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← Aapg - Europe

2024-06-30-accounts

AAPG-Europe (A company limited by guarantee)

Report and Consolidated Financial Statements For the Year Ended June 30, 2024

Charity Number (England and Wales): 1126290 Charity Number (Scotland): SC040127 Company Number: 6540163

(A company limited by guarantee)

AAPG-Europe

Consolidated Financial Statements For the Year Ended June 30, 2024

Contents
Reference and Administrative Information
Report of the Trustees
Audit Report
Statement of Financial Activities
Balance Sheets
Statement of Cash Flows
Notes forming part of the financial statements		 Page Number

2
3 - 9
10 - 15
16
17
18
19 - 29

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 1

AAPG-Europe Report of the Trustees for the Year ended June 30, 2024

The Trustees present their report and audited financial statements for the year ended June 30, 2024.

Reference and Administrative Information

Charity Name: AAPG-Europe Charity Number (England and Wales): 1126290 Charity Number (Scotland): SC040127 Company Registration Number: 6540163

Registered Office: Operational Office: 6[th] Floor 1444 South Boulder Avenue, 9 Appold Street, Tulsa, London, Oklahoma 74119, England, USA EC2A 2AP Trustees A Wegener D Curtiss D Cook J Craig – Chairman K Gibbons

Secretary

Mr. D. Curtiss

Senior Management Team

Mr. A. Wegener Director Mr. B. Haws Controller

Auditors – Moore Kingston Smith LLP; 6[th] Floor, 9 Appold Street, London EC2A 2AP

Bankers – HSBC Bank; 31 Holborn, London EC1N 2HR

Solicitors – Stone King LLP; 16 St. John’s Lane, London, EC1M 4BS

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 2

AAPG-Europe Report of the Trustees for the Year ended June 30, 2024

AAPG-Europe

Aims and Objectives

Purposes and Aims:

Our charity’s purposes as set out in the objects contained in the company’s memorandum of association are, for the public benefit:

The aims of our charity are to foster scientific exchange which advances the earth sciences, in particular, those related to petroleum, natural gas, and other energy minerals. This is the purpose that our charity was established to further.

The Focus of our Work

Our main objectives for the year were focused on the delivery of science, particularly the geosciences through our many programs. Specifically, we have undertaken the following:

How Our Activities Deliver Public Benefit

The trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance as published by the Charity Commission including its guidance ‘Public benefit: running a charity (PB2)’. Our main activities and who we are trying to benefit are described below. Our charitable activities focus on the science of geology, the dissemination of that science, and on the many aspects of the energy geosciences. Our work has primarily focused on advancing scientific knowledge through our program of educational events and expanding the geoscience community. All charitable activities focus on sharing scientific knowledge which helps the energy industry remain sustainable, and the events focus on the

AAPG-Europe

Page 3

Consolidated Financial Statements – Year Ended June 30, 2024

AAPG-Europe Report of the Trustees for the Year ended June 30, 2024

exchange of technology concerning the exploration of energy resources for the public benefit. In addition to helping reinforce the training of the geoscientist, this emphasis on sustainability and environmental awareness and responsiveness ultimately serves society in general.

Our courses, presentations and learning opportunities are open to the general public. The primary beneficiaries include geoscientists working and living in the United Kingdom and in the rest of Europe. These programs help develop and expand the knowledge and information on the technical challenges of finding and producing energy resources.

Programs

We generally offer several educational events each year, with differing levels of scientific intensity. Our lineup of events includes our flagship Geoscience Technology Workshops, or GTW’s and a larger regional conference. The GTWs are scientific learning opportunities that appeal to a much wider audience and are typically focused on issues or topics related to regional activities, or emerging technologies. The global pandemic caused by the 2019 Novel Coronavirus, SARS-CoV-2 (more commonly known as and referred to hereafter as COVID-19) had a profound impact on our organization. We have only just begun to be able to deliver in-person events for the fiscal year, though we have also continued with on-line events as well. Our team was able to organize two GTW’s in person and one online as well as conduct an online carbon capture and sequestration event. In addition, we productively used the time to introduce a new line-up of less formal, free, collaboration events on specific energy geoscience topics using online platforms. Our response was extraordinary and we dramatically increased the engagement of geosciences throughout Europe and the world. These on-line only events attracted geoscientists and those interested in the geosciences that otherwise had not participated in our events and activities. We are proud of our expanded reach and the resourcefulness and proactive outreach of our professional team.

Financial Review

AAPG-Europe has been operating in the United Kingdom for fourteen years. We have not been able to recover from a financial standpoint after the impact of COVID-19. We receive most of our financial support from the energy industry (as a whole) in the way of sponsorship and support of our activities. The energy industry is suffering not just from financial hardship the last several years but also the steep drop in prices during the global pandemic and the consolidation that caused within the industry. These factors have a pronounced, corresponding effect on our financial activities.

We had four in-person events during the fiscal year, both in the United Kingdom and within continental Europe. Our trustees are mindful of our dramatically declining revenues and have sought strategies to manage the charity in as fiscally responsible of a manner as possible in this challenging operating environment. The result of their focus has been significantly cutting operating costs, which has included closing our physical office space and asking for forgiveness of the debt accumulated by the American Association of Petroleum Geologists, our only creditors.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 4

AAPG-Europe Report of the Trustees for the Year ended June 30, 2024

To date, our implemented strategies have not provided a sustainable operational model. Our margins on activities continues to be compressed and our operations costs are increasing despite our attempts to constrain them in a highly inflationary environment.

Most of AAPG-Europe’s support and funding used during our time in operation is from the gift aid from the subsidiary trading company and financial support from the sole member. Gift aid provides critical resources to support our charitable mission. Much like the charity, however, the trading subsidiary has also suffered greatly with decreased revenue the past several of years, which has had a negative impact on the amount of gift aid available to the charity.

The trustees have been reviewing the business model, our operations, and our outreach to determine if we are providing services that are wanted, valued, and sustainable. There are increasing concerns that no amount of effort or investment will be met with continued support from our target audience. As a result, we plan to wind down both charity and trading subsidiary within 12 months of the signature of these accounts. We are encouraging The American Association of Petroleum Geologists to continue the activities that have benefitted and advanced the energy geosciences throughout Europe.

Principal Funding Sources

AAPG-Europe conducted several educational, scientific events during the year. Even with the fees generated in pursuit of these educational activities, the charity has fallen short financially with no prospect of gift aid from the trading subsidiary in the current fiscal year.

The American Association of Petroleum Geologists AAPG has provided a commitment to support the operation of the Charity group by providing working capital as needed and has agreed to not seek repayment of the outstanding balance due to it by AAPG-Europe and its trading subsidiary in the twelve months following the approval of the accounts. The American Association of Petroleum Geologists is a 100+ yearold international professional association located in the United States which has significant resources to help carry out its mission of advancing the profession and science of geology. This mission of AAPG is closely aligned with the objects of the Charity.

The American Association of Petroleum Geologists AAPG have agreed to support the charity and trading subsidiary throughout the winding down process and will meet any reasonable liabilities that may become due as a result of this process.

Investment Policy

The Trustees of AAPG-Europe are aware of the benefits that a solid financial plan can allow us to continue our mission of disseminating scientific knowledge. This objective has been complicated by the decreased availability of funding from the energy industry, and the squeeze on our operating margins. The Management Committee has invested the small amount of current available resources in a business money

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 5

AAPG-Europe Report of the Trustees for the Year ended June 30, 2024

manager account with a respected financial institution. Our return on our investment appears reasonable given the current economic environment.

Fund Balances

The group results are a deficit/ surplus for the period of £11,183 (2023: 281,694). Closing unrestricted reserves of the group are £86,532 (2023: £97,713). At the end of the year, the liability to AAPG had decreased to £788 (2023: £5,482).

The terms of the loan from AAPG are such that there is no defined repayment date, hence in accordance with FRS 102 this is classified as a current liability, however the AAPG has confirmed its willingness to continue to provide the financial support to AAPG-Europe throughout the wind down process. For this reason, the trustees are satisfied that there will be no call on repayment that would limit the charity’s ability to meet its other liabilities and obligations as they fall due for at least 12 months from the date of signing the accounts.

Reserves Policy

The Management Committee has examined the charity’s requirements for reserves considering the main risks to the organization. The charity has expressed its goal to increase reserves as it continues developing and reducing its indebtedness.

Risk

The Management Committee is aware that risk is inherent in most undertakings and believe that most of our risk is minimal or manageable. The trustees have developed a risk register which will be reviewed on a periodic basis and amended as deemed necessary by the trustees. The current largest, and most pressing risk facing the charity continues to be the concentration of potential support for the charity’s activities within a single industry. The volatility of energy prices, followed by a prolonged and sustained depression of not only energy prices, but the available support from the previously enthusiastic energy industry have had a profound and illuminating impact. We have creatively introduced alternate energy geoscience opportunities and have begun attracting attention from non-traditional funding sources. At this point, our current plans are simply to wind down the process and all activity within the Charity and its trading subsidiary ceased as of October 1, 2024.

On the liability side of risk, we endeavor to organize our events in reputable, reasonable facilities. We have employment policies in place for the staff that we hire. Despite sound policies and best efforts on logistics, loss can still occur. To that end, we obtained insurance cover for the activities that we undertake. We believe that the amounts of coverage, though not limitless, are reasonable and will help minimize the risk of financial loss in the event of a successful claim. During the year, our trustees were covered by indemnity insurance.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 6

AAPG-Europe Report of the Trustees for the Year ended June 30, 2024

As of the date of this report, all of our employees have been made redundant (post year-end), and all monies owed to them as part of the redundancy process have been distributed to them.

We address our indebtedness to AAPG at least annually to ensure that the Trustees are always aware of the status of our financial arrangement.

Plans for Future Periods

Although the charity plans to continue disseminating the energy geosciences, the impact of COVID-19 and changing consumer sentiment has been swift and punitive. Our standard method of delivery, in person conferences, courses and workshops has been significantly disrupted and have not returned to pre-pandemic levels. The activities that we have planned are the Geoscience Technology Workshops, the regional conference, the Energy Transition Forum and others. We have taken steps to minimize our costs and continue to try new methods of delivering high-quality scientific education at low cost to the participants. These efforts were not enough and the decision has been made to stop any future events into 2025 and wind down the charity and trading subsidiary within 12 months.

Structure, Governance and Management

Governing Document

The organization is a charitable company, limited by guarantee, incorporated on March 19, 2008, and registered as a charity on October 14, 2008 with the Charity Commission in England & Wales. The charity was registered with OSCR, the Office of the Scottish Charity Register on December 11, 2008. The company was established under a Memorandum of Association which established the objects and purposes of the charitable company and is governed under its Articles of Association. In the event of the company being dissolved, members are required to contribute an amount not exceeding £1.

Trustee Selection

The organizations governing documents require that two trustees are appointed by the American Association of Petroleum Geologists. Three co-opted trustees are appointed by the board of Trustees.

Induction and Training

Most trustees are already familiar with the practical work of the charity due to the small group and intensive focus on programs to establish. Additionally, the trustees are provided with access to update sessions on current governance practices through the Charity Commission website updates, as well as through bulletins and seminars provided by the charity’s external professional advisors.

AAPG-Europe

Page 7

Consolidated Financial Statements – Year Ended June 30, 2024

AAPG-Europe Report of the Trustees for the Year ended June 30, 2024

Auditors

Moore Kingston Smith LLP have indicated their willingness to continue in office and are deemed reappointed in accordance with section 487(2) of the Companies Act 2006.

This report has been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland: The FRS 102 Charities SORP (issued in July 2014) and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Statement of Trustees’ Responsibilities

The trustees (who are also directors of AAPG-Europe for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for maintaining proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, The Charities and Trustees Investment (Scotland) Act 2005 (as amended) and The Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 8

AAPG.Europe Report of the Trustees for the Year ended June 30, 2024 Small company rules These financial statements have been prepared in a￿)rdan￿ with the special provisions of Part 15 of the Companies Act 2006 relating to small companEs. a awjlnd signed on ts tehalf by: Apprpved by the TrUst￿S on .............. Mr. D. Curtiss {Secretary) AAPG-Europe Consolidated Financial Statements- Year Ended June 30, 2024 Page 9

AAPG-Europe

Independent auditor’s report to the members and trustees of AAPG-Europe for the year ended June 30, 2024

Opinion

We have audited the financial statements of AAPG-Europe for the year ended 30 June 2024, which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.

Emphasis of matter - financial statements prepared on a basis other than going concern

We draw attention to the fact that that the trustees intend to liquidate the charity - AAPG Europe within twelve months of the signing of the accounts and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Accordingly, the financial statements have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 10

AAPG-Europe Independent auditor’s report to the members and trustees of AAPG-Europe for the year ended June 30, 2024

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

Opinions on other matters 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 group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 or the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 11

AAPG-Europe Independent auditor’s report to the members and trustees of AAPG-Europe for the year ended June 30, 2024

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, 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 group and parent charitable company’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 group or parent 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

We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report to you in accordance with regulations made under those Acts.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 12

AAPG-Europe

Independent auditor’s report to the members and trustees of AAPG-Europe for the year ended June 30, 2024

• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered 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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 13

AAPG-Europe

Independent auditor’s report to the members and trustees of AAPG-Europe for the year ended June 30, 2024

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 14

AAPG-Europe

Independent auditor’s report to the members and trustees of AAPG-Europe for the year ended June 30, 2024

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 and to the charitable company’s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters which we are required to state to them in an auditor's report addressed to them and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 19 May 2025

Andrew Stickland, Senior Statutory Auditor For and on behalf of Moore Kingston Smith LLP Statutory Auditor

6[th] Floor 9 Appold Street London EC2A 2AP Date:

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 15

AAPG-Europe Consolidated Statement of Financial Activities for the Year Ended June 30, 2024

Notes
Income from:
Other trading activities – subsidiary
2
Charitable activities:
Educational activities
Loan waiver from parent
3
Investment income
Total Income:
Expenditure on:
Other trading activities – subsidiary
2
Charitable activities – cost of
educational provision
4
Other expenditure
7
Total Expenditure:
Net income/(expenditure):
Reconciliation of Funds:
Balance brought forward
Total Funds Carried Forward:		 Unrestricted
Funds
2024
£
151,996
240,264
-
-
392,260
170,968
232,475
-
403,443
(11,183)
97,713
86,532		 Restricted
Funds
2024
£
-
-
-
-
-
-
-
-
-
-
-
-		 Total
Funds
2024
£
151,996
240,264
-
-
392,260
170,968
232,475
-
403,443
(11,183)
97,713
86,532		 Total
Funds
2023
£
359,742
79,184
359,482
-
798,408
361,956
154,758
-
516,714
281,694
(183,983)
97,713

The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities. The charity’s net income for the year, included in the above statement of financial activities was a £7,789 (2023 – 283,908). All income and expenditure in fiscal year 2024 was also unrestricted.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 16

AAPG.Europe Consolidated Balance Sheet As at June 30, 2024 Group Charity 2024 2023 2024 2023 Notes Fixed Assets Investments Current Assets Debtors 86,306 77,331 14,300 182,862 227,152 238,323 77,297 56,763 Cash at Bank and in Hand 163,637 (77,105) 197,162 (99,448) 304,449 295,086 (51,107) (62,7631 Creditors". Amounts falling due within one year 10 Net current assets 86,532 97,713 253,342 232,323 Net assets 86,532 97,713 253,343 232,324 The funds of the grouplcharity: Unrestricted income funds 11 86,532 97,713 253,343 232,324 These financial statements have b￿n prepared in accordan￿ Imth the provisions applicable to companies subject to the small companies, regime. Approved by the Board of Trustees on ............... And.si ed on its belalf by: Trustee Company number.. 6540163 AAPG-Europe Consolidated Financial Ststements- Year Ended June 30, 2024 Page 17

AAPG-Europe Consolidated Statement of Cash Flows for the Year Ended June 30, 2024

Cash flows from operating activities
Net (expenditure)/income for the reporting period
Depreciation charges
Investment income
Decrease/(increase) in debtors
Increase/(decrease) in current liabilities
Net cash generated by / (used in) operating activities
Cash flows from investing activities
Investment income
Net cash provided by investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at beginning of reporting period
Cash and cash equivalents at the end of reporting period		 2024
£
(11,181)
-
-
(56,745)
(37,605)
(105,531)
-
-
(105,531)
182,862
77,331		 2023
£
268,465
-
-
172,464
(301,976)
138,953
-
-
138,953
43,909
182,862

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 18

AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024

1. Accounting Policies

Charity information

AAPG-Europe is a charitable company limited by guarantee that is domiciled and Incorporated in England and Wales. The registered office is 6[th] Floor, 9 Appold Street, London, England, EC2A 2AP.

The principal accounting policies are summarized below. The accounting policies have been consistently applied throughout the year.

a) Basis of Accounting

The charity’s individual and consolidated financial statements have been prepared in accordance with United Kingdom Accounting Standards, in particular ‘FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102).

The charity is a public benefit entity for the purposes of FRS 102 and a registered charity. The charity has therefore also prepared its individual and consolidated financial statements in accordance with ‘The Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102’ (The Charities SORP (FRS 102)).

The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the charitable company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line-by-line basis.

No separate SOFA has been presented for the charity alone as permitted by section 408 of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

b) Going Concern

Accounting standards require trustees to consider the appropriateness of the going concern basis when preparing the financial statements. For reasons set out in the trustees report, the trustees have made the decision to wind down and then close the company over the next 12 months. As a result, the accounts have not been prepared on a going concern basis.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 19

AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

c) Critical Accounting Estimates and Areas of Judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognized in the financial statements. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which such estimates are revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Other than as stated above in relation to going concern, the trustees are of the opinion that there are no significant estimates or judgements made in preparing these financial statements.

d) Fund Accounting

Purposes of Unrestricted Funds

Purposes of Restricted Funds

Purposes of Designated Funds

e) Incoming Resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income, the receipt is probable, and the amount can be quantified reliably. The following policies are applied to specific categories of income.

f) Resources Expended

Expenditure is recognized on an accrual basis. Expenditure includes any VAT, which cannot be fully recovered, and is reported as part of the expenditure to which it relates:

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 20

AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

g) Fixed Assets

Fixed assets (excluding investments) are stated at cost less accumulated depreciation. The costs of minor additions or those costing below £500 are not capitalized. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life, which for computer and electronic equipment and software is estimated at 3 years, in all other cases is estimated at 5 years.

Useful economic lives and residual values of assets are reassessed annually.

h) Fixed Asset Investments

The only investment held by the charity is that of its trading subsidiary and is included at cost.

i) Taxation

As a charity, AAPG-Europe is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Tax is charged on non-primarypurpose activities in excess of trading limits.

j) Operating Lease Rentals

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against the Statement of Financial Activities as incurred.

k) Foreign Currency Translation

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 21

AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the SOFA.

l) Financial Instruments

m) Employee Benefits

n) Retirement Benefits

Payment to defined contribution retirement benefit schemes are charged as an expense as they fall due .

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

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AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

2. Trading subsidiary

The charity owns the entire issued share capital of AAPG – Europe Trading Limited, a company registered in England and Wales (Company Registration No. 07019444), registered at: 6[th] Floor, 9 Appold Street, London, England, EC2A 2AP. The subsidiary carries out commercial activities which support the main function of the charity, including the organization of the annual APPEX conference. The subsidiary has undertaken to gift aid substantially all of its taxable profits to the charitable company. The issued share capital of AAPG - Europe Trading Limited is 1 ordinary share of £1. A summary of the results of the subsidiary is shown below:

Turnover
Cost of sales
Gross profit
Administration costs
Other interest receivable
Loss before taxation
Taxation
Retained profit brought forward
Retained profit carried forward
The assets, liabilities and funds of the subsidiary were:
Assets
Liabilities
Capital and reserves		 2024
Total
£
151,996
(103,597)
48,399
(67,371)
-
(18,970)
-
(147,840)
(166,810)
133,835
(147,840)
(166,810)		 2023
Total
£
359,742
(228,461)
131,281
(146,725)
-
(15,443)
-
(132,397)
(147,840)
133,835
(281,675)
(147,840)

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 23

AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

3. Income from Activities to Further the Charity’s Objectives

Regional Conference
Sponsorship Income
Educational Activities		 Unrestricted
£
182,454
57,810
-
240,264		 Restricted
£
-
-
-
-		 2024
Total
£
182,454
57,810
-
240,264		 2023
Total
£
71,114
8,070
-
79,184

78% (2023: 100%) of the group’s total income was attributable to markets outside the United Kingdom.

4. Charitable activities

4.
Charitable activities
Charitable activities -
Short course costs
Regional conference costs
Support costs		 Unrestricted
£
-
132,148
100,327
232,475		 Restricted
£
-
-
-
-		 2024
Total
£
-
132,148
100,327
232,475		 2023
Total
£
-
61,878
92,879
154,758

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 24

AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

5. Support costs

5.
Support costs
Salaries and wages
Redundancy costs
Rent, service charge and rates
Office supplies
Repairs and maintenance
Telephone
Travel
Bank charges and foreign
exchange loss
Depreciation
Governance costs
Miscellaneous
6.
Governance costs
Legal fees
Audit fees
-in respect of current year
-in respect of prior years
Auditors – other services		 Unrestricted
£		 Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-
Restricted
£
-
-
-
-
-		 2024
Total
£
36,259
-
-
677
-
171
-
3,115
-
42,393
17,713		 2023
Total
£
36,259
-
-
677
-
171
-
3,115
-
42,393
17,713		 58,895
-
-
2,261
-
116
76
(211)
-
31,742
-
92,879
2023
Total
£
-
14,006
15,636
2,100
100,327 100,327
Unrestricted
£
4,521
21,266
14,006
2,600
42,393		 2024
Total
£
4,521
21,266
14,006
2,600
42,393
31,742

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

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AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

7. Staff Costs and Numbers

Salaries
Social security costs
Pension costs
Average staff numbers in the year
were:		 Group
2024
2023
£
£
66,295
163,200
6,262
19,265
3,860
4,317
76,417
186,782
3
3		 Group
2024
2023
£
£
66,295
163,200
6,262
19,265
3,860
4,317
76,417
186,782
3
3
186,782
3

No employees earned more than £60,000 in the current year (2023: One earned between £80,000 and £90,000). This employee’s salary is recharged, in part, to the charity’s parent, AAPG (the American Association of Petroleum Geologists).

The trustees received no remuneration or benefits in kind in the current or prior year.

Remuneration of key management personnel

The charity has no key management personnel. The charity is managed by the management team of its sole member.

8. Investments

Investments represent a £1 investment in the subsidiary company (note 2) which was acquired in 2009 and is shown at cost.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

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AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

9. Debtors

9.
Debtors
Trade debtors
Amount due from subsidiary
Other debtors
Prepayments		 Group
2024
2023
£
£
46,244
4,776
-
-
22,997
8,458
17,065
1,066
86,306
14,300		 Charity
2024
2023
£
£
26,912
4,776
190,294
231,760
8,744
722
1,202
1,066
227,152
238,323
238,323

10. Creditors: Amounts Falling due within one Year

Trade creditors
Taxation and social security
Accruals and deferred income
Due to American Association of
Petroleum Geologists		 Group
2024
2023
£
£
-
-
-
41,964
76,317
52,002
788
5,482
77,105
99,448		 Charity
2024
2023
£
£
-
-
-
16,311
50,345
46,452
762
-
51,107
62,763		 Charity
2024
2023
£
£
-
-
-
16,311
50,345
46,452
762
-
51,107
62,763
62,763

In the current year there was deferred income of £Nil (2023 £Nil).

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 27

AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

11. Unrestricted funds

11. Unrestricted funds
Group
General fund
Charity
General fund
Funds retained in subsidiary		 July 1
2023
£
97,714
232,324		 Incoming
Resources
£
392,262
240,264		 Resources
Expended
£
(403,443)
(232,475)		 June 30
2024
£
86,532
253,343
(166,810)

12. Trustee Remuneration and Related Party Transactions

There were no travel costs or other expenses reimbursed to any member of the management committee. No trustee or other person related to the charity had any personal interest in any contract or transaction entered by the charity during the year.

At the year-end date the charity owed its parent, American Association of Petroleum Geologists £762 (2023 - £5,482). The transactions between the charity and its parent comprised expenses paid on behalf of each other and also a recharge of costs from the charity to its parent in respect of support for AAPG programs and activities.

At the year-end date the charity’s subsidiary, AAPG-Europe Trading Limited, owed the charity £190,320 (2023 - £347,642). The transactions between the charity and its subsidiary comprised recharged expenditure and loan repayments.

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 28

AAPG-Europe Notes Forming Part of the Financial Statements for the Year Ended June 30, 2024 (continued)

13. Control

The ultimate controlling party is AAPG (the American Association of Petroleum Geologists), an entity registered in the USA. AAPG is the parent company of AAPG-Europe by virtue of being its sole member. AAPG seeks to advance the science of geology and advance the profession of petroleum geology worldwide through fostering scientific research and the dissemination of scientific knowledge through publications, education training, workshops and conventions. Consolidated financial statements of AAPG are obtainable from 1444 South Boulder Avenue, Tulsa, Oklahoma 74119, USA (Registration no. 73-0125920).

AAPG-Europe Consolidated Financial Statements – Year Ended June 30, 2024

Page 29