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).
The Charity’s objects as set out in the governing document are restricted specifically to the following:
to promote the conservation of the physical and natural environment by promoting biological diversity;
to advance the education of the public in matters pertaining to conservation of the physical and natural environment and biological diversity
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:
Continuing to establish connections that enable the charity to strengthen and grow
Developing a suite of funding opportunities
Developing a business plan that focuses on the core goals of re-wilding
The main activities undertaken in relation to the above purposes for the public benefit include:
IN UK:
Prudently managing the charity's finances including disbursement of funds raised
Continuing to meet and connect with potential funders
Developing funding proposals and a business plan to help raise funds to promote the conservation of biological diversity and public education linked to bio-diversity
Re-vamping the website
Updating donors on the spend of funds raised from the charity auction in 2023
IN COSTA RICA:
Meeting with potential partners including Re-Planet to discuss opportunities
Completing charity registration for Connecting the Roots, Costa Rica
Hiring a Project Manager
Completing the Schools project https://www.connectingtheroots.org/blogs/classroom-donation-for-ostionals-high-school/
Beginning discussions with the British Embassy for potential support
The following activities and services were carried out and can be identified in the accompanying accounts:
Schools Project
Hiring a project Manager
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.
Completing the Schools Project
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.
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:
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.
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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.
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.
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.
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:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements 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
the financial statements 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 financial statements to be reached.
Michelle Westbury FCCA
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 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.
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.
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.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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.
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.
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.
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, 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, 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Travel
Rewilding project
Included within governance costs are payments to the independent examiner of £1,300 plus VAT.
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).
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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).