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← The Cotton Tree Trust

2024-12-31-accounts

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Charity registration number 1172069

THE COTTON TREE TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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THE COTTON TREE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees
Charity number
IAA (formerly OISC) Reference Number
Senior Management
Registered office
Independent examiner
Bankers
Website
Solicitors		 Michael Mark
Judith Favour Ahikire
George Goldstein
Dr Ruth Cigman
Shreya Mugdal
(Resigned on 26 March 2025)
Kidist Woldesenbet
(Resigned on 10 May 2024)
Corin Alexei Etienne Menuge
(Appointed on 11 May 2024)
Kevin Randriamanantena
(Resigned on 31 May 2024)
Dr. Janice Ann Derry
(Appointed on 11 May 2024,
Resigned on 11 June 2025)
1172069
N202000123
Allison Marie Cox CEO
(Resigned on 12 April 2024)
Ayan Yalchin CEO
(Appointed on 13 May 2024)
Manor Gardens Welfare Trust
6-9 Manor Gardens
London
N7 6LA
Samir Shah FCA, ATII
Ramon Lee Ltd
Chartered Accountants
93 Tabernacle Street
London
EC2A 4BA
Lloyds Bank
Holborn Circus Branch
London
EC1N 2HP
www.cottontreetrust.org.uk
Dentons UK and Middle East LLP
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
MK9 1FE

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THE COTTON TREE TRUST

CONTENTS

Page
Trustees' report 1 - 7
Independent examiner's report 8
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11 - 21

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THE COTTON TREE TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees present their annual report and financial statements for the year ended 31 December 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Trust Deed, the Charities Act 2011 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 1 January 2019).

Objectives and activities

THE CHARITY’S VISION

Our vision is an inclusive society that respects the rights and dignity of asylum seekers and refugees, seeking justice and a flourishing life for all.

AIMS

We aim to help a limited number of impoverished refugees, asylum seekers and their families to move on with their lives by providing an excellent, personally sensitive service. We also aim to address systemic limitations in the culture surrounding immigration, especially as these affect children. This has included working with banks to make it easier for asylum seekers and refugees to obtain bank accounts, as well as holding the Home Office to account when they fail to fulfil their stated promises.

OBJECTIVES

Our objectives are set out in full in our Trust Deed and can be found on the Charity Commission website.

Clients are generally referred to us by charities that do not have the resources to help them, for example, the Refugee Council and the Red Cross. They also self-refer as a result of personal recommendations and internet searches.

STRUCTURE

The Charity has two branches: Legal & Casework and Heal & Grow.

SERVICES

Clients seeking asylum or humanitarian protection benefit from one or more of the following integrated services:

The community meets regularly on zoom, at monthly lunches and at other events.

We say on our website:

The asylum process is usually long and devastating. Delays can be endless and honest testimonies disbelieved. Expectations of people with traumatic histories—that they should lucidly recall, on cue, everything that has happened to them—are often wildly unrealistic. When all goes well and leave to remain is granted, settling in the UK as a refugee can also be a difficult challenge. All this can be unbearable if one is lonely and isolated. Our aim in the Heal & Grow branch is to help members to develop resilience through community. We meet informally at social gatherings, and regularly in workshops. Members, staff and volunteers share ‘relaxed time’ for talking, listening and creativity.

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THE COTTON TREE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

· Legal/practical help pre-leave to remain, including

· Legal/practical help post-leave to remain, including

Clients are invited to maintain their connections with the Charity indefinitely and to ask for help as required.

FUNDING OBJECTIVES

While the Charity has adequate funds to continue throughout 2025 to provide services at their current level, further funding will be needed to enable us to maintain and expand our unique holistic assistance to asylum seekers and refugees. To help achieve this, in September 2024 we obtained a legal aid contract for our immigration law work, having first raised our level of immigration work from OISC (now IAA) level 2 to level 3.

We currently have two solicitors and five immigration advisers able to undertake such work and plan to find other fee earners in this area over the coming year. We anticipate that, so long as the government promptly implements the promised and long overdue 30% rise in legal aid fees, the costs of our legal aid team and a significant part of our core costs will be covered by our legal aid receipts from mid-2026.

We are likely to need funding from elsewhere to cover the other services we provide and are working actively to secure such funding.

Many organisations offer refugees and asylum seekers legal and practical support, but social and emotional issues are often treated as secondary. Alternatively, they focus on the latter but not the former. From the start, we have been committed to engaging holistically and personally with our clients; one of our original aims was to offer a good service to a few rather than a poor service for many. This focus is much more demanding than it sounds. No two asylum seekers or refugees are identical, and it can take time to get to know them and fully assess their needs. This is imperative, we believe, in a system that tends to de-personalise people, and it has enormous benefits (including a high legal success rate). But it brings organisational challenges in terms of staff time and potential burn-out, as well as the responsibility of being fair. Our services are labour intensive as we negotiate the balance of acute and varied individual needs.

WHAT DOES THE HOME OFFICE PROVIDE FOR ASYLUM SEEKERS?

It is important here to distinguish between what the Home Office is supposed to provide and what is provided in reality for destitute asylum seekers. In the broadest terms, in 2024, the Home Office was supposed to provide for most destitute asylum seekers either hotel or hostel accommodation with meals plus £9.95 per week, or selfcatering accommodation plus £49.18 per week). This compares with a London living wage of £13.85 an hour.

There are rules as to what should be included in the accommodation (e.g. functional toilets, bathrooms, refrigerators etc.) and a timescale within which breakdowns, plumbing problems etc should be dealt with.

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THE COTTON TREE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

In practice, there are constant problems

In 2021, one of our clients wrote this about the weekly allowance, then £39.63

The financial allowance for people like me is a death sentence. The London living wage is £10.20 per hour, but asylum seekers are expected to live on £5.39 a day.

I accept this allowance in order to sustain my miserable life and communicate my message.

The government of my country is abusing and killing people. It killed my family.

The Cotton Tree is trying to get the Home Office to hear. Will they succeed? When? For how long must I live this way?

There are no special shops for people in my position. I have to go to the same shops as people who earn a proper wage. If I budget carefully, £5.39 will buy me: one loaf of bread, a pack of rice, a tin of beans, a litre of milk, one apple, one orange. This leaves nothing for travel, clothes, cleaning materials or personal hygiene.

On Home Office rations I face daily dilemmas. Shall I fill my stomach today and go hungry tomorrow? What choices should I make to preserve my health, so that I have the best chance of seeing my case through? How can I avoid getting sick? Should I walk or take the bus? What will I do when my boots wear out?

It’s torture to see the things I can’t buy on the market stalls. It’s unbearable to be denied the right to work and give something back to the country that accepted me when I was in crisis.

I am a human being. I have a voice. I am you in another future, another space or time. We need to sustain each other in adversity in order to preserve mankind.

Achievements and performance

Overall, the Charity helped over 175 people in 2024. This included over 120 who received help with their asylum claims and about 55 who received help with food vouchers, wifi, community and other welfare. For those who obtained, or had previously obtained, leave to remain, we helped them settle, in particular by helping them obtain housing, bank accounts and access to benefits.

Legal & Casework Branch

The Charity was registered with the Office of the Immigration Services Commissioner, registration being completed in January 2021. In 2023 it was authorised to provide immigration services up to level 2, which included helping with claims to the Home Office but did not include acting on appeals to a tribunal from a negative Home Office decision.

The Charity has now been registered at level 3 and, in September 2024, obtained a legal aid contract to provide help with asylum claims and appeals.

The Heal & Grow Branch

The Heal and Grow Branch continues to be a warm and welcoming community where asylum seekers enjoy what they describe as a family-like atmosphere. Members exchange news and greetings on WhatsApp on a more or less daily basis. They meet three Thursdays a month on zoom for the Fellow Travellers group, led by two refugees, Michael Mugishangyezi and Betty Kabalemba. On the third Thursday of the month, they meet for lunch, and staff and trustees often join in.

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THE COTTON TREE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

At the end of 2024, the group came together for a joyful Christmas party, with dancing and food from around the world.

A note of gratitude: The cotton Tree trust evokes a feeling of warmth, a home from the cold. The kindness and guidance that been extended to me is unfathomable, coming from a place of Hate and prejudice, I feel human, now I want to live, am alive!

During this period, we have cut back on our workshops and other activities, because of financial constraints. However, in 2024 we formed a partnership with Painting Progress: Art for Social Impact, with the promise of workshops and fundraising support (fulfilled in 2025). We also started to address the question of eligibility for Heal & Grow, given that we acquired a Legal Aid contract in 2024 that would lead to a substantial expansion of numbers, exceeding our capacity unless we raise significant extra funds. Heal & Grow Branch

Destitution

The majority of asylum seekers are destitute and, at best, dependent on the paltry asylum support of £49.18 per week, raised in December 2023 to that amount only after the Home Office was ordered to do so by the High Court. Our clients’ difficulties were compounded by the fact that food prices in local shops rose noticeably or were erratic, making it impossible for asylum seekers on the limited government allowances to budget properly.

We were fortunate in 2024 to receive support relieving destitution amongst our clients from the London Churches Refugee Fund (destitution generally) and the Society of the Holy Child Jesus (food vouchers).

In 2024 we provided Tesco vouchers to 20 adults and 12 of their children, most of them on a regular basis, enabling them to achieve a basic level of sustenance.

BANKING FOR REFUGEES

Following discussions between the Charity and Lloyds Banking Group in 2019, Lloyds Banking Group started a pilot project making it easier for refugees and asylum seekers to open bank accounts. The pilot project was expanded in 2020 and the Charity continued to act as a link between other charities assisting refugees and asylum seekers to open bank accounts and Lloyds Banking Group where problems were encountered. By late 2021, the project had been extended to all branches of Lloyds Bank, Halifax Bank and the Bank of Scotland, and, with our initial assistance, in late 2021 and 2022, seminars began to be held by the Lloyds Banking Group Customers Vulnerability team which were open to members of the Asylum Support Appeal Network (ASAN). Email contact details have now been provided by the Customer Vulnerability team on the ASAN network so that any member of that network having problems helping a refugee or asylum seeker to obtain a bank account can contact the team for assistance.

In addition, the Charity is asked for and provides support and advice to other ASAN members with regard to obtaining bank accounts for their clients.

The Cotton Tree is proud that its efforts have resulted in this significant development which makes the lives of many asylum seekers and refugees and those helping them significantly easier in an area where there have been serious problems in the past.

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THE COTTON TREE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Comments from other ASAN members include:

“Fantastic news indeed

Thank you very much”

”That’s brilliant news; well done and thank you for your hard and tireless work on this!”

“We were really excited to read your email on ASAN last week. I manage the refugee support service at the British Red Cross in London. Our team support refugees and asylum seekers across London and we face ongoing issues with access to bank accounts.”

“Thank you very much for helping me in this case. Your advice led to the Chinese lady getting a specific letter from her GP, and now she has her Lloyds Bank debit card! She is really happy and able to move forward with her job applications. So, thanks again.”

We estimate that by making it easier for asylum seekers and refugees to obtain bank accounts, we have already helped tens of thousands of people.

Volunteers

During 2024 the Charity had 10 volunteers.

Employees

During 2024 the Charity had an average of 5 employees.

Public benefit statement

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’. The achievements and activities above demonstrate the public benefit arising through the Charity’s activities.

Financial review

The total donations received during the year amounted to £17,461 (2023 - £24,162). Of this, £200 (2023 - £Nil) was restricted and £17,261 (2023- £24,162) was unrestricted. This includes donations in kind of £16,318 (2023 - £17,900).

Our total expenditure was £191,410 (2023 - £179,735). Our deficit of income over expenditure during the period was £134,641 (2023 – net deficit of £153,262) and, after other gains / (losses), left us with reserves of £304,745 (2023 - £439,386). Our principal asset at the end of the period was a bank balance of £14,040 (2023 - £11,334), investments worth £289,382 (2023 - £432,670) and debtors (mainly refugees to whom we had made loans) of £3,936 (2023 - £2,897).

Average net interest rates on term deposit accounts in 2024 were about 5%. The longer term investments were all realised in 2023 and invested in interest bearing bank accounts for terms of up to 12 months. The Charity has an Ethical Investment Policy.

Principal funding sources

The charity continued to fund its activities from its original start-up funding. Apart from small donations, all new funding received in 2024 was to provide help for its destitute clients. What remains from our initial funding is being used to develop our legal aid contract, where there is typically a 7-8 months delay between paid staff doing the work and the Legal Aid Authority paying for it. Our other activities are therefore dependent on future funding. We are very grateful to the Society of the Holy Child Jesus, NACCOM and the London Churches Refugees Fund for the help they have given in this respect.

Investment powers and policy

The trustees have the powers of investment conferred by the Trustee Act 2000 and by their trust deed. They have an ethical investment policy.

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THE COTTON TREE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Reserves policy

At the close of the period under review we retained over £300,000 unrestricted general funds available or becoming available for day to day expenditure in the course of 2024. The trustees consider this to be a prudent reserve at this stage of the Charity’s development, having regard to our current plans re staffing, legal aid funding and other commitments for 2024-25.

As at 31 December 2024 the financial statements showed reserves of £304,745 (2023 - £439,386) of which £3,599 (2023 - £659) were restricted funds and £301,146 (2023 - £438,727) were unrestricted funds. The unrestricted funds not designated or invested in tangible fixed assets held by the charity are £300,194 (2023 - £436,930).

Going Concern

After making appropriate enquiries, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Plans for future periods

During 2024 we have been reorganising with a view to developing our vision and mission and strengthening our ability to meet the needs of the growing number of refugees and asylum seekers falling foul of the “hostile environment”.

With a new legal aid contract, we are expanding our immigration advice and representation services and will be using receipts from the Legal Aid Authority to cover a substantial and increasing part of our outgoings. Our aim is ultimately to cover the whole of our legal aid expenses and other core costs from those receipts.

Structure, governance and management

Governing document

The organisation is a trust registered as a charity with the Charity Commission on 15 March 2017 (Charity no.1172069). The charity is established under a written Trust Deed dated 22 October 2016 that established the objects and powers of the charity and is also governed under this Trust Deed.

Recruitment and Appointment of Trustees

The board of trustees is responsible for the management of the Charity. None of the trustees has any beneficial interest in the Charity. Trustees are appointed by a resolution of the trustees at a special meeting called in accordance with the provisions of the Trust Deed.

The Board met at roughly quarterly intervals throughout 2024.

Our CEO’s, first Allison Cox and then Ayan Yalchin, were the Charity’s most senior staff members.

Organisation structure

The Charity had 7 trustees for the majority of 2024. Two of those trustees worked actively throughout the year. Three other trustees also worked as volunteers on different aspects of the Charity’s affairs. The Charity’s staff, apart from the CEO, consisted of a solicitor, two to three staff members dealing with casework admin and comms, and a refugee who ran the weekly Heal & Grow Branch zoom meetings.

Trustee induction and training

New trustees are briefed on their legal obligations under charity law, the content of the Trust Deed, decision-making processes, policies, risk register, annual targets and financial performance. Trustees are also introduced to the Charity’s staff and briefed on their areas of work. They are encouraged to attend appropriate training events.

Risk Management

The trustees are committed to a policy of identifying, monitoring and managing the risks that might adversely affect the activities of the Charity. In this context, risk is defined as the potential to fail to achieve the Charity’s objectives and for loss, financial and/or reputational. An ongoing process is in place for identifying, evaluating and managing any significant risks faced by the Charity and identified by the trustees or senior management. Appropriate actions have been put in place to mitigate the exposure to and possible consequences of these risks.

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THE COTTON TREE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Related parties

During the year there were no related party transactions.

The Charity receives occasional pro bono advice from Dentons solicitors as to legal issues.

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity 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 charity and the financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

|The trustees' report was approved by the Board of Trustees and signed on its behalf by:
..............................
Signedby:
| Midvacl Mart
1714A42CAE5E4B6...|The trustees' report was approved by the Board of Trustees and signed on its behalf by:
..............................
DocuSignedby:
Kutle. Cigmaw
1E2283383EF8417...| |---|---| |Michael Mark|Ruth Cigman| |Trustee|Trustee|

25 September 2025

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THE COTTON TREE TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE COTTON TREE TRUST

I report to the trustees on my examination of the financial statements of The Cotton Tree Trust (the charity) for the year ended 31 December 2024.

This report is made solely to the charity's trustees, as a body, in accordance with the Charities Act 2011. My work has been undertaken so that I might state to the charity's 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 charity and the charity's trustees as a body, for my Independent Examination, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the charity 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 the charity’s financial statements carried out under section 145 of the 2011 Act. 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

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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

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 financial statements to be reached.

Samir Shah FCA, ATII

Ramon Lee Ltd Chartered Accountants 93 Tabernacle Street London EC2A 4BA

Dated: 25 September 2025

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THE COTTON TREE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024

Unrestricted Restricted Total Total
funds funds 2024 2023
Notes £ £ £ £
Income from:
Donations and legacies 3 17,261 200 17,461 24,162
Charitable activities 4 - 11,750 11,750 1,900
Investments 5 27,558 - 27,558 411
Total income 44,819 11,950 56,769 26,473
Expenditure on:
Raising funds 6 28,516 - 28,516 5,625
Charitable activities 7 153,884 9,010 162,894 174,110
Total expenditure 182,400 9,010 191,410 179,735
Net income/(expenditure) and net
movement in funds before gains and losses on
investments (137,581) 2,940 (134,641) (153,262)
Net gains/(losses) on investments 9 - - - 5,041
Net movement in funds (137,581) 2,940 (134,641) (148,221)
Fund balances at 1 January 2024 438,727 659 439,386 587,607
Fund balances at 31 December 2024 301,146 3,599 304,745 439,386

CONTINUING OPERATIONS

None of the charity’s activities were acquired or discontinued during the above two financial periods.

TOTAL RECOGNISED GAINS AND LOSSES

The charity has no recognised gains or losses other than the above movement in funds for the above two financial periods.

The notes on pages 11 to 21 form part of these financial statements.

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THE COTTON TREE TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2024

2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 12 952 1,797
Current assets
Debtors 13 3,936 2,897
Investments 14 289,382 432,670
Cash at bank and in hand 14,040 11,334
307,358 446,901
Creditors: amounts falling due within
one year 15 (3,565) (9,312)
Net current assets 303,793 437,589
Total assets less current liabilities 304,745 439,386
Income funds
Restricted funds 16 3,599 659
Unrestricted funds - general 301,146 438,727
304,745 439,386
The notes on pages 11 to 21 form part of these financial statements.
The financial statements were approved by the Trustees 25 September 2025 and were signed on its behalf by:
Signedby:
NM
Marte
DocuSigned by:
1714A42CAE5E4B6...
 Kutle Cigmaw.
1E2283383EF 8417...
Michael Mark Ruth Cigman
Trustee Trustee

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THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing documents, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The charity’s financial statements show net deficit of £134,641 (2023 – net deficit £148,221) and free reserves of £300,194 (2023 - £436,930) as at the year end. The trustees are of the view that these results have secured the immediate future of the charity for the next 12 months and on this basis the charity is a going concern.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and amount can be measured reliably. Investment income is included when receivable.

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Grant income

Grants are credited to the SOFA when the charity is entitled to the funds. Income is only deferred where there are time constraints imposed by the donor or if the funding is performance related.

Where entitlement to grants receivable is dependent upon fulfilment of conditions within the charity’s control, the income is recognised when there is sufficient evidence that conditions will be met.

Grants supporting the core activities of the charity and with no specific restrictions placed upon their use are included within donations and legacies. Grants that have specific restrictions placed upon their use are included within income from charitable activities.

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THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

Capital grants for the purchase of fixed assets are credited to restricted incoming resources on the earlier date of when they are received or receivable. Deprecation on the related fixed assets are charged against the restricted fund.

Donations and legacies

Donations are recognised in the period in which they are received. Legacy income is recognised when the charity’s entitlement is judged to be probable and where the amount can be reliably measured.

Investment Income

Investment income is included when receivable.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Allocation of support costs

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 personnel and governance costs which support the charity’s programmes and activities. All the general support and governance costs have been apportioned to the various charitable activities on the basis of direct costs allocated to each activity.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. The cost of minor additions or those costing less than £500 are not capitalised.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Office equipment

25% Straight line basis

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

1.10 Taxation

The charity is a registered charity and, therefore, is not liable for Income Tax or Corporation Tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

1.11 Creditors and provisions

Creditors and provisions 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.

1.12 Volunteers and donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time is not recognised and refers to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

1.13 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.

1.14 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

1.15 Cash flow statement

The charity qualifies as a small charity and advantage has been taken of the exemption provided by SORP (FRS 102) not to prepare a cash flow statement.

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

2 Critical accounting estimates and judgements

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
The Cotton Tree Trust Limited
-
-
Donations in kind
16,318
-
Other donations < £500
943
-
COSARAF
-
200
17,261
200
For the year ended 31 December 2023
24,162
-		 Total
2024
£
-
16,318
943
200
17,461		 Total
2023
£
5,000
17,900
1,262
-
24,162
24,162

The charity is indebted to solicitors, Dentons, for providing the pro bono professional services and to Cranfield Trust for providing pro bono consultancy support. The income equivalent is recognised within income as donations in kind, and corresponding charges included within expenditure under support costs as legal and professional costs of £16,318 (2023 – £17,900).

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

4 Charitable activities

Restricted
funds
£
Society Holy Child Jesus 2024
10,000
London Churches grant7-34
-
London Churches grant8-35
-
London Churches grant 9-36
750
London Churches grant 10-37
1,000
11,750
Analysis by fund
Restricted funds
11,750
11,750
For the year ended 31 December 2023
Restricted funds
1,900
1,900
5
Investments
Unrestricted
funds
£
Interest on Investments
27,558
27,558
For the year ended 31 December 2023
411		 Total
2024
£
10,000
-
-
750
1,000
11,750
11,750
11,750
Total
2024
£
27,558
27,558		 Total
2023
£
-
1,000
900
-
-
1,900
1,900
1,900
1,900
1,900
Total
2023
£
411
411
411

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

6 Raising funds

Unrestricted
funds
£
Staff costs
16,231
Monitoring & Evaluation
2,453
Fundraising costs
1,591
Share of support costs (see note 8)
7,439
Share of Governance costs (see note 8)
802
28,516
For the year ended 31 December 2023
Fundraising and publicity
5,625
5,625
Charitable activities
Legal &
Casework
Destitution
Support
Heal & Grow Communications
£
£
£
£
Staff costs
55,083
11,617
9,837
7,714
Monitoring & Evaluation
5,117
4,103
4,103
2,453
Staff Training
280
-
-
-
Programme Costs
2,396
496
1,396
-
Travel Costs
40
561
900
-
Food Parcels
-
5,909
-
-
Communication Costs
-
3,672
-
142
62,916
26,358
16,236
10,309
Share of support costs
(see note 8)
23,084
9,671
5,955
3,783
Share of governance
costs (see note 8)
2,489
1,043
642
408
88,489
37,072
22,833
14,500
Analysis by fund
Unrestricted funds -
general
88,489
29,954
20,941
14,500
Restricted funds
-
7,118
1,892
-
88,489
37,072
22,833
14,500
For the year ended 31 December 2023
Unrestricted funds -
general
84,780
36,243
40,762
8,074
Restricted funds
-
4,251
-
-
84,780
40,494
40,762
8,074		 Total
2024
£
16,231
2,453
1,591
7,439
802
28,516
Total
2024
£
84,251
15,776
280
4,288
1,501
5,909
3,814
115,819
42,493
4,582
162,894
153,884
9,010
162,894		 Total
2023
£
1,630
1,192
930
1,676
197
5,625
5,625
5,625
Total
2023
£
87,912
3,114
5,348
4,806
4,715
6,003
4,244
116,142
51,886
6,082
174,110
169,859
4,251
174,110
169,859
4,251
174,110

7 Charitable activities

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

8 Support costs

Support
costs
Governance
costs
£
£
Staff costs
4,443
2,337
Depreciation
845
-
Travel cost
177
-
Premises Costs
12,681
-
Communication & IT Costs
1,107
-
Legal & Professional Costs
22,635
-
Subscriptions
2,256
-
Recruitment Costs
3,304
-
Investment Management Fees
-
-
Bank Charges
506
Sundry expenses
1,178
-
Petty Cash Expenditure
-
-
Charitable Contributions
800
-
Trustees expenses
-
-
Independent Examiner's Fees
-
3,047
49,932
5,384
Analysed between
Fundraising
7,439
802
Charitable activities
42,493
4,582
49,932
5,384		 Total
2024
£
6,780
845
177
12,681
1,107
22,635
2,256
3,304
-
506
1,178
-
800
-
3,047
55,316
8,241
47,075
55,316		 Total
2023
£
6,153
1,125
-
13,074
1,189
21,704
1,361
649
7,615
-
1,808
2,037
-
29
3,097
59,841
1,873
57,968
59,841

Legal & professional costs include pro bono professional services of £16,318 (2023 - £17,900) from solicitors Dentons.

Petty cash expenditure in 2023 relates to sums not properly accounted for by a former employee before he left.

9 Net gains/(losses) on investments

Unrestricted
funds
£
Realised/unrealised gains/(losses) on investments
-
-
For the year ended 31 December 2023
5,041		 Total
2024
£
-
-		 Total
2023
£
5,041
5,041
5,041

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

10 Net movement in funds
Net movement in funds is stated after charging:
Depreciation on tangible fixed assets
Independent examiner's fees
Independent examination
Other services		 2024
£
845
1,560
1,487
3,047		 2023
£
1,125
1,440
1,657
3,097

11 Employees

The average monthly number of staff employed by the charity during the year was as follows:

Direct charitable work
Total
The average monthly number of persons employed by the charity during the year was
Employment costs
Wages and salaries
National Insurance
Pension		 2024
Number
4.20
4.20
5 (2023 – 5).
2024
£
117,740
6,037
1,714
125,491		 2023
Number
4.70
4.70
2023
£
99,408
3,574
1,427
104,409

There were no employees whose annual remuneration was more than £60,000.

None of the trustees received reimbursement of expenses during the year (2023 - £29 - two trustees).

The key management personnel of the charity comprise the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £38,639 (2023 - £27,015).

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

12
Tangible fixed assets
Cost
At 1 January 2024
At 31 December 2024
Depreciation and impairment
At 1 January 2024
Depreciation charged in the year
At 31 December 2024
Carrying amount
At 31 December 2024
At 31 December 2023
13
Debtors
Other debtors
Prepayments
14
Current asset investments
Listed investments
Unlisted investments
15
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals		 Office Equipments
£
4,498
4,498
2,701
845
3,546
952
1,797
2024
2023
£
£
3,302
2,398
634
499
3,936
2,897
2024
2023
£
£
-
100
289,382
432,570
289,382
432,670
2024
2023
£
£
-
4,055
-
2,400
505
-
3,060
2,857
3,565
9,312		 Office Equipments
£
4,498
4,498
2,701
845
3,546
952
1,797
2024
2023
£
£
3,302
2,398
634
499
3,936
2,897
2024
2023
£
£
-
100
289,382
432,570
289,382
432,670
2024
2023
£
£
-
4,055
-
2,400
505
-
3,060
2,857
3,565
9,312
4,498
2,701
845
3,546
952
1,797
2023
£
2,398
499
2,897
2023
£
100
432,570
432,670
2023
£
4,055
2,400
-
2,857
9,312

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January 2023 resources expended 1 January 2024 resources expended 31 December 2024
£ £ £ £ £ £ £
London Churches Grant R31 150 - (150) - - - -
Green Hall Foundation 2,860 - (2,860) - - - -
London Churches grant7-34 - 1,000 (1,000) - - - -
London Churches grant8-35 - 900 (241) 659 - (600) 59
Society Holy Child Jesus 2024 - - - - 10,000 (6,960) 3,040
London Churches Grant 9-36 - - - - 750 (750) -
London Churches Grant 10-37 - - - - 1,000 (500) 500
COSARAF - - - - 200 (200) -
3,010 1,900 (4,251) 659 11,950 (9,010) 3,599

Description, nature and purpose of restricted funds:

Docusign Envelope ID: 4D3FDA29-1D30-46E3-AD1A-BC420568AF68Docusign Envelope ID: 034BA902-14DD-409D-A64B-6A030F79FBE0

THE COTTON TREE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

17 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
£
£
Fund balances at 31
December 2024 are
represented by:
Tangible assets
952
-
Current assets/(liabilities)
300,194
3,599
301,146
3,599		 Total
2024
Unrestricted
funds
Restricted
funds
£
£
£
952
1,797
-
303,793
436,930
659
304,745
438,727
659		 Total
2023
£
1,797
437,589
439,386

18 PENSION

The pension cost charge represents contributions payable by the charity to the fund and amounted to £1,714 (2023 - £1,427). Contributions totalling £505 (2023 - £198 receivable) were payable to the fund at the year end.

19 Related party transactions

During the year, the charity received a donation of £Nil (2023 - £5,000) from The Cotton Tree Trust Limited (registration number 1199748) having common trustees.