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← The Arboricultural Association

2024-12-31-accounts

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION

(A company limited by guarantee)

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the Year Ended 31 December 2024

Company number: 04070377

Charity number: 1083845

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

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 CASH FLOW STATEMENT 14
NOTES TO THE FINANCIAL STATEMENTS 15 - 29

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION CHARITY INFORMATION

Company registration number 04070377

Charity registration number 1083845

Trustees and Directors

Neil Davies – Chair (Vice Chair until 31 August 2024) Michelle Ryan – Vice Chair (Chair until 31 August 2024) Robert Murison - Treasurer Sarah Armstrong Paul Barton Stella Bolam Sarah Kiss Keith Sacre Dr Alan Simson Stephen Westmore Laura Ancell (Appointed 26 September 2024) Elizabeth Nicholls (Resigned 16 November 2024)

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

HCR Law Wellington Street Cheltenham GL50 1YD

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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

2. Objectives and activities

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

3. Achievements and performance

3.1 The key achievements of the Association in 2024 included the following:

3

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

4. Financial review

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

5. Plans for future periods

6. Structure, governance and management

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

7. Exemptions from disclosure

8. Funds held as custodian trustee on behalf of others

9. Statement of Trustees’ responsibilities

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

10. Disclosure of information to the Auditors

07.07.2025 Signed by order of the Board of Trustees on …………

…………………………… Neil Davies, Chair of Trustees

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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE ARBORICULTURAL ASSOCIATION

Opinion

We have audited the financial statements of The Arboricultural Association for the year ended 31 December 2024 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:

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.

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.

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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE ARBORICULTURAL ASSOCIATION

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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:

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.

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.

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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE ARBORICULTURAL ASSOCIATION

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:

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.

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.

14/8/2025 …………………………………. Felicity Sans ………………………. Felicity Sang Date (Senior Statutory Auditor)

For and on behalf of Hazlewoods LLP, Statutory Auditor

Cheltenham

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Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Income
Income from charitable
activities:
Subscriptions
Other charitable activities
5
Donations
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
Governance costs
Total expenditure
6
Net (expenditure) / income
Gains on revaluation of fixed
assets
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
553,199
740,190
-
1,293,389
414,002
41,538
455,540
12,031
1,760,960
335,690
1,310,994
221,333
1,868,017
(52,038)
-
(52,038)
1,083,758
1,031,720		 Restricted
funds
£
-
73,019
73,019
-
-
-
-
73,019
-
18,000
-
18,000
-
-
-
6,097
6,097		 Total
2024
£
553,199
740,190
73,019
1,366,408
414,002
41,538
455,540
12,031
1,833,979
335,690
1,328,994
221,333
1,886,017
(52,038)
-
(52,038)
1,089,855
1,037,817		 Total
2023
£
529,479
814,296
-
1,343,775
385,988
33,519
419,507
6,880
1,770,162
359,597
1,212,237
181,759
1,753,593
16,569
-
16,569
1,073,286
1,089,855

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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Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

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
Governance costs
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
1,212,237
181,759
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
1,212,237
181,759
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
964,135
148,085
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 15-28 form part of these financial statements.

12

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2024

Group Group Charity
2024 2023 2024 2024
2023
Note £ £ £ £
£
Fixed assets
Intangible assets 11 55,550 21,032 55,550 55,550
21,032
Tangible assets 12 831,840 835,315 831,840 831,840
835,315
Investments 13 - - 1 1
1
887,390 856,347 887,391 887,391
856,348
Current assets
Stock 14 48,742 68,825 48,742 48,742
68,825
Debtors 15 110,793 148,666 168,777 168,777
211,496
Cash and cash equivalents 401,783 470,464 293,693 293,693
357,478
561,318 687,955 511,212 511,212
637,799
Current liabilities
Creditors due within one year 16 (387,558) (391,114) (342,362) (342,362)
(345,868)
Net current assets 173,760 296,841 168,850 168,850
291,931
Total assets less current liabilities 1,061,150 1,153,188 1,056,241 1,056,241
1,148,279
Non-current liabilities
Creditors due after one year 16 (23,333) (63,333) (23,333) (23,333)
(63,333)
Net assets 1,037,817 1,089,855 1,032,908 1,032,908
1,084,946
Funds of the group
Charity restricted income funds 19 6,097 6,097 6,097 6,097
6,097
Charity unrestricted income funds 19 890,724 942,175 890,724 890,724
942,175
Revaluation reserve 19 136,087 136,674 136,087 136,087
136,674
Non-charitable reserves 13 4,909 4,909 - -
-
Total funds 1,037,817 1,089,855 1,032,908 1,032,908
1,084,946

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.

07.07.2025 The financial statements were approved by the Trustees and authorised for issue on ………………… and signed on its behalf by:

………………………………….

N Davies (Chair)

The notes on pages 15-28 form part of these financial statements.

13

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Cash flows from operating activities
Net income and expenditure
Finance income
Finance costs
Depreciation, amortisation, and impairment
11, 12
Decrease / (Increase) in stocks
Decrease / (Increase) in debtors
(Decrease) / Increase in creditors
Net cash provided by operating activities
Cash flows from investing activities
Interest received
Purchase of tangible fixed assets
Purchase of intangible fixed assets
Net cash inflow/(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
2024
£
(52,038)
(12,031)
6,332
12,252
(45,485)
20,083
37,873
(43,556)
(31,085)
12,031
(3,295)
-
8,736
(6,332)
(40,000)
(46,332)
(68,681)
470,464
401,783		 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

See Note 23 for Analysis of Changes in Net Cash

The notes on pages 15-28 form part of these financial statements.

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Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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 2024

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 of freehold property

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

Subscription 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

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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.

Assets under construction are capitalised at cost and are not amortised until they are available for use, at which point they are transferred to the relevant asset category and amortised over their estimated useful life.

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.

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THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

2 ACCOUNTING POLICIES (continued)

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

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.

18

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

2 ACCOUNTING POLICIES (continued)

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.

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 deficit for the financial year was £127,850 (2023 – surplus of £26,391).

5 OTHER CHARITABLE ACTIVITIES

Publications
Conference
Workshops and seminars
Other income		 2024
£
177,808
251,648
217,374
93,360
740,190		 2023
£
173,336
306,198
218,683
116,079
814,296

19

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

6 TOTAL EXPENDITURE

Direct
costs
£
Costs of raising funds
Consultants and
contractors
176,636
Expenditure on charitable activities
Subscriptions
12,192
Publications
85,669
Conference
115,886
Workshops and
seminars
107,474
Trade fair
160,645
Advertising and publicity
-
Promotion
43,578
Technical support
16,635
Meeting costs
28,380
Grant making
44,718
Newsletter / journal
68,922
Branch expenditure
-
Total charitable
activities
684,099
Expenditure on governance costs
Political expenditure
12,000
Audit fees
16,747
Finance and accounts
-
Committees and
governance
-
Legal and professional
fees
8,787
Total governance
costs
37,534
Total 2024
898,269
Total 2023
782,239		 Staff
costs
£
121,063
96,090
45,594
71,195
81,688
47,996
14,159
58,329
19,456
15,691
-
23,155
17,505
490,858
5,934
-
101,059
32,904
-
139,897
751,818
706,154		 Support
costs
£*
37,991
30,154
14,308
22,342
25,635
15,062
4,443
18,305
6,105
4,924
-
7,266
5,493
154,037

1,862
-
31,714
10,326
-
43,902
235,930

265,200		 Total
2024
£
335,690
138,436
145,571
209,423
214,797
223,703
18,602
120,212
42,196
48,995
44,718
99,343
22,998
1,328,994
19,796
16,747
132,773
43,230
8,787
221,333
1,886,017
1,753,593		 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
1,212,237
18,183
14,012
122,741
21,973
4,850
181,759
1,753,593

20

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

6 TOTAL EXPENDITURE (continued)

* Support costs of £235,930 (2023: £265,200) include: 2024 2023
£ £
Depreciation / amortisation 12,254 29,969
Premises costs 22,640 22,162
Other staff costs 15,667 23,671
Office running costs 156,090 155,215
Finance costs 25,334 28,973
Subscriptions and representation 3,945 5,210

Of the above expenditure, £18,000 was paid for via restricted funds (2023: £Nil), and £1,868,017 was paid for via unrestricted funds (2023: £1,753,593)

7 TRANSACTIONS WITH TRUSTEES

No Trustee received any remuneration from the Association during the year (2023: £nil).

Travel expenses totalling £1,832 (2023: £2,568) were reimbursed to 5 (2023: 1) Trustees during the year. At the year end £nil (2023: £nil) was outstanding and owed to Trustees.

8 STAFF COSTS

Salaries and wages
Social security
Pension contributions		 2024
£
631,682
58,283
36,854
726,819		 2023
£
599,002
53,819
34,826
687,647

The key management personnel of the Charity are the Trustees, the Chief Executive Officer and the Finance Manager. The total employee benefits of the key management personnel were £138,668 (2023: £136,657).

1 employee received employee benefits in excess of £60,000 during the year (2023: 1).

9 STAFF NUMBERS

The average monthly head count was 19 staff (2023: 18 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

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

11 INTANGIBLE FIXED ASSETS

Group and Charity

Cost
At 1 January 2024
Additions
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the year
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 Trademark
£
3,112
-
3,112
-
-
-
3,112
3,112		 Intellectual
Property
£
11,678
-
11,678
10,678
-
10,678
1,000
1,000		 Software
£
189,167
-
189,167
172,247
5,482
177,729
11,438
16,920		 Asset under
construction
£
-
40,000
40,000
-
-
-
40,000
-		 Total
£
203,957
40,000
243,957
182,925
5,482
188,407
55,550
21,032

22

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

12 TANGIBLE FIXED ASSETS

Group and Charity

Cost or revaluation
At 1 January 2024
Additions
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the year
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 Freehold
property
£
828,580
-
828,580
3,286
3,286
6,572
822,008
825,294		 Computer
equipment
£
15,774
3,295
19,069
10,794
2,254
13,048
6,021
4,980		 Fixtures and
fittings
£
17,960
-
17,960
12,919
1,230
14,149
3,811
5,041		 Total
£
862,314
3,295
865,609
26,999
6,770
33,769
831,840
835,315

The property valuations were made by Ash & Co (RICS) as at 20 December 2022, on an open market value for existing use basis. The trustees consider the fair value in line with the net book value as at 31 December 2024.

23

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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		 2024
£
414,002
(176,636)
(159,054)
78,312		 2023
£
385,988
(169,799)
(189,798)
26,391

A Gift Aid Donation of £78,312 (2023: £26,391) has been paid in respect of the 2024 profit post year end Gift Aid donations are recognised as distributions and presented in the Statement of Changes in Equity.

At 31 December 2024, 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
14
STOCKS
Group
2024
2023
£
£
Publications and other items for resale
48,742
68,825		 2024
2023
£
£
14,592
13,506
108,090
112,986
(117,772)
(121,582)
4,910
4,910
1
1
4,909
4,909
4,910
4,910
Charity
2024
2023
£
£
48,742
68,825		 2023
£
13,506
112,986
(121,582)
4,910
1
4,909
4,910

24

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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
2024
2023
£
£
52,020
72,409
58,773
76,257
-
-
110,793
148,666
Group
2024
2023
£
£
40,000
40,000
70,248
130,046
36,578
32,961
103,664
36,900
137,068
151,207
387,558
391,114
Group
2024
2023
£
£
23,333
63,333		 Charity
2024
2023
£
£
37,428
54,673
58,773
76,257
72,576
80,566
168,777
211,496
Charity
2024
2023
£
£
40,000
40,000
46,856
104,487
36,578
32,961
97,232
33,929
121,696
134,491
342,362
345,868
Charity
2024
2023
£
£
23,333
63,333

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
2024
2023
£
£
151,207
127,040
(151,207)
(127,040)
137,068
151,207
137,068
151,207		 Charity
2024
2023
£
£
134,491
108,715
(134,491)
(108,715)
121,696
134,491
121,696
134,491		 Charity
2024
2023
£
£
134,491
108,715
(134,491)
(108,715)
121,696
134,491
121,696
134,491
134,491

25

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

17 LOANS AND BORROWINGS

Creditors due within one year
Bank loan
Creditors due after one year
Bank loan		 Group
2024
2023
£
£
40,000
40,000
Group
2024
2023
£
£
23,333
63,333		 Charity
2024
2023
£
£
40,000
40,000
Charity
2024
2023
£
£
23,333
63,333

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 £36,854 (2023 - £34,826). Contributions totalling £3,021 (2023 - £4,683) were payable to the scheme at the end of the year and are included in creditors.

19 ANALYSIS OF CHARITABLE FUNDS (Current year)

At 1 At 31
January December
2024 Income Expenditure Transfers 2024
Unrestricted
funds
Revaluation 136,674 - - (587) 136,087
reserve
Unrestricted
income funds 947,084 1,815,979 (1,868,017) 587 895,633
1,083,758 1,815,979 (1,868,017) - 1,031,720
Restricted funds
The Memorial fund 6,097 - - - 6,097
Ted Green
Donation - 18,000 (18,000) - -
6,097 18,000 (18,000) - 6,097
Total funds 1,089,855 1,833,979 (1,886,017) - 1,037,817

26

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

19 ANALYSIS OF CHARITABLE FUNDS (Prior year)

Unrestricted
funds
Revaluation
reserve
Unrestricted
income funds
Restricted funds
The Memorial fund
Total funds		 At 1
January
2023
137,261
929,928
1,067,189
6,097
6,097
1,073,286		 Income
-
1,770,162
1,770,162
-
-
1,770,162		 Expenditure
-
(1,753,593)
(1,753,593)
-
-
(1,753,593)		 Transfers
(587)
587
-
-
-
-		 At 31
December
2023
136,674
947,084
1,083,758
6,097
6,097
1,089,855

Restricted funds

The Charitable Company has two restricted funds.

The Memorial Research Fund

This Fund is used to support research in the field of Arboriculture by the provision of grants.

Ted Green Donation

Funds received through a donation made by an author towards printing costs.

20 ANALYSIS OF ASSETS BETWEEN FUNDS

2024
Intangible fixed assets
Tangible fixed assets
Current assets
Current liabilities
Non-current liabilities		 Unrestricted
funds
£
55,550
831,840
555,221
(387,558)
(23,333)
1,031,720		 Restricted
funds
£
-
-
6,097
-
-
6,097		 Total
funds
£
55,550
831,840
561,318
(387,558)
(23,333)
1,037,817

27

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

20 ANALYSIS OF ASSETS BETWEEN FUNDS (continued)

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
21
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		 Restricted
funds
£
-
-
6,097
-
-
6,097
2024
£
2,299
7,472
9,771		 Total
funds
£
21,032
835,315
687,955
(391,114)
(63,333)
1,089,855
2023
£
244
-
244

The amount of operating lease payments recognised as an expense during the year was £2,543 (2023 - £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		 2024
£
-
-
-		 2023
£
-
12,337
12,337

22 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.

28

Docusign Envelope ID: 7C62D104-0946-4269-A8B7-4330436193FD

THE ARBORICULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

23 CONTROL

The Arboricultural Association is controlled by the Board of Trustees/Directors.

24 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
2024
£
470,464
(40,000)
(63,333)
(103,333)
367,131		 Cash
flows

£
(68,681)
40,000
-
40,000
(28,681)		 Other non
cash
changes
£
-
(40,000)
40,000
-
-		 At 31
December
2024
£
401,783
(40,000)
(23,333)
(63,333)
338,450

29