstrong Liz Nicholls Sarah Kiss (from September 2023) Andrew Longland (until September 2023) Alastair Durkin (until September 2023)

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:

John Parker (CEO) 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

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THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

1.10 The Trustees submit their Annual Report and the audited financial statements of the Association for the year ended December 31[st] 2023.
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.
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 2023 included:
Delivered a more successful financial year than budgeted for.
Continued careful control of expenditure for responsible financial management.
Gradual repayment of the business interruption loan taken out in 2020.
Highest ever levels of membership, with over 3,000 paying members for the first time.
Met our 2% membership growth target.
Recruited a new team member into membership to improve customer service levels.
Started work on revitalising the Society for the Environment credentials.
Started the website upgrade project to create a more stable, functional platform for future web development and improve reliability for customers.
Commenced a full system review involving all staff, which will allow us to choose appropriate solutions to best meet our customers and staff needs in the future.
A total of 82 courses delivered to 956 learners.
Sourced and tested new venues including Mote Park and Calke Abbey.
· Ran a full ISA TRAQ course for the first time since 2019.

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THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

Administered the new re-certification for VETcert for candidates that passed in 2019 and 2020, and increased the number of VETcert exams to 56 across the year.
Supported delivery of 19 Branch events across the UK and Ireland.
Continued to provide advice and support to Branches as needed.
Held the first Branching Out event since 2020, which was very successful.
· Held a successful ARB Show at Westonbirt with 6,229 visitors through the gates.
Held a successful Annual Conference at Warwick with excellent feedback and strong numbers.
Held successful events including Women in Arb at Kew, morphophysiology at Easthampstead Park and a pest and disease study tour of the Netherlands.
· Expansion of the Wednesday Webinar series on previous years, with record attendance figures and a new sponsorship deal at the end of 2023.
Significant growth in social media numbers and impact, with over 90,000 social media followers across all networks.
Received 48,000 video views on YouTube and 583,000 impressions on LinkedIn.
1,859,366 website page views.
Putting a focus on video marketing content helped increase our Facebook reach by an additional 800,000 people compared to 2022.
‘What is Arboriculture?’ video campaign launched to promote the variety of roles in arb. Over 40,000 combined views.
60 boxes of resource packs sent out to members attending community events and career days.
· Increased press coverage including Sky News, BBC, ITV and the Guardian, as well as an increase in media requests for national tree news such as Sycamore Gap.
Increased partner support and collaborative working, such as the Woodland Trust supporting our national tree watering campaign.
Watering campaign continued to grow, with more than 10,000 tree watering tags issued including 3,500 free tags to community watering groups and projects.
Developed a network of members and branch ambassadors to attend external local events.
Launched a new eBook platform to improve access to our publications.
Expanded the marketing team through the recruitment of a new Marketing Assistant.
Continued progress with Registered Consultant Scheme, increasing online register numbers and workshops held at Conference.
Published ‘Treetime’ by Ted Green.
Translated ‘Roots – A field guide for identification’ from Norwegian into English, and translated Association publications into Czech, Ukrainian and Swedish.
Participated in a wide range of domestic events such as the IRATA Work at Height Seminar at Guildhall in London.
Represented internationally at events in countries including Ukraine, South Korea, New Zealand, Brazil, Poland, Italy and the United States.
Participated at the European Arboricultural Council (EAC), European Forum on Urban Forestry, International Society of Arboriculture and World Forum on Urban Forestry events.
Our Ireland Branch represented Ireland at the EAC for the first time.
The Association continues to represent its members and the arboricultural sector on a wide range of industry, and external, working groups and projects.
Standards in the AC Scheme continued to rise with the production of the AC Handbook and AC Standard 2024.
New AC Assessors continued to develop through their training, increasing our resilience.
Continued to successfully to use the Malthouse Training Room for training and events.
Lobbying and political activity continued, including through the All Party Parliamentary Group for Horticulture and Gardening and the Ornamental Horticulture Roundtable Group.
A Succession in Arboriculture working group featuring representation from across the sector was created by the Association.
A new working group for Arboricultural Education Providers was created by the Association and had its first meeting at the Malthouse, the first time such a group has ever met.
Other ongoing succession work includes workshops, articles, webinars, school career day visits, prison visits and engagement with several government departments.

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THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

Publication sales continued to hold up strongly, with existing titles continuing to be popular and new ones performing well.
A new Committee structure was introduced by the Board of Trustees to better fit the needs of the Association.
Changes to the Board of Trustees, with Sarah Kiss elected. Andrew Longland stepped down as Treasurer and as a Trustee, and was replaced by Rob Murison.
Trustee training for the whole Board was undertaken at the Malthouse.
A new Trustee Code of Conduct was developed and agreed.
3.2 These activities and achievements helped the Association deliver on its strategic objectives as published in the Strategic Plan 2022-24.

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, and cash balances.
4.3 The Association’s Reserves Policy (ratified in August 2023 and updated in January 2024) 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 Reserves Policy recommends that the Association should keep a minimum of £220,000 in reserve. The Reserves Policy will be reviewed and ratified annually by Trustees.
4.4 As of December 31[st] 2023 the Association held £6,097 in restricted income funds (as compared to £6,097 in 2022), £947,094 in unrestricted income funds (as compared to £929,928 in 2022) and £136,674 in unrestricted and unrealised revaluation funds (as compared to £137,261 in 2022).
4.5 The Association’s liquid reserves in the form of cash and cash equivalents decreased slightly to £470,464 on December 31[st] 2023 (as compared to £484,110 on December 31[st] 2022).
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 £5,004 (2022 - £5,000) in 2023 through the Association’s Research Grant.
4.8 The Association made a total of £2,000 (2022 - £4,135) in donations and sponsorships in 2023. Payments were made to groups including Perennial, the British Association of Landscape Industries and the Trees and Design Action Group.

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THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

4.9 The Association spent £18,183 (2022 - £11,154) on political expenditure in 2023 through membership of the All-party 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 in both 2022 and 2023 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 most areas of operation in 2024, and by the end of quarter one of 2024 all key targets are being met.
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 Certain external factors beyond the control of the Association can be expected to have an impact on the activities of the organisation, such as a potential resurgence 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 continued diversification of income streams.

6. Structure, governance and management

6.1 The Association is governed through its Articles of Association, last updated in 2015 and being reviewed in 2024. 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 & Governance Committee.

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THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

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 The Association has three Committees: the Finance & Governance Committee, the Standards Committee and the Resources Committee. Terms of Reference for these Committees are available on the Association’s website. Membership of Committees is exclusively made up of Trustees.
6.7 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 working parties such as the Arborists’ Working Group, Consultants Working Group, Utility Arborists’ Group and the Women in Arboriculture Group, and networks of suitably-experienced members to review complaints and Fellowship applications. The Association also has ten regional Branches, coordinated by member volunteers and the Association’s staff team.
Exemptions from disclosure
7.1 The Association claims no exemptions from disclosure.
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 and Group will continue in business.
9.3 The Trustees are responsible for keeping proper 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.

29/5/2024

Signed by order of the Board of Trustees on ………………………

………………………………….

Michelle 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 2023 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 2023, 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 and Strategic 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 and Strategic 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

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.

Extent to which the audit was capable of detecting irregularities, including fraud.

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 considered the nature of the charitable company’s activity and its control environment and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the charitable company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act, Charities Act, Charities SORP and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION

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.

…………………………………. ………………………. 30/05/2024 Felicity Sang 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 2023

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 income / expenditure Gains on revaluation of fixed assets Net movement in funds Total funds brought forward Total funds carried forward	Unrestricted funds £ 529,479 814,296 1,343,775 385,988 33,519 419,507 6,880 1,770,162 359,597 1,393,996 1,753,593 16,569 - 16,569 1,067,189 1,083,758	Restricted funds £ - - - - - - - - - - - - - - 6,097 6,097	Total 2023 £ 529,479 814,296 1,343,775 385,988 33,519 419,507 6,880 1,770,162 359,597 1,393,996 1,753,593 16,569 - 16,569 1,073,286 1,089,855	Total 2022 £ 499,226 559,803
				1,059,029
				401,299 46,857
				448,156
				1,149
				1,508,334
				331,593 1,112,220
				1,443,813
				64,521 137,261
				201,782 871,504
				1,073,286

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

The notes on pages 17-30 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 2022

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 income / expenditure Gains on revaluation of fixed assets Net movement in funds Total funds brought forward Total funds carried forward	Unrestricted funds £ 499,226 559,803 1,059,029 401,299 46,857 448,156 1,149 1,508,334 331,593 1,112,220 1,443,813 64,521 137,261 201,782 865,407 1,067,189	Restricted funds £ - - - - - - - - - - - - - 6,097 6,097	Total 2022 £ 499,226 559,803 1,059,029 401,229 46,857 448,156 1,149 1,508,334 331,593 1,112,220 1,443,813 64,521 137,261 201,782 871,504 1,073,286	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 -
				161,657 709,847
				871,504

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

The notes on pages 17-30 form part of these financial statements.

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THE ARBORICULTURAL ASSOCIATION CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2023

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 19 Revaluation reserve 19 Non-charitable reserves 13 Total funds	Group 2023 2022 £ £ 21,032 44,678 835,315 821,672 - - 856,347 866,350 68,825 42,557 148,666 134,766 470,464 484,110 687,955 661,433 (391,114) (351,164) 296,841 310,269 1,153,188 1,176,619 (63,333) (103,333) 1,089,855 1,073,286 6,097 6,097 942,175 925,019 136,674 137,261 4,909 4,909 1,089,855 1,073,286	Charity 2023 2022 £ £ 21,032 44,678 835,315 821,672 1 1 856,348 866,351 68,825 42,557 211,496 187,053 357,478 384,042 637,799 613,652 (345,868) (308,293) 291,931 305,359 1,148,279 1,171,710 (63,333) (103,333) 1,084,946 1,068,377 6,097 6,097 941,588 925,019 137,261 137,261 - - 1,084,946 1,068,377	Charity 2023 2022 £ £ 21,032 44,678 835,315 821,672 1 1 856,348 866,351 68,825 42,557 211,496 187,053 357,478 384,042 637,799 613,652 (345,868) (308,293) 291,931 305,359 1,148,279 1,171,710 (63,333) (103,333) 1,084,946 1,068,377 6,097 6,097 941,588 925,019 137,261 137,261 - - 1,084,946 1,068,377
			866,351
			42,557 187,053 384,042
			613,652
			(308,293)
			305,359
			1,171,710 (103,333)
			1,068,377
			6,097 925,019 137,261 -
			1,068,377

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.

29/5/2024 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 17-30 form part of these financial statements.

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THE ARBORICULTURAL ASSOCIATION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

Note Cash flows from operating activities Net income and expenditure Finance income Finance costs Depreciation, amortisation and impairment 11, 12 (Increase) in stocks (Increase) in debtors Increase in creditors Net cash provided by operating activities Cash flows from investing activities Interest received Purchase of tangible fixed assets Net cash outflow from investing activities Cash flows from financing activities Interest paid Repayment of borrowings Net cash outflow 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 2023 £ 16,569 (6,880) 7,811 29,969 47,469 (26,268) (13,900) 39,950 47,251 6,880 (19,966) (13,086) (7,811) (40,000) (47,811) (13,646) 484,110 470,464	Total funds 2022 £ 64,521 (1,149) 8,438 35,403
		107,213
		(11,187) (50,900) 35,923
		81,049
		1,149 (20,823)
		(19,674)
		(8,438) (40,000)
		(48,438)
		12,937 471,173
		484,110

See Note 23 for Analysis of Changes in Net Cash

The notes on pages 17-30 form part of these financial statements.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgement had a significant effect on the amounts recognised in the financial statements:

Revaluation of freehold property

The Group has opted to account for its freehold property at fair value, which was determined by independent qualified valuers using evidence from observed prices in market transactions for similar properties in similar locations.

Useful economic life

The Group has determined that the useful economic life of its freehold property following revaluation is 100 years.

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.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2 ACCOUNTING POLICIES (continued)

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.

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

Revaluation of tangible fixed assets

Individual freehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.

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.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2 ACCOUNTING POLICIES (continued)

Borrowings

Borrowings are initially recorded at fair value, net of transaction costs. 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.

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.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2 ACCOUNTING POLICIES (continued)

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.

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 £26,391 (2022 – surplus of £69,706).

5 OTHER CHARITABLE ACTIVITIES

Publications Conference Workshops and seminars Other income	2023 £ 173,336 306,198 218,683 116,079 814,296	2022 £ 154,174 120,805 212,794 72,030
		559,803

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

6 TOTAL EXPENDITURE

TOTAL EXPENDITURE
Direct Staff costs costs £ £ Costs of raising funds Consultants and contractors 169,799 137,979 Expenditure on charitable activities Subscriptions 5,826 64,796 Publications 70,590 42,338 Conference 107,142 63,596 Workshops and seminars 79,780 94,679 Trade fair 143,549 41,391 Advertising and publicity - 10,744 Promotion 52,325 45,349 Technical support 14,467 46,826 Meeting costs 20,798 14,560 Grant making 32,662 - Newsletter / journal 53,751 21,270 Branch expenditure - 13,427 Political expenditure 12,688 3,995 Audit fees 14,012 - Finance and accounts - 89,230 Committees and governance - 15,974 Legal and professional fees 4,850 - 612,440 568,175 Total 2023 782,239 706,154 Total 2022 636,636 567,669 * Support costs of £265,200 (2022 - £239,508) include: Depreciation / amortisation Premises costs Vehicle expenses Other staff costs Office running costs Finance costs Subscriptions and representation	Support costs* £ 51,819 24,334 15,900 23,884 35,557 15,545 4,035 17,031 17,586 5,468 - 7,988 5,043 1,500 - 33,511 5,999 - 213,381 265,200 239,508	Total 2023 £ 359,597 94,956 128,828 194,622 210,016 200,485 14,779 114,705 78,879 40,826 32,662 83,009 18,470 18,183 14,012 122,741 21,973 4,850 1,393,996 1,753,593 1,443,813 2023 £ 29,969 22,162 - 23,671 155,215 28,973 5,210	Total 2022 £ 331,593 97,888 142,538 133,285 196,222 66,401 10,077 85,974 67,238 35,436 20,905 83,735 13,282 11,154 10,150 104,353 25,465 8,117
			1,112,220
			1,443,813
			2022 £ 35,403 18,812 - 18,705 135,411 25,950 5,227

All of the above expenditure was paid for via unrestricted funds. There was no expenditure incurred out of restricted funds.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

7 TRANSACTIONS WITH TRUSTEES

No Trustee received any remuneration from the Association during the year (2022 - £nil).

Travel expenses totalling £2,568 (2022 - £3,481) were reimbursed to 1 (2022 - 8) Trustees during the year. At the year end £nil (2022 – £nil) was outstanding and owed to Trustees.

8 STAFF COSTS

STAFF COSTS
Salaries and wages Social security Pension contributions	2023 £ 599,002 53,819 34,826 687,647	2022 £ 483,302 47,441 29,121
		559,864

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 £189,508 (2022 - £167,246).

One employee received employee benefits in excess of £60,000 during the year (2022 – one).

9 STAFF NUMBERS

The average monthly head count was 18 staff (2022 – 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.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11 INTANGIBLE FIXED ASSETS

Group and Charity

Cost At 1 January 2023 and at 31 December 2023 Depreciation At 1 January 2023 Charge for the year At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022	Trademark £ 3,112 - - - 3,112 3,112	Intellectual Property £ 11,678 10,678 - 10,678 1,000 1,000	Software £ 189,167 148,601 23,646 172,247 16,920 40,566	Total £ 203,957
				159,279 23,646
				182,925
				21,032
				44,678

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

12 TANGIBLE FIXED ASSETS

Group and Charity

Cost or revaluation At 1 January 2023 Additions At 31 December 2023 Depreciation At 1 January 2023 Charge for the year At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022	Freehold property £ 815,000 13,580 828,580 - 3,286 3,286 825,294 815,000	Computer equipment £ 13,466 2,308 15,774 8,275 2,519 10,794 4,980 5,191	Fixtures and fittings £ 13,882 4,078 17,960 12,401 518 12,919 5,041 1,481	Total £ 842,348 19,966
				862,314
				20,676 6,323
				26,999
				835,315
				821,672

The property valuations were made by Ash & Co (RICS) as at 20[th] December 2022, on an open market value for existing use basis.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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 Profit for year	2023 £ 385,988 (169,799) (189,798) 26,391	2022 £ 401,299 (177,174) (154,419)
		69,706

A Gift Aid Donation of £26,391 has been paid in respect of the 2023 profit post year end Gift Aid donations are recognised as distributions and presented in the Statement of Changes in Equity.

At 31 December 2023, Arboricultural Association Trading Limited had the following assets and liabilities:

liabilities:
Debtors Cash at bank and in hand Creditors: Amounts due within one year Share capital Reserves 14 STOCKS Group 2023 2022 £ £ Publications and other items for resale 68,825 42,557	2023 2022 £ £ 13,506 26,171 112,986 100,068 (121,582) (121,329) 4,910 4,910 1 1 4,909 4,909 4,910 4,910 Charity 2023 2022 £ £ 68,825 42,557	2022 £ 26,171 100,068 (121,329)
		4,910
		1 4,909
		4,910

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

15 DEBTORS

Trade debtors Other debtors and prepayments Amounts owed from subsidiary CREDITORS Creditors due within one year Note Bank loan 17 Trade creditors Social security and other taxes Other creditors and accruals Deferred income Creditors due after one year Note Bank loan 17		Group 2023 2022 £ £ 72,409 74,077 76,257 60,689 - - 148,666 134,766 Group 2023 2022 £ £ 40,000 40,000 130,046 96,691 32,961 19,224 36,900 68,209 151,207 127,040 391,114 351,164 Group 2023 2022 £ £ 63,333 103,333		Charity 2023 2022 £ £ 54,673 47,906 76,257 60,689 80,566 78,458 211,496 187,053 Charity 2023 2022 £ £ 40,000 40,000 104,487 75,116 32,961 19,224 33,929 65,238 134,491 108,715 345,868 308,293 Charity 2023 2022 £ £ 63,333 103,333

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 2023 2022 £ £ 127,040 157,560 (127,040) (157,560) 151,207 127,040 151,207 127,040	Charity 2023 2022 £ £ 108,715 143,935 (108,715) (143,935) 134,491 108,715 134,491 108,715	Charity 2023 2022 £ £ 108,715 143,935 (108,715) (143,935) 134,491 108,715 134,491 108,715
			108,715

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17 LOANS AND BORROWINGS

Creditors due within one year Bank loan Creditors due after one year Bank loan	Group 2023 2022 £ £ 40,000 40,000 Group 2023 2022 £ £ 63,333 103,333	Charity 2023 2022 £ £ 40,000 40,000 Charity 2023 2022 £ £ 63,333 103,333

The bank loan is secured by a fixed charge over the property owned by The Arboricultural Association and is repayable in monthly instalments. Fixed rate interest is charged on the loan.

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 £34,826 (2022 - £29,121). Contributions totalling £4,683 (2022 - £3,537) 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 £1,770,162 (2022 - £1,508,334) was generated, and expenditure of £1,753,593 (2022 - £1,443,813) was incurred. As at 31 December 2023 the unrestricted fund balance amounted to £947,094 (2022 - £929,928) and includes non-charitable funds of £4,909 (2022 - £4,909).

Also included within unrestricted funds is the revaluation gain on the property amounting to £136,674 (2022 - £137,261).

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 (2022 - £nil), and grants of £nil (2022 - £nil) were awarded. As at 31 December 2023 the restricted fund balance amounted to £6,097 (2022 - £6,097).

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

19 ANALYSIS OF ASSETS BETWEEN FUNDS

2023 Unrestricted funds £ Intangible fixed assets 21,032 Tangible fixed assets 835,315 Current assets 681,858 Current liabilities (391,114) Non-current liabilities (63,333) 1,083,758 2022 Unrestricted funds £ Intangible fixed assets 44,678 Tangible fixed assets 821,672 Current assets 655,336 Current liabilities (351,164) Non-current liabilities (103,333) 1,067,189 20 OPERATING LEASE COMMITMENTS Group and Charity The total of future minimum lease payments is as follows: Not later than one year Later than one year and not later than five years The amount of operating lease payments recognised as an expense (2022 - £978). The total of future minimum lease receivable is as follows: Not later than one year Later than one year and not later than five years

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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 CASH

Analysis of changes in net debt Cash and cash equivalents Cash Borrowings Due withing 1 year Due after 1 year Total net cash	At 1 January 2023 £ 484,110 (40,000) (103,333) (143,333) 340,777	Cash flows £ (13,646) 40,000 - 40,000 26,354	Other non cash changes £ - (40,000) 40,000 - -	At 31 December 2023 £ 470,464 (40,000) (63,333)
				(103,333)
				367,131

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

THE ARBORICULTURAL ASSOCIATION CONTENTS

THE ARBORICULTURAL ASSOCIATION CHARITY INFORMATION

Trustees and Directors

Key Management

THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

Contents

THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

3. Achievements and performance

THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

4. Financial review

THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

6. Structure, governance and management

THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

THE ARBORICULTURAL ASSOCIATION TRUSTEES’ ANNUAL REPORT (INCORPORATING THE DIRECTORS’ REPORT)

9. Statement of Trustees’ Responsibilities

10. Disclosure of information to the Auditors

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION

Opinion on other matter prescribed by the Companies Act 2006

Matters on which we are required to report by exception

Responsibilities of Trustees

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION

Auditor’s responsibilities for the audit of the financial statements

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ARBORICULTURAL ASSOCIATION

THE ARBORICULTURAL ASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023

THE ARBORICULTURAL ASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

THE ARBORICULTURAL ASSOCIATION CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2023

THE ARBORICULTURAL ASSOCIATION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

1 GENERAL INFORMATION

2 ACCOUNTING POLICIES

Summary of significant accounting policies and key accounting estimates

Statement of compliance

Basis of preparation

Basis of Consolidation

Going concern

2 ACCOUNTING POLICIES (continued)

Critical accounting judgements and key sources of estimation uncertainty

Judgements

Revaluation of freehold property

Useful economic life

Key sources of estimation uncertainty

Income

Grants receivable

Expenditure

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2 ACCOUNTING POLICIES (continued)

Grants payable

Intangible fixed assets

Tangible fixed assets

Revaluation of tangible fixed assets

Investments

Trade and other debtors

Stock

Cash and cash equivalents

Trade and other creditors

2 ACCOUNTING POLICIES (continued)

Borrowings

Funds accounting

Leases

Pensions

Financial Instruments

Classification

Recognition and measurement

Impairment

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2 ACCOUNTING POLICIES (continued)

3 LEGAL STATUS OF THE CHARITY

4 FINANCIAL PERFORMANCE OF THE CHARITY

5 OTHER CHARITABLE ACTIVITIES

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

6 TOTAL EXPENDITURE

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

7 TRANSACTIONS WITH TRUSTEES