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2024-03-31-accounts

Charity registration number 1200863

Company registration number 13978484 (England and Wales)

CONNECTING THE ROOTS

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

CONNECTING THE ROOTS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Lawrence Alkin Chen Azenkot Andrew Milledge Peter Hampel

(Appointed 15 June 2023)

Charity number 1200863 Company number 13978484 Registered office Enter Gallery 13 Bond Street Brighton United Kingdom BN1 1RD Independent examiner West & Berry Limited Nile House Nile Street Brighton BN1 1HW

CONNECTING THE ROOTS

CONTENTS

Page
Trustees' report 1 - 2
Statement of trustees' responsibilities 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 11

CONNECTING THE ROOTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024

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

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Charity’s objects as set out in the governing document are restricted specifically to the following:

Public benefit

The trustees have paid due regard to the public benefit guidance issued by the Charity Commission in deciding what activities the charity should undertake in its second year. Second year activities included and focused on:

Activities

The main activities undertaken in relation to the above purposes for the public benefit include:

IN UK:

IN COSTA RICA:

The following activities and services were carried out and can be identified in the accompanying accounts:

Schools Project Hiring a project Manager

CONNECTING THE ROOTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Achievements and performance

Significant activities and achievements against objectives

A summary of achievements of the charity is as follows:

In the second year the charity has continued to focus on building the systems processes and foundations that will lead to future success of the organisation.

Financial review

Total income for the year was £51,963 (2023: £13,513) and total expenditure was £34,885 (2023: £23,322) generating a surplus of £17,078 (2023: deficit of £9,809).

Unrestricted funds at the year end were £7,269 (2023: -£9,809). While a reserves policy was tabled to be discussed in the first quarter of the year, this has not progressed as there have been no major and ongoing financial commitments nor fundraising. Therefore, there is currently no policy for holding reserves.

Structure, governance and management

The governing document are Articles of Association adopted when the charity was established, dated 15 March 2022.

The charity is constituted as a Limited Company by guarantee.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Lawrence Alkin Chen Azenkot Andrew Milledge Gary Smith (Resigned 31 October 2023) Jonathan Steinberg (Resigned 10 October 2023) Peter Hampel (Appointed 15 June 2023)

Recruitment and appointment of trustees

Recruitment of Trustees is currently carried out by the Chair of Trustees via his networks and appointment is made following consultation with other Trustees and evaluation of the specific skills and networks the potential new Trustee can bring to support the aims and objectives of the charity.

None of the trustees has any beneficial interest in the company. Lawrence Alkin and Chen Azenkot are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees' report was approved by the Board of Trustees.

.............................. Lawrence Alkin

Trustee

Date: .............................................

CONNECTING THE ROOTS

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2024

The trustees, who are also the directors of Connecting the Roots for the purpose 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).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CONNECTING THE ROOTS

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CONNECTING THE ROOTS

I report to the trustees on my examination of the financial statements of Connecting the Roots (the charity) for the year ended 31 March 2024.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Michelle Westbury FCCA

West & Berry Limited

Nile House Nile Street Brighton BN1 1HW

Dated: .........................

CONNECTING THE ROOTS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted Unrestricted
funds funds
2024 2023
Notes £ £
Income from:
Donations and legacies 3 51,963 13,513
Total income 51,963 13,513
Expenditure on:
Raising funds 4 5,320 -
Charitable activities 5 29,565 23,322
Total expenditure 34,885 23,322
Net income/(expenditure) and movement in funds 17,078 (9,809)
Reconciliation of funds:
Fund balances at 1 April 2023 (9,809) -
Fund balances at 31 March 2024 7,269 (9,809)

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

CONNECTING THE ROOTS

BALANCE SHEET

AS AT 31 MARCH 2024

Notes
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets/(liabilities)
Net assets excluding pension liability
The funds of the charity
Unrestricted funds		 2024
£
583
8,612
9,195
(1,926)		 2023
£
£
-
6,735
6,735
(16,544)
7,269
7,269
7,269
7,269		 £
(9,809)
(9,809)
(9,809)
(9,809)

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on .........................

.............................. Lawrence Alkin Trustee

Company registration number 13978484 (England and Wales)

CONNECTING THE ROOTS

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

1 Accounting policies

Charity information

Connecting the Roots is a private company limited by guarantee incorporated in England and Wales. The registered office is Enter Gallery, 13 Bond Street, Brighton, BN1 1RD, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

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

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

1.4 Income

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

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 Expenditure

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

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

CONNECTING THE ROOTS

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

1 Accounting policies

(Continued)

1.6 Cash and cash equivalents

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

1.7 Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CONNECTING THE ROOTS

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

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Donations and gifts 51,963 13,513
4 Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Fundraising and publicity
Other fundraising costs 5,320 -
5 Expenditure on charitable activities
Charitable Charitable
activities activities
2024 2023
£ £
Direct costs
Travel - 1,665
Rewilding project 18,204 10,013
18,204 11,678
Share of support and governance costs (see note 6)
Support 9,611 11,044
Governance 1,750 600
29,565 23,322
Analysis by fund
Unrestricted funds 29,565 23,322

CONNECTING THE ROOTS

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

6 Support costs allocated to activities

Bank fees
IT software and consumables
Legal expenses
Printing, postage and stationery
Subscriptions
Advertising & marketing
Consulting
Governance costs
Analysed between:
Charitable activities
Governance costs comprise:
Accountancy fees
Trustee expenses		 2024
£
276
1,628
-
170
134
5,953
1,450
1,750
11,361
11,361
2024
£
1,560
190
1,750		 2023
£
100
55
10,792
84
13
-
-
600
11,644
11,644
2023
£
600
-
600

Included within governance costs are payments to the independent examiner of £1,300 plus VAT.

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but one of them was reimbursed a total of £190 travelling expenses (2023 - none).

8 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Total - -

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

9 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

CONNECTING THE ROOTS

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

10 Debtors

Debtors
2024 2023
Amounts falling due within one year: £ £
Other debtors 583 -

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income		 2024
£
166
-
1,760
1,926		 2023
£
10,944
5,000
600
16,544

12 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Archer Publications Limited is a company controlled by Lawrence Alkin, trustee. During the year the charity received donations without conditions from Archer Publications Limited totalling £31,246 (2023: £13,513). Archer Publications Limited incurred costs of £1,878 (2023: £20,874) on behalf of the charity and provided an unsecured loan of £nil (2023: £5,000). As at 31 March 2024 the charity was owed £417 from Archer Publications Limited (2023: the charity owed £15,944).

Eagle's Nest is a company in Costa Rica owned by trustees Lawrence Alkin and Chen Azenkot. During the year the charity paid rent of £4,619 on behalf of Asociacion Connecting the Roots (2023: £nil) to Eagle's Nest. During the prior period the charity made a payment of £10,013 to Eagle's Nest. This payment was to fund a rewilding pilot project managed by Eagle's Nest. The rewilding pilot project is on private land in which Chen Azenkot is a partner.

During the year a charity was registered in Costa Rica - Asociacion Connecting the Roots. Lawrence Alkin, Chen Azenkot and Peter Hampel are also trustees of Asociacion Connecting the Roots. During the year donations were made to Asociacion Connecting the Roots totalling £18,204 (including the rent paid to Eagle's Nest of £4,619).

Total donations without conditions received from trustees and close family members of trustees were £7,010 (2023: £nil).