Annual Report and Accounts 2021 5,018,288 trees planted since 2012 ## Contents - 4 An introduction from our Chair - 5 Reference and Administrative Details - 6 Objectives - 7 Looking Back on 2021 - 9 2021 in Numbers - 10 Our Impact in Africa - 11 Kenya - 13 Rwanda - 15 Our Impact in the UK - 16 Glasgow - 17 England - 19 Financial Review - 23 Structure, Governance and Management - 26 Independent Examiner’s Report - 27 Statement of Financial Activities - 28 Balance Sheet - 29 Cash Flows - 29 Notes to the Accounts ## An Introduction From Our Chair, Dr Stephen Vickers There has never been a time where there has been stronger public awareness about the preciousness of our planet and the precariousness of life upon it. The mission, mandate and approach of the International Tree Foundation remains more relevant than ever as we seek to support efforts that benefit both people and planet and as we continue to build on our hundred-year heritage. I am proud to be part of the ITF community – we are tree planters, farmers, foresters, entrepreneurs, teachers, members and supporters. ## Since 1922 International Tree Foundation was founded in 1922 to inspire communities to plant trees and restore forests for the benefit of people and planet. Today, we work around the world with a particular focus on our founding countries, Kenya and the UK. ## Our Mission Plant, protect and promote trees in partnership with local communities to transform landscapes and lives. ## Our Vision A world where trees are valued and forests flourish for the benefit of people and planet. 4 ## Reference and Administrative Details **Governing document:** Memorandum & Articles of Association **Patron:** HRH The Prince of Wales **Board of Trustees:** Ms M Grecna, Mr J Kimani, Ms M McBrien, Prof K Schreckenberg, Ms M Reru, Ms L Rainbow, Ms R Wanyoike, Ms C MacQueen, Dr Stephen Vickers **Chief Executive Officer:** James Whitehead (app. 6 Sept 21) **Registered office:** The Old Music Hall, 106—108 Cowley Road, Oxford, OX4 1JE **Bankers:** CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ **Independent examiner:** Ben Hayes FCA, Wenn Townsend, 30 St. Giles, Oxford, OX1 3LE **Charity number:** 1106269 ## **Company number:** 5219549 5 ## Objectives ## International Tree Foundation’s charitable objects are: 1. To promote the conservation, protection and improvement of the physical and natural environment, in particular by: - Planting and caring for trees and encouraging the planting and caring for trees globally; and - Fostering an appreciation of trees and the amenity and ecological value of tree cover. 2. To advance education for the public benefit in trees and their habitats. 3. To promote the sciences of silviculture, arboriculture, agroforestry and associated fields for the public benefit. 6 ## Looking Back at Our Activities in 2021 James Whitehead, CEO 2021 has seen consolidation of our work across the UK and Ireland and Africa across our four inter-linked aims: - A. **Environment** : Communities increase global tree cover and reforestation with appropriate tree cultivation. - B. **Livelihoods** : Communities grow trees to improve their livelihoods in sustainable and productive landscapes. - C. **Education** : Greater understanding of the ecological, environmental, social and economic value of trees. - D. **Capacity building** : Civil society builds capacity to advocate for and implement community-led forestry. We know that thousands of communities depend on forests for food, medicine and firewood. Planting trees, and restoring degraded areas – if done well – improves access to these vital resources and protects ancient woodlands against deforestation. I am proud about the deep commitment of the team this year to the quality of the work on the ground. There are many reasons why trees won’t reach maturity – grazing by deer or cattle, lack of water, poor species choice, etc. That is why this year we have worked very closely with communities to ensure high survival rates so that trees can flourish in very different conditions. Also, this year was no exception in maintaining our steadfast focus on supporting inclusive community leadership and achieving multiple positive benefits for communities. This year we redoubled our work on gender. As an example, we understand that planting trees near communities reduces the amount of time that women and girls spend fetching firewood which leaves more time for activities such as education and paid work. This year we undertook training with women’s groups in Kenya and supported women-led tree nurseries as a form of alternative livelihoods. In our partnership with Botanic Gardens Conservation International we have increasingly mainstreamed planting of threatened species as part of our commitment to restoring biodiversity. ITF joined with allies at the COP in Glasgow to promote responsible, community-led tree-planting and restoration as a crucial part of the solution to climate change. We also planted trees in the city when we were there – leaving a lasting legacy that will continue to flourish long after the conference has ended. Just one example of our work across the four home 7 countries of the UK as well as Ireland working with schools, parish councils and community groups. We are increasingly widening our partnerships and alliances to grow our reach and impact. For example, this year we launched a new partnership with Earthday.org and UPS aimed at planting native trees in 14 different countries around the world. This year ITF has continued to be a pioneer. ITF and our partner Arable International were one of 20 organisations chosen for ‘Financing Africa’s Top 100 Tree Restoration Enterprises and Projects’, in which we are developing a scalable, replicable model for restoration through agro-forestry in Kenya. In 2022, ITF will be reviewing and updating its strategy to ensure that it continues to achieve public benefit in line with our charitable objects in ways that remain relevant and impactful in a changing world. This report describes the determination and resourcefulness of community groups across the UK and Africa and their achievements in 2021, with our on-going role being to support and champion their amazing efforts. We are proud of what we have achieved together. 8 ## In 2021 **----- Start of picture text -----**
553,540 wonderful 45,147 27
trees planted and crucial hectares of forest projects increased vital
growing. conserved or restored. biodiversity or ecosystem
services.
81,107 30,859 24,125
people reached through young people learned remarkable people
awareness campaigns. about our environment participated in our
and conservation. projects over the year.
114 1,785 1,972
community organisations participants increased hardworking smallholder
increased forestry and household income through farmers increased their
agroforestry capacity. our projects. yield.
2,047 63% 637
brilliant teachers and of leadership roles in our staff and generous
partner organisations held volunteers received
youth workers trained.
by women. training.
**----- End of picture text -----**
9 ## Our Impact in Africa Teresa Gitonga, Africa Programmes Manager In 2021, ITF continued to do what it does best, transformative landscape restoration that creates long-term benefits for our ecosystems and local communities. Together with 26 partners across Africa, over half a million trees were planted in 2021. We are extremely grateful to our supporters and partners who made it possible for us to empower communities to restore vital ecosystems and landscapes whilst preserving biodiversity and improving livelihoods. AT ITF, local communities are the driving force behind our restoration work. Our transformational tree planting projects improve ecosystems, agricultural productivity, landscape and community resilience against the effects of the climate change crisis. I am proud to say that in in 2021, the Watu Wa Miti programme supported communities improve ecosystem services, strengthen landscape resilience whilst creating economic opportunities and improving the livelihoods of 750 households. We continued to deliver transformational gender integration training across 6 counties in Kenya. Reaching 157 community representatives (86 women, 71 men) who went on to train 2,200 community members. The Sustainable Community Forestry (SCF) programme had 19 active partnerships, 17 of which were funded by the Prince of Wales Charitable Fund. In 2021, SCF projects grew 274,535 trees. 10 ## Kenya Saiwa Swamp National Park is Kenya’s smallest national park. Despite its size, the wetlands here are a vital source of natural resources for the local communities. The park is also a key habitat for wildlife including aquatic Sitatunga antelopes, De Brazza’s monkeys and Kenya’s vulnerable Grey Crowned Cranes. Decades of unsustainable practices such as eucalyptus cultivation, the use of artificial fertilisers and illegal wood harvesting have led to the drainage and degradation of this fragile ecosystem. There is less water and much that remains is contaminated leading to a surge in waterborne diseases for the local communities. Sadly, wildlife living in the park has also declined. Despite this, there is still hope for this beautiful and diverse landscape. Through the Planting Trees for Water, Health and Wealth project, local community members are planting indigenous trees along the riparian margins of the wetlands and implementing sustainable agricultural practices to restore the landscape, improve livelihoods and encourage wildlife to return to the park. Our partner, Kipsaina Crane and Wetlands Conservation Group (KCWCG) have been mobilising and inspiring community groups to conserve, protect and rehabilitate the wetlands and areas surrounding Saiwa Swamp National Park. The organisation engages local farmers, schools, churches, women and youth groups in its conservation and land restoration efforts as well as advocating for and promoting environmentally sustainable practices such as agroforestry, tree planting on farms. Through educational workshops, this project empowers people in the community to restore and protect their local landscape. Local community members are being trained on how to identify, plant and care for trees as well as tree nursery management and establishment. This training also emphasises the need to utilise sustainable farming practices through the promotion of agroforestry. In 2021, great progress was made towards community efforts to protect and rehabilitate this diverse ecosystem. Maurice Wanjala, founder and director of KCWCG says, “Kipsaina Wetlands and International Tree Foundation have been able to plant 30,000 trees. Through this project we have been able to transfer tree management skills to the farmers and even the youth and women within this community.” 11 The project is changing lives. Saleh Muchanji, a project beneficiary and member of KCWCG says, “The project has helped people because it has helped provide tree seedlings for each individual farmer so that they move away from the wetlands. What they used to get from the wetlands in terms of firewood, they can now get from the trees they have at home.” Thanks to the generosity of our supporters and the Big Give, we were able to raise an additional £20,000 in 2021 which will go towards conserving and rehabilitating the wetlands in Saiwa Swamp National Park. 12 ## Rwanda Located in the Albertine Rift in Western Rwanda, Gishwati Forest is a global biodiversity hotspot. Gishwati forms part of Gishwati-Mukura National Park, which is home to numerous endemic and endangered wildlife species including, eastern chimpanzees, golden monkeys and side-striped jackals. Illegal mining, poor agricultural practices and deforestation has led to the degradation of this biodiverse landscape. This has not only resulted in soil erosion, landslides and floods but also severely affected the communities whose livelihoods depend on this landscape. Particularly the marginalised Batwa people, an indigenous hunter-gatherer community who are culturally and historically dependent on the forest. Our local partner, Forest of Hope Association (FHA), engages local communities in the conservation and the sustainable use of natural resources within the Gishwati-Mukura landscape. The organisation also works to improve the relationship between humans and nature through sensitising local community members on the importance of conserving and protecting the environment. The Promoting Tree Conservation in Gishwati project, hopes to restore and strengthen biodiversity in Gishwati forest. This is achieved through planting trees on local farmland and creating a buffer zone of indigenous trees along the southern edge of the forest. This project also seeks to improve livelihoods. Local community members are being trained on tree nursery development, seedling production and horticulture. Additionally, native tree and fruit seedlings are being distributed among local community groups. So far, 21,860 trees have been planted and 10 hectares of farmland have been restored through agroforestry activities. This project has led to significant changes for local community members. “I feel like I gained knowledge that will help me to be an excellent employee in case I get a job in a given nursery in our region,” says Gérard Kavakule, a beneficiary of the project. “I think in the future, planted trees will help to protect my land. I gained skills that I can use to make more money. This is really important for me.” 13 IT 14 ## Our Impact in the UK Sam Pearce, UK Programmes Manager 2021 was a very successful 12 months for the UK Programme. I began my role as UK & Ireland Programme Manager in January 2021, which meant that for the first time, we had a full-time member of staff solely focussed on tree planting in this part of the world. With this extra attention, we could massively increase our presence in the UK, engaging supporters and new partners from all around. The UK Community Tree Planting Programme engages grassroots community groups - be they local associations, schools, parish councils (and so on) – to design their own tree planting projects on local publiclyaccessible land. We want local people to stay engaged with the trees that they plant, to watch them grow and change with the seasons. We know the element of local ownership vastly increases the success of the project and the survival rate of the trees. Ensuring that these trees are made public, is a way of encouraging people to look after them years down the line, be it for weeding, mulching, or watering during dry spells. It was especially nice to reboot our work in all four home countries of the UK. Where previously we had just been focusing on the area surrounding Oxford, we are now happy to be working much further afield, from Cornwall and Kent on the English coast, to County Antrim in Northern Ireland, to the Isle of Skye in the Scottish Highlands. We have also been able to support much bigger projects, while still keeping all of them community-based and publicly accessible. One project type we’re particularly keen on is the ‘community buy-out’. This is becoming increasingly popular in Scotland and Wales and is where the local community are able to purchase the surrounding land from the landowner. This means quite large amounts of land can be once again in common ownership, allowing for large-scale nature restoration projects (including tree planting) designed and owned by local people. Our work with one such project in Uigshader in the Highlands has planted thousands of trees, restored local wildlife and watersheds, provides local livelihoods and builds social cohesion. Such projects can be a central axis around which a local community can renew itself after the strictures of Covid-19 lockdowns. 15 ## Glasgow During COP 26, held in Glasgow, we ran tree planting projects around the city as part of our commitment to restore, protect and conserve the environment in partnership with communities. During our time there, we planted 1,200 native tree species with the help of local students, partners and UPS. Students from Carmunnock Primary School and volunteers from the local community joined us to plant 550 trees in Carmunnock as part of a tree planting initiative led by Glasgow City Council. Friends and allies of ITF also joined in and together we planted a further 300 trees. COP 26 also saw the launch of Trees in the Cities project. An exciting tree planting collaboration between ITF, Earthday.org and UPS. This project aims to raise awareness on the vital role trees play in improving livelihoods through tree planting events in 14 cities worldwide. To kickstart this collaboration, 350 trees were planted in Glasgow. Finally, we kicked off a tree planting partnership with Glasgow Clyde College. This project will plant hundreds of trees on the college’s grounds and create opportunities for the students to engage with environmental issues. 16 ## England Founded in 2019, our local partner, Nature and Nurture, provides a platform for local community members to restore their local landscape and contribute to global efforts to combat the climate crisis through planting trees. Local community groups, businesses and school children are coming together to plant 5000 trees in Burford, West Oxfordshire. This communityled tree planting effort, is part of the Burford Tree Planting Initiative. An initiative, set up in 2020 by Lucy Staveley, founder of Nature and Nurture, that aims to restore the local landscape. “This part of West Oxfordshire, is particularly depleted of trees and hedgerows,” says Lucy. “I wanted to do everything I could to try and restore the landscape and connect up the landscape for nature.” This project not only provides a platform for people to plant trees but also brings people from different walks of life together. The project creates a welcoming space where love for the environment is nurtured and environmental stewardship is fostered through the exchange of information and ideas. “It’s been a lovely experience, we’ve had all sorts of community groups coming out to plant,” says Lucy. “We’re very grateful for all the funding and the support that International Tree Foundation have given us. It’s been really fantastic to be able to do this and get people involved and to get people talking about trees and restoring the landscape.” 17 18 ## Financial Review ## **Performance** The organisation had a small rise in income in 2021. Total income was £664,076 (2020: £642,315), an annual increase of just over 3% year on year. Total reserves at the year-end were £559,267 (2020: £411,201) of which unrestricted reserves increased to £148,483 (2020: £120,432). ## **Notes on income and expenditure:** ITF has a varied funding stream, receiving grant income from several sources (54% of total), as well as donations from individual givers and fundraisers (40%) and corporate donors (6%). ITF continues to benefit from legacies and we are extremely grateful to all supporters who kindly remember us in their wills. The proportion of total expenditure that was spent on direct charitable activity was 92% (2020: 88%). Expenditure on governance has reduced significantly in 2021 to £12,406 (2020; £48,856) due to nonrecurring termination benefits and associated legal costs being incurred in 2020. We expect governance expenditure to increase slightly this financial year with a return to more in person meetings. **Key risks at the start of 2022 are** : ## **1. Medium and long-term funding** The full impacts of the Coronavirus pandemic and war in Ukraine are as yet unknown, but there has already been significant inflation and economic uncertainty. The long-term impacts of Britain having left the EU are also unclear. Both of these are likely to have an effect on all areas of fundraising, in particular trust income and grant income. We observe increased competition from other organisations, especially tree planting charities. Income from legacies is, by its nature, uncertain. It has made up a significant percentage of income in previous years (average 25% between 2016 and 2020). ## **Actions to control/mitigate:** - a) Increase focus on gaining new major funding from statutory bodies, trusts and foundations. - b) Nurture our existing key funder relationships. - c) Reduce reliance on legacy income by diversifying funding - sources, particularly by engaging corporate donors. Investments 19 into individual fundraising are already paying off. - d) Use unrestricted income to support the growth and sustainability of the charity. ## **2. Fraud and misuse of charitable funds** As digital communication and financial reporting becomes more widely adopted, ITF and other charities, including our partners, are exposed to risk from fraudulent activities. Additionally, ITF is aware that there is the possibility of internal and external misappropriation of funds. Actions to control/mitigate: - a) ITF Key Management Personnel (KMP) and Board will continue to ensure that the Finance Policy is kept current and reviewed annually. - b) The procedures on transferring funds to external partners, - particularly internationally, in order to mitigate the risk of fraud, will be followed by ITF staff and continually reviewed. ## **3. Investment** ITF may invest funds at the discretion of the Board (as per the Articles of Association and Standing Orders). The charity has not held any long-term investments during the year. Should the charity have funds to invest, it would abide by its Ethical and Environmental Policies which state: - a) ITF will seek to use the services of banks and other financial institutions that comply with ITF’s ethical and environmental criteria. - b) ITF will wherever practicable avoid using the services of banks or other financial institutions that do not adhere to ITF’s ethical and environmental criteria. - c) For savings and investments we will choose mutual societies and institutions that invest in socially and environmental responsibleprojects. 20 ## **Reserves Policy** The Trustees review the reserves policy of the charity annually. This review covers the nature of the income and expenditure streams of the charity, and the need to match variable income with fixed costs. Trustees recognise that the charity needs to have sufficient cash and reserves to absorb short term fluctuations in income. The level of unrestricted reserves needs to consider both the plans of the charity and the wider economic climate. The Trustees resolved that it is appropriate to maintain a policy of having a level of general unrestricted reserves equivalent to six months running costs. Funds as at 31st December 2021: Restricted £410,784 General £148,483 Total £559,267 With general unrestricted reserves now standing at £148,483 (2020: £120,432) the reserves policy is met. ## **Significant Donations** During 2021, we received a number of generous donations and grants. The list below details those above £3,000: Botanic Gardens Conservation International, EARTHDAY.ORG (UPS), One Tree Planted, Darwin Initiative (Department of Environment, Food and Rural Affairs), Prince of Wales Charitable Fund, The Northwick Trust, Tree Nation, Tree Sisters, Foresters Financial, Get Laid Beds, New North London Synagogue, Just One Tree, Plant for the Planet, Tree Appeal, as well as several generous individual donations, legacies and bequests. 21 I ## Structure, Governance and Management International Tree Foundation was constituted as a company limited by guarantee and is governed by Articles of Association and Standing Orders. The charity was registered with the Charity Commission in October 1965 (under former name ‘The Men of the Trees’). ## **Appointment and Recruitment of Trustees** The members of the Board are its Trustees for the purpose of charity law and are the Directors of the charitable company for the purpose of company law. Appointment of Trustees is governed by the Articles of Association of the charitable company. The Trustees have authority to co-opt new Trustees to fill casual vacancies arising during the year. The number of Trustees appointed should not be less than three and no more than twelve. There were no trustee appointments or resignations during this period. ## **Organisational Structure** The Trustees had four full formal meetings in 2021. In addition to the full Board meetings, there are committees for Fundraising, People and Operations, and Programmes that met during the year. A Committee for ITF’s centenary also met. Trustees are responsible for the strategic direction and policy of ITF. ## **Senior Staff** The Trustees appointed a CEO who joined ITF on 6th September 2021. ## **Pay and Remuneration** ITF is an equal opportunities employer and applies objective criteria to assess merit. Pay reviews are held with staff annually. A benchmarking process is undertaken periodically. ## **Risk assessment and management** The Trustees are aware of the major strategic, business and operational risks that ITF faces and are of the opinion that there are systems in place to minimise any perceived risks. Reports are regularly submitted to the Board on all issues that might affect the running of the organisation, and a risk register is maintained and reviewed regularly by senior managers, and biannually by the Trustees. 23 ## **Public Benefit** In deciding on which activities to undertake we have taken into consideration Charity Commission guidance on public benefit. The Trustees are satisfied that the charity meets these guidelines with regard to delivering public benefit. Approved by the Board of Trustees on 7 April 2022 and signed on its behalf by: ## **Dr Stephen Vickers, Chair** Company number 5219549, Charity number 1106269 24 25 Independent Examiner's Report lo the Trustees of International Tree Foundation report to the charity trustees on my examination of the accounts of the company for the year ended 31st De￿rnber 2021 which are sel out on pages 12 10 23. Rgsponsibilitias and basis of roport As the Gharily trustees of the company land also fis directors for the purposes of company lawl you are responsible for the preparab'on of the accounts in accordance with the requiiernenls of the Companies Act 2006 I'lhe 2006 Acl'l. Having satisfied myselF that the accounts of the company are not required lo bg audited under Part 16 of Ihe 2006 Ad and are eligi￿e for independent examination, I r8POrt in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011 I'the 2011 Acl'l. In carrying out my examination I have followed the Directions given by the ChaTty Commission under section 145(5llbl of the 2011 Act. Indepondgnt examin9r's slatemgnl Since the company's gross income exceeded £250,000 your examiner musl be a member of a b(Kly listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of the ICAEW, which is one of the lisled bodies. I have completed my examination. I confirm that no mallers have come to my attenlion in connection wf(h the examination giving me cause lo believe that in any material r8specl'. a¢wunts'ng records were not kept in respect of the company as required by section 386 of the 2006 A¢l- or the accounts do not accord with those records., or the accounts do not comply with the accounting r￿UIrementS of section 3￿ 01 the 2006 Act other than any requirement that the accounts give a 'tru8 and fair Y￿w. which is not a matter considered as part of an independent examination., or the accounts have not been prepared in accordance with the methods and principbs of the Slalement of RecDmmended Practice for accounting and reporting by tharilies applicable lo tharilies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102}. I have no concems and have come across no olh8r malters in conneclion ¥Yilh the examination to which att8nlh)n should be drawn in this report in order lo enable a proper understsnding of the accounts to be reached. Benjamin Hayes Bsc FCA For and on behalf ofwenn Townsend Chartered Accountants Oxford 23rd July 2022 26 Lrj (o (Y) TJ TJ ¢￿(0￿) o)v lor wcc(J 27 Intèrnational Troè Foundation Balance Sheet 31st December 2021 2020 FixBd Assets Tangible assets 2,939 1,805 Current A55ets Debtors Cash at bank and in hand 10 121.654 442.693 34,941 422,476 564.347 457,417 Creditorn.. Amounts falling due thin one year 11 18,0191 (48,0211 Net Cuyrent Assets 556,328 409,3 Totsl Assets less Current Ltabllltles 559,267 411.2D1 Net Assets 559.267 411.201 Funds Restricted funds 410,784 290,769 Unrestricted funds General fund Designaled funds 148.483 120.432 Total Funds 559,267 411,201 For the year ending 31st Decewnber 2021 the company was entitled lo exemption frorn audil under section 477 of the Companie5 Act 2006 relating to small companies. Directors. responsibilities.. The members have not required the company to obtain an audit of its accounts for the year in question in accordance wlh section 476., The directors acknowledge their responsibilitTes for COTnplying wlh the requirements of the Act with respect lo accounting records and Ihe preparation of a¢¢ounls. Thg accounts have bg8n prepargd in accordance with the provisions applicable to companigs subject lo thg small companies regime. Approved by the Board ofTru5tee5 on 23, July 2022 and signed on its behalf by . Dr Stephen Vickers Chair Company number.. 5219549 28 Intsrnational Tros Foundation ststement of Cash Flows for the year ended 31st December 2021 Nots 2021 2020 Nel cash flow from opera1ing aclivthes 14 22,698 87,650 Cash flows from invosting activities: Inleresl received 174 398 Purchase ol fixed a¥sels (2,655 15091 Procegds from sale of fixed assets 299 Net cash flow from investing activiti88 {2,4811 188 Change in cash and cash equivalents in the period 20.217 87.838 Cash and cash 4uivalenls tmughl fO￿ard al 1st January 2021 422,476 334,638 Cash and cash equlvalents carrled forward at 31st December 2021 442,693 422,476 29 International Tr#0 Foundation Notes to the Accounts forthe ygar èndod 31st Dècgmbèr 2021 Summary of significant accounting policies General information and basis of preparation Inlernalional Tree Foundation is a charitable company limited by guarantee in the United lQngdom. In the event of the charily being wound up, the liability in rèspecl of the guarantee is limited to £10 per member of the charity. The address of the r8gister8d Dffice is given in the charity infomialion in 1hesé financial slalements. The nature of the charity s operations and principal activities are detailed In the TrLJStees' Report. The chaTiIy con5tttules a public benefit enlily as defined by FRS 102. The financial stslemen15 have been prepared in accordanca wilh Accounling Reporb'ng by Charities.. Statement of Recommended Practice applicable lo charities preparing Ihgir accounls in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Irgland IFRS 1021 issu9d in October 2019, the Finanryal Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Chartties Act 2011, the Companies Art 2006 and UK Generally Accepted Accounting Praclice. The financial slalemenls are prepared on a going concern basis under the historical cost convention modified lo include c8rtain items al fair value. The financial slalements arg prepared in sterling which is the functional cuffency of the charity. The significant accounting policies applied in the preparation ol these financial Statements are set out below. These policie5 have been consistenlty applied lo all years presented unless otherwise slated. Fund accountlng Unreslricled funds comprise accumulated surpluses and defials on general funds. They are available for us al the disuelion of the Board of Directors in furtherance of the charitable objectives of the charitable company. Designated funds comprise funds set aside by the Board of Directors out of unreStr￿ted funds for 5pecalic future purposes or proiecls. Restricted funds comprise monies raised for, and their use restricted lo, a speafic purpose, or donalions subject lo condf(ions imposed by the dDnor or through the terms of an appoal. Income recognition All incoming resources are included in the Slatemenl of Financial Acliwlies {SoFAI when the charrty is legally entitled lo the income after any performance conditions have been mel, the amount Can be measured reliably and il is probable that the income will be received. For donations lo be w(xJnised the charity will have been notified of the amounls and the selllemenl date in writing. If there Eire conditions attached lo the donalion and this requires a levd of perf0mlan￿ before entillemenl can be obtained. then income Is deferred until those conditions are ful￿ mel or the fulfilmenl of those condrtions is within the control of the charity and il is probable that they will be fulfilled. Donated facilf(ies and donatecs professional services are recognisecl in income ai their fair value when their economic benefit is probable, rt can bè measured reliabilily 2nd the charty has control over the ilem. Fair value is delemiined on the basis ol the value of the gift lo the charity. For ex8mple, the arnount the ch8r(ty would be willing to p&y on the open market for such facilities and servi(£s. A corresponding amount is recognised in expendiluie. No am(yJnl is included in the financial statements for volunleei time in line with the SORP (FRS 1021. For legacies, entiuement is the earl￿[ ol the charity being notified of an impending distribution or the ￿gacY being receNed. At this point income is recognised. On occasion legacAes will be notrfied to the charity, however rt is not possible lo measure the amount expected to be dislribuled. On these 0{￿8810￿8. the legacy is Ireated as a contingent asset and disclosed. Investmenl incomè ancl bank interest receivab￿ is fully accrued at the balance sheel date. 30 Intsrnational Trng Foundation Notes to the Accounts {continuedl forthe yearended 31st December 2021 Summary of significant accounting policigs {continuadl Expenditure recognition All expendtture 15 accounled for on an accruals ba513 and has been cl8ssilied under headings thal aggregate all costs related lo Ihe category. Expendiluie is recogni5ed Whe￿ there is a legal or constr￿tiVe obli9ation to make payments to third parties, il i% rxobable that the settlement will tre required and the amount of the obligation can be measured reliably. 11 is categorised under the followin9 headings.. Th8 Costs of raising funds consist of inv8Stm8nt managemenl fees an(J merchandising costs. Charitoble expenditure comprise5 Ihose wsts incurred by the tharty in the delivery of i(s adwilEs arvj services for ils beneficiaries. 11 includes cosls that can be allocaled direclty to such aclivilEs, and Ihose costs of an indirecl nature necessary lo support them. Governance costs include those costs associated with meeting the constilulional and statutory requirements of the charity and include the audit lees and costs linked lo the strategic management of Ihe charity. Irrecoverable VAT is charged as an eXp￿nSe against the actiwty for which exper)drture arose. All costs are alloc81ed between the expenditure categories ol the Statement of Finanaal Acl1vil￿8 on a basis designed lo reflect the use of the resource. Costs relating lo a part￿ul￿r aclivily are allocated directly. others are apportK)ned on the basis of eslimales of the proportDn of lime spent by slaft on those aclivilEs. Tangible fixed assets Tangible fixed assets Are staled at cosl less accumulated deprecialion. Tongible f￿ed assets are depreciated at rates calculated to write off the cost of each asset over its eslimaled useful life as follows Office equipmènl, furnilure 2nd rrtlings 25W, Siraight line basis Dèbtors and creditors receivablelpayable within one year Debtors and creditors wilh no slated intere81 rate and re￿1vable or payable vvithin one year are recorded 81 Iransaction pri￿. Oparating 18asgS Rentals payable under operating Ipases are charged lo the Statement of Financial Activities as incurred over the term of Ihe lease. Employee benefits When ernployees have rendered service to the charity. short-lerm employee beneffts lo which the employees are entitled are recognised at the undiscounled amount exFecled to be paid in exchange for that service. Tax The charity is an exempl charity wi(hin the meaning of schedule 3 of the Charits'es Acl 2011 and is considered to pa55 the tests sel out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a ch3ritsble company for UK corporation tax purposes. Golng concem The financial ststemenls have been prepared on a going concern basis as the trustees believe that no material uncertainlie5 exist. The trustees have consK%ered the level of funds held and the expected level of income and expenditure for 12 months from aulhorising these financial stslernents. In performing this review, the trustees have factored in the anlicipaled impact of COVID-19 on ils global opefftlions. The budgeted income and expenditure is sufficient with the level of reserves lor the charity to be able lo continue as a going CDncern. 31 Int•rnational Trno Foundation Notes to the Accounts Icontinuedl forthe year ended 31st De¢ember2021 Donations and lègaciès JJ21 2020 tk)naliDns including related gift aid Ap￿alS Lega¢ies Grants 205,374 22,590 74,580 356,834 117,833 13,950 230,767 273,902 659,378 636,452 Investment income and interest 2021 2D20 Bank interest receivable 1f4 398 Charltable actlvltles 2021 2020 Plantlng, protectlon and preserrfatlon of trees Tree planting - UK Tree planting - Inlemational other direct costs Staff costs Office support costs 10,595 1T5,322 54.933 183.072 10,065 3,288 230,782 25.757 150.475 12,326 433,987 422,626 Promotion of tree awareness News￿tter. joumal publication costs and website Other direct costs Staff costs Office support costs 4.088 3.185 600 27,139 6,163 18,942 5,032 28,062 37,087 Governance costs 12,4 48,858 Total charitable activities 474,455 508,569 32 Intsrnational Tr•• Foundation Notes to the Accounts (continued) forthè year ended 31st December 2021 Total exponditur• Tree planting and grants payable Other direct Costs Staff Costs Office Costs 2021 2020 Cost of generating funds Planting, prolectK)n and preservalion of trees Promotion of tree awareness Govemance costs 7,854 26,152 7,549 41,555 68,599 185.917 54.933 4,088 1,173 183,D72 18,942 8,718 10.065 433,987 5,032 28,062 2,515 12,406 422,626 37,087 48,856 185,917 68.048 236,884 25.161 516,010 577,168 Support costs comprise.. 2021 2020 Accountancy and p8yroII Bank charges Computer maintenance and services Dewecialion of fixc(J asse Director meetings, Iravel expenses and insurance Miscellaneous expenses PrDfessional fees Office insuran￿. loht, heal and cleaning Office rent 2nd rates Staff recruilmeni, Iraining and travel Tdephone, printing, tK)Stage and stationery Volunteer expense8 Exchange rale Igainyloss Losses on disposal of fixed assets 1.279 186 5,800 1,037 623 659 3,789 586 4,559 6,892 734 3.332 2.367 2.216 1,039 476 505 16.584 535 14,026 2,528 676 1983 55 25,181 44,341 Support costs are ollwaled on Ihe basis of estimates of the proportion of lime spent by staff on those adivilie5. Cost allocation includes an 91gment of judgement and the tharty has had lo consider th9 cost bgnelit of detailgcl calculations and record ke8ping. Therefore the supporl costs shown above are a besl eslimale of the costs that have been so allocaled. 33 Intsrnational Tr#0 Foundation Notes to the Accounts (continued) for the year ended 31st December 2021 Staff costs and numbors 2021 2020 Gr05s pay Employer's Nl Employer's pensiw C￿tributIOnS Life assurance and othgr gmployee benefts 213,583 13,281 9,271 749 206,983 13,370 8,956 14,757 236,884 244,066 Total termination benefils during the year amounted lo £nil (2D20.' £14.0001. The av8rage number of employees analysed by function was.. Number 2021 FTE Number 2021 2020 FTE 2020 Planting, protection, preseNalion and promolK)n of trees Fundraising and income generation No employees received lolal employee benefits (excluding employer pension costs} exceeding £60,000 during the current peri(Kl12020.' none). TNstees' and key management personnel remuneration and expenses The Trustees neither receNed nor waived any remuneration during the peri(Kl12020. £nill. The lolal amount (including employer pension costs) recewed by key management personnel is £116,418 {2020'. £134.207}. The Trust C4)nsiders its key management personnel comprise the Programmes Manager. Head of Fundraising and Financ£ & Farylilies Manager. In the Ffior year this also included Ihe Chief Executive until his departure. No 12020.. None) Tfustees were reimbursed for directly incurred out of pocket expenses during the period lotalling £nil12020.' £nill. Net incomellexpenditure> 2021 2020 Nel incomellexpenclilurel is stat￿1 after charging.. Examiner's rernuneralion Depreciation offixed assels 2,652 1.521 2,640 1,416 34 International Trèè Foundation Notes to tho Accounts Icontinu•d) forthe year ended 31st December2021 Tangible fixed assets- office equipment. furniture and fittings Cost At 1 st January 2021 Additions Disp03915 7,932 2,655 13601 At 31st December 2021 1a,227 D9P￿clatIOn At 1 st January 2021 Charge for the period Eliminaled on disposal 6,127 1,521 13601 Al 31st December 2021 7,288 Net book value At 31st December 2021 2.939 At 31st December 2020 1,805 10 Oebtor5- arnourts falling due wi(hin one year 2021 2020 Trade debtors Other debtor5 Prepaid expendilure Accrued income 23.769 4,203 1,496 92,186 15,882 1,574 17,485 121,654 34.941 11 Credltors.. amounts falling due within one year 2021 2020 Trade credrtors Accrued expenditure Employers pension contribution Other tax and SDcial security 42,465 2,986 2,135 435 2,600 618 3,898 8,019 48,021 35 Int8rnallonal Tree Foundatlon Notss to the A¢￿unt¥ Icontinuedl for the year ended 31 St December 2021 12 Analysis of net assets between total fund5 Unrestricted Funds Restricted funds Totsl Fund balances at 31st Deceml)8r 2021 are represented by.. Tangible fixed as5els Cash at bank and in hand Other net current assels 2,114 138,065 8,304 825 304,628 105,331 2,939 442,693 113,635 148.483 410.784 559,267 Unrestricted Funds Restricted funds Total Fund balan￿$ at 31st December 2020 are iepresented by.. Tangible frAed assets Cash at bank and in hand Other net current as#eis 1,051 117,044 2,337 754 305,432 115,417) 1,805 422,476 113,080 120,432 290,769 411,201 36 Internatlonal Tree Foundallon Notes to the A¢count5 (continued) forthe year ended 31st December 2021 13 Slatement of funds Balanc8 at 111121 Balance Expenditure Transfers at 31112121 Income Restricted funds Inlernational Programmes.. Africa Drylands sUstsinab￿ Communf(y Foresty Keny3 Programme Ivvatu Wa Mili) Mount Bamboulos Initiative Save Kaluga Forest ups University of Saskatchewan 2,407 104,655 49,242 30.756 158 17801 {56,6231 1177,4971 {57.5531 131 {28,3941 12,1881 1,62T 87.473 150.581 40,586 280.336 26.797 133 52,356 1,926 11,1451 11,5001 288 23,962 12621 UK Pr(MJrammes'. Community Tree Planting Susan Cooke legacy Tree Power Trees Journal 3,028 97,658 2,865 67.483 45,LKIO 46 {29.5601 {38.6431 11,4001 12,0071 40.951 104.015 1.511 638 2,645 290,769 514,663 1394,6481 410.784 Unrestricted lunds General fund 120,432 149,413 1121,3621 148.483 120,432 149,413 1121,3621 148,483 Total lunds 411,201 664,076 1516,0101 559.267 37 Internatbonal Tree Foundatlon Notes to the Accounts (Continuedl forthe year ended 31st December 2021 13 Statement of funds Icontlnued) Balance at 111120 Balance Expenditure Transfers at 31112120 Income Restricted funds InlernalK)nal Programmes.. Africa Drylands Sustainable Community Forestry Kenya Programme (Wolu Wa Miti} Mount Bamboulos Initiative Save Kafuga Forest 3.704 105.639 49.853 17.396 {1.29TI 1112.1901 (94.1221 {92.9421 {21 2.407 104.655 49.242 30.756 158 112.389 94,288 107.436 160 11,183) (777) 11.134) UK Programmes". Community Tree Planting Susan Cooke legacy Tr* Power Trees j￿rnal UK INell-b8ing in the )Nwds 2.102 4.218 190.000 {3.2921 {92,3421 3.028 97.658 2.865 2.865 {3.6811 14171 3,681 417 181.976 508.491 1400.2851 587 290.769 un￿$t￿cted funds General lund 156,142 132,470 1167.7221 (458) 120.432 Designated funcss Kenya Programme Iwalu Wa Miti} Sustsinable Community Forestry 7.805 131 1,354 {9.1591 {21 (129) 164,078 133,824 1176.8831 (587) 120,432 Total funds 346,054 642,31S 1577.1681 411.201 Internatlonal Programmes Africa Drylands A bequest from the Estate of the late Mrs MM Gare in 1999. to be utilised in the environmentsl regeneration ol the Sahara region through the eslablishmenl of community tree planting projects. Kenya Programme Ivlatu wa Mltl) Supporting the planllng of trees in Kenya by Ioc21 communlly-based organisalions. Funders inCl￿de.. Treesislers, Bolanical Gardens Conservation International. One Tree Planted. New North London Synagogue. Big Give Christmas Challenge. Just One Tree, Plant for the Planet. Tree Appeal, Paul and Gill Withers. individual and corporate donors. Mount Bamboutos Initative Funds lo resloie the degraded mountsin ecosystem of Mounl Bamboutos in Cameroon, while improving the quality of lives for local eommunilie8. Funded by DEFRA - Darwin Initiative. Save Kafuga Forest Strengthening communilies, natural resources aC￿sS and managemenl in Kafuga Forest, Uganda. 38 Intemational Tree Foundation Notes to the Accounts Icontinued lor year ended 31st Dècèmbèr 2021 13 Statement of funds (continued) Sustainable Community Forestry Supporbng local communily-based organisations to raise and plant trees and lo manage and restore local for8sls. Major lunders include.. Prince ol Wales Charitable Trust, Char￿S Hayward Foundation, Plant for the Planet, New North London Synagogue, and a number of corporate and individual donors. Earthday Foundation - UPS The UPS Trees in the Citie5 Programme 5UPPK)rts Ihe effort lo create awareness in the front line of climate change and promote the role of trees in improving the qualily of life in cilies around the world. Togelher with volunteers from UPS, we are planting trees and supporting the growih of Ljrban green infrastructure of 14 seleclgd major cilies. This project Is cr9aling local and global conngctions wilh community tree-planting at Ihe centre of the effort. University of Sa5katchewa Funds for the dgilalisalion of the Saint Barbe Baker archive at the University of Saskalchewan. UK Programmes Community Tree Planting Helping local communities in the UK plant tree5. Major fvnders include Tree Nation, and a number of individual and corporate donors. Susan Cooke legacy A bequest from the Estate of the late Susan Cooke, lo carry out work in Northern Ireland. Tree Power Education prcEramme supporting teachers and schools lo inspire new generations about the local and global importance of trees and forests. Trees Journal The pmduclion ol ITF'S annual publication. Contributions to the costs of this are made by our other programmes. UK Ivell-being in the Woods Engaging young people in woodland aclThiilies tD improve their well-being and mental health. Funded by the Poslcode Local Trust. Transfers made during Ihe peri)d.. From To Notes Restricted Sustsinable Community Forestry Reslricled Trees Joumal A contribution from Sustainable Community Forestry lo the Trees Journal. Restricted Kenya Programme (Walu Wa Miti} Reslricled Trees Joumal A contribution from the Kenya Programme Iwatu Wa Mili} to the Trees Journal. 39 Int&rnatlonal Troe Foundatlon Notss to the Accounts Icontinued) for the year ended 31st December 2021 14 Reconclllatlon of net movement In funds lo net cash flow from operatlng actlvltles 2021 2020 Net income for period 148,066 85,147 Depreciation charge Loss on disposal ol fixed assets Interest recewable (Ir￿rease)Idecrease in debtors (Decreaseyincrease in creditors 1,521 1,416 265 1398) 2.272 18,948 1741 {86.7131 {40,0021 Net cash flow from opera￿ng actlvltles 22,698 87,650 15 Lease commitment5 At 31sl December 2021 total future minbmum lease payments under non-cancellable operating leases were as follows-. Land and buildings 2021 2020 Due wrthin one year 7,050 6,380 16 Relatgd party transactions International Tree Foundation Kenya, a charity, was incorporated under Kenyan law durirbg the year ending 3181 December 2019, to enable Kenyan donors to make donations lo help ITF meet its Obje￿IVes. ITF and ITF Kenya have Ihe same Board of Trustees, Ihereloie ITF Kenya is viewed as being controlled by ITF and the￿fore a subsidk8iy for accounling purposes. Foi the year ending 31si December 2021, ITF was enlilled to exemption from preparing consolidated accounls ag the parent and the group headed by it qualify ag small under sectK)n 383 of the Companies Act 2006 and the parènt and the group are considered eligible for the exempbon a8 detem)ined by reference to section8 384 and 39912A} of the Companies Act 2006. ITF Kenya 15 deemed a dormant entity as no IransactiOll5 look place during the year. There were no other related party Iransaclions to disclose in 2021 {2020.' none). 40 (+44) 01865 922 430 internationaltreefoundation.org info@internationaltreefoundation.org The Old Music Hall, Cowley Road, Oxford, OX4 1JE, United Kingdom Charity number 1106269 42