The trustees present their annual report and financial statements for the year ended 31 March 2025.
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 Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Due to a serious and life-threatening accident in February that involved Lawrence Alkin, the Trustees agreed to postpone full Trustee meetings until further notice. This has meant that only two full Trustee meetings were organized in the year. However, Peter Hampel and Chen Azenkot continued to meet on a weekly basis to continue the development and finalization of the business plan as well as research and connect with high level investors and donors. We are delighted to report that Lawrence Alkin has now rejoined all meetings and we wish him the best in his continued recovery. We are also delighted to report that David Harland former Financial Director of the Eden Project has been supporting the Trustees with advice on financial modelling for the business plan.
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 third year. Third year activities included and focused on:
Continuing to establish connections that enable the charity to strengthen and grow
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:
Managing the charities finances and investing in activities that support income to be raised to achieve charitable activities
Continuing to meet and connect with potential funders
Developing a detailed business plan to help raise funds to promote the conservation of biological diversity and public education linked to bio-diversity
Andrew Gifford donation of art from artist residency in Costa Rica money raised will be accounted for in 2025-2026 accounts
IN COSTA RICA:
Focusing on developing donor relationships to secure income to ensure charitable activities continue
Hosting an artist residency (Chris Levine – light and art - and Andrew Gifford – painting, and a local Costa Rican artist - painter) as part of the education, community and bio-diversity objectives and cross learning. Local farmers and community in the area of work took part and experienced the light show event and met all the artist participating.
The following activities and services were carried out and can be identified in the accompanying accounts:
Hosting an artist residency which included covering the costs of equipment required for the laser light show and travel.
Networking with and hosting potential funders and partners
Business planning development
Governance
A summary of achievements of the charity is as follows:
A successful artists residency was held in Costa Rica and subsequent art sale fundraiser in London of the work created during the residency. The income for this event came in after the close of the financial year and will be accounted for in next year’s accounts.
Completing a detailed business plan and proposal which will guide engagement with and securing of donors.
The Trustees have been meeting weekly to ensure detailed development and accuracy of the high level business plan.
The charity’s financial position is stable however, due to low activity both income and spend have remained minimal during the year.
The reserves policy 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 focus has been on the finalisation of a detailed business plan to ensure that a significant amount of investment can be secured over the next two years.
The governing document are Articles of Association adopted when the charity was established.
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.
Trustees meet on a quarterly basis to ensure the relevant objectives are met and to discuss any governance, structure and financial management.
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.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Connecting the Roots for the year ended 31 March 2025, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at www.accaglobal.com/rulebook.html.
This report is made to the charity's trustees, as a body, in accordance with the terms of our engagement letter dated 22 November 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Connecting the Roots and state those matters that we have agreed to state to the charity's trustees, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/tf-audit-exempt-companies-jan-24.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Connecting the Roots and the charity's trustees as a body for our work or for this report.
It is your duty to ensure that Connecting the Roots has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and deficit of Connecting the Roots. You consider that Connecting the Roots is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of Connecting the Roots. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
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 34 Brunswick Street East, Hove, BN3 1AU, England.
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.
Included within governance costs are payments to the independent examiner of £nil (2024: £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 £1,915 travelling expenses (2024 - one trustee was reimbursed £190 for travelling expenses).
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 £3,496 (2024: £31,246). Archer Publications Limited incurred costs of £nil (2024: £1,878) on behalf of the charity. As at 31 March 2025 the charity owed £166 to Archer Publications Limited (2024: £417 owed from Archer Publications Limited).
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 £nil on behalf of Asociacion Connecting the Roots (2024: £4,619) to Eagle's Nest.
During the prior 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 £nil (2024: £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 £nil (2024: £7,010).