THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS A COMPANY LIMITED BY GUARANTEE REPORT AND FINANCIAL sfATEMEN15 FOR THE YEAR ENDED 31 DECEMBER 2023 BOYDELL & CO Chartered Accountants 146B Chiswick High Road London W4 IPU Charity number: 1165766 Company number: 09732439
CONTENTS Company inforniation Report of the Executive Committee 2-5 Report of the Independent Examiner Statement of Financial Activities Balance sheet Notes to the Financial Statements 9-14
THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS COMPANY INFORMATION EXECUTIVE COMMITfEE Josie Donaldson (Chair) Anne Andenaes Trevor Dwyer Catherine Jacobs Rui Parkinson Jon Tay Seng Tong Kyoto W(x)d COMPANY NUMBER 09732439 CHARITY NUMBER 1165766 REGISTERED OFFICE 146 South Faling Road London W5 4QL INDEPENDENT EXAMINER Malcolm Barry Boydell FCA Chartered Accountant 146B Chiswick High Road London W4 IPU
THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS REPORT OF THE EXECLrrtVE COMf¥llThEE FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees, who are also directors of the charitable company for the purposes of the Companies Act, submit their annual report and the independently examined financial statements of the charitable company for the year ended 31 December 2023. The financial statements comply with the Charities Act 2011, the Companies Act 21M)6, the Memorandum and Articles of Ass(Kiation and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective I January 2015). PURPOSES AND AIMS The charity had been operating for many years as an unincorporated entity (charity registration number 327290) but these activities were taken over by the new charitable company from l April 2016. The assets and liabilities of the unincorporated charity were taken over on this date. The company was incorporated (company number 09732439) on 13 August 2015 and registered with the Charity Commission (re8. number 1165766) on 25 February 2016. The charitable cornpany is governed by its Memorandum and Articles of Associatio There are currently 7 members of the charitable company. All members agree to contribute £1 in the event of the company winding up. The objects of the Federation are the preservation of health by advancing the knowledge, practi of and expertise in aromatherapy by educatiorn teachin& research and training. The thair of the Trustees is nominated and elected by the Board of Directors at the first council meeting after the AGM. New members are nominated by the Trustees and selected for appointment by the Trustees. New Trustees undergo a period of induction to brief them of their legal obligations under Charity and Company Law, the content of the Memorandum and Articles of Association and the decision- making processes. RISK MANAGEMENT The trustees have examined the major strategic, business and operational risks which the charity faces and confirni that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. RESERVES POLICY It is the policy of the charity to maintain unrestricted funds. which are the free reserves of the charity. at a level, which equates to approximately six months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs.
THE INTERNATIONAL FEDERATION OF AROMATHERApFrs REPORT OF THE EXECLrrivE COMMrrrEE FOR THE YEAR ENDED 31 DECEMBER 2023 CONTINUED FINANCIAL REVIEW The charity recorded a surplus of a73,646 for the year (2022: surplus of £83,811) resulting in total reserves of £1,297,240 at 31 December 2023 (2022: £1.123.594). All reserves are unrestricted. ACTtVlTIES The accounts show a good year with an increase of revenue, this is due to a steady increase of exams annually which has resulted in an expansion of membership. *hooIs have all benefited by instructor-led training within their courses. ensuring the calibre of IFA teachers are of the highest Standard. We intend to arranse this type of training annually. Due to Covid the overseas schools and members had not been vxsited for several years. We attended two exhibitions during the year 'The Diet and Beauty Show 'Tokyo Uapan) and 'Cosmoprof' (Hong Kong) surrounding this event we organised regional meeting and workshops to support our members continual professional development programme5. Both these platforms allowed us important public relations opportunities to showcase our members and research projects. We have since been invited to be interviewed for various magazines internationally. We also organised our National 'Aromatherapy Awarene&s Week, in the 2nd week of June, this was well received with health centres, clinic, hospices and care homes promoting Aromatherapy. For 2023 we sponsored Mandeville Special Needs school where the children are severely disabled with multiple disorders. We tsught the line managers how to introduce aromatherapy into the classrooms, further training will take place in 2024 for continuity. We also SUPPOTted our yearly Christmas Crisis project for the homeless again, which involved our local communities. We invested and collaborated with Northumbria University during 2022 on two of three research projects. The first research project tested the IFA chosen blend of essential oils against the biomarkers markers of stress, which scientifically proved to reduce stress and improve mental health. These findings are being submitted for publication in various medical journals. We are waitins for the results of the second project using the Same blend but using C02 plant extracts these will be compared with the traditionally extracted 0115. Members of the public and our aromatheraplsts have participated in iK)th trials. We continue to be accredited by the Professional Standards Authority (PSA), a UK body accountable to parliament and are an active member of the PSA Collaborative group and Integrated Health Collaboration (IHQ. We are also a verifying organisation of aromatherapists for the Complementary and Natural Healthcare Council (CNHC) and consultants for Nationa] Institute and Care Excellence (Nice). This enables US to ensure our members are at the forefront of developments in the field and to represent our members interests collectively before Government bodies. We also continue to be recommended by the NHS. UK Government National Careers Office and Universities and Colleges Admissions Office (UCAS) and our journal registered with the British Library.
THE IKTERNATtONAL FEDERATION OF AROMATHERAPISTS REPORT OF THE EXECUTtVE COMMITTEE FOR THE YEAR ENDED 31 DEMBER 2023 CONTINUED DIREcfoRS AND TRUSTEES The directors of the charitable company are its trustees for the purEK)ses of charity law. The trustees serving during the year and since the year end were as follows.. Directors and Trustees: Anne Andenaes Josie Donaldson Trevor Dwyer Catherine Jacobs Rui Parkinson (appointed 20 May 2023) Jon Tay Seng Tong (appointed 28 April 2023) Kyoto Wood (appointed 28 April 2023) Sara Hawkins Alison Savage Martyn Yates (resigned 20 May 2023) (resigned 20 May 2013) (resigned 20 May 2023) TRUSTEES, RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS The Trustees (who are also the directors of the International Federation of Aromatherapists for the purposes of company law) are responsible for preparing the Trustee's annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Prartice). Company law requires the Ttee$ to prepare financial statements for each financial year whAch give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the company for that period. In preparing those financial ststements, the Trustees are required to: select suitable accounting policies and apply them consi5tentiy; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the fAnancial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
THE INtERNATIONAL FEDERATION OF AROMATHERAPISTS REPORT OF THE EXECUTIVE COMMITfEE FOR THE YEAR ENDED 31 DECEMBER 2023 CONTINUED IRUSTEES. RESPONSIBILITIFS IN RELATION TO THE FINANCIAL STATEMENrs CONTINUED The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 21X)6. They are also responsible for safeguarding the assets of the tharity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitsble company s website. l£gislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In accordance with company law, as the charitable company Trustees, we certify that: so far as we are aware, there is no relevant inforniation of which the charitable company's independent examiners are unaware; and as the Trustees of the charitable company have taken all the steps that we ou8ht to have taken as directors in order to make ourselves aware of any relevant information and to establish that the company's independent examiner is aware of that information. INDEPENDENT EXAMINER The trustees consider that for the year ended 31 December 2023 the company was entitled to exemption from a statutory audit under section 477 of the Companies Act 2006. Under the provisions of the Act, the directors have appointed Mr Malcolm Barry Boydell FCA, as Independent Examiner. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2c6 relating to small companies. ON BEHALF OF THE TRUSTEES: sie Donaldson 2024 146 South Ealing Road London W5 4QJ
INDEPENDENT EXAMINERS REPORT TO THE TRUSTEFS ON THE UNAUDITED ACCOUNTS OF THE INTERNATIONAL FEDERATION OF ARONffHERAPISTS GUARANTEE A COMPANY LIMrrED BY FOR THE YEAR ENDED 31 DECEMBER 2023 I report on the accounts of the company for the year ended 31 December 2023 which are set out on pages 7 to 14. Res ective re5 onsibilities of trustees and examiner The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Having satisfied myself that the charity is not subj'ect to audit under company law and is eligible for independent examination, it is my responsibility to: examine the accounts under section 145 of the 2011 Art; to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act: and to state whether particular matters have come to my attention. Basis of inde endent examiner's re rt My examination was carried out in accordance with the general Dirertions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair Vie and the report is limited to those matters set out in the statement below. Inde endent examinerfs statement In connection with my examination, no matter has come to my attention: (l) which gives me reasonable cause to believe that in any material respect the requirements: (a) to keep accountins records in accordance with section 386 of the Companies Act 2006: and (b) to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 386 of the Companies Act 2( and with the methods and principles of the Statement of Recommended Practi. Accounting and Reporting by Charities have not been met; or (2) to whicll in my opinion, attention should be drawn in order to enable a proper understandilig of the accounts to be reached. Malcolm Barry Boydell FCA Chartered Accountant 146 B Chiswick High Road London W4 IPU 2024
ThE INrtERNATIONAL FEDERATtON OF AROMATHERAPtSTS STATEMENT OF FINANCIAL A1v1T1Fs FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Incomin Resources Membership Examinations Registration of schools Booklets and leaflets Gift Aid - covenanted income Magazine Workshops Other income Net investment income/ (charge) 302,956 205,610 37Jg) 3,141 3,037 I,iii 18,650 261,643 163.454 39.651 4.740 3.602 1.599 15.521 8,193 (7,028) Total incomins resources 483,182 Resources Ex ended Cost of generating funds.. Fundraising expenses Charitable expenditure: Direct charitable expenditure Management and administration 109,629 IfJ,717 306,786 268.326 Total resources expended 416,415 362,043 Net surplus for the year 163053 121,139 Value adjustments in respect of investments - unrestricted 9,793 (37,328) Total surplus for the year 173.646 83.811 Fund balances brought forward 1.123594 1,039,783 Fund balances carried forward £ 1,297,240 £ 1,123,594 The notes on the following pages form an integral part of these financial statements.
THE INTERNATIONAL FEDERATION OF ARoMATHE1PlsTS BALANCE SHEET AT 31 DECEMBER 2023 Note 2023 2022 FIXED ASSETS Tangible assets 320,512 328,143 320,512 328,143 CURRENf ASSE15 Debtors and prepayments Investments Cash at bank 3.951 361,463 617.6n 17,340 344,032 469,210 983,085 830.582 CREDITORS: amounts falling due within one year (6J57) (35,131) NET CURRENT ASSETS 976,728 795,451 TOTAL ASSE15 £ 1.297,240 £ 1,123,594 Represented by: uNRESfRIED FUNDS io £ 1,297,240 £ 1,123,594 For the financial period ended 31 December 2023 the company was entitled to exemption from audit under section 477 Ismall company exemption] Companies Act 21x16; and no noti has been deposited under section 476 [membeT or members requesting an audit]. The trustees acknowledge their resporLSibilities for ensuring that the company keeps accounting records which comply with s. 386 and for preparing accounts which give a true and fair view of the stste of affairs of the company as at the end of the financial year and of its surplus or deficit for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2(KK) relating to accounts. so far as applicable to the company. The financial statements have been prepared in accordance with the special Provisions of Part 15 of the Companies Act 2(KNfj relating to small companies. The financial statements were approved by the Trustees on 2024. Josie Donaldson The notes on the following pages form an integral part of these financial statements.
THE INTERNATIONAL FEDERATION OF AROMATHERApisrs NOTES TO THE FINANCIAL ATEmENTs FOR THE YEAR ENDED 31 DECEMBER 2023 I. ACCOUNTING POLICIES Statutory information The International Federation of Aromatherapists is a private company. limited by guarantee, and domiciled in England and Wales. It has a Companies House registration number 09732439 and is registered at the Charity Commission under reststration number 1165766. The Federation's resistered office is 146 South Ealing Road, London, W5 4Ql. Staternent of compliance The Federation's financial statements have been prepared in accordance with the provisions of the Accounting and Reportins by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reportin8 Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (as amended by SORP update bulletin I conceming the non-disclosure of a cashfiow statement), the Companies Act 2006 and the Charities Act 2011. There were no material departures from the standard or acts. The International Federation of Aromatherapists meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Goin concern The Trustees have reviewed the Federation's financial position and considered the impact of future activities, including the impact of the COVID 19 pandemic, to ensure it is approprxate to produce the accounts on a soing concern basis. Tan ible fixed assets Long leasehold buildings are depreciated at an annual rate of 2% on a straight-line basis. Other financial irLStruments Other financial instruments which include investments in equity instruments are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair va]ue and the changes in fair value are recognised in the Statement of Financial Activities, except that investnients in equity instruments that are not publicly traded and whose fair values may not be measured relxably are measured at cost less impainnent. Financial assets, other than those held at fair value, are assessed for indicators of impairment at each reporting end date. Turnover Turnover represents predominantty world-wide membership fees receivable.
10. THE INfERNATIONAL FEDERATION OF AROMATHERAPIS15 NOTFS TO THE FINANCIAL sfATEMEN15 FOR THE YEAR ENDED 31 DEMBER 2023 CONfINUED l. AccouNfiNG POLICIES Value Added Tax Value Added Tax is not recoverable by the charity and as such is induded in the relevant costs in the Statement of Financial Activities. Unrestricted Funds Unrestricted funds are donations and other incoming re8ouTces receivable or generated for the objects of the charity without further specified purpose and are available &$ general funds. Restricted Funds Restricted funds are to be used for speclfic purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together wlth a fair allccation of management and support costs. 2. NET INV INCOME CHARGES 2023 2022 Interest on cash deposits Other interest received Dividends received Other income distributions (Loss) on disposal of investments Investment charges 478 4,404 6,601 669 (1,468) (2,491) ioi 3,092 5,878 495 (13,8481 (2,746) £ 8.1¥3 £ (7,028) 3. DIRECT CHARITABLE EXPENDfTURE 2023 2022 Translation costs Magazines Books purchased for resale Booklets, leets and directories Exhibitions and meetings Examinations Miscellaneous costs Patents and tradernark8 Research costs (Universlty of Northumbria) UK conference costs Workshop costs Charity projects 7,933 11,968 4,185 14,170 273 40,912 243 26,202 591 43,140 44,1 423 1.925 1793 £ IIY3,629 £ 93,717
ii. IHE INTERNATIONAL FEDERATION OF AROMATHERAPISTS NOTFS TO THE FINANCIAL STATEMENrs FOR THE YEAR ENDED 31 DECEMBER 2023 CONTINUED 4. MANAGEMENT AND ADMINISTRATION EXPENDITURE 2023 2022 Note Gross salaries Other staff costs Staff training and recruitment Office heating, lighting and council tax Office telephone and intemet Website Postage, printing and stationery Travel, accommodation and council expenses Property service charges and insurance Advertising, PR and UK entertainins Bank charges Book-keeping and accountancy Professional Standards Authority Other association5 Independent examiner's fee Repairs and low value assets Computers and IT maintenance Depreciation - leasehold property Photocopier rental 162,357 3,831 156,808 3,856 2,167 3.923 6,143 5.657 43.597 43.953 31,098 7.824 534 8.744 6,598 11,708 1,169 3,780 2,780 5,891 7,631 3,154 2,746 1,295 7,383 3,608 11,503 1,127 3,780 2,091 5,042 7,631 5,703 £ 306,786 £ 268226 5. OPERATING SURPLUS Operating surplus is shown after charging: 2013 2022 Depreciation on tangible fixed assets £ 7,631 £ 7.631
12. THE INfERNATIONAL FEDERATION OF AROMATHERAPlSt5 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2(Y13 CONTINUED 6. STAFF COS15 2023 2022 Gross wages and salaries Social security costs Pension costs 140,921 9,435 12,(Kll 135,459 10,552 10,797 £ 162357 £ 156,808 No Trustee received any remuneration during this or the previous year in their capacity as a trustee. One employee Teceived remuneration between £60,(K)l and £65,000 (2022: one employee). The average number of staff employed by the charity during the year was as follows: 2023 2022 Direct charitable work 7, TANGIBLE FIXED ASSE15 Leasehold Property COST At l January and 31 December 2023 381,560 DEPRECIATION As at l january 2023 Charge for the period 53,417 7.631 As at 31 December 2023 61,048 NET BOOK VALUE As at 31 December 2023 £ 320.512 As at 31 December 2022 £ 328,143
13. THE INTERNATIONAL FEDERATION OF AROMATHERAP1515 NOTFS TO THE FINANCIAL sfATEMEW15 FOR THE YEAR ENDED 31 DECEMBER 2023 coNriNUED 8. CURRENT ASSET INVFsfMENTS 2023 2022 Listed investments £ 361,463 £ 344,032 At the reporting date, listed investments held with Quilter Cheviot Limited are held at their market value. in accordance with their valuation report prepared by Quilter Cheviot. 9. CREDITORS: Amounts fallin due within one ear 2023 2022 Trade CTeditors Accruals Social security and other taxes Income received in advance 1,666 3,780 911 27,613 3,780 £ 6J57 £ 35,131 10. ACCUMULATED FUND - UNRESTRIcfED 2023 2022 Balance at I January 2023 1,123,594 1,039,783 Excess of income over expenditure for the year 173,646 83,811 Balance at 31 December 2023 £ 1,297,240 £ 1,123,594 11. RELATED PARTIES There are no related party transactions to report, other than the remuneration earned by the Federation's employees. 12. OTHER FINANCtAL COMMTfMEW15 At 31 December 2023 the Federation had no annual comniitments under non-cancellable operating leases. 13. CONTENGENT LIABILITIES At 31 December 2023 the Federation had no contingent liabilities.
14. THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS NOTES TO THE FINANCIAL sfATEMENrs FOR THE YEAR ENDED 31 DECEMBER 2023 CONTINUED 14. OFF BALAN SHEET ARRANGEMENTS There are no material off-balanee sheet arrangements to disclose. 15. EVENTS SINCE THE BALANCE SHEEf DATE There are no events on which to report. 16. FINANCIAL INSTRUMENTS Other than its investments, the Federation has no other financial instruments than basic financial instruments. 17. TRUSTEES. ADVANCES CREDIT AND GUARANTEES There were none made during the year.