The carbon community , 202112022. A Growing Community
Index
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3
Cover Letter from the Trustees
4
Trees
8
Science
11
People
15
Financial Section
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2
Cover Letter from the Trustees
Welcome to our Annual Report for 2021 / 2022, A Growing Community. This has been another big year for The Carbon Community. In particular our unique formula of connecting trees, science and people has allowed us to accelerate research into carbon sequestration significantly. Our community of volunteers, who give their time to gather critical scientific data, are essential to this mission, and without their support we could not succeed.
Our mission is to accelerate climate science by taking techniques proven in the lab, and running robust, at scale, field trials. Many great environmental research projects get stuck when it comes to field trials – they are complex to run, people intensive and take time and money. Yet without robust field trials these promising new techniques won’t get scaled up and deployed as part of the fight against the climate crisis.
Field trials are a long-term commitment, and the longer they run the more valuable they become. Environmental science is frequently underpinned by the dedicated work of volunteers, who over many years, record the world around them measuring diligently the changes taking place.
This year, our volunteers measured 1,400 trees, thus helping to complete the first season of measurements on the 6,400 individually bar-coded trees in our carbon study. This important data is a critical component of the unique partnership between charity, community and environmental scientists. It helps to explain the differences that our scientific team find between the treatments from the many soil, water, leaf and root samples taken across our carbon sequestration study.
The study is designed and run in partnership with leading scientists from ETH Zürich Crowther Lab; Leverhulme Centre for Climate Change Mitigation at the University of Sheffield; The Grantham Institute on Climate Change and the Environment, Imperial College London; and The Royal Botanic Gardens, Kew. The project uniquely assesses the combined effects of soil microbiome inoculation and the deployment of enhanced rock weathering, and their ability to accelerate and enhance forest carbon sequestration in conifer monoculture and mixed broadleaf forests.
Visitors to our study site frequently remark on the significant scale of the site. Two forest types are being tested side by side with four treatments and a control giving a total of 9 different test cells, which are replicated eight times, giving a total of 72 different test cells. In time this will become an invaluable facility for the next generation of environmental scientists to build upon.
None of this would be possible without our volunteers, our scientific advisory board, our forestry partner, the planting crews and our supporters. Thank you to everyone for your questions, challenges, time and energy and being a part of The Carbon Community.
Thank you! Diolch!
Charles, Heather and Jane
4• '
Glandwr, a flourishing Forest.
Walking through Glandwr Forest this past year, you can see and feel a difference. The trees are becoming more established, leaves rustle in the breeze and we are noticing more songbirds and butterflies.
The forest has also been growing in size this year with 5,500 more trees added in Winter 2022, 500 from individual donations and 5,000 from company donations. One of the new woodland areas that was created together with our volunteers was a site for autumn colour including Red Oak, Beech and Sweet Chestnut. Another addition was the planting of 40 Black Poplar cuttings which were gifted from a nearby estate. Volunteers carefully planted these in two areas of Glandwr Forest in April 2022 as part of trying to conserve this dwindling species.
As the community grows, so does our need for improved facilities and this year has seen exciting improvements to be able to welcome scientists, volunteers and walkers along the public footpath.
In 2021/2022:
5,500 new trees added
New spaces created for Autumn Colour Woods and to conserve Black Poplars
Access improvements across the site and the opening of our ‘new-to-us’ second-hand ‘barn’ or field station.
5
The Carbon Community
December 2021: Sunset on the footpath
March 2022: Volunteers plant trees in the autumn colour wood
June 2022: Black Poplar (Populus nigra) springing to life
July 2022: Trees flourishing in the autumn colour wood
June 2022: Sessile Oak (Quercus petraea)
September 2022: Two types of forests involved in our carbon study
6
Winter 2022 The ‘barn’ or field station
Improving our facilities to support the work of scientists, community science volunteers and forest workers at Glandwr is important to recognise the significant contributions of everyone involved.
In 2022, we were delighted to open our ‘new-to-us’ second hand ‘barn’ or field station. Made possible by a legacy donation received in 2020/21 the frame had been sourced and was waiting flat-pack style for assembly. Work began in October 2021, by March 2022 everyone was able to enjoy shelter, toilets, electricity, and most importantly coffee, tea and flapjacks.
Winter 2022
Access Improvements
Thanks to a Woodland Investment Grant (TWIG) from Welsh Government, we were able to make a number of access improvements across the site in Winter 2022 including improved public footpaths, interpretive signs, finger posts and a bench along the footpath with a fabulous view.
The education panel installed as part of the grant is now an important training tool for visitors and volunteers and the improved footpath is important to access the areas of the site where they are working.
7
The Carbon Community
Science: A thriving research facility.
As our carbon study entered its second year, work continued on researching the impact of enhanced rock weathering and soil microbiome inoculation on two types of forest, native broadleaf and conifer.
During the year, teams from Imperial College London, The Royal Botanic Gardens, Kew and Crowther Lab from ETH Zürich all visited Glandwr Forest as part of this research. Samples gathered included:
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Sampling soil pore water from the 36 lysimeters installed across the site to assess carbon content and other nutrients
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Soil cores to assess soil carbon content and bulk density to help assess net changes in the whole-ecosystem carbon stock as the forest matures
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Soil cores to compare the mycorrhizal communities between the different treatments applied to the study plots
In addition to our main study we welcomed a Geography Master’s student from Swansea University and an MSc Forestry student from Bangor University to conduct their Master’s research at our facility.
Our Carbon Study:
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Our Carbon Study entered its second year, with £73,066 spent on scientific research, including grants to The Grantham Institute at Imperial College London and The Royal Botanic Gardens, Kew.
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Visits from Imperial College London, The Royal Botanic Gardens, Kew and Crowther Lab from ETH Zürich
Growing community science volunteering program
Additional research conducted at Glandwr Forest:
Geography Master’s student from Swansea University
Forestry MSc student from Bangor University
9
The Carbon Community
December 2021: Dr. Laura M Suz, Charles Nicholls, Professor Martin Bidartondo
June 2022: Laura M Suz and Oliver Lindsay from The Royal Botanic Gardens, Kew
July 2022: Laura Gobelius from Crowther Lab and Lena Lancastle and Gregory Jones from Imperial College London gathering soil cores
January 2022: Lena Lancastle from Imperial College London gathering lysimeter samples
September 2022: A lysimeter helps to collect soil pore water samples at root depth
September 2022: One of 6,400 individually tagged trees in our carbon study
10
The Carbon Community
Peo li
People: Expanding our community science volunteering program
October - December 2021
The arrival of October 2021 brought Master’s students from Swansea University’s Geography Department for a cracking day of sunshine, flapjacks and tree measurement. This incredible team identified, measured and catalogued data for 1,200 trees in one day, bringing us within touching distance of our final goal.
Before our first set of tree measurements could be considered final, all the measurements were checked for outliers and missing recordings. Our final measurements and checks were completed on October 17th 2021 and volunteers celebrated the completion of the first year of tree measurement for the 6,400 trees in our carbon study.
Pausing to celebrate, we set ourselves two goals for next year: improve the volunteer experience and measure ALL the trees within a two-week time frame. A date was set for the following October for the Big Tree Measure 2022!
2021 / 2022 Volunteering Highlights
101 Volunteers, up 26% versus prior year
137 Volunteering Days, up 37% versus prior year
52% Female volunteering days
- 1400 trees measured completing our first season of tree measurement
Tree planting, post painting, stile building, fencing, plot maintenance, barn painting, shrub planting, collecting soil cores and more!
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The Carbon Community
People: Expanding our community science volunteering program
January - March 2022
While the trees were dormant over the winter, our volunteers were busy with activities on site including a building a stile, fencing lysimeters and removing metres and metres of string from the fields that had been used to mark the original layout of the carbon study.
April to June 2022
A time of rejuvenation, spring brought new leaves, fresh paint, habitat creation, conservation and wildflowers. Volunteers helped reclaim ‘the island’ a small area of land where we found old waste (fencing and string) buried under a sea of nettles. Volunteers flexed their muscles and helped clean up and transform the area with 190 new plants and shrubs.
In June 2022, we welcomed volunteers and people from the local community as we officially opened our ‘barn’ of field station. To celebrate we invited people to join us for wildflower walks led by a local expert. Visitors were delighted to visit our orchid meadow and discover that Glandwr Forest is more than trees.
July to September 2022
Soaring temperatures brought challenges for our July activities where volunteers joined us to help Crowther Lab collect soil cores in July. Plans needed to be adjusted to accommodate the heat. The soil microbiome from a total of 1,400 trees were sampled to help better understand the processes of soil inoculation for forest growth.
In August, volunteers helped install an additional 900 tree tags for our dose control study. This study was started by a MSc Forestry student from Bangor University in 2021 and will now become part of our ongoing measurements.
As our Community Science Volunteering year drew to a close we we were busy preparing for our Big Tree Measure program in October, updating measurement protocols, tree identification guidelines and equipment.
A huge thank you to everyone who joined us as a Community Science Volunteer!
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The Carbon Community
October 2021: Student briefing at our neighbour’s shelter
January 2022: Removing string from the fields
April 2022: Restoring ‘the island’
July 2022: Sampling soil cores
October 2021: Volunteers celebrate the first year of tree measurement
February 2022: Building a stile
June 2022: Wildflower walk
September 2022: Testing equipment ahead of the Big Tree Measure
14
The Carbon Community
Company registration number: 12273280 Charity registration number: 1187231
The Carbon Community
(A company limited by guarantee)
Annual Report and Financial Statements for the Year Ended 30 September 2022
UHY Ross Brooke 31a Charnham Street Hungerford Berkshire RG17 OEJ
15
Contents
17-25
Trustees’ Report
26
Independent Examiner’s Report
27 Statement of Financial Activities
28 Balance Sheet
29-38
Notes to the Financial Statements
16
The Carbon Community
Trustees’ Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 30 September 2022.
Trustees
C M Nicholls H B Allen J K Nicholls
Objectives and activities
Objects and aims
The Carbon Community is a charity dedicated to accelerating forest carbon removal from the atmosphere, with breakthrough science. Focused on natural solutions, we started with a question. ‘How do you maximise carbon capture in a forest?’ This led to many conversations that helped shape our mission: to accelerate carbon sequestration in trees and soil, with breakthrough science.
Our founding objects set out in our governing document are as follows:
“to conserve, improve and protect the physical and natural environment for the public benefit by:
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The creation, promotion and sustainable management of new community forests specifically optimised for maximum carbon sequestration in trees & soil;
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Providing individuals, communities and businesses and other organisations with opportunities to participate in sustainable carbon sequestration projects; and
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to advance the education of the public in the protection, enhancement and rehabilitation of the environment, in particular but not exclusively in relation to reforestation as a means of carbon sequestration, and to promote study and research in such subjects and dissemination of the results of such research and study to the public.”
Our Mission:
Accelerate carbon sequestration in trees & soil with breakthrough science.
Our guiding principles:
In parallel with our mission, all of our work is grounded within the following guiding principles:
Action Plant trees in ways that accelerate carbon capture sequestration in trees and soil.
Research Enable scientists, funding primary research and providing a research facility for masters and PhD students.
Education Share our findings, learnings and insights with our community scientists, students and the global community.
Advocacy Advance planting techniques for trees everywhere. Community Create a community of people working to address the climate and biodiversity crises both local to our projects and in locations where our research can help local projects accelerate carbon sequestration.
17
The Carbon Community
Trustees’ Report
Fundraising disclosures
Public Fundraising:
The Carbon Community’s aim is to raise funds in a respectful way that is aligned with our values. The charity is registered with The Fundraising Regulator. In all of our fundraising we work diligently to comply with the Code of Fundraising Practise and uphold the standards it promotes.
Public benefit
The public benefits that shape our annual activity are environmental protection and climate restoration.
In shaping our objectives for the year and planning our activities, the trustees have given consideration to the Charity Commission’s guidance on public benefit (PB2).
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Data Protection
The Carbon Community places great importance on the security of support and volunteer data and personal information. For information on how the charity uses and protects personal data, please see - our privacy policy. https://www.carboncommunity.org/privacy policy
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The Carbon Community
Achievements and performance
2021 / 2022 Our Third Year in Review
Action:
This year The Carbon Community:
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Planted c.500 trees in Glandwr Forest with the support of individual and company donations.
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Planted 40 black poplar cuttings which were gifted to us to help conserve this species
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Replaced c.5,000 trees from our 2021 planting season with the ongoing support of our Glastir Woodland Creation Grant.
We’ve also made significant enhancements to the site:
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Access improvements were made thanks to a TWIG Grant (The Woodland Improvement Grant) from Welsh Government. This included an improved public footpath, the addition of finger posts, discovery signs, a bench at a viewpoint on the footpath, an education panel for visitors and grass cutting for improved volunteer access.
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Our new-to-us second-hand ‘barn’ or field station was officially opened in June 2022 providing a space for visiting scientists, students and volunteers together with toilet facilities for forest workers.
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• Across the site we continued to work on biodiversity enhancement, including our grazing program for our wildflower meadow.
Research:
Our carbon study aiming to accelerate and enhance the sequestration of carbon dioxide (CO2) in trees and soil entered its second year with research grants made to The Grantham Institute at Imperial College London and The Royal Botanic Gardens, Kew. The study is designed and run in partnership with leading scientists from ETH Zürich Crowther Lab; Leverhulme Centre for Climate Change Mitigation at the University of Sheffield; The Grantham Institute on Climate Change and the Environment, Imperial College London; and The Royal Botanic Gardens, Kew.
In addition to our main study we welcomed a Geography Master’s student from Swansea University and an MSc Forestry student from Bangor University to conduct their Master’s research at our facility.
Education:
In October 2022, The Carbon Community was delighted to welcome twenty Master’s students from the Swansea University Geography Department to help us complete our first year of tree measurement. This was our first large event on the site for a student group. The students had a chance to gain hands-on field work experience and made a significant contribution to our carbon study.
Advocacy: We continue to share and discuss our techniques as widely as possible, in 2021/2022 we participated in:
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“Trees for the Future – Diversity and complexity for resilience and carbon storage” hosted by BIFOR at the University of Birmingham.
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“Accelerating Woodland Creation & Management” online conference from the Ecosystems Knowledge Network
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“The UK GGR Event: Current Innovation & Future Directions” hosted by CO2RE
Community: We were delighted this year to be able to improve our volunteer experience and in March 2022 we were able to host our first volunteers in our barn where they had access to toilets, coffee, tea and shelter from the rain. By June 2022 the barn was fully operational including a working area, a welcome area, outdoor seating, toilets, and a small kitchen. To celebrate we hosted a Wildflower Walk day for volunteers and the local community.
Over the course of 2021/2022 101 volunteers joined us for our community science days contributing 137 volunteering days. They learned more about carbon sequestration and the techniques that they we are studying, and many came back again and again. 52% of our volunteer days were contributed by women.
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The Carbon Community
Trustees’ Report
Financial review
All of this takes funding and we are grateful to all donors and supporters.
Glastir Woodland Creation Grant:
In November 2021 we received £175,275.88 from our Glastir Woodland Creation Grant from Natural Resources Wales which funded the planting and fencing work for almost 100,000 trees completed in the prior year. This grant provides ongoing maintenance support for the trees until 2034.
The Woodland Improvement Grant (TWIG):
In November 2021 we received a contract for a TWIG Grant (The Woodland Improvement Grant) from Welsh Government of £31,749. The work was completed by March 2022 and included improved public footpaths, the addition of finger posts, discovery signs, a bench on the public footpath, as well as an education panel for visitors and grass-cutting for improved volunteer access.
In total, we received: £196,249 in unrestricted donations, £63,186 towards tree planting and £61,351 towards scientific research.
We are delighted that more organisations are showing interest in supporting scientific research and are grateful for the support from SAP, the Pure Good Foundation and Kilburn & Strode to support research that will advance tree-planting techniques in our own projects and beyond.
As mentioned above total income into the charity during the year was £320,786. Total expenditure on charitable activities was £91,283.
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£73,066 spent on Scientific research,
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£1,828 spent on Trees
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£16,389 on unrestricted charitable activities.
The funds held at the end of the year were as follows:
Unrestricted £407,034 Designated unrestricted £644,542 Tree planting £63,830 Scientific research £Nil Total £1,115,406
We wish to say thank you to all the supporters of The Carbon Community. To everyone who has volunteered, donated or helped spread the word, thank you for a fantastic year!
20
The Carbon Community
Trustees’ Report
Policy on reserves
In the current stage of TCC’s evolution, the Trustee’s have approved a reserves policy to hold a minimum of three months of reserves and a maximum of nine months of reserves to cover our operating costs.
These reserves will be separate to ensure that we have funds to cover our forward contracts. They will also be separate to ensure that we have sufficient working capital for tree maintenance due to the time lag in receiving funds from our contract with NRW (Natural Resources Wales).
The Trustees will review this Reserves Policy a minimum of once per year. The current level of reserves will be reviewed at each Trustee meeting.
In reviewing our current level of reserves versus our reserves policy, the Trustees have reviewed the forward commitments to our scientific program including the research grant, our citizen science program and ongoing maintenance for the research project. The Trustees have also taken into account our ongoing mortgage commitments.
At the end of the year 2021/2022, the Trustees considered they had sufficient reserves to make an instalment towards the mortgage repayment of £50,000.
Investment policy and objectives
Investment Policy
The Charity does not have any investments. The Trustees are committed to developing an investment policy when we reach an appropriate stage in our evolution.
Plans for future periods
Aims and key objectives for future periods
At the Carbon Community, our goal is not just to plant trees, rather, through scientific research, to discover how to plant trees that sequester more carbon. Through this research, we will enable all tree planting, everywhere, to become more effective. The study will enhance our fundamental understanding of carbon dynamics in forest ecosystems, identifying techniques to enhance forest CO2 uptake.
2022/2023 will be a critical year as the research on our carbon study continues. Our scientific advisory board is reviewing the data gathered to date and we anticipate continuing the study for an additional three years to quantify the individual and combined effects of two leading carbon dioxide (CO2) removal (CDR) approaches, reforestation and enhanced rock weathering, at the critical five-year mark. In 2022/2023 we will begin fundraising to support this activity.
Connecting trees, science and people is a thread that runs through our guiding principles:
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In 2022/2023 we will launch our Big Tree Measure program where we will invite volunteers to join us to measure the 6,400 individually tagged trees in our carbon study. The ambition will be to complete the measurement over a two-week time period in October. This program gives people a unique opportunity to contribute personally to the scientific research into carbon sequestration in trees and soil.
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We will also continue to expand research at our facility to include more organisations.
In 2022/2023 we will also continue to seek funding from individuals and organisations to support our community science program, our support for young scientists, and our facilities and organisation. People who want to make an impact connecting trees, science and people.
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The Carbon Community
Trustees’ Report
Structure, governance and management
Recruitment and appointment of trustees
The subscribers to the Memorandum are the first Trustees of the Charity, who shall hold office for such a term of office as they determine. Any person who is willing to act as a Trustee of the Charity and is permitted to be so appointed by law and the articles, may be appointed to be a Trustee by a resolution of the Trustees.
A Trustee shall serve a four year term of office (unless the Trustees resolve that he or she should be appointed for a shorter period) and may be reappointed with no limit on the number of consecutive terms of office a Trustee may hold.
Organisational structure
The Carbon Community was officially registered at Companies House on 21st October 2019 and by the Charity Commission on 6th January 2020.
The charity was constituted as a company limited by guarantee and is governed by Memorandum and Articles of Association dated 21 October 2019.
The Trustees are directors for the purpose of company law. In the event of the company being wound down members are required to contribute an amount not exceeding £1.
The charity’s trustees are:
C M Nicholls (Chair)
J K Nicholls
H B Allen
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The Carbon Community
Trustees’ Report
Major risks and management of those risks
Annually the Trustees are required to review our risks.
Through the course of 2021/2022, the Trustees have looked at five areas of risk for The Carbon Community – land management, science project implementation, financial resilience, volunteers and reputational risk.
Land Management:
Forest management is being handled by Tilhill Forestry who manage day to day forestry operations including ground preparation, tree planting, fencing, site maintenance and site access. A TWIG grant was received in March 2022 which has enabled significant improvements to the public footpaths, onsite signage and volunteer access to the fields. These were carried out in winter 2022. The Trustees agreed to invest additional funds on fencing to enable more of our grassland to be grazed in line with the recommendations from the biodiversity assessment completed in 2021. We have also agreed to invest in improving access to volunteers ahead of our annual tree measurement in 2022. Third party liability insurance is in place and as the trees planted this season grow larger, the Trustees plan to investigate additional insurance to protect against pest, disease and fire risk. The Trustees are keeping a close eye on deer that have been spotted in the area due to the summer weather conditions, this may require additional fencing.
Science Project Implementation:
Our science project was launched successfully on May 27, 2021. Measurements of results are ongoing and there is a project team which regularly reviews and manages risk.
Financial Resilience:
The process of registering The Glandwr Forest with The Woodland Carbon Code is underway, which paves the way to raising funds from the sale of carbon credits should this be required. The repayment mortgage terms for the interest free mortgage are in line with our expected revenue flows, supplemented by carbon credits if necessary, the initial repayment has been made ahead of schedule in September 2022. During the past year, The Carbon Community secured donations from Welsh Government (TWIG) and a number of companies interested to support carbon science. Our science project is now fully funded for the first two years. To address our long-term financial resilience and to extend our scientific research the Trustees continue to look at additional sources of funding the long term success of the charity.
Volunteers:
Throughout 2021/2022, The Carbon Community has continued our community science volunteer program. Risk assessments and safety briefings are in place.
Reputational risk:
The trustees have also discussed which kind of companies the charity should partner with and accept donations from. For each corporate donation, the trustees ensure that they are satisfied, and able to show, that it is in the best interests of the charity to accept the donation. This involves a careful consideration, based on evidence, of the risks of accepting the donation against its benefit.
23
The Carbon Community
Trustees’ Report
Reference and Administrative Details
Trustees and officers
The trustees and officers serving during the year and since the year end were as follows:
----- Start of picture text -----
C M Nicholls
Trustees H B Allen
J K Nicholls
40 Alma Road
Principal Office Windsor
Berks
SL4 3HJ
Company Registration Number 12273280
Charity Registration Number 1187231
----- End of picture text -----
The charity is incorporated in England and Wales.
----- Start of picture text -----
UHY Ross Brooke
31a Charnham Street
Independent Examiner Hungerford
Berkshire
RG17 OEJ
IBB Solicitors Capital Court
30 Windsor Street
Uxbridge
Middlesex
UB8 1AB
Solicitors
AgriAdvisor
Henllan
Pumsaint
Llanwrda
SA19 8AX
Starling Bank Limited
3rd Floor
Bankers 2 Finsbury Avenue
London
EC2M 2PP
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The Carbon Community
Trustees’ Report
Statement of trustees’ responsibilities
The trustees (who are also the directors of The Carbon Community for the purposes of company law) 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), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees 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 its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on 26/06/2023 and signed on its behalf by:
Signed by Charles Nicholls
......................................... C M Nicholls Chairman of the board of Trustees
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The Carbon Community
Independent Examiner’s Report to the trustees of The Carbon Community (‘the Company’)
I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2022.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
Since The Carbon Community’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA , which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of The Carbon Community as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed by Kerry Hawkins
......................................
Kerry Hawkins, FCCA, UHY Ross Brooke
31a Charnham Street
Hungerford, Berkshire RG17 OEJ
Date: 26/06/2023
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The Carbon Community
Statement of Financial Activities for the Year Ended 30 September 2022
(Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Total income Expenditure on: Charitable activities 4 Total expenditure Net income Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 17 Note Income and Endowments from: Donations and legacies 3 Total income Expenditure on: Charitable activities 4 Total expenditure Net income Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 17 |
Unrestricted funds £ 196,249 196,249 (16,389) (16,389) 179,860 (11,715) 168,145 883,431 1,051,576 Unrestricted funds £ 285,622 285,622 (25,027) (25,027) 260,595 (158) 260,437 622,994 883,431 |
Restricted funds £ 124,537 124,537 (74,894) (74,894) 49,643 11,715 61,358 2,472 63,830 Restricted funds £ 27,924 27,924 (25,610) (25,610) 2,314 158 2,472 - 2,472 |
Total 2022 £ 320,786 |
|---|---|---|---|
| 320,786 | |||
| (91,283) | |||
| (91,283) | |||
| 229,503 - |
|||
| 229,503 885,903 |
|||
| 1,115,406 | |||
| Total 2021 £ 313,546 |
|||
| 313,546 | |||
| (50,637) | |||
| (50,637) | |||
| 262,909 - |
|||
| 262,909 622,994 |
|||
| 885,903 |
All of the charity’s activities derive from continuing operations during the above two periods.
The funds breakdown for 2021 is shown in note 17.
The notes on pages 29 to 38 form an integral part of these financial statements.
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The Carbon Community
The Carbon Community (Registration number: 12273280) Balance Sheet as at 30 September 2022
| Note Fixed assets Tangible assets 8 Investments 9 Current assets Debtors 10 Cash at bank and in hand 11 Creditors: Amounts falling due within one year 12 Net current assets Total assets less current liabilities Creditors: Amounts falling due after more than one year 13 Net assets Funds of the charity: Restricted income funds Restricted funds 17 Unrestricted income funds Unrestricted funds Total funds 17 |
2022 £ 656,430 1 656,431 450,154 162,251 612,405 (63,430) 548,975 1,205,406 (90,000) 1,115,406 63,830 1,051,576 1,115,406 |
2021 £ 619,254 1 |
|---|---|---|
| 619,255 | ||
| 432,604 51,780 |
||
| 484,384 (17,736) |
||
| 466,648 | ||
| 1,085,903 (200,000) 885,903 |
||
| 2,472 883,431 |
||
| 885,903 |
For the financial year ending 30 September 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors’ responsibilities:
-
The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
The financial statements on pages 27 to 38 were approved by the trustees, and authorised for issue on 26/06/2023 and signed on their behalf by:
Signed by Charles Nicholls
.........................................
C M Nicholls
Chairman of the board of Trustees
The notes on pages 29 to 38 form an integral part of these financial statements.
28
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
1. Charity status
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The principal place of business is:
40 Alma Road Windsor Berks SL4 3HJ
2. Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
The Carbon Community 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.
Going concern
The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Group accounts not prepared
The Carbon Community is exempt from preparing group accounts as it is a small group.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
29
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £250.00 or more are initially recorded at cost.
30
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class Furniture and Equipment |
Depreciation method and rate |
|---|---|
5 years straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
31
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
3. Income from donations and legacies
| Unrestricted funds General£ Restricted funds £ Site management 1,859 2,157 Independent examiners fee 3,690 - Insurance 806 - Website 330 - Postage, printing and stationery 382 - Grants paid - 71,254 Volunteering expenses 3,566 122 Marketing 3,933 - Software and software support costs 600 299 Research Expenses - 1,062 Depreciation 1,233 - Total for 2022 16,389 74,894 Fundraising cost 290 - Site management 86 1,805 Independent examiners fee 3,665 - Insurance - 431 Website 340 - Postage, printing and stationery 40 326 Grants paid - 21,683 Volunteering expenses 6 428 Marketing 20,425 36 Bank Charges - 6 Software and software support costs 175 895 Total for 2021 25,027 25,610 4. Expenditure on charitable activities Unrestricted funds General£ Restricted funds £ Total 2021 £ Donations and legacies; Donations from individuals 184,727 88,604 273,331 Gift aid reclaimed 1,528 - 1,528 Grants, including capital grants; Government grants 9,994 35,933 45,927 196,249 124,537 320,786 |
Total 2021 £ 273,331 1,528 45,927 |
Total 2020 £ 104,638 18,866 190,042 |
|
|---|---|---|---|
| 320,786 | 313,546 | ||
| Total funds £ 4,016 3,690 806 330 382 71,254 3,688 3,933 899 1,062 1,223 91,293 290 1,891 3,665 431 340 366 21,683 434 20,461 6 1,070 50,637 |
|||
32
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
5. Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
6. Independent examiner’s remuneration
| Examination of the fnancial statements | 2022 £ 3,690 |
2021 £ 3,665 |
|---|---|---|
7. Taxation
The charity is a registered charity and is therefore exempt from taxation.
8. Tangible fixed assets
| Cost At 1 October 2021 Additions At 30 September 2022 Depreciation Charge for the year At 30 September 2022 Net book value At 30 September 2022 At 30 September 2021 |
Furniture and equipment £ - 13,111 13,111 1,223 1,223 11,888 - |
Land £ 619,254 25,288 644,542 - - 644,542 619,254 |
Total £ 619,254 38,399 |
|---|---|---|---|
| 657,653 | |||
| 1,223 | |||
| 1,223 | |||
| 656,430 | |||
| 619,254 |
33
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
9. Fixed asset investments
| Shares in group undertakings and participating interests Shares in group undertakings and participating interests Cost Additions At 30 September 2022 Net book value At 30 September 2022 |
2022 £ 2021 £ 1 1 Subsidiary undertakings £ Total £ 1 1 1 1 1 1 |
2022 £ 2021 £ 1 1 Subsidiary undertakings £ Total £ 1 1 1 1 1 1 |
|---|---|---|
| 1 | ||
| 1 |
Details of undertakings
Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:
| Country of | Proportion of voting | Principal | ||
|---|---|---|---|---|
| Undertaking | incorporation | Holding | rights and shares held | activity |
| 2022 2021 |
||||
| Subsidiary undertakings | ||||
| Carbon Community Trading Limited |
England and Wales |
Ordinary | 100% 100% |
Generating income for the parent charity. |
34
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
Subsidiaries
The loss for the financial period of Carbon Community Trading Limited was £16,867 (2021 - £3,723) and the aggregate amount of capital and reserves at the end of the period was £(20,590) (2021 - £(3,723)).
Carbon Community Trading Limited was incorporated on 26.10.20.
Company registration number 12973020.
| 10. Debtors Due from group undertakings Accrued income Debtors includes £450,154 (2021: £257,329) receivable after more than one year. Due from group undertakings 11. Cash and cash equivalents Cash at bank 12. Creditors: amounts falling due within one year Other loans Accruals 13. Creditors: amounts falling due after one year Other loans |
2022 £ 450,154 - 450,154 2022 £ 450,154 2022 £ 162,251 2022 £ 60,000 3,430 63,430 2022 £ 90,000 |
2021 £ 257,329 175,275 |
|---|---|---|
| 432,604 | ||
| 2021 £ 257,329 2021 £ 51,780 2021 £ - 17,736 17,736 2021 £ 200,000 |
The loan of £150,000 (2021 - £200,000) is secured by a fixed charge over the Land at Glandwr, Cynghordy.
35
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
14. Analysis of net assets between funds
| Tangible fxed assets Fixed asset investments Current assets Current liabilities Creditors over 1 year Total net assets Tangible fxed assets Fixed assets investments Current assets Current liabilities Creditors over 1 year Total net assets |
Unrestricted funds General £ 656,430 1 548,575 (63,430) (90,000) 1,051,576 Unrestricted funds General £ 619,254 1 481,912 (17,736) (200,000) 883,431 |
Restricted funds £ - - 63,830 - - 63,830 Restricted funds £ - - 2,472 - - 2,472 |
Total funds at 30 September 2022 £ 656,430 1 612,405 (63,430) (90,000) |
|---|---|---|---|
| 1,115,406 | |||
| Total funds at 30 September 2021 £ 619,254 1 484,384 (17,736) (200,000) |
|||
| 885,903 |
15. Trustees remuneration and expenses
Donations from the trustees and their immediate family during the year totalled £0. (2021 -£70,000).
Heather Allen, a trustee, has provided an interest free secured loan of £200,000 to the charity. The first repayment of £50,000 was made in September 2022. The balance outstanding at the end of the year was £150,000 (2021 - £200,000). £60,000 of the £150,000 outstanding balance has been shown as a current liability, but there is a flexible repayment arrangement.
The Charity made a further loan of £192,825 to Carbon Community Trading Limited during the year. The balance at the due to be repaid at the end of the year was £450,154 (2021 -£257,329).
Carbon Community Trading Limited is a wholly owned and VAT registered trading subsidiary which runs the forest and site operations for The Carbon Community. Repayment of this loan is deferred until such time that Carbon Community Trading Limited starts to generate sufficient income to be in a position to make repayments. Due to the uncertainty surrounding the loan repayments, we have not valued the loan at the present value of the future payments discounted at a market rate of interest. We do not consider this to affect the true and fair view given in the accounts at the year end date.
36
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
16. Commitments
Grant commitments
On 14th July 2020 The Carbon Community agreed to make an award of up to £174,572 over 24 months, made up of £90,008 to Kew Gardens and £84,564 to the Waring Lab, Imperial College.
During the year to 30th September 2021, The Imperial College grant was extended and increased to £89,568.
During the year to 30th September 2022 Imperial College made a claim of £39,859. The total amount to date claimed by Imperial College is £61,542. This is £28,026 less than the amount made available to them. Imperial College has confirmed that their work has now been completed and no more claims are expected to be made.
During the year to 30th September 2022 Kew Gardens made a claim of £31,196.
This is a performance-related grant and as no further services other than those already paid for in the year were provided by the recipients prior to 30th September 2022, no liability was recognised in the accounts to 30th September 2022 with regards to further grants payable.
Outstanding commitments not recognised as a liability at 30th September 2022 are therefore:-
Kew Gardens: £58,812.
17. Funds
| Unrestricted funds General Unrestricted Designated Land Total unrestricted funds Restricted funds Scientifc research Tree planting Total restricted funds Total funds 7. Funds |
Balance at 1 October 2021 £ 264,177 619,254 883,431 - 2,472 2,472 885,903 |
Incoming resources £ 196,249 - 196,249 61,351 63,186 124,537 320,786 |
Resources expended £ (16,389) - (16,389) (73,066) (1,828) (74,894) (91,283) |
Transfers £ (37,003) 25,288 (11,715) 11,715 - 11,715 - |
Balance at 30 September 2022 £ 407,034 644,542 |
|---|---|---|---|---|---|
| 1,051,576 | |||||
| - 63,830 |
|||||
| 63,830 | |||||
| 1,115,406 |
37
The Carbon Community
Notes to the Financial Statements for the Year Ended 30 September 2022
| Unrestricted funds General Unrestricted Designated Land Total unrestricted funds Restricted funds Scientifc research Tree planting Total restricted funds Total funds |
Balance at 1 October 2020 £ 622,994 - 622,994 - - - 622,994 |
Incoming resources £ 285,622 - 285,622 22,744 5,180 27,924 313,546 |
Resources expended £ (25,027) - (25,027) (22,902) (2,708) (25,610) (50,637) |
Transfers £ (619,412) 619,254 (158) 158 - 158 - |
Balance at 30 September 2021 £ 264,177 619,254 |
|---|---|---|---|---|---|
| 883,431 | |||||
| - 2,472 |
|||||
| 2,472 | |||||
| 885,903 |
38
The Carbon Community
UK Register Charity number 1187231
Formed as a private company limited by guarantee, registration number 12273280
@TheCarbonCom
39
The Carbon Community