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2020-12-31-accounts

Registered number: 07171690 Charity number: 1185764

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE 12 MONTH PERIOD ENDED 31 DECEMBER 2020

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Directors and advisers 1
Trustees’ report (incorporating a Directors’ report) 2 – 5
Independent auditor's report 6 – 9
Statement of financial activities 10

Balance sheet		 11
Statement of cash flows 12
Notes to the financial statements 13 - 22

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND ADVISERS FOR THE PERIOD ENDED 31 DECEMBER 2020

Directors

A Hinckson J Tank G Yu

Company registration number

07171690

Charity registration number

1185764

Registered office

The Green House Cambridge Heath Road London United Kingdom E2 9DA

Independent auditor

BDO LLP 55 Baker Street London W1U 7EU

Page 1

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

TRUSTEES’ REPORT (INCORPORATING A DIRECTORS’ REPORT) FOR THE PERIOD ENDED 31 DECEMBER 2020

The Directors (who are also Trustees of the charity for the purposes of the Charities Act) present their annual report together with the audited financial statements of Rainforest Alliance Limited (the company) for the year ended 31 December 2020. The Directors confirm that the directors’ report and financial statements of the company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Charities SORP 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 2015).

a. CONSTITUTION

The Company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 11[th] October 2019 and is a registered charity number 1185764.

The principal objects of the Company are to advance the education of the public in subjects relating to sustainable development including ethical standards of conduct in social and environmental responsibility in farming and land use practices, business practices, consumer behaviour and promote sustainable development for the benefit of the public.

The Directors confirm that they have paid due regard to the guidance contained in the Charity Commission’s general guidance on public benefit when setting the charity’s objectives and planning its activities.

b. METHOD OF APPOINTMENT OR ELECTION OF DIRECTORS

The management of the Company is the responsibility of the Directors who are elected and co-opted under the terms of the Articles of Association. The appointment of new directors is at the discretion of the existing directors (and/or the Guarantor, the Rainforest Alliance, Inc.).

c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF DIRECTORS

Policies for the induction and training of new directors follow those of the ultimate parent, the Rainforest Alliance, Inc.

d. ORGANISATIONAL STRUCTURE AND DECISION MAKING

Rainforest Alliance Limited is a company limited by guarantee, whose registered number is 0717690. It is also a registered charity, number 1185764. The Company is governed by a Memorandum and Articles of Association of 26[th] February 2010, as amended by special resolution on 2[nd] October 2019. The charity was set up by a Memorandum of Association on 11th October 2019. The Company is controlled by the Directors who are also the Trustees. The company was founded by the Rainforest Alliance, Inc., who is the immediate and ultimate parent undertaking, sole member and guarantor. The Company does not have share capital. Directors are appointed by a majority of other Directors or the Guarantor. The Directors have delegated the day to day activity of the Company to Kylie Norton, the Learning, Development and HR Analytics Lead, but retain responsibility for major strategic and governance decisions.

The Company was established in furtherance of the Rainforest Alliance’s global mission. Its mission is to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behaviour.

Page 2

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

TRUSTEES’ REPORT (INCORPORATING A DIRECTORS’ REPORT) FOR THE PERIOD ENDED 31 DECEMBER 2020

e. RISK MANAGEMENT

The Directors have considered the risks to the company, including the impact of COVID-19, and these include the threat to supply chains around the world. Our revenue from supply chains remain strong and grants for new projects have increased.

The spread of COVID-19 is having a major impact on the Rainforest Alliance globally. In many countries, governments have imposed far-reaching measures to control the virus, and those measures impact all of us, our families and our communities. While offices have been closed, the Rainforest Alliance has remained open for business by working from home. Travel has been drastically reduced, but remote meetings have taken their place. The directors are satisfied that the Rainforest Alliance continues to be strong and that we are strongly positioned to weather the economic downturns that may result from COVID-19.

f. GOING CONCERN

The Directors have assessed the major risks to which the company is exposed, in particular, those related to the operations and finances of the company, and are satisfied that risk management systems and procedures are in place to mitigate exposure to the major risks.

While the long-term effects of COVID-19 on the global economy are uncertain, at Rainforest Alliance we are fortunate to have the strength of diverse income streams and a healthy reserve balance. While diversity of revenue is a key financial health and resilience factor for us, we also recognize that the uncertainty of the economy as we move through the pandemic requires us to plan for a revenue downturn.

The Directors have confirmed that the major sources of grant funding are committed and the delivery of the activities can be adjusted to ensure that guidelines around social distancing can still be applied.

Furthermore, the Directors are confident that costs will only be incurred to the extent that funding is secured. These financial statements are prepared on the going concern basis since Rainforest Alliance, Inc. has provided written confirmation of continuing financial support to enable the Company to meet its obligations as and when they fall due

The Directors are therefore confident that the Company and its ultimate parent undertakings, the Rainforest Alliance, Inc., has adequate resources to continue operating for the foreseeable future and, for this reason, the Trustees continue to adopt the going concern basis in preparing the accounts.

g. REMUNERATION OF KEY MANAGEMENT PERSONNEL

Neither the Directors nor any persons connected with them have received remuneration or reimbursements for their services as trustees of the Company during the period ended 31 December 2020.

Page 3

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

TRUSTEES’ REPORT (INCORPORATING A DIRECTORS’ REPORT) FOR THE PERIOD ENDED 31 DECEMBER 2020

FUNDRAISING

The main source of income is through the provision of financial support from the Rainforest Alliance, Inc.

Any communications to the public made in the course of carrying out fundraising activity shall be truthful and reflect our ethos and values, that our appeals will state whether funds raised are for general funds or a specific purpose, and that all money raised via fundraising activities will be for the stated purpose of the appeal and will comply with the organisation’s stated mission and purpose.

The Company does not undertake any activity that could be classified as intrusive or persistent in its approach to individuals (vulnerable or otherwise), ensuring that it does not apply undue pressure to donors to support fundraising activities.

We have had no fundraising complaints in the last financial year. If someone wants to make a complaint about our fundraising, we will provide details of our complaints procedure to them in writing upon request.

OBJECTIVES AND ACTIVITIES

The objectives of the Company are as follows:

*Sustainable development means “development which meets the needs of the present without compromising the ability of future generations to meet their owns needs”.

PLANS FOR THE FUTURE

A new CEO for the worldwide organisation, Santiago Gowland, took up his post in May 2020. The Rainforest Alliance introduced a new certification program in 2020, and we are currently transitioning all certificate holders. The new certification will take full effect in July 2022. Along with this program, we are introducing a new Sustainable Agriculture Standard. The extraordinary global pandemic, coupled with the escalating climate crisis, highlight the urgent need to transform a relationship with natural resources and tackle systemic social injustices head-on.

FINANCIAL REVIEW

Total income for the year ended 31 December 2020 amounted to £1,507,425 (2019, 18 month period: £1,948,603). Expenditure amounted to £1,507,425 (2019, 18 month period: £1,948,603), giving an overall surplus/(deficit) of £NIL (2018: £NIL). No restricted income was received, or restricted expenditure incurred, in the period.

The funds at year-end are £NIL (2019: £NIL).

The financial performance and position of the company is closely monitored on a regular basis to ensure that sufficient cash is available for the continued operations of the company. Restricted funds are monitored and reported for each project.

Page 4

DocuSign Envelope ID: C48246BA-F1EE-4F14-96F0-AFF1A9589BAA

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

TRUSTEES’ REPORT (INCORPORATING A DIRECTORS’ REPORT) FOR THE PERIOD ENDED 31 DECEMBER 2020

DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors (who are also Trustees of Rainforest Alliance Limited for the purposes of charity law) are responsible for preparing the Trustees’ Report (incorporating a Directors' 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 Directors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they 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 charitable company for that period. In preparing these financial statements, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PROVISION OF INFORMATION TO AUDITOR

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:

AUDITOR

The auditor, BDO LLP, will be proposed for reappointment and BDO LLP as auditor in their place. BDO LLP has indicated its willingness to continue in office.

SMALL COMPANIES NOTE

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

2021 September 22

This report was approved by the Directors on and signed on their behalf by:

A Hinckson Trustee

Page 5

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAINFOREST ALLIANCE LIMITED

Opinion

In our opinion the financial statements:

We have audited the financial statements of Rainforest Alliance Limited (the ‘charitable company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Page 6

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAINFOREST ALLIANCE LIMITED

Other information

The other information comprises the Trustees’ Report (incorporating a Directors’ Report). The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

Matters on which we are required to report on by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Page 7

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAINFOREST ALLIANCE LIMITED

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable company for the purpose of company law), are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates, and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. Our audit procedures were designed to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, financial reporting legislation, the Companies Act 2006, the Charities Act, pensions and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, review of board meeting minutes, enquiries with management and review of correspondence with external legal advisors.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates. We addressed the risk of management override of internal controls through testing journals, in particular any entries posted with unusual account combinations or posted to impact revenue. We evaluated whether there was evidence of bias by the trustees in accounting estimates that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Page 8

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAINFOREST ALLIANCE LIMITED

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Willis (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor London, UK

29 September 2021

Date_____

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Page 9

RAINFOREST ALLIANCE LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) FOR THE PERIOD ENDED 31 DECEMBER 2020

Note
INCOME FROM:
Income from charitable activities
2
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
3
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE) FOR THE
YEAR, BEING NET MOVEMENT IN FUNDS
TOTAL FUNDS AT 31 DECEMBER		 Unrestricted
funds
(12 months
ended 31
December
2020)
£
1,507,425





Restricted
funds
(12 months
ended 31
December
2020)

£
-		 Total
funds
(12 months
ended 31
December
2020)
£
1,507,425		 Total
funds
(18 months
ended 31
December
2019)
£
1,948,603
1,507,425 - 1,507,425 1,948,603
1,507,425 - 1,507,425 1,948,603
1,507,425 - 1,507,425 1,948,603
-
-		 -
-		 -
-		 -
-

The notes on pages 13 to 22 form part of these financial statements

Page 10

DocuSign Envelope ID: C48246BA-F1EE-4F14-96F0-AFF1A9589BAA

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
NON-CURRENT ASSETS
Tangible Assets
8
CURRENT ASSETS
Debtors
9
Cash at bank
CURRENT LIABILITIES
Creditors due within one year
10
NET CURRENT LIABILITIES
NET ASSETS
CHARITY FUNDS
Restricted funds
11
Unrestricted funds
11
TOTAL FUNDS		 31
December
2020
31
December
2019
£
£
22,128
-
2,578
19,279
24,282
66,553
26,860
85,832
(48,988)
(85,832)
(22,128)
-
-
-
-
-
-
-
-
-

The financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements were approved by the Directors on and signed on their behalf, by: 2021 September 22

A Hinckson Trustee

The notes on pages 13 to 22 form part of these financial statements

Page 11

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2020

Analysis of changes in net debt:
Cash flows from operating activities
Net income/(expenditure) for the year
Reconciliation to cash generated from operations:
Decrease in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Capital Expenditure
Net cash (used in)/provided by operating activities
Net (decrease)/increase in cash in the year
Reconciliation of net cash flow movements to net funds
Net increase/(decrease) in cash in the year
At 1 January/1 July
At 31 December/30 June
Consisting of:
Cash at bank
1
January
2020
Cash flows
£
£
Cash at bank
66,553
(42,272)		 Analysis of changes in net debt:
Cash flows from operating activities
Net income/(expenditure) for the year
Reconciliation to cash generated from operations:
Decrease in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Capital Expenditure
Net cash (used in)/provided by operating activities
Net (decrease)/increase in cash in the year
Reconciliation of net cash flow movements to net funds
Net increase/(decrease) in cash in the year
At 1 January/1 July
At 31 December/30 June
Consisting of:
Cash at bank
1
January
2020
Cash flows
£
£
Cash at bank
66,553
(42,272)		 12 months
ended 31
December
2020
£
-
16,701
(36,844)
(20,143)
(22,128)
(22,128)		 18 months
ended 31
December
2019
£
-
2,460
20,940
23,400
-
-
(42,271)
(42,271)
66,553
24,282
24,282
Non-cash
movement
£
-		 23,400
23,400
43,153
66,553
66,553
31
December
2020
£
24,282

The notes on pages 13 to 22 form part of these financial statements.

Page 12

RAINFOREST ALLIANCE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The accounts (financial statements) have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland, the Companies Act 2006 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. Assets and liabilities are recognised at historical cost or transactional value unless otherwise stated in the accounting policies. The company meets the definition of a public benefit entity under FRS 102.

1.2 Company status

The company is a company limited by guarantee, incorporated and domiciled in the UK, with the registered number 07171690. It is also a charity registered in England and Wales, charity number 1185764. The Rainforest Alliance Inc. is the sole member of the member of the company. The address of the registered office is Unit 2.7, The Green House, 244-254 Cambridge Heath Road, London, E2 9DA

Details of the principal activities of the company are given in the Trustees’ Report.

The financial statements have been prepared for the 12 month period to 31 December 2020 and are presented in Pound Sterling (GBP), as that is the currency in which the majority of the company's transactions are denominated. The accounts are rounded to the nearest pound.

1.3 Going concern

The financial statements have been prepared on a going concern basis, as the trustees believe that no material uncertainties exist. COVID-19 has impacted on activities and operations within the Company in different ways as discussed in the risk section of the Trustees report on page 3.

The Directors have confirmed that the major sources of grant funding are committed and the delivery of the activities can be adjusted to ensure that guidelines around social distancing can still be applied.

Furthermore, the Directors are confident that costs will only be incurred to the extent that funding is secured. The Directors are confident that the company and its ultimate parent undertakings, the Rainforest Alliance, has adequate resources to continue operating for the foreseeable future, defined as a 12 month period from the date of approving these accounts, and, for this reason, the Trustees continue to adopt the going concern basis in preparing the accounts

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Directors in furtherance of the general objectives of the company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund.

1.5 Income

All income is included in the Statement of Financial Activities when the company is legally entitled to the income and the amount can be quantified with reasonable accuracy and the likelihood of receipt of the income is probable.

Income comprises amounts funded during the year.

Page 13

RAINFOREST ALLIANCE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

1.6 Expenditure

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

Expenditure on charitable activities includes support costs for those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Companies operations and activities.

1.7 Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

Contributions are charged to the income and expenditure account as they become payable in accordance with the rules of the scheme. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds .

1.8 Debtors

Debtors are measured at transaction price, less any impairment.

1.9 Cash at bank and in hand

Cash at bank and cash 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.

1.10 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 are measured at the transaction price.

1.11 Financial instruments

The company 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.

Financial assets held at amortised cost comprise cash and bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors.

1.12 Operating Leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the lease term.

Page 14

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

1.13 Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 on-going 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 the current and future periods.

In the view of the directors, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

2. INCOME

Donations and legacies
Income from charitable activities:
-
Grants
-
Sundry income
Total income from charitable activities
Total		 Unrestricted
funds
(12 months
ended 31
December
2020)
£
26,385		 Restricted
funds
(12 months
ended 31
December
2020)
£
-		 Total
funds
(12 months
ended 31
December
2020)
£
26,385		 Total
funds
(18 months
ended 31
December
2019)
£
2,906
1,481,040
-		 - 1,481,040
-		 1,945,653
44
1,481,040 - 1,481,040 1,945,697
1,507,425 - 1,507,425 1,948,603

Page 15

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

3. CHARITABLE ACTIVITIES

Gross salaries
Employers NI contributions
Employers pension contributions
Rent payable
Computer costs
Sundry consumable supplies
Publicity
Training
Printing, stationery
Accountancy fees
Consultancy fees
Subscriptions/membership fees
Travel & subsistence
Bank charges
Audit fees
Telephone, postage & advertising
Insurance
Legal costs
Recruitment costs
Repairs and maintenance
Total
The costs above are classified as:
Total		 Direct
Costs
2020
£
1,490,925		 Unrestricted
funds
(12 months
ended 31
December
2020)
£
978,537
104,878
48,547
147,722
26,538
33
15,990
6,754
7,128
5,397
108,181
1,332
19,381
765
16,200
15,703
1,737
300
438
1,864		 Restricted
funds
(12 months
ended 31
December
2020)
£		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
funds
(12 months
ended 31
December
2020)
£
978,537
104,878
48,547
147,722
26,538
33
15,990
6,754
7,128
5,397
108,181
1,332
19,381
765
16,200
15,703
1,737
300
438
1,864
1,507,425 - 1,507,425

Support
Costs
2020
£
-		 Governance
costs
2020
£
16,500

Page 16

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

4. GOVERNANCE COSTS

Auditor's remuneration
Legal fees		 12 months
ended 31
December 2020
£
16,200
300
16,500		 18 months
ended 31
December 2019
£
10,500
12,265
22,765

5. STAFF NUMBER AND EMOLUMENTS

The average monthly number of employees, including directors, during the period was 21 (2019 – 17).

Staff emoluments
Social security costs
Pension costs
Total		 12 months
ended 31
December
2020
18 months
ended 31
December
2019
£
£
978,537
1,132,076
104,878
111,659
48,547
58,429		 12 months
ended 31
December
2020
18 months
ended 31
December
2019
£
£
978,537
1,132,076
104,878
111,659
48,547
58,429
1,131,962 1,302,164

The number of higher paid employees was:

12 months 18 months
ended 31 ended 31
December December
2020 2019
£ £
In the band £60,001 - £70,000 1 2
In the band £70,001 - £80,000 3 1
In the band £80,001 - £90,000 1 -
In the band £90,001 - £100,000 1 -

The Trustees consider themselves as comprising the key management personnel of the Foundation, in charge of directing and controlling the Foundation. During the year, the Trustees received no remuneration, benefits in kind or reimbursement of expenses (2019: None).

6. TRUSTEES' EMOLUMENTS AND REIMBURSED EXPENSES

Neither the Directors nor any persons connected with them have received remuneration or reimbursements for their services as trustees of the Company during the period ended 31 December 2020.

Page 17

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

7. NET (EXPENDITURE)/INCOME

This is stated after charging:

12 months 18 months
ended 31 ended 31
December 2020 December 2019
£ £
Legal costs 300 12,265
Operating lease 147,722 197,964
Auditor's remuneration 16,200 10,500

8. TANGIBLE FIXED ASSETS

Cost/valuation
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Leasehold Land
and Buildings
Furniture,
Fittings and
Equipment
£
£
-
-
755
21,373
755
21,373
-
-
-
-		 Leasehold Land
and Buildings
Furniture,
Fittings and
Equipment
£
£
-
-
755
21,373
755
21,373
-
-
-
-


Total

£
-
22,128
22,128
-
-
-
22,128
-
21,373
-
-
- -
755 21,373
- -

Page 18

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

9. DEBTORS

Other debtors
Total
10.
CREDITORS
Amounts owed to group undertakings
Other taxation and social security
Pensions payable
Accruals and deferred income
Total		 31 December
2020
£
2,578		 31
December
2019
£
19,279
2,578 19,279
31 December
20120
£
11,634
22,601
3,875
10,878		 31
December
2019
£

42,673

20,836

3,813

18,510
48,988 85,832

Page 19

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

11. MOVEMENT IN FUNDS

Unrestricted funds
Restricted funds
Total funds
Unrestricted funds
Restricted funds
Total funds		 Brought
Forward
£

 -
-		 Income
(12 months
ended 31
December
2020)
£
1,507,425
-
1,507,425		 Expenditure
(12 months
ended 31
December
2020
£
(1,507,425)
-
(1,507,425)		 Carried
Forward
£
-
-
- 1,507,425 -
Brought
Forward
£

 -
-		 Income
(18 months
ended 31
December
2019)
£
1,948,603
-
1,948,603		 Expenditure
(18 months
ended 31
December
2019
£
(1,948,603)
-
(1,948,603)		 Carried
Forward
£
-
-
- 1,948,603 -

Page 20

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Non-current assets
Current assets
Current liabilities
Current assets
Current liabilities		 Restricted
funds
(31 December
2020)
£
-
-
-		 Unrestricted
funds
(31 December
2020)
£
22,128
26,860
(48,988)		 Total funds
(31 December
2020)
£
22,128
26,860
(48,988)
- - -
Restricted
funds
(31 December
2019)
£
-
-		 Unrestricted
funds
(31 December
2019)
£
85,832
(85,832)		 Total funds
(31 December
2019)
£
85,832
(85,832)
- - -

12. ULTIMATE AND IMMEDIATE PARENT UNDERTAKING

The company is under the control of the Rainforest Alliance Inc., a company incorporated in the United States of America.

The principal objects of the Rainforest Alliance Inc. are to advance the education of the public in subjects relating to sustainable development including ethical standards of conduct in social and environmental responsibility in farming and land use practices, business practices, consumer behaviour and promote sustainable development for the benefit of the public.

Control can be exercised by the Rainforest Alliance Inc. through the power to appoint or remove the majority of trustees.

The address from which the public can obtain the consolidated accounts that include the subsidiary charity's accounts is Rainforest Alliance, 125 Broad Street, 9th Floor, New York, NY 10004.

Page 21

RAINFOREST ALLIANCE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL ACTIVITIES (continued) FOR THE PERIOD ENDED 31 DECEMBER 2020

13. RELATED PARTY TRANSACTIONS

Rainforest Alliance Inc. advanced funds of £1,450,000 (2019: £1,970,000) to Rainforest Alliance Limited to fund its operation in the UK. During the 12 months ended 31 December 2020 the Rainforest Alliance Limited spent more than expected by £31,039 (18 months to 31 December 2019: spent less than expected by £24,347).

At the year-end Rainforest Alliance Limited owed amounts to Rainforest Alliance Inc. totalling £11,634 (2019: £42,673).

14. OPERATING LEASES

At 31 December 2020 the Company had future minimum lease payments under non-cancellable operating leases as follows:

operating leases as follows:
Not later than 1 year
Later than 1 year and not later than 5 years		 31
December
2020
£
19,456
-		 31
December
2019
£

148,304
9,728
19,456 158,032

Page 22