Ch*rlty v•olKtrati*￿ 1137523 Company reglstr•llon ThuM￿r 7293440 (England and Wal081 THE PROFOREST INITIATIVE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 THE PROFOREST INITIATIVE LEGAL AND ADMINISTRATIVE INFORMATION Tru¥tee• IARSmyth M Hc*s C A EMK)tt BALiTrJ IAppoint8d 18 March 20221 (Appoinw 18 March 20221 Ch•rlty number 1137523 Company nwnb•r Reglstsred offic• StyJth Surte Fre*in Chan*ws Frwn Court OX1 3HZ Audltor Crtch18ysAudrt LLP eeavtr Houso 2>38 Blty Street OX12EP B•nk•r• 6S Cornma￿t Street Oxlord OX13HY S￿1¢￿0￿ Blake Morgan stiacourt Imr 5t Bouey Oxlord OX2 OFB THE PROFOREST INITIATIVE CONTENTS P*g• Tr￿tee8. rnport Stalerr￿1 of trustees. resp￿lI￿.11￿5 IrthpoThJent 8uditorfs report Staiemeni of finanua 10- 11 12 Statement oftash fl 13 Notes lo Ihe finwcièl st#tom8nts 14-28 THE PROFOREST INITIATIVE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees zre pleased to &¥e5ent Iheir rBpyt tojetlw the finarKial statements of charity for the year ended 31 DecemiEr 2022. Legal and •1mini$trotNY inl<*mation set fxji on ￿ 1 ftym$ part of th15 report The firsontxl ststements cArnply wrth thé Charitses Ad 2011. thè Cryod to out • Y•rety of actNit*s tg $upport iMp￿mentation of ts prcgrammes lo ￿pro￿ the envronmental and soual SLtstainability of agricuttum and fore$ty ommgdity piodv¢iion arKI soviuiw. Tl*s¥ yiuyidiiiii ¥vuih iii Arti￿, Léiiri Amerlca aTrJ Sgutne8sT A$ia on the Impthenlgtw ol sUStsinab￿ pr0dL&t￿ pr¢ckns lor major ccfflmtyylty crops. To this end, the Ch8rty supporyea siaxeThoi(Jers Ind￿hn9 pnvaie seaDr. govenrneni aTrJ sooety 10 alKJn act￿ w reduce de10￿$tatIOn, evelwed to￿8 to enabb agricultural commedity bu¥eFs ￿ reduc¢ the enTrAronm•ntal and Social impacts ol thair suppty cnains. and SUPPCrted large-scal8 c￿￿bOr0bWe approaches lo siistainsb￿ laTrY manag&nani. Fdbwirg the rec￿rn￿eTht at the UNFCCC COP 26 ty tr)¥•MM￿￿ of to countrns In IA*5t Centr81 Al￿￿ lo Sustainab￿ commcéity production the Chanty $UPDo1eLI develoDment of a fomiAI d*rJ#rxtinn trs Amhndy this commiimeni. Th• Alnca Sustaina￿0 Ccfflmojrt￿3 Dedarabon was &gn8d by ministers of the 10 Countr￿ at f.np ?7 in Foypt Thi* mov8$ from onginal on palm c41 to a s•t ol Pnhe¢l•g that •n¢ompaM Al Mlèvtsnt ¢omrnoditsgs In fv WoduCb￿ landscaFes of Ihese c(wJntr￿. The Charity contrnued lo support'l8Trascaw juriEcK*onal' to la￿ manwentwlh on•lhe4JrouTh Glivilies particularty aclib* In Ghana. ¢or¢ d'lw¢ arKI Indo1￿*￿. Iii Cv¢¥ U'lvvitv. t1￿ Lhaiily faEllllaie siakehokjats to develop a LqTrJ5caFe rnan*Jerrent Inves￿nI pkn for the San Peilro cncoa prtyjucing regions. In Irbdune51a, the cnarty 5UPPDneO lar￿ta￿ a¢proacttes In M 011 paTh regions I￿n Ine aim ol av0h1￿ng negati￿ erNironrnentsl Impacts ensunry sotsal Induson. A pr(￿$S ol $oual diabgue was develop8d In tne biaK ana peiaiawan DIstr￿S 01 Riau. Indones¢a. seek$ to ensure thal workers and ccffimunitse5 ha¥e 9￿ater voth In Ihe manag8rn8nt olc¥l palrn projucbon. THE PROFOREST INITIATIVE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 The Charity carned out a raroJe of f*paoty ￿l￿￿1ng In Ghana. tapa¢ity buikjing activit￿5 Were carried out around the identification and protection of HKJh Con5ervabon Values and High CarbM Stock forests. a5 wdl as the Imptsrtan￿ of the Free. Prkv and Inf(vrned Consent of Wl ¢ommunifves to the u58 of their lands for commodity agricutture A comprehensive Pakn Oil Toolkrt was devekyd In English arKI Chinese during the year. whi¢h prowdes an accessibk sietrby-5tep guKJe for fxfftpan*s to IMp￿￿ent Ih8ir ￿￿m1￿Ments to the responsible sourang of palm oil. Among r￿er xtivth"e$, Ihe Chanty supported thÈ Mini$ty ol Agrarian D￿e10￿¥￿ent and Irr￿￿tiOn in Pew to develop a national strale9y for sus*ainab￿ palm oil. and to deVe￿p th8 Public Mulliannuèl Investment plan for Cocoa and Chocolate, whith fccuses on Ihe ¢*¥ekwienl of sustainable cocoa produthon. The Chanty also focus8d In e¥plonrrfJ the Im￿1¢¥￿$ of the Eurw8n Union 08fOr￿la￿lYj Regulatson for srnallholder Pf(￿ju￿r$ of cocoa In Ghana. Co* d'lvtyro and Peru." arbj d￿QFIre operaty)nal gutyaanc8 to Support produc8rB and Iraders to ccffjpty vAlh fv requirements. Over the year, th? Charity conb"nu•J to prow* $vJnificant techrt￿l SUFVOrt kn organisats'ons davaloping vduntary standards Systems and methodolog￿$ l<* definirvJ. Impkn8ntsThJ and aS$￿￿r￿j the su$lainabl8 management ol agr￿ultUral proouctoi. This Induded corsbnued $LW to the R￿ndIable on Sustainable Palm Oil IRSPOI, Better Cotton Initiative, Ihe Glgbal Plaiiorm on Su5tainat* Natural Rubber The Chanty al$0 developed an 94earni platforn to SUFWt the thi1￿5 of th8 Accountatality Framework InibalNe. and Nvo stud￿5 for Oyfam on muttislakghok*r Inibabv• sh8r•J r88pon$ilJtty'. and h￿lan rKdhlS du• d4wJeKyJ. The Charity was Involved In fvndrai$iNJ act￿￿5 for fiJture prcpcts r818t8d to thg ￿9PonsI1￿& managemeni of agricuttural etynrnodilh88 to onhance conservabon and irnpro¥e liwr¥J ￿ThJIh￿S of workers and kx81 communitses •r¢und lh• worfva. Th¢ Trustees overs*w irnFkn8nlalKJn gf kyo¢edures ￿ govem th> charty's rdats'onship vAth third pathes, and lo strengthen the man&Jemeni •r*J tranwarency of the ch8nty. Th8 Trust￿￿ confinn thai have ccrfnplh8d wlh Ihe duty in g¢¢bon 17151 of tIK8 Ch8rib"e$ Ad 2011 to hav• du• regard to the public ben6fi1 gupJanc8 publishad by ￿ Charity CfynmissH￿. Achl•v•m•nts and p•rform*n¢• Fln•nclal r•vl•w Dunng 2022. tho Charty saw a do¢rease In Inct*Tr)e expeTrJrture on u0t0￿￿&thanIabKry 8ctwth5, r8sults.ng in a srnall i1￿year deficrt of £2k. c4ynpared 10 a sufFI￿8 of £21k in the previous year. Reduced net Income was due to a combinat￿￿ of d8cre88ed net Incjjme on our sustainability inrtiotNg prc¥e¢ts •nd a decreased contribulion fvcwn our ky0grarnw￿5. Increased fixed costs. eX￿￿ling forevJn currency gains, of £346k 12021 £277kl was due to Increased s￿nding on staff development and capacity buihlirrfJ folbwThJ the likn"r¥J oftravel *str￿￿on5 after CO￿￿ and In¢￿#sel personnel ¢OSts. DurirHJ the year th8 tharity als0 berefitted fr￿ ltyewjn ajrrew exd)aNJ& gains of £35k crmpared lo a lo$$ of £18k suffefed In 2021. In 2022 the Chanty's exrendrture on 2r actiwtses was £2k ¢cffipared to net ¢xpendrturg of £37k in 2021. Al Ihe end of Ihe year. th8 Chanty d*J not carry foswa¢d any ffjskn¢Aod fvrMts12021 ENIll Our wogramme dtrlNery was lurNIBd by grants from donor5 such as FCOO'S Ifr*merty OfiDI Fore81 Govgmance, Markets and Climate IFGMCI progratnme. Partnership for Fore515 IP4FI programme, and The Federal Republic of Gemany Minisiry for Ihe Environm8n( Nalura Conse￿3bon and Nud&ar Safety'8 Intsmatsonal Climate Inilialiva THE PROFOREST INITIATIVE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) ICONTINiJEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Reserves policy The Proforesl InitiatNe has a of ￿1￿1￿ rnaintainiry f8seNes approximately equal tD &x rnonths150%1 of Ihe annual running costs In order to ensure the organisaiion can deal wrth fluctuatsons In Income and payment schedule5. In addilK)n lo the agreed of oreralional feser¥es. ethanty also chooses lo relain a certain level of ￿ditIOnal ￿SeNe$ approxirnalety equal lo 15% of annual Nnnirrfj eosts. as a buffer against significant future forevJn excharse rale fluctuations and direet pwrammg ￿lale￿ expenses not eovefed by grant iy donor furK*ing. Proforest Ltd agrees lo underwnte the Proforesl Iniliats¥* should aWu3te re5efves not be available. The reserwe 18vels revkv*ed annualty by Ihe Trus*es. as part of the reVN￿ of the xt*AJnts and, where the unresthcted r8S8r¥e5 ar8 nol al th8 required 18¥81. a strategy lor **ustiTra the reserves ¢)¥er the following year wll be agreerj Th& unresirthd reseNe$ WJ at 31 Oecwber 2022 are £450K. In *ldiliori to the nngf9nc￿d reserv￿ and approved ctrfrjnding for the P15A IKI Landscspe proJramm8 1£22kl in 2022. lh* Irustee$ apprtsved an additsonal albcalion of £6k to support the i*veScynent of 8 rnobile appli¢ab"on ISWARAI lo monitor partKipa*on In programrnalic workshops and methngs. Thè current ￿SerVe bvel Is abovo tho annual operabng cost of the Chanty artyj th• truste￿ any surr4us Tp4uirgn￿nI lo be a useful bulfer shwt48rm fuTrJirvJ gaps. 11 1$ opinvJn ofthe trW*t￿ that tsre 8*dnificant on ts tharty'$ going concem status. Plan8 for futur• p•rlod• Ourlng 2022 Ine inarity cowwieo grant {thr￿h LIK go¥emm•nt Forest, Govem8nce. Marke15 and Climate Prcgrammesl and a second grant ree•Ned through the UK govarnmenl Partnership for Forests. will end In June 2023. ThfOU9h the aCbVI￿e5 under fv In¢ernabMal Clirnale InrtiatNe PIUK wall continue I . Support athon In prtrJuclh?n landscaF4S ogvgkp effedm ways for seclor uJmpan* to ongage meaninufully wilh oovemmenl aNJ olhftr In r)r￿1￿Inn IArvlyc8po$, to facilitat• th• im ￿eMentation of responsibb pr(xY￿￿Th Prnuices. Facilitat• mullw*tak•hokY•r 8uBtaina￿1lty In1￿•11￿ Provth tothnical Btspp¢rt for oryoniDation• dovol•ping $landarés. PfOCeSSts and safeguards to promole ￿tter m8na9ewt ol rta￿ra1 resources Dovolop toolkitg and 9uidonrK Svppm JOUr￿ry from or Inv¢Jiiry In agricultural wmmodily dii¢J lore51 prcéuctson In Latsn Amaru. Afll.￿ aTrJ &xJlheasi Asia. to h•lp Ilw erssijre CL¥nm(MJty projuthn does Gonlritryte 10 dtlortst4b￿ thi￿1 thi WIVIiLYllliwil¥l #I￿ ¥Wdl mpacts. In addilion. the Charty is seekir¥J substanbal lurKJiNJ ftr lurther th on.. Supportina producer C(￿ntr￿ to dmlcv MId￿nISm$ vthich IhArn trn rnmply Intt•A#ing consum•r eounlry due diligerts kn9i8Lthn. SUL* as the EU Delorestalion RegUlafr￿ and the UK Environm*ntAcl . Developirg approaches to ensure human NJhts ￿ respected In 8gricuttur41 comodity prtsluthon landccJpoo. Thio indudr*D lobour, 4ind. iftd4cno￿ peoplts and QornmuThb￿. and gorthr N9htS, among Olhern. C¢)niinvifg our support ¢0 la￿3(ape juiK¥JKthJid aw11M￿Yl by its MenThiraiMlutii aiKI ￿lil*S uf Asso￿00Qn. Cha￿tY numtser. 1137523. Company niJmW 7293440. The directors of the chantsb￿ Company I'tl* Charity'l are ￿tee$ for the purpose of Charity Law and Ihrouqhout this report are colledvety referrgj to as Ihe Twslees. The number of Trustees Is al ￿a$1 not than sly Trustee$ ser%e for 8Tr iTrthal tem of th￿e years and approximately on THE PROFOREST INITIATIVE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORn {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees, who are akn the direttot5 ￿ the purpose of company law. aNJ who duriThJ year up to the data of Signatu￿ of fiTranc4al staiements ￿r￿." R J Cooper M Abreu EJFnpp IARSrnyth M Hobtsy C A Elliott B A Lindhe IRe5vJn8d 6 Juty 20221 IResKJr*d 18 Marth 20221 IResv4￿ 1 March 20231 Iwnted 18 March 20221 IWJ¢'ntsd 18 Marth 20221 Undor tho Momor3TrJum 8nd Artths olAsstrJabDn. Chanty has to m*e any Investr)enL but only fter obtaining such adwce a finanaal exwt as Ihe Trustee$ (x)n$KJ&r wessary. having regarrl to tho suitsbility ol In¥eslments and need for dNersificobw No Investr))eni has been madv to dats. Ply pollcy for ¥onlor•tsff The board of direciofs. who are the Chantys TN5tees. and Ihe SeTh￿)r m•nogemeni team ctynpnsa tho koy manag*ment personnel of the chanty In eharye of direcbr*J a￿1 rAJNtrollifig, rufining oper8tsng the Ch8rity on day 10 day basis All Tru5te8s give ol their lime Ireely aNJ no Trust0• receiv•J remurer8tion in the year. Details of Tw5tees' expenses are disdosed In 7 10 the ar£ounts. The pay of the senior staff ts rev￿￿ annualty WJ rKThalty inu••wJ in Inflab"on. Board ol TnJ$too8 8wan off gn pay rpvioW5 for sonK)r staff. Rl•k M•nag•m•nt The major nsks 10 which Ihe Charity is exposed. as by the Truste￿. have been ￿￿eWed and systems or procedures have boen established lo manag& t￿)$* nsks A nsk man¥Jemeni maknx detaib n$k$ and ¢i)nfirm$ the procedures in pl8c8 and Is and aM)roved ea¢h year. As sovoral prwramrn•s Indude Work in high risk countr￿3 Ipcst-conflict or Iimrted Infrasir￿￿ to ￿spO￿ to a¢tsdents aTrl ern0rgen￿5l woth plan5 are reviowed and, If r*ce5S8ry 8mand8d. to r•SpO￿ tts any risk whith c¥nnot t• ayequatety Audiior In accordance the a re801Lkn prc$w￿￿ ttwt Crrtthkny3 Audit LLP ￿ reappointsd a5 8uditor of the company will be Put at a G8ner81 Meats"ThJ. Dl•clo¥ure of Inform•tlon to audmor Each of thè trust￿ has ¢onfirrned that Ihere is no information of which tIEy are aw3￿ which 15 relevant to the audit. bul of whKh the a￿)rtar Is unwware. T￿ ha¥* frJth8r c￿firMed that ihey have taken aFpropriate step¥ to kyenbty SUL* reknnt Infom)ath￿ 8TrJ to e5t*4th that Ihe aL&Jrtor ts 8WWg of such Infcffjiatson. The tNst88s' reportwas apwo%*d by tr* Bo•rf tsf Tr￿te•S. C A Elliott Trustee (5. 1 6 L: LS.......... THE PROFOREST INITIATIVE STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees, who are also the director5 01 The Proforest Inbbati¥* for th8 WryKSse of company law. are responsible for preparir¥ the Trustees. Report aThJ the financ4al siaknnents In ac￿rdanCe wrth applwbla law 8nd United Kirbgdom Aecounling Stsndard$ (United KI￿ Ge￿rnIty A￿p￿ Accountng Practs(*l. Company Law requires th& ¢r￿￿tee$ to prepare finanoal Stsfrments foreach finanaal year Which 9￿ a twe and fair view of the S￿18 of aifairs of the charity and of Ihe Incomity resources and apF4catYJn of rèsources, induding the Income and expenditu￿, of the tha￿tab￿ company for that year. In pr•parirrta these financHI statsments. Ihe trustaes ar8 wuired to". . 50knt 5UttsbK8 accounting pdia8s then th￿ c•Mo￿ty". . observe the melhtsls 8nd pnncjplgs in lh8 Chantss SORP. . mak¢ judg•ments and esbmales that are r8as0Tr8ble aThJ p￿￿nI". - ststs whether 8pplicabl8 LIK AcC￿jnI1n9 S￿ndS1￿$ h•v• hJlkMY*J. t¢4 •ny rnateriil departure d15closed and explained in tha financial ststgmgnts.. aThJ . prepare Ihe financial stat•mènts on Ih c¥nc•m basVJ Urtess rt Is Inappropriate to presum& that th8 ¢h8nty wlll coniinue In opera1￿￿. The Iwstees are responsible lor k•w"ng 8dequate acrAMMtrry recorth thar dY8d¢)ye with Trasonablè accuracy at ony time the finanoal positth of charily enab￿ Ih8rn to en$ure that the financ481 statements comDly wilh the Compan18s Acl 2(￿. They arg also rwonsIb￿ lor safe9uarding lh8 assets of t￿ charity gnd h•nce for takirq reasonab￿ S￿$ lor prèveniion dotect￿Tr of aThY nlhar IrTroiJl4nbNs . Inere Is no re￿¥aN auair Inromaoon the ¢l￿p0ny'* arg Un￿￿, and the tru$lees have taken aA steps Ihal they ought lo ha¥e taken to rnake thmlfvès ￿re of 8ny relevant audit nlermatw and to establish t￿t Ihe gudrtcn are of thai infDrmation. THE PROFOREST INITIATIVE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE PROFOREST INITIATIVE Oplnlon hav8 audited Ihe finanual ststernents of Prt>fore5t Inibatwe Ithe 'charity'l for the year ended 31 Oeotnber 2022 which CLxnprise the statemeni of firwnaal actswtss. the balan￿ sheet. the statement of cash flows and notss lo the finanoal Stslernents. Ind￿1r￿j sontficaTrt accounth"ThJ finanual repDrbng tramewotk that ha5 been aOEd In their preparatson is applicable law Un¢ted Kiwdtyn Accwntirg Standards. Including Financial Reporhng Standard 102 The Finanei81 Reprmlw Stwthd ap￿ in th8 UK and R8wblK of lTrlanrl Iunited Kingdom Generally Accepted A¢¢ountiry Pracbcel. In our C¥)Irs￿)ft. Ihe finar￿ul1 statem8nls' giv8 a and fair *￿eW of the Stats of the thantsbk (xmpany's affwts as at 31 08carnber 2022 and of 11$ Incomiryj rnsource5 and appk8bon of tesLKJrces. ir￿L•￿I￿a its irKome 8nd exp8nditure. for the year then er￿ed. have been prepody prepar*J In •xydanc• Vlilh Unrtvd ￿ngdOrn Gvnerally Acr￿t￿j A￿untsng Pra¢bc4,' arKI have teen prepared in Kcordan￿ ￿1h Ihe tho Ctmp•r¥•sAct 2C(6. B481¥ for oplnlon È conducted our 8udit in xcordonc• ￿ Intem•btywl StarKlwJs ￿ Audith'ThJ IUKI IISAS IUKII and aFplicab law. Our responsibilities urthi those s¢ar¥JaTds are lurfher doscmbed In the Audj'loffs r8wsibilili8s lor lh8 8udil of Ihe linanci81 st81emenf$ se￿10n ol our report. are iThJependent of th8 chanty In ac¢ordance with Ihs ethical requirements thai are relevant kn our 8￿rt of the financjal statements In UK. Indudiw Ihe FRC'$ Ethical Stsndaré. and wa have hj1fi1￿d our other elhvl r¢wgtsliDes In a¢cordanc* with the#e requirernent5. belwve that the 8udit èvthn¢* vn h•ve obtained Is suffiuent and apprwatè to Pfol￿d￿ 4 Wi$ for ￿r wnv)n. Conclu•lon• rnl•tlng to Molno ¢oncorn In auditing the finBnual statements. we have u)ndLthd Ihat thtr trust•o8' u8• 01 th• goir*J e4ntam ba515 of accounting In the preparab.on Oft￿ finanual staloments 15 zFpropriate. 803ed on th• wort ha¥• perfonned, havg thnb"fig1I wy moten¥l Ur￿ertainl¢S rel8tirvJ to wents or conditions thai. I￿*￿￿1val￿ or cc1￿￿￿￿¥. may east synific4nt do￿ on the ehanty's abilty to eontsnua as • 901 ncern for o wned of al ￿aSt monlhs frcrfn %then thg finaro81 $tatements aulhorise# for Issue. Our r•sponsits'lthes and tha ot respect ￿ 90irv4 cefjc•m ar• doicribod in th• rekwant sectKffl8 of Ihis rewt Other Infonna￿On Thtr Olher Inlo￿allOn ecrfnprise5 the Inform￿ Ind￿ annual rerK*I other Ihan Ihe fin8noal $totwnents our auditorfs ￿port Ihereon. The twslees are respJnsib$8 lor Ihe other Infonnalion ojntained within the annual repcKt. Our opinion on the finanrial $iatements Ij￿ noi ¢o%tr Ihe Qlher InfomiatK)n and, except to the ertent olhewise exF4iciUy staled in our report, we dts noi express 3ny forTn of 35surance ￿ndUS1Or1 the￿0￿. Our re$wn$ibility Is 10 reaLI the other Infornatson aTrJ. tn doiThJ so. conshler whelher the other ￿nIO￿atIon 15 materially Inconsistent wlh Ihe finanoal statements or our kntr•AedgÈ I)blai￿d In the course of the audit. or othe￿1$e app&ars to be materially misstated. 11 we KJÈntfy sych rna¢enal ItKQn31slenoe5 or app8￿nt maienal misstatemenis, we are required to detern)Ir* whet￿r this give5 nse to a matenal misststement In the finanual $￿teMents Ihem$Èlves. Ir. based on tht work we have perlorrn9d, wo condude thal thero ￿ a matenal M￿lat￿￿ent of gther infDrtnation. we are required to report Ihai lau. hava nothry to repJt in thi5 regard. Oplnlonj on other mattern prnscrlbed by th• Companl•s Act 2006 In our opinion, based on the work uTrJertaken In the course of our a￿rt. Ir* information given In the tWStees' rEFXXt for thE finanoal year for whith the finanrial statements are prepared. which IrKludes t￿ direfjors. report {￿epa￿ forts purposes olc£rnpany law. is consistent with the finan¢ial $latements, arKI the directcrs, report within the trLtstees' reFO)rt has teen prepared in accordanc8 %*ith applicable *al requirements. THE PROFOREST INITIATIVE INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF THE PROFOREST INrriATIVE Matterd on ￿lch requlred Io TEPQrt by ex¢epllon In Ihe light ol the knowkdge and underslancjirwj of the tharny 3TrJ it5 eTrwrOnff￿n1 obrained In the rx>urse of the a￿)11. we have noi matenal msststsmgnts In Ihg diredors. reF*y¢ i1¥S￿j ¥Alhin Iho tru5teus' report have nothing to report In re5r*d ol the ftAI￿l￿j maller5 in rethjn to whith the compan￿ Act 2C*X requi￿$ us lo report ID you if, in our opinion." adequate accountiry fecord& ha￿ txen kepL or retums adtyuat* aLKhl I￿1 l￿[1 (¥uysivwJ from branchtrs not vBrted by us, or the financial slalemenls are no¢ In ag￿Tr￿nt ￿ Ihe a￿Oun￿r￿j fecorrjs and TEtum¥, or Certain disclosures oflrustees. remunerabon swfied by law art not made". or we have not received all the Inlrmmaiion ar¥J eX￿ana￿On$ we wuire for our audi¢ the trustees were not enlitled lo prepare tho finanrJal &tatcmeTrts In aw)rdanfje ¥*ilh Ihe siiioll WTlVdll regime an¢1 take advaniage of the small C(mpan￿. exempts.ons In prapanrvJ th? trustees. report and from the roqulremenl ￿ prepar• a Straw reporL R••pon¥lblllll•• of tru•t• As explained more lulty In tho Statement of lrntytws, resE￿nSIb.￿￿68. Iha trtssty•s. wlx> 8rg alK* the direclors of tha charity for the purpose of company law. are responsib￿ for ￿ waparab¢n of Ihe financial State￿nts and for beirg satisfied that they give a and fair and lor such Int8mal control as Ihe trustees csetormine Is nacessary 10 enab￿ the preparation of financial staknments that am tr8• from rnat8rial misststernenl, wheiher dutr to fr8ud or Iii yi¥ydiiiiy Ili* fiiid11udl bid￿llydI1Lts. It￿ ￿￿¥1¥1￿ i¥¥puii¥itJl¥ fur &tsse551ng ine cnantys 8DIIIry 10 conlinuts as a going concorn, disdosirYJ. as zthicable. matters relate¢ 10 9oing concorn and using the goir ¢oncern u831s of accwnurg un*ss me tyu5wes ertner InteThJ ty IqU￿ale the cnanlaDk ?￿panY or to ceas• operations, or have no ￿¥￿¥ti¢ alternat￿ but to do 50. Audltoe• v••paMlblllll•* for th• aud￿ of th• Ilnan¢l•l •t•l•m•nl• Our objeclives are to oblain reasonable assurance abrArt Trwhthr financial 5taternents as a whob are free from l?Idl¥iidl 111lbbid￿lil¥lIt. ¥VI￿lI￿1 tu fi¥tsJ LH ¥IILH. dI￿j Iu #ii #LXIIi￿'¥ I¥wii thai IncJutsS our opinion. Reasonable assurance Is a hvJh k¥el of assurancts t*Jl Is a guarantee thal an aULlIl ujnducied In aeeordanc4 with ISAS IUKI wll a￿ayS delect a ma¢enal misstat8mern when rt ¢XlSts Misstatornonts can anse traud or •rror and are COns￿ered matsnal If. indmdually or In lh¢ aggwate, th ¢oubJ r•a8onabty ￿ exFected to Influonc the economic dea￿onS of users taken on th8 basis ol b)ese finanoal $tsieftK*nts. Irregul8riti88, ind￿1r￿j tra￿1. InStar￿ of no[￿c￿n￿l0n￿ vrilh and rngulats"orM. IAts desvjn proc•dur•J in line wrth our re$ponsibilrfie$. ouuined above. ￿ detea matenal misstatements in ￿spe￿ of Irregulari1105, Includir fraud. oxteni 10 whith our pr¢xedurts S￿ capat4¢ of delKb'rg irwuiqntss. Induding fraud is detsiled bdow" Our approach to h**ntifying and r￿￿70￿1r*J tha r￿kS of moicrwl mi))tottyn¢nt in reapeca of 1rr¢9ulont￿. induding fraud and nofyeompliance law3 aTrJ regulat￿)[￿. was as fdlws.. . engagement partw ensured Ihat th& •ngag•mant le￿ the apprwate compe¢enr*. Cap*AItt￿5 and sk115 10 or rec03n￿e nor￿0￿pIlan￿ ano re9￿ations.. we K1entsfied the aThJ ryulab￿s Wtal)Ip lo th8 chant*>k rxjmpany through disDJssions wth truytees and olher man•Jement. and fw Lwr ccmmèrual aThJ experignea of the clients bUsI￿sS seuor. . we fi)¢used on speufic Ws arwj ryulat￿n5 we cO￿Jer￿j may have a dirBct rnaterial effect on financial State￿￿nts or Ihe operab'ons ol fv charitat4e cJJmpany. Ind￿lir¥) the c￿paTr￿?$ Act 2006. Charrtie5 Acl 2011. taxation *gL%lal*Jn. dala proteclkM. anti*)rthry, empknyrn￿t, environmentsl and health and safety legis￿￿on, . %¥tt yAl¥til ivKI IYgulaliLvF KJEntiW *uve Ihrough makifg anquines of rnan*Jement." and . Identifiwl laws and wulaDon5 comrnunicated ¥•thin the atyjit ¢e•n and th8 team remained alertto inStsn￿9 of n￿-Com¥￿￿￿ IhroLWoutth? a￿1￿ THE PROFOREST INITIATIVE INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF THE PROFOREST INITIATIVE assessed the suxepiibility of th8 chantsbk campanys finanoal statements to material misstatern8n( induding obtaining an undetstandiThJ ol hthv frawl mvJht(xxJJr. by. makirvJ enquiries ol man*Jement as to Whe￿ IW Con$th￿ Ihere wa5 Su5￿pts.bIlity to tra￿. their kn￿e￿￿? of adu￿. 5WeCted alw fvawj. aTrJ . cortsthring the intemal ¢or¥trds in plac8 to mrtvJalo nsks of fra￿1 a￿1 nOndC(Mplan￿ wth L4ws and regu18ts"ons. To address the n5k Offra￿ Ihrow man•*Mnt bws aTrJ olttffjtr0￿, ￿.. . Ferfomied anatyiical prot8dur88 to bjanbfy any Unusu￿ w unexr*aed rel•btyutt4)s'. . lestsd journal entr￿5 to thts.fy unusual trans*￿t￿$.. . whpthArjitywfi8nl* and a¥¥umpkns fflad• in d•t•rrnwwry Dccountiry •Bbm•t•g w•r• indic•tiwa 01polen￿ bws.. aTh1 • in¥esb3ated bghirnl ￿[￿aTrt tra1￿•*c￿. Iii Iwxi¥tt tu IhD of aTrJ r¥)r￿ty10n￿ ifft laws •rbJ reguiauons. we aesignea pr¢xeoureg whith indude£l. butwere nol limitsd to." • agreeiw finanoal slai•ment dithures to u1th￿.r9 suppfftI dowTrwnt8ti0n.' . rnad1￿ tho minut•8 of meeb'rw ofthose chamed wrth qovern•￿.. aTrJ . •nouirirvJ ofrnan•wnent x tr* Athwjl rJ*ir There aTr inhefenl limrtatrens in our pr￿adur•S descfjbed above. Thè more removed that law5 and regulations are fr￿ llnancJai traWCTK)ns, ine Iikety 11 Is thai wouk) Dec(me awa￿ 01 non￿Mplianc￿. Auditing sianrSard5 a150 Iimil the audit woceilures to Kyenbfy nOndCAyn￿￿qnCe wlh laws anol regulatsons to enquiry of the trustees and 01￿ maThag•mènt And the ￿9F•c￿On of regulatory and *al eorrnspond•nt*, If any. Material mtsstataments Ihal due to fro￿j can ￿ harder lo dete(a thaTh tho¥e Ihat ari¥e IT￿ error as tlw may Invofve delib&raie cort•8knant or A further dexiiptson of oui rtwiauitw ¢5 wi FIii¥iK4dl Rwtiiw CuuiK41i b¥¥b￿le al. littp3.11 www.frc.org.uklauditorsresponsibilit*. Th￿ (Won forrns part of our auditorfs roport. THE PROFOREST INITIATIVE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE PROFOREST INITIATIVE U88 of our report This ￿ptrrt Is made sow to Ih8 thants￿8 companys members. as a tx)dy, In a¢¢OrL1an￿ wlh Chapter 3 of Part 16 ol the CornpaniesAcl 20[￿. Our 0￿Irt woth ha$ been urKlertaken so Ihat we rn￿h1 stale lo the charil8bLg tompanvs members those matters we ar& required tri slate to b)em In an 8￿rt{*S ￿port and for no other pu￿Se. To I luI￿St extenl pertnrtted by law. do or a55ufnE fe5ponsibility to anyone other than the tharilab company arn# the tharrtaty* fxmpanys memb&rs a$ a t*yty. our audit w(wk, for this report, or for th8 opiniDn$ fo￿•d. //k/ • Robort KIr￿afid Isonlor Statutory Audrtor) for and on behalf of Crltchkny• Audlt LLP 201612023 sthtutory Audltor Bemr House 2>38 Hythe 8rhSJe Stroet Oxford OX12EP THE PROFOREST INITIATIVE STATEMENT OF FINANCIAL ACTMTIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 310ECEMBER 2022 Current flnon¢lal y•ar Unrnjtrlctod Restrktsd fund• fund• 2022 2022 Tc+t•l Total 2022 2021 Donaiions an(J gr3nts Charitabb 8CtMt*s Invesiments 2.rJ38.597 2.098,597 1.702,170 520,6 469 15 Total Intt>m• 465.459 2.Cv38.S97 2.564,056 2,222.839 Ex ndl Charitable athvth$ 465.729 2.ICQ.372 2.566.101 2,215.￿S Not loutyolngylncomlng rmOur¢￿ hl<)r• tr4nsfor¥ (2701 11.7751 12.0451 Gross tra[￿fer9 beN¥een hjnds N•t l•xp•ndNur•ylnGom• for th• y•*wl Not M￿rnIn1 In fund• 12.0451 12.0451 6.934 Fiinrl hHLHnrM At 1 .IAniJAry A52.145 452.145 44S.211 rund bI￿n¢￿ at 31 D•¢•rnb•r zozz 450.1(Q 450,1CIJ 452.145 Thg BlaI•m￿l rJFfin•nwl int4udoa al gaino ond hiotros rooogniDod in tho yoor. All Intomo aTha empe￿KUr& ¢Jen¥e from confrnuing $taterngnl of finar￿A?1 acbvths tho mquir•nants an ir*thM and éXFthditurè ac£ount und•rth• Compan￿BAC* 20C*. 11)- THE PROFOREST INITIATIVE STATEMENT OF FINANCIAL ACTIVITIES {CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 Prlor Ilnancbal year Unrn8tr1¢ted fte$¢rl¢i•d lunds funds 2021 2021 Total 2021 Donations and grants Charitab* ac¢iwtses Investments 1,702.170 1.702,170 $20,654 15 15 Total In¢om• $20.869 1.702.170 2.222,839 ndltur Charitob* ac¢iwiies 476.272 1,739.633 2,215,905 N•1 loutotslngVlnc<)mlng mourcm b•forn tramfgrn 44.397 137.4631 6,934 Gross tran81ern be￿6￿ fuTh 123.3251 23,32S N•t I•xo•ndltur•Vlnc¢Jm• lor th• ym N•t mov•m•ni In lund• 21.072 114.1381 6,934 Fund babncès ai 1 Janu8ry 2021 431.073 14.138 445,211 Fiinrt halanrpA at li fJ*e•mh•f 20X 4S2.145 452,1rf6 THE PROFOREST INITIATIVE BALANCE SHEET AS A T 31 DECEMBER 2022 2022 2021 Curr•rtt •M•ts D8btOfS Cash at bank aThJ In harnj 447.529 608.949 158,104 754,554 1,056.478 912.658 Cr•dlt•rn: •mounts lalllng du• t*lthln ono year Other credilQlS D8f8rred Inc¢Yne 10 11 594,678 11,7C 359.416 101.0>7 .378 480.513 Not current assets 450.1C 452,145 Ineom• funds Unrestricted ￿nd5 4S0.1C 452.145 450.1C#J 452,145 The finanual stalemonts appr￿j by Trwt••s on. C A Elliott Tru•ts Company r•ll•￿tIon nurnlxr 7293440 THE PROFOREST INITIATIVE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEM8ER 2022 2022 2021 Notr• Cash flo￿ from op•rallng •¢￿VItI*• CBsh 8b50rbed by opefatior 16 1146,0741 125.3501 Inv88tlng a¢￿¥￿tIl$ Investment Incorne r8C8iV8d 15 N•t c*tsh 9Dl￿r¥I¥d from Inv••llng actlvltl•& 15 Not caah u••d In Iln•n¢lng •¢tlvW Not d•¢rn4•• In ¢••h and c••h •qulv•l•nts 1145.6051 125.3351 Cash and cash e4UNa￿Thts ot bwMiThJ olyear 754.554 779,889 C*¥h and c•¥h gqyfv•loTrts •t •nd oly••r 808.949 754.554 13- THE PROFOREST INITIATIVE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 A¢¢oynWno poIIci Ch•rlty Inlormaiion The Proforest Initsath¥e is a WiV8ts ￿￿panY IimiteLI by guar8rnee Incworated in Engla￿￿ 8ThJ The registered office s Soth Surte. Frewin Chwnbers. Fr8wn CourL Oxtsd. OX1 3HZ. 1.1 ACCOUn￿ng Con￿nts0 The financial $latLYnenls t*en prepartsj m actothcs th8 tharity8 document. Companies Act 20Ce, FRS 102 -The Financial Re￿)rts.1¥a Standard in the UK and Republic or Ir81and' I"FRS 102.1 aThJ Ihe Cttarrt￿ SORP 'A￿o￿ntr￿ and Repotyry by Chartle5 Statement of Recommerthd Prattre applKth to charities preparirvj Ihwr accounts In a¢cordallce with the Finanual Rewrbng siaryjard aFyllcab￿ In Ihe UK aThJ Rewbk of IreLand IFRS 1021. leff8thv8 1 January 20191. Thg ch8fity ts a PublK 88r*fft Enbty 05 by FRS 102. The financial siai•rnonts are pr8pwad in sterlir4. wh¥* 4 the tyncbonal of the tharity. Monetary amounts In them fin￿r￿la1 State￿th ar• foU￿j 10 th• fi•ar05t £. The flnandal slat￿￿ents ha¥• prBparad under histowl cost o)nvenbon. urfe$$ otherws8 Statsd In tho accountirvJ pdicy ￿les. The pnwpal acc￿n￿"r￿j pc4iu8s •J¢)pted sel out tselgw. 1.2 Golng eone•rn Al the tsme of approwng thè finar￿￿ statements. the trus¢ee5 have a reasonabkn expectstion that the charity lid¥+ dd¥yudl¥ i¥¥vul￿¥ iu ¢xMIts"riuu iri wttrill¥Jl¢il VI¢5￿nce for the lor•588db18 luture. Thu5 Ihe tru51e89 conb'nue lo &Jopl t￿ wng corwn bgsis olaccijwtry in preparirrtj t￿ financi81 statements. 1.3 Charltabh fund• Unrestricted lund$ are ovalatle for use at the discrnbon of Ih inAst••s in lurth•rAnc* ol thèir tharl￿bI& o*¢¢tives. Restrpcied funds can bg wed for parbvJLgr resth'ded purposes ￿1n ￿ ctycts of the Chanty. M8re a d￿or has speofi•d a Pa￿￿J13r purpos¢ for a donab'on. ts irwne is shown as r￿tri(￿ed income in th? siaiemenl ol Finanaal A¢)wbes. Any s￿h Inccrfw ur*4xnded ai the year end Is s￿)Wn as a restricted fund In the balancè sheet. Restlica￿￿￿ arise ￿en swfiRd by d¢yKJr or fuThls 8r8 fAi%•d fnf PArtip.ul%r restricted wrposes. Details oftha rtstrthd pro¥thJ in noies to tts accounts. 1.4 In¢om• Income Is ￿COgniSed whèn Ihe chanty Is *alty ¢ntstled to rt after any perf0rnan￿ conditKn$ have bgen met, the amounts tAn thAMJrAel rAlkryhty Ar¥1 it NnhaNrt thAI inrrTh ¥AII hA rAfAivArl OI•TII iiwiiy r3 yVllVl¢illy IryGggni5Bd on a le￿i￿ab￿ ba￿3 atvJ 15 tppuriBd gTU55 ol Tvlalvd vxpvndliUI¥, where the amounts a￿ reasonabty certain and when there is *quate certainty of rectipt. Funding recewtrj tor luturn perK#JB is foThvard in ￿[Br[8d wKJJm8 until thè fèlai•J •yndituTtr has en inojrred. 14- THE PROFOREST INITIATIVE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 ACCOUn￿ng pollclos 1.5 Exyndhur• Expendilure 1$ a¢ctyJnted on an a¢¢rL41s bays and gr¢tss of any TBlat8d w￿rne. They a￿ dassttsd under headings that aggregate all costs related to the cale90ry thore costs cannot btr dir8dy attnbuted to particular headings, tly have been aloL31ed to acbvtss on a basL5 corwstent with use ofthe ￿$OurCes. . Costs ol charrt8bkn xtmty ojmrrf￿s direct ex￿dI[ure. kn rA)$ts car￿0t be directy attributèd. they ha￿ b•en alkrated lo on a bas￿ DJnsv8teTrt *ith ofre50urces. . Governance costs Ihose costs. S￿h a5 aLhlii or iTh*pendeni ex*ninabon f885 8nd bJal aTrJ professional f8as. assocjated wlh rx)n$btution4 8Th1 requiremgnts. . SuFpy¢ costs and gmrnanc* costs. upthr"OUw Chwrtabkn Exwdj¢ure' tt8ve not bo•n appOrt￿ned across the reported chantabk Apport￿rUng they8 D)5ts wouk# not any fvnher benefit to interLveurvJ Ihe accounts. In the opnion of the thanty. 1.6 C••h •nd ¢••h •qulv•hnts Cash cash equivaknts IndLMJe cash in har¥J. d•pow"ts h8bJ at ¢811 ￿¢h banks, othèr Short-le￿ INU Inv&sim6nis wilh or¥inal matullb•S of three monttB w bs5. ba￿ oveT¢lrats. 84nk o¥erdr•ft3 ar8 sh¢)wn within borrowings In oJtr•nt Iiatslrthts. 1.7 Fln•n•l•l In•trym•nt• The charity has el8cied to apply ￿ pffjw*ons ol Sethon 11 '88$￿ Finan¢J81 In$trurnonts' and se￿On 12 r Financial I￿1￿ments IS￿￿5. of FR$ 102 to am of IIS lIna￿al InsrnJm•nts. trinanc¥al ￿Struments ar¢ In fv ¢hatys balanra th8•t tharity becorne$ party to t contr8e￿al pro¥iJv)rw ol irBtruwit Finanual assets and liabili1￿s a￿ off￿. wrth thè nel zrntyjnts msenied in Iha financ4BI s181em&nt8. whftn thèra Is A legally enforceab￿ rwjht 10 9¢t off Ihe recognise(l amounts ar¥J there v4 an Intentson lo Strtt￿ on a nèt Basic financial asset5. w*tich debtors a￿1 cash and bank balances. are inits.alfy measured at transathon price Ind￿Ing Iransaaion costs and sUbseq￿nty ￿Mell ai amortlS8d cost u51rs the effective Interest methfyj Unle￿ arraThJemeni consbi￿eS a finan￿[vJ Iransacbon. %th•re the Irans8clion is measU￿d at the pr8senl value of Ihe hrture receipts dBcr)wleil at a math•i rate of inteTrsl. Financial 9SS&ts ¢JA8￿￿*d XA r*f*Trivth ¥Mlhin y￿r ArA nnl AmnrtthAd Basic financial Ilabilrt￿s. IndudirvJ credth¥ and bank Iwis we inrti• r•ttgn¢sed at transath'on pnc* unl8$$ the arrangement conStrtu￿$ a finanong transaction. whe¥e the debt Instrument 15 measured at the present value of If* future pavments discounted at a maFk8l rate ol interest. Finanoal Irabilit￿5 das81fi2d as payat)I wthin ore ￿¥r not ￿0rD¥•j. Debt instruments aro subs&•￿¢am•d at amorlNèJ cost U5irw ts eIrec￿ illtere5t rate method. Trade creditus are Obligatio￿ to pay for gr￿ or semces thai have been ar4Ul￿d in the ordinary course of rats¢ns s￿lerS. Arnounts payabk d￿lf¢d as Gu￿ent liabililiys if VdylTiyiiI i¥ Llu¥ wilhin one year or ￿5. If not. they are present￿ as no1￿￿r￿n1 Iiatslbes. Tfade C￿11¢($ ao recognised initially at iran5aClk)n prtce arwj Subseq￿nty measured ai armrnsed C￿$1 usiry me errecllve In￿reSt me￿00. Dere¢¢)onlrion of Iln•n¢1èl￿•bIIil1*S Fin3nG131 Iiabilits96 are d9recognised when the thanty.: cancelled. 15- THE PROFOREST INITIATIVE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 ¢rlUeal acc<>unting •stlmate¥ and ludgemenls In tho applKatK)n of (*anty5 accwntirvj pc1￿￿0$. Ihe trLLsl￿s are TEquired to maka ju(S¥ments. est'mates a￿1 a55umpbons abrAJt Ihe c3rryirvJ ￿ount ol assets aThJ Iiabiltbes that are not reèjity apparent from other sourees. The es*maies and assoaaied assumpbms aB based ￿ histoncal expenenc* anrj other factOf5 that are c¢n*dored to te ￿￿vant Aaual may drflar trom t￿e Th8 eslwn8tes a￿1 undertyiryJ assumpts.ons ￿ rEYEw%d on an oTraoing basis. Revisions to a0￿unti estimates are recognised In penc¥J in whth Ih8 è5tsmats 1$ revwd tre rev1510n affects only that nod, or penc<1 of the re¥l￿On and fv￿re peric•J5 *there the r8¥i8ion affects bth current and future periods. Crltlul ludgomonts D•hrr•d Incom• No new grani$ wa$ rece￿*d in resp8cI of fvtU￿ pe￿$ Ihis year. The 0￿Ment which reLqtes to oxts which haw8 noi betrn Incyrre(J at ¢he balar￿0 sh881 date are carned lO￿ard to be matched again51 the c0515 w￿n they are Incurred Manag8rn8nt exerus89 ILWeni tc c*JJat• the ￿0￿nts to be deferred by refergnco to budgeted e¥pondilure and grant mlilions. A¢¢ru•l• Man*Jern8nl exerc4ses judgorr￿nt In caloJlatsThJ year ac¢yuats referenc4 to ￿tOrnI•ll0n rol81iry to costs incjjrred po$1 year ènd, budgeted exFenditure. Don•lbon• •nd gr•nts R••trbctsd Restrictsd fund• funds 2022 2021 Grnnt in¢om• 2.c68.597 1.702.170 Gr•nts ree•lv*bh for ¢or• aclbvlil•• - US GEF Soy Brazil DFIDIKPMG- FGMC 201&21 IKICall 2016 US- GEF Asi8 Leam*vJ CPD 2020- BEEF T￿IkIt FCDO P4F TFA Phase 111 FCDO-FGMC extension 2021_2022 IIVEF 2021_ TFAAPOI &urpJrt Other 40,141 105,495 514,830 96,692 14,432 423,9s6 478,746 27,878 636,74S 719,864 707.739 34.249 2.1)98,597 1.702,170 16- THE PROFOREST INITIATIVE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Donatlons *nd grants Icontlnuedl The lolkAwiry aLYonyms have btrvn used aTrJ in note 12 to I1￿ APOI Afnca Palrn Oil lnilia1￿￿ DFIO Deparmeni for IntematK)nal OtsvehJpmerbt IUKI FCDO ForevJn. c￿M0￿weath & De¥ekpm8nt Offic8 FGMC Forest Govemance. Markets and Climate PrLyJramme GEF Gth31 Environrrent Fatylity Infrrnatbonal Clirnale InrtwtNe PJIF Partnerships lef Forests RSS Regional Sustainability Stra TFA Tropical Forasl Allian WEF IAt>rtd Eeonomic Forum d Vwje Fwl for Natyr• In¥M¢m•nts Unmtrictod Unwtnctsd funds fund$ 2022 2021 Intsf•st rncoivab 15 a> ¢0 * * a)U>(O T¥ C4 r o(0 ¢ V4W iji i- 1$ stytsw Ixe note 141 Accruals aTrJ deferred Ir￿$ 10,337 489,301 95.040 42.165 290.527 26.724 594,678 359.418 11 Deferred In¢om• 2022 2021 Arisirrtj from grants reC￿•d lor 4y•ak fuiu prooramm84 11,7 101.097 D•forr•d int4)m in Ihe financial ststsments a5 I￿￿7￿.. 2022 2021 Dtri¢rr•d ific0￿ Ya *thm'. CuTrent 1iats.lrt￿S 11 7ntl 101.097 Movements in the ￿r. 21- THE PROFOREST INITIATIVE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 11 C•f•rrod Incorno lcontlnuodl Defer￿ Inco￿tt at 1 January 2022 Re￿ased frixn previous ￿n0d¥ Resour￿$ d&lett￿l in Ihe year 101.097 1101.0971 11,700 70,407 170,4071 101,097 D&farr¢d in¢m at 31 t)8C8mbar 2022 11,7C#J 101,097 O Tr- LWJ rf*rnvKn THE PROFOREST INITIATIVE NOTES TO THE FINANCIAL STATEAIENTS (CONTINUED FOR THE YEAR ENDED 31 DECEAIBER 2022 13 C¢)mmlkn•nts of th• Charlty A$ 0¢ 31 Lkcember2022 ts Chwty" . had rK• rnatsnal cL¥nmthAts not pro￿ lor ITh Ihe ac¢ounts . gNen no guarantees to third parties had no IiabbtEs seoJr8d on its assets - had rnade no l)ans to connBGted persons or otreThw88 had rnade no ex4raba payrnersts in the wr than 14 R•latod yrty tra￿•¢1￿00• and controlllng p•rty Tran•4Ctlons wlth rfrlatsd partl9¥ Proforesi Iniliatsve 1$ a 5ubsdiary of Protse$l Lld in acctrdance with th• provis￿n5 of section 1159 of the Companws Aci The reason that Proforesi In11a￿ve tsll$ wlhin this definrtion Is that Proloresl Ltd Is the Sole member of ProfrKest Iniliatw. Each Inotee of Ihe ProfNest Inrtiabve has one vote. The sob memtyef cannot Overnu￿ any dea5￿n rn8king by Ihe TnL*¢ee$. In sde rrernbership entitl85 Proforest Ltd to res¥n the Board of Trustees. ￿Y￿*Ver ih pracbce thLB couka not hapFen due lo tha regulatory framework in whith the th4rity operales. Proforesl Ltd's pnnopal obJeclNe5 are to W people lo projuce source natural resouretss sustainably. PrnlnrAsI I trf pmv￿tsg ¢on$utt¥hCy E•fwc•B lo compan￿. d•wlowng practical approach•% to r•rkponÉibl• produthon sourgrg that support (JYn￿rlts in tsirtranthon pmcttss ￿ the wour*J. 24- THE PROFOREST INITIATIVE NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 14 Rehtsd party traMactionB and controlling ￿rtY (Con￿n￿•d) During the year eThJed 31 Dec4rnb8r 2022 Prof0￿1 Limrted rvcharged Th8 Proforest Initlabve £785.473 12021 £683.9321 for costs of chantsbsg actswty pa￿# on Its beham As at 31 December 2022 £203.51612021. £112.4(￿) was due to Proforest Lim￿￿ Piolorwi Inityative. £NIl 12021.. £3541 w•$ due from Proforesl Linited to The Prolor8St Inth During the year eThJ8d 31 2022 Profryest Sdn la MaL4y&an subsidiary of Proforest Limrttdl r6tharg6d Proluesi Inibjtsve £212.79912021 £218.0111 for costs of chanlable 8dvity paid on its behalf. As at 31 Lknmber 2022. £35.956 12021 £NIll was PrOf0￿5t Sdn Bhd to The Prolorasi IrMbgti¥tr ¥rKI £27.29712021. e19.0251 vrds to Proforest Sdrs BM1 from th• Proforest Inits"atNe During Ihe year ended 31 Dwmber 2022 Proforest Ghana la urba•r cornmon control bul Shares obiecbve$ wrth The ProlNas¢ Inilialive aTrJ works do8ety 111 rechargod The Proforest IniiiaiNe £8,885 12021 £21,3611 Iv co$ts of thanlab* patyl C￿ ts bgh•lf. As at 31 t)8cember 2022 £2.92012021" £Nill was due Tho Proforesl Inilialive to Proforest Ghona. -2S- THE PROFOREST INITIATIVE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 DECEAIBER 2022 14 R•latsd yrty tranBa¢tlon8 and ¢ontrolllng porty Icontlnuodl During Ihe year eTrYed 31 Decem￿ 2022 Proforegt Inthbve Alrta, a wthr8d charty In Ghana rK*t under ccrnmon control bul shanw otr1ect￿ wrfh th8 Proforest In￿8￿￿8. retharged The Proforest Initiative w88 recharged £666,927 12021 £410,6501 for c0515 of chantsb￿ acbvty paKI on its bEhalf. At 31 Decamber 2022 £192.66012021 £88.1961 wa$ due to Proforest InthtN&AIrtO. Dunng the yaar 31 December 2022 Proth51 BraJl lan Assoc#8bon ragistered in Brazil, whith is not under ￿MmOn conlrotl. r￿harged Tr ProfrKe5t Inthab'¥e £8.057 12021." £75.6221 for costs of charitsb18 aLXiTrAty pa￿ on its behalf. As at 31 Oec•mi*f 2022, t8.10912021. £44.1051 wa5 due to Proforost 8razil from The Profore5t Initith. DurirvJ the yeaf end•J 310gcwntw 2022 PfolorBSt La1￿ AmgrKa fft equ￿￿nI ol a Imited t￿rnpanY in the UK), which 1$ under ccfflmon ￿nIr¢I. sharos c*pct￿s The Proforest Inibaiive and WOTks c105ely with It) recharged The Profowt InrtBtwe £172.656 12021 £180,2121 for costs of Charitab￿ acliwty pahl on its behall. As al 31 Decern￿r 2022. E54.801 w85 CA*Ed by Thg Protse$t Inrtolfftl to Proforvst Latsn America 12021 £26,927). 16 Cmh g•n•r4tsd frorn oyr•tlon• 1022 2021 Ir)AfieJlllMirrAfv fnr IhA ye4r 12,04$1 6,934 AUl￿￿T￿nts for. Invèstment inwn? recoJnss•d in ststefflgnl of acknt*> 14691 OV•m•nt• in VK*th*rvJ caprtal Ilncreaseytytser•a￿ in Increaseiiaecr•as•i In crethto (Decre￿NIne￿#se in deferred incom (289.4251 235.282 189.3971 107,989 1170,9481 30.89) ¢••h *b•grb•d by op•v•tlon• 1140,0741 12a.JA*I 18 Anaty•li of change• In n•t fvnd• ch8nty debt dijrino ymr