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2022-03-31-accounts

Report and Accounts

Year ended 31 March 2022 www.ecosequestrust.org Company number: 07611969 Registered Charity: 1143397

the ecological sequestration trust Contents

Page
Company information 3
Independent examiner’s report 4
Trustees report 6
Statement of financial activities 12
Balance sheet 13
Notes to the financial statements 15

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the ecological sequestration trust Company information for the year ended 31 March 2022

Chair Professor Peter Head CBE FREng FRSA

Trustees Professor Nilay Shah Risa Goldstein Barbara Ryan Robin Stott

The Ecological Sequestration Trust is a charitable company limited by guarantee registered in England and Wales

Company number: 07611969 Registered Charity number: 1143397 Registered Office 86-90 Paul Street London EC2A 4NE

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the ecological sequestration trust Independent examiner’s report for the year ended 31 March 2022

Independent examiner's report to the trustees of The Ecological Sequestration Trust

I report on the financial statements of the company for the year ended 31 March 2022 which are set out on pages 12 to 21.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s financial statements as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Certified Chartered Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with my examination giving me cause to believe:

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the ecological sequestration trust Independent examiner’s report for the year ended 31 March 2022

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

In reaching my conclusion on the financial statements, I have considered the adequacy of the disclosures in note 1.2 to the financial statements concerning the charitable company’s ability to continue as a going concern. The Trustees have confirmed that continual support will be available from Professor and Mrs Head and expect that current and future sources of funding will be adequate for the company’s needs.

Wendy Smith Independent Examiner Date: 15 September 2022

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the ecological sequestration trust Trustees report (incorporating a Directors report) for the year ended 31 March 2022

Objectives and achievements 2021-2022

Our objectives

Our achievements

To attract the talent and expertise to establish and run the Trust, alongside a wider multidisciplinary advisory network.

We have continued to attract high profile expertise to act as Trustees and Advisory Board members. We have established a global research group to look at post covid-19 green and just recoveries with 200 expert members.

To identify and attract major sponsorship to fund the work of the Trust and implement our strategic aims.

Our major sponsorship efforts have not been successful. We have, however, built the Resilience Brokers delivery arm into a viable business providing services aligned to our strategic aims and basic stability to the team which is enabling the group to build new partnerships and opportunities.

To develop an open source agent-based integrated urban-rural design model (resilience.io) to represent actual and proposed economics and resource flows and transformations for regional decision-making support to achieve the Global Goals.

Our opportunities to build on the prototype urban-rural design model have been limited for this year. We have continued to develop expertise and applications of systems thinking in city-region settings which is allowing us to build knowledge and expertise to support future developments in this area.

Objectives 2022 – 2023

Our objectives for 2022-2023 are:

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the ecological sequestration trust Trustees report (incorporating a Directors report) continued for the year ended 31 March 2022

Strategic aims 2022 - 2027

The Trust is working to a five-year programme, with the following strategic objectives:

Structure, governance and management

Governing document and constitution

The Ecological Sequestration Trust is a charitable company limited by guarantee No. 07611969, incorporated under and governed by its Memorandum and Articles of Association. The Ecological Sequestration Trust was registered with the Charity Commission as a charity in England and Wales on 21 April 2011, No. 1143397. The administrative details of the charitable company are detailed on page 3 for the year ended 31 March 2022.

Objects

The objects of the Charity, as set out in the Articles of Association, are:

to promote and carry out for the public benefit research into climate change and methods to reduce climate change, and to publish and widely disseminate the results of such research.

Public benefit

The Trustees have referred to the guidance in the Charity Commission’s general guidance on Public Benefit when reviewing our aims and objectives and in planning our future activities. In particular, the planned activities will have a direct and positive benefit for individuals, communities and economies through the improved utilisation of scarce resources and resulting reduction in damage to the natural environment.

Recruitment and appointment of Trustees

The Trustees are listed on pages 8 and 9 and constitute the Board that manages the company. Trustees are recruited according to a range of skills and experience required to ensure the organisation’s objectives are achieved. The minimum number of Board members is two. One third of trustees must retire at each annual general meeting, but are all eligible for re-election. Normally, Trustees may serve a maximum of three years at which point they must take a break from office. This rule may be disapplied by a unanimous resolution of the Trustees.

Induction and training of Trustees

Newly appointed Trustees are provided with an information pack detailing the Charity’s work, its partnerships and its current policies. A programme of meetings is set up for new Trustees with the Chair and key members of staff.

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the ecological sequestration trust Trustees report (incorporating a Directors report) continued for the year ended 31 March 2022

Organisational structure and decision making

The Board is responsible for the policy and strategy of The Ecological Sequestration Trust, ensuring the long-term sustainability of the organisation along with its financial and legal probity. It is also responsible for the appointment of Trustees. The Executive Management Team is responsible for implementing policies and strategies that have been approved by the Board, and for progressing organisational objectives.

The Board aims to meet quarterly and receives financial and operational reports from the Executive Management Team.

Risk management

The Board and Executive Management Team continually examine the principal areas of the Charity’s operations and it regularly considers the major risks that may arise in each of these areas. Under normal conditions, the established resources and systems should allow the risks identified to be mitigated to an acceptable level in day-to-day operations. In view of the difficult economic climate, and in recognition of the early start-up period of the Trust, the monitoring of financial risk has been an area of continued focus in the year of review. The Executive Management Team has been monitoring carefully the financial outcome of initiatives undertaken during the year. It has done this in the knowledge that reserve funds need to increase in line with the Charity’s reserves policy. This is an area that will continue to be monitored carefully in light of future plans.

The Trustees (who are also the Directors for Company law) are:

Prof. Nilay Shah Professor Nilay Shah is Head of Department of Chemical Engineering and Director of the Centre for Process Systems Engineering at Imperial College London. He has co-authored over 200 technical papers on energy systems modelling and engineering, bio-energy systems, hydrogen infrastructures, supply chain modelling, process optimisation, biochemical process design, and plant safety. He has developed an optimisation-based design methodology for a variety of energy systems with strong spatial and temporal aspects.

Nilay has received a number of awards including the IChemE Junior Moulton Medal (1996), an RAEng/ICI Engineering Fellowship (19972001), the Royal Society of Chemistry Beilby Medal and Prize (2005), the Imperial College Rector’s Award for Research Excellence (2006), RAEng MacRobert Award (2007) and Imperial College Engineering Teaching Excellence Award (2009). He was awarded an OBE for services to decarbonising the economy in 2022.

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the ecological sequestration trust Trustees report (incorporating a Directors report) continued for the year ended 31 March 2022

Risa Goldstein

Barbara Ryan

Risa Goldstein has been a licensed architect & planner for over 30 years. For 7 of them she was land development executive for a partnership of 3 major east coast entities, overseeing redevelopment of NYC and NJ sites including the MOTBY Peninsula in New Jersey – the largest undeveloped site in New York Harbour. On the private side of public-private partnerships, she has helped plan communities encompassing luxury residential, affordable housing, retail, hotel, office, cruise-ship harbour and green space uses, plus new road and public transportation systems, on a site subject to sea level rise. Risa is committed to combining resiliency and sustainability planning with urban design. Now, drawing on knowledge of what motivates the private sector, she leads planning initiatives for public clients and has served on zoning and planning boards for a combined 20 years. She holds a BA in Design of the Environment, and a Masters in Architecture from the University of Pennsylvania.

Barbara J. Ryan, was the Secretariat Director of the Intergovernmental Group on Earth Observations (GEO) in Geneva, Switzerland to 2018. GEO is comprised of nearly 100 Member States, the European Commission, and 90 international scientific and technical partner organizations.

Under Barbara’s leadership, millions of satellite images and other earth observation data have been made available to the general public at no charge, allowing scientists, planners and policy makers to make better-informed decisions on problems that transcend political boundaries. Her work addresses critical issues in agriculture, biodiversity, climate change, disaster planning, energy, health and water.

Since becoming Director of GEO in 2012, Barbara has worked to integrate earth observation systems from around the world into a single, comprehensive system that uses co-ordinated data to understand how environmental factors impact human life.

Robin Stott

Robin Stott is a retired consultant physician with a lifetime interest in developing more socially and economically equal societies, which when created within environmental limits, are optimal precursors for good health.

In addition to enjoying his roles as father and grandfather, Robin relishes exercise, which he sees as a magic bullet in the prevention of non-communicable disease. He runs, cycles and practises tai chi regularly, and is a keen amateur astronomer.

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the ecological sequestration trust Trustees report (incorporating a Directors report) continued for the year ended 31 March 2022

Financial review

Total income

Total income for the period amounted to £266,739 (2021: £213,740).

Total expenditure

Total expenditure for the year amounted to £319,488 (2021: £116,072). Of this expenditure 98% (2021: 95%) was spent on charitable activities and promoting the Charity and the remaining 2% (2021: 5%) on support costs and governance. The Charity generated a net deficit for the year of £52,749 (2021: net surplus of £97,668) which has resulted in a closing unrestricted funds balance of negative £695,770 (2021: £643,021).

Reserves policy and going concern

The Ecological Sequestration Trust aims to achieve a level of unrestricted reserves that will allow it sufficient stability to plan ahead for future ventures, whilst knowing that it can continue its operations and meet its commitments to its staff and others, in the event of an unexpected shortfall in income.

It is the Trustees’ intention to ensure that, at all times, the core cost of the Executive Management Team is fully funded and that new projects are undertaken only where there is sufficient specific additional funding available to cover related costs.

The Trust currently has negative reserves which have been funded by a loan from Professor and Mrs Head, details of which is given in note 16 to the accounts. The capital is repayable by agreement either in full or part subject to the Trust having sufficient funding to do so. Without the support of this loan it is doubtful that the Trust could continue operating. The trustees have confirmation from Professor and Mrs Head that they will continue to support the Trust and will not require the repayment of the loan until funding allows.

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the ecological sequestration trust Trustees report (incorporating a Directors report) continued for the year ended 31 March 2022

Trustees’ responsibilities

The Trustees, who are also the directors of the company for the purposes of company law, are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Board of Directors/Trustees to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the Charitable Company as at the balance sheet date, and of its incoming resources and application of resources, including income and expenditure, for the financial period. In preparing these financial statements, the Board of Directors/Trustees are required to:

The Board of Directors/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 the financial statements comply with the Companies Act 2006. The Board of Directors/Trustees are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps to prevent fraud and other irregularities.

In accordance with company law, the Charitable Company’s Trustees and Directors who held office at the date of the approval of this Trustees’ Report certify that as Directors of the Charitable Company they have taken all the steps that they ought to have taken in order to make themselves aware of any relevant information.

This report is prepared in accordance with the accounting policies set out on pages 15,16 and 17 of the attached financial statements and comply with the charitable company’s memorandum and articles of association, applicable laws and the requirements of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

This report was approved by the Board of Trustees and signed on their behalf by:

Professor Peter Head Company Director/Trustee

Date: 14 November 2022

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the ecological sequestration trust Statement of financial activities (incorporating an income and expenditure account) for the year ended 31 March 2022

2022 2021
Total Total
funds funds
£ £
Incoming resources
Donations 171,503 189,050
Charitable activities 3 73,723 -
Other trading activities 4 21,513 24,690
Total incoming resources 266,739 213,740
Expenditure on
Charitable activities 5 (318,738) (115,322)
Governance costs 6 (750) (750)
Interest paid - -
(319,488) (116,072)
Net movement in funds, being net income/ (52,749) 97,668
(expenditure) for the year
Total funds brought forward (643,021) (740,689)
Fund balance at 31 March (695,770) (643,021)

There were no recognised gains or losses other than those stated above.

The notes on pages 15 to 21 form an integral part of these accounts.

All activities relate to continuing operations.

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as at 31 March 2022

the ecological sequestration trust Balance sheet

Company No. 07611969

2022 2021
Notes £ £
Fixed assets 9 2,149 1,750
Current assets
Investments 10 2 2
Debtors 11 6,024 147,825
Cash in bank and in hand 6,508 7,347
12,534 155,174
Creditors: amounts falling due within 1 year
Trade and other payables 12 (461,953) (473,695)
Net current liabilities (449,419) (318,521)
Total assets less current liabilities (447,270) (316,771)
Creditors: amounts falling due in more than 1 year
Loans payable 13 (248,500) (326,250)
Net liabilities (695,770) (643,021)
Total assets
Funds
Unrestricted funds (695,770) (643,021)
Total funds (695,770) (643,021)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

For the year ending 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act (“the Act”) relating to small companies.

Directors’ responsibilities:

The financial statements were approved and authorised by the Board.

Signed on behalf of the Board of Trustees:

Professor Peter Head Company Director/Trustee Date: 14 November 2022

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the ecological sequestration trust Balance sheet as at 31 March 2022

Company No. 07611969

The notes on pages 15 to 21 form an integral part of these accounts

2022 2021
Notes £ £
Cash flow from operating activities 14 1,072 (1,549)
Cash flow from investing activities
Purchase of fixed assets (1,911) (2,625)
Sale of fixed assets - 621
Cash flow from financing activities
Interest paid - -
Net (decrease)/increase in cash and cash equivalents (839) (3,553)
Cash and cash equivalents at the start of period 7,347 10,900
Cash and cash equivalents at the end of period 6,508 7,347

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the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies

The principal accounting policies adopted in the preparation of these financial statements are set out below.

1.1 Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with UK Generally Accepted Accounting Practice, the Companies Act 2006 and “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and “Accounting and Reporting by Charities: Statement of Recommended Practice” applicable to charities applying FRS102 (“SORP”).

The Ecological Sequestration Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2 Preparation of accounts on a going concern basis

The trustees have confirmation from Professor and Mrs Head that they will continue to support the Trust and will not require the repayment of the loan until funding allows. The trustees are of the view that this ongoing support by Professor and Mrs Head as well as prospective funding sources have secured the immediate future of the Trust for the next 12 to 18 months and that on this basis the assessment of the trustees is that the charity is a going concern.

1.3 Income recognition

Income from charitable activities: Income is recognised over the period that the service is provided.

Voluntary income: Patron and donor income is recognised when the income is received.

Grants received for specific purposes are allocated against the expenditure to which they relate within restricted funds.

Investment income: Investment income is recognised when the income is receivable.

1.4 Foreign currencies

Transactions in foreign currencies are initially recorded at the rates of exchange prevailing on the dates of the transactions. Monetary assets and liabilities denominated in such currencies are retranslated at the rates prevailing on the balance sheet date. Profits and losses arising on exchange are included in the net profit or loss for the year.

1.5 Taxation

The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is not liable to income tax or corporation tax derived from its charitable activities.

1.6 Grants payable

Grants payable represent amounts awarded by the charity during the year for charitable purposes. Grants payable are shown under creditors in the balance sheet and represent the full liability to pay grants to recipients over the full duration of their research projects. The grants are recognised as being payable once the recipient has met the conditions for receipt and the grant has been minuted at the trustees’ meeting.

1.7 Fixed assets and depreciation

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the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2022

Assets are included at cost and are capitalised where the cost exceeds £500. Depreciation is provided on all tangible fixed assets in use at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life, as follows:

Computer equipment - straight line over 3 years

1.8 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Charitable expenditure includes all expenditure directly relating to the objects of the Charitable Company, primarily sub-grant expenditure, and is allocated on an actual cost basis. Governance costs are those costs incurred for the compliance with constitutional and statutory requirements, and are allocated on an actual cost basis.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance and governance costs which support the Trusts activities. The bases on which support costs have been allocated are set out in note 5.

1.9 Investments

Investments held as fixed assets are shown at cost less provision for impairment

1.10 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid, net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

1.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.12 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.13 Financial instruments

Financial assets and liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs).

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.14 Unrestricted Funds

Unrestricted funds are funds available for use in accordance with the charitable objectives.

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the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2022

2. Critical accounting estimates and areas of judgement

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no critical accounting estimates to declare.

3. Income from charitable activities

2022 2021
Total Total
£ £
Grant funding 73,723 -

All income from charitable activities is unrestricted.

4. Income from other trading activities

2022 2021
Total Total
£ £
CJRS grants 21,263 24,536
Profit on sale of fixed assets - 154
Other 250 -
Total 21,513 24,690

All income from other trading activities is unrestricted.

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the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2022

5. Resources expended – Charitable activities

2022 2022 2022
Direct costs Support Total
costs
£ £ £
Grants awarded 163,250 - 163,250
Employment costs 144,367 - 144,367
Consultancy costs - - -
Insurances - 2,341 2,341
Travel and subsistence 1,507 - 1,507
Printing and stationery 180 - 180
Computer expenses - 3,523 3,523
Other office costs 1,917 250 1,970
Depreciation 1,512 - 1,512
Exchange losses on revaluation (109) - (109)
312,624 6,114 318,738
2021 2021 2021
Direct costs Support Total
costs
£ £ £
Employment costs 105,931 - 105,931
Consultancy costs 1,631 133 1,764
Insurances - 2,221 2,221
Travel and subsistence 129 - 129
Printing and stationery 13 - 13
Computer expenses - 2,483 2,482
Other office costs 1,211 250 1,461
Depreciation 875 - 875
Exchange losses on revaluation 445 - 445
110,235 5,087 115,322

All resources expended are from unrestricted funds.

6. Governance costs

2022 2021
Total Total
£ £
Independent examiners fee 750 750

7. Net incoming resources/(resources expended)

This is stated after charging:

2022 2021
£ £
Depreciation of tangible fixed assets – owned by the Trust 1,512 875
Independent examiners fee 750 750
Interest - -

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the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2022

8. Staff costs

2022 2021
£ £
Salaries 131,921 95,274
Social security costs 9,647 8,558
Pension costs 2,799 2,099
Total 144,367 105,931
Full time equivalent employees 2 2

No employee has employee benefits in excess of £60,000 (2021: NIL).

The key management personnel of the Trust comprise the Trustees and members of the senior management. The total employee benefits of the key management personnel of the Trust were £49,556 (2021: £48,036).

9. Fixed assets

Computer equipment 2022
£
Cost
At 1 April 2021 4,895
Additions 1,911
Disposals -
At 31 March 2022 6,806
Accumulated depreciation
At 1 April 2021 3,145
Disposals -
Charge for the year 1,512
At 31 March 2022 4,657
Net book value
At 1 April 2021 1,750
At 31 March 2022 2,149

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the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2022

10. Investments

2022
£
Cost
At 1 April 2021 2
Additions -
Disposals -
At 31 March 2022 2
Net book value
At 1 April 2021 2
At 31 March 2022 2

Subsidiary undertakings

The following were subsidiary undertakings of the company:

Name Class of Holding
shares
The Ecological Sequestration Trust (Trading) Limited Ordinary 100%
Resilience Brokers Limited Ordinary 100%
11. Debtors
2022 2021
£ £
Amounts owed fromgroupundertakings 6,024 147,825
12. Creditors: amounts falling due within 1 year
2022 2021
£ £
Trade creditors 73,821 73,189
Accruals 334,273 334,235
Taxation and social security - -
Other creditors (note 16) 53,859 66,271
Total 461,953 473,695
13. Creditors: amounts falling due in more than 1 year
2022 2021
£ £
Loanspayable 248,500 326,250

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the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2022

14. Reconciliation of net (expenditure)/income to net cash flow from operating activities

2022 2021
£ £
Net income / (expenditure) for year (52,749) 97,668
Interest payable - -
Depreciation and impairment of tangible fixed assets 1,512 875
Profit on sale of fixed asset - (154)
(Increase) in debtors 141,801 (32,158)
(Decrease)/increase in creditors (89,492) (67,780)
Net cash flow from operatingactivities 1,072 (1,549)

15. Trustee remuneration

No trustees received nor waived any remuneration or expenses during the year (2021: £NIL). No trustees received any reimbursement for expenses incurred during the year (2021: £NIL).

16 Related party transactions

Professor P Head is the chairman of the Trust. At the year end, the charity had loans outstanding to Professor P Head and Mrs S Head totalling £296,500 (2021: £391,500) of which £48,000 is current (2021: £65,250)

The loan capital is repayable by agreement either in full or part subject to the Trust having sufficient funding to do so.

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