Report and Accounts Year ended 31 March 2023 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 |
Page 2
the ecological sequestration trust Company information for the year ended 31 March 2023
Trustees Professor Peter Head CBE FREng FRSA Professor Nilay Shah OBE FREng Risa Goldstein (resigned 25[th] May 2023) 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
Page 3
the ecological sequestration trust Independent examiner’s report for the year ended 31 March 2023
Independent examiner's report to the trustees of The Ecological Sequestration Trust
I report to the trustees on my examination of the financial statements of the company for the year ended 31 March 2023 which are set out on pages 12 to 21.
This report is made solely to the trustees as a body, in accordance with the Charities Act 2011. My examination has been undertaken so that I might state to the trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Trust and the trustees as a body, for my examination, for this report, or for the opinions I have formed.
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 Charities Act 2011 (‘the 2011 Act’).
I report in respect of my examination of your charity’s financial statements as carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
If the charity’s gross income exceeds £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 that in any material respect:
-
accounting records were not kept in respect of the charitable company as required by section 130 of the 2011 Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
Page 4
the ecological sequestration trust Independent examiner’s report for the year ended 31 March 2023
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: 18 September 2023
Page 5
the ecological sequestration trust Trustees report (incorporating a Directors report) for the year ended 31 March 2023
Objectives and achievements 2022-2023
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 sponsorship to fund the work of the Trust and implement our strategic aims.
Securing sponsorship continues to be challenging. 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, such as that with Dutch company Trust 2 Impact.
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. We are aligned with Trust 2 Impact and are bidding for funding which will enable this work to progress. There are encouraging signs of increased demand for this globally.
Objectives 2023 – 2024
Our objectives for 2023-2024 are:
-
to identify and attract grants and sponsorship to fund the work of the Trust through the development of our association with Trust 2 Impact;
-
to continue to grow the Resilience Brokers entity to a sustainable profitable business.
Strategic aims 2023 - 2028
The Trust is working to a five-year programme, with the following strategic objectives:
-
To establish city-region demonstrators of regenerative integrated planning around the world. For each of these, to develop a portfolio of collaboration, technology integration and infrastructure projects involving global and local partners.
-
To further develop, test and deploy tools for collaboration and systems thinking to support integrated planning in city regions in order to develop practical deliverable scenarios for low carbon, healthy, just and resilient urban development.
Page 6
the ecological sequestration trust Trustees report (incorporating a Directors report) for the year ended 31 March 2023
- To build on our global network, bringing talent and expertise together so as to rapidly deploy together with resources to support climate compatible impact.
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 2023.
Objects
The objects of the Charity, as set out in the Articles of Association, are:
the conservation of the natural environment for the public benefit by promoting the reduction of greenhouse gases, particularly (without limitation) by developing and advancing carbon sequestration methods to reduce carbon dioxide levels in the atmosphere; and
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.
Organisational structure and decision making
The Board is responsible for the policy and strategy of The Ecological Sequestration Trust and its subsidiary Resilience Brokers Limited, 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
Page 7
the ecological sequestration trust Trustees report (incorporating a Directors report) for the year ended 31 March 2023
areas. The Executive Management Team continues to monitor 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. Peter Head Professor Peter Head is a civil and structural engineer and a recognised world leader in major bridges, advanced composite technology and integrated systems planning for sustainable development in cities and regions, working for Maunsell, AECOM and Arup.
In 2008 he was named by the Guardian Newspaper as one of 50 people that could ‘save the planet’ and was cited by Time magazine as one of 30 global eco-heroes.
In April 2011 he set up The Ecological Sequestration Trust, a Charity which has brought together the world’s top scientists, engineers, economists, financiers, health, ecology and other specialists to create the www.resilience.io tool to help accelerate tackling climate change and inclusive regenerative development. It was prototyped and used by the Accra Metro Area to create an integrated systems investment plan to meet the United Nations Sustainable Development Goal SDG6 - water and sanitation by 2030.
As well as working extensively with the UNDRR, Peter is visiting professor in sustainable systems engineering at University of Bristol. He also lectures on Performance Based Procurement at Oxford Brookes University.
In 1998 he was awarded the OBE for his work on the Second Severn Crossing project and then in 2011 the CBE for services to Civil Engineering and the Environment.
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 the OBE for services to decarbonising the economy in 2022.
Risa Goldstein 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
Page 8
the ecological sequestration trust Trustees report (incorporating a Directors report) for the year ended 31 March 2023
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. Risa resigned as a trustee on 25[th] May 2023.
Barbara Ryan
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.
Page 9
the ecological sequestration trust Trustees report (incorporating a Directors report) for the year ended 31 March 2023
Financial review
Total income
Total income for the period amounted to £101,499 (2022: £266,739). This fall in revenue is attributed to a reduced donation received from Professor and Mrs Head in the year and a reduction in the donation received from our trading arm Resilience Brokers. Additionally, the prior year income includes amounts received from furlough grants during the Covid pandemic which are non-recurring.
Total expenditure
Total expenditure for the year amounted to £89,863 (2022: £319,488). At the end of the prior year all staff employed by the Trust were transferred to being employed by our trading arm, Resilience Brokers Limited. This has resulted in a reduction of expenditure incurred by the Trust in the current year.
Of the total expenditure 99% (2022: 98%) was spent on charitable activities and promoting the Charity and the remaining 1% (2022: 2%) on support costs and governance. The Charity generated a net surplus for the year of £11,636 (2022: net deficit of £52,749) which has resulted in a closing unrestricted funds balance of negative £684,134 (2022: negative £695,770).
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 in the event of an unexpected shortfall in income.
Future ventures are now being steered through a long-term partnership with a new Dutch company, Trust 2 Impact, which shares the ambitions of the Trust and is putting substantial inkind effort into multiple bids for funding for projects in Kenya. These projects, and the funding raised, will fund agreed work by Resilience Brokers on new data driven modelling and provision of collaboration platforms. Agreements are in place for this work. Resilience Brokers are now being approached for similar support on UK based programmes.
It is the Trustees’ intention to ensure that new projects are undertaken only where there is sufficient specific additional funding available to cover related costs. Future income is anticipated from the ongoing support of Professor and Mrs Head as well as donations from our trading arm Resilience Brokers.
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 loan 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.
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:
-
select suitable accounting procedures and apply them consistently,
-
observe the methods that are reasonable and prudent,
Page 10
the ecological sequestration trust Trustees report (incorporating a Directors report) for the year ended 31 March 2023
-
state whether applicable UK accounting standards and statements of recommended practice have been followed subject to any material departures disclosed and fully explained in the financial statements, and
-
prepare the financial statements on the ‘going concern’ basis unless it is inappropriate to presume that the charity will continue in operation.
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: 18 September 2023
Page 11
the ecological sequestration trust Statement of financial activities (incorporating an income and expenditure account) for the year ended 31 March 2023
| Restricted | Unrestricted | 2023 | 2022 | ||
|---|---|---|---|---|---|
| Funds | funds | Total | Total | ||
| funds | funds | ||||
| £ | £ | £ | £ | ||
| Incoming resources | |||||
| Donations | - | 60,001 | 60,001 | 171,503 | |
| Charitable activities | 3 | 40,941 | - | 40,941 | 73,723 |
| Other activities | 4 | - | 557 | 557 | 21,513 |
| Total incoming resources | 40,941 | 60,558 | 101,499 | 266,739 | |
| Expenditure on | |||||
| Charitable activities | 5 | (40,941) | (48,172) | (89,113) | (318,738) |
| Governance costs | 6 | - | (750) | (750) | (750) |
| (40,941) | (48,922) | (89,863) | (319,488) | ||
| Net movement in funds, being net | - | 11,636 | 11,636 | (52,749) | |
| income/ (expenditure) for the year | |||||
| Total funds brought forward | - | (695,770) | (695,770) | (643,021) | |
| Fund balance at 31 March | - | (684,134) | (684,134) | (695,770) |
There were no recognised gains or losses other than those stated above.
The notes on pages 15 to 22 form an integral part of these accounts.
All activities relate to continuing operations.
Page 12
as at 31 March 2023
the ecological sequestration trust Balance sheet
Company No. 07611969
| 2023 | 2022 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Fixed assets | 9 | - | 2,149 |
| Current assets | |||
| Investments | 10 | 1 | 2 |
| Debtors | 11 | - | 6,024 |
| Cash in bank and in hand | 611 | 6,508 | |
| 612 | 12,534 | ||
| Creditors: amounts falling due within 1 year | |||
| Trade and other payables | 12 | (402,266) | (329,953) |
| Provisions | 13 | (132,000) | (132,000) |
| (534,266) | (461,953) | ||
| Net current liabilities | (533,654) | (449,419) | |
| Total assets less current liabilities | (533,654) | (447,270) | |
| Creditors: amounts falling due in more than 1 year | |||
| Loans payable | 14 | (150,480) | (248,500) |
| Total net liabilities | (684,134) | (695,770) | |
| Funds | |||
| Restricted funds | 18 | - | - |
| Unrestricted funds | 18 | (684,134) | (695,770) |
| Total funds | (684,134) | (695,770) |
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 2023 the company was entitled to exemption from audit under section 477 of the Companies Act (“the Act”) relating to small companies.
Directors’ responsibilities:
-
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act;
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
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: 18 September 2023
Page 13
the ecological sequestration trust Balance sheet as at 31 March 2023
Company No. 07611969
The notes on pages 15 to 21 form an integral part of these accounts
| 2023 | 2022 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Cash flow from operating activities | 15 | (6,852) | 1,072 |
| Cash flow from investing activities | |||
| Purchase of fixed assets | - | (1,911) | |
| Sale of fixed assets | 955 | - | |
| Cash flow from financing activities | |||
| Interest paid | - | - | |
| Net (decrease)/increase in cash and cash equivalents | (5,897) | (839) | |
| Cash and cash equivalents at the start of period | 6,508 | 7,347 | |
| Cash and cash equivalents at the end of period | 611 | 6,508 |
Page 14
the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2023
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.
Page 15
the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2023
1.7 Fixed assets and depreciation
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.
Provisions are measured at the best estimate of the amounts required to settle the obligation.
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.
Page 16
the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2023
1.15 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.
2. Detailed comparatives for the statement of financial activities
| Restricted | Unrestricted | 2022 | ||
|---|---|---|---|---|
| funds | funds | Total funds | ||
| £ | £ | £ | ||
| Incoming resources | ||||
| Donations | - | 171,503 | 171,503 | |
| Charitable activities | 3 | 73,723 | - | 73,723 |
| Other activities | 4 | - | 21,513 | 21,513 |
| Total incoming resources | 73,723 | 266,739 | 266,739 | |
| Expenditure on | ||||
| Charitable activities | 5 | (73,723) | (245,015) | (318,738) |
| Governance costs | 6 | - | (750) | (750) |
| (73,723) | (245,765) | (319,488) | ||
| Net movement in funds, being net | - | (52,749) | (52,749) | |
| income/ (expenditure) for the year | ||||
| Total funds brought forward | - | (643,021) | (643,021) | |
| Fund balance at 31 March | - | (695,770) | (695,770) |
3. Income from charitable activities
| 2023 | 2022 | |
|---|---|---|
| Total | Total | |
| £ | £ | |
| Grant funding | 40,941 | 73,723 |
All income from charitable activities is restricted.
Page 17
the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2023
4. Income from other activities
| 2023 | 2022 | |
|---|---|---|
| Total | Total | |
| £ | £ | |
| CJRS grants | - | 21,263 |
| Profit on sale of fixed assets | 557 | - |
| Other | - | 250 |
| Total | 557 | 21,513 |
All income from other trading activities is unrestricted.
5. Resources expended – Charitable activities
| 2023 | 2023 | 2023 | |
|---|---|---|---|
| Direct costs | Support | Total | |
| costs | |||
| £ | £ | £ | |
| Grants awarded | 84,941 | - | 84,941 |
| Insurances | - | 2,255 | 2,255 |
| Computer expenses | - | 581 | 581 |
| Other office costs | 408 | - | 408 |
| Depreciation | 1,195 | - | 1,195 |
| Exchange losses on revaluation | (267) | - | (267) |
| 86,277 | 2,836 | 89,113 |
| 2022 | 2022 | 2022 | |
|---|---|---|---|
| Direct costs | Support | Total | |
| costs | |||
| £ | £ | £ | |
| Grants awarded | 163,250 | - | 163,250 |
| Employment costs | 144,367 | - | 144,367 |
| 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 |
6. Governance costs
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Independent examiner’s fee | 750 | 750 |
Page 18
the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2023
7. Net incoming resources/(resources expended)
This is stated after charging:
| his is stated after charging: | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Depreciation of tangible fixed assets – owned by the Trust | 1,195 | 1,512 |
| Independent examiner’s fee | 750 | 750 |
8. Staff costs
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Salaries | - | 131,921 |
| Social security costs | - | 9,647 |
| Pension costs | - | 2,799 |
| Total | - | 144,367 |
| Full time equivalent employees | - | 2 |
On 1 April 2022 all employees were transferred to the employment of Resilience Brokers Limited, a 100% owned subsidiary of the Trust.
9. Fixed assets
| Computer equipment | 2023 |
|---|---|
| £ | |
| Cost | |
| At 1 April 2022 | 6,806 |
| Additions | - |
| Disposals | (6,806) |
| At 31 March 2023 | - |
| Accumulated depreciation | |
| At 1 April 2022 | 4,657 |
| Disposals | (5,852) |
| Charge for the year | 1,195 |
| At 31 March 2023 | - |
| Net book value | |
| At 1 April 2022 | 2,149 |
| At 31 March 2023 | - |
Page 19
the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2023
10. Investments
| 2023 | |
|---|---|
| £ | |
| Cost | |
| At 1 April 2022 | 2 |
| Disposals | (1) |
| At 31 March 2023 | 1 |
| Net book value | |
| At 1 April 2022 | 2 |
| At 31 March 2023 | 1 |
During the year the 100% owned subsidiary, The Ecological Sequestration Trust (Trading) Ltd, was voluntarily liquidated and dissolved on 28 March 2023.
Subsidiary undertakings
The following were subsidiary undertakings of the company:
| Name | Class of | Holding | |
|---|---|---|---|
| shares | |||
| Resilience Brokers Limited | Ordinary | 100% | |
| 11. | Debtors | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Amounts owed fromgroupundertakings | - | 6,024 |
12. Creditors: amounts falling due within 1 year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Trade creditors | 73,919 | 73,821 |
| Accruals | 2,498 | 202,273 |
| Amounts owed to group undertakings | 227,829 | - |
| Other creditors (note 17) | 98,020 | 53,859 |
| Total | 402,266 | 329,953 |
| 13. | Provisions | ||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Provision forgrantspayable | 132,000 | 132,000 |
Page 20
the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2023
14. Creditors: amounts falling due in more than 1 year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Loanspayable | 150,480 | 248,500 |
15. Reconciliation of net (expenditure)/income to net cash flow from operating activities
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Net income / (expenditure) for year | 11,636 | (52,749) |
| Depreciation and impairment of tangible fixed assets | 1,195 | 1,512 |
| Decrease in debtors | 6,024 | 141,801 |
| (Decrease)/increase in creditors | 72,313 | (11,742) |
| (Decrease)/increase in loans payable | (98,020) | (77,750) |
| Net cash flow from operatingactivities | (6,852) | 1,072 |
16. Trustee remuneration
No trustees received nor waived any remuneration or expenses during the year (2022: £Nil). No trustees received any reimbursement for expenses incurred during the year (2022: £Nil).
17. Related party transactions
| Name of | Relationship to | Description of the |
2023 | 2022 |
|---|---|---|---|---|
| related party | the Trust | transaction | £ | £ |
| Resilience Brokers | Ltd | |||
| 100% subsidiary | Grants payable |
84,941 | 162,477 | |
| Owed to subsidiary | 227,829 | - | ||
| Owed by subsidiary | - | 6,024 | ||
| The Ecological Sequestration Trust | (Trading) Ltd | |||
| 100% subsidiary | Donation received |
- | 50,872 | |
| Professor P Head | ||||
| Chair | Donation received | 48,000 | 95,000 | |
| Owed to Prof Head | 248,500 | 296,500 |
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 £248,500 (2022: £296,500) of which £98,020 is current (2022: £48,000).
The loan capital is repayable by agreement either in full or part subject to the Trust having sufficient funding to do so.
Page 21
the ecological sequestration trust Notes to the financial statements for the year ended 31 March 2023
18a. Movements in funds (current year)
| Restricted funds GIZ – Development of a Mexican sustainability architecture to implement Agenda 2030 Unrestricted funds Total funds |
At 1 April 2022 Income & gains Expenditure & losses At 31 March 2023 |
|---|---|
| - 40,941 (40,941) - (695,770) 60,558 (48,922) (684,134) |
|
| (695,770) 101,499 (89,863) (684,134) |
The narrative to explain the purpose of each fund is given at the foot of the note below.
18b Movements in funds (prior year)
| At 1 April 2021 Income & gains Expenditure & losses At 31 March 2022 |
|
|---|---|
| Restricted funds Development of a Mexican sustainability architecture to implement Agenda 2030 Unrestricted funds Total funds |
- 73,723 (73,723) - (643,021) 193,016 (245,765) (695,770) |
| (643,021) 266739 (319,488) (695,770) |
Purposes of restricted funds
GIZ – Development of a Mexican sustainability architecture to implement Agenda 2030
The primary objective of the project is the green growth for the state of Yucatan, Mexico as a key part of its recovery from the Covid pandemic defined by the following benchmarks:
-
introduction of integrated systems, and data and modelling approaches that support effective green growth planning and decision making;
-
Co-creation of a strategy and action plan that builds skills and digital infrastructure to support green growth planning and decision making.
Page 22