## Wel8h Water Elxn Trust Content5 Rtfcrcnc¢ and Admini51raiiYc Dei¥ils Tnstees. Report 2to 10 Indepe)Idenl Audiloi%' Rcpui't BalDncc Shccl Is Cash Flow SIAtemeiii 16 Welsh Watcr F.lan Trust Reference and Administrative Dctails Tru￿e¢S r.lan Valley Limiied Lgnd Agent C P M HArley Principal orrice f.lan Fstate officc f.lan Village Rhayader Po￿$ I.D6 5HP Charity Registration Nurnber 1001147 Auditor Morgan Griffiths LLP Charter¢d Accountants ot)d Statutory Audilor Cr05s Chambers 9 Fligh Street Newtowm P0￿S SY16 2NY B*nkers I ISBC Bank PLC Middleton Street LlandriThdod Wells Powys LDI SEU Unity Trust Bank PO Box 793 Planctary Road Willcnhall WVI 9DG Pa8e I Welsh Water Elan Trust Tru5tees' Report The Dirccior5 of Elan VallLy Limilcd the 501c e(wraie trustee of Ivelsh W￿cl Elan Trus¢ Icolloquially kLioiYn as th¢ Elall Valley Trusi)- presenLS Ilie annual repon i08¢di¢r wilh ihe finaThcial siaiemejiis and audiiors, report ofilie charily for lh¢ year endcd 31 March 2021. ObjectlVf5 xod acliYilie5 O&je¢15 The Objecis of ihe TnJ$i as wri¢ien inlo ihc TTU5t Deed are.. l. The preservation rnainlenancc and enhancenieDi for thc trKncfii of ihe public of Il)c aiea of grcal nalural beauty comprising of (he Elaii Valley and ils nau￿￿1 asTUi and f¢atytrs (And its wiiimal ￿MI plaiit lifcl,. 2. The faciliu¢ii)n and encDurd8eimenl of acc￿ 10 aThJ il* sludy of lh¢ Elan Vollcy land its ariiing14nd planl lifel by the g¢ne￿I public: 3. Thc provLSLOlJ at the Elan Valley or such part of li as should bc apprrwiaic in ihc inicrc51s of socjal welfAre and for Ihc purp￿ of improving ihc rortdilion& of life foi Ihc ￿[$0￿5 for whom Ihc saine are iniended of faciliiits for physical r¢¢wiioD which shall bc available lo rnembers of ihe public ai largc. 4. The fa¢ilitAtion ond encourag￿en1 of rhe use of thr whole or part of the Elan Valley for charitable putptsses. Aims of ihc Tnjst.. Thc ailn of lh¢ T￿￿1 is io achievt thc ambition of Direciors thai Ihe Elmn Vallry ftsialc bc iTrlcrnalionally Ircow15ed for lh¢ S￿￿81n&bI¢ b¢Defit5 il providcs LO publir as Sei Qui in our Strategic Plan 2019-30. Ihrough: l. being an exemplai orS￿￿aln8b[C natuTrl T￿o￿l¢t mana8enrnt for an upl8nd walcr cAtdiment- 2. Ilie values and benefjis ihai result from its herita84 Ihc richness ofits riaiits¢. ond its Ihwiviug community life. In8Duging a place where ￿)ple'S health. *tllbeing and understandEll8 are iinproved by eX￿rien(ing the Eslait. COYID-1g Like many oih¢r organisaiiorts the Tntsi has impa￿e￿ by the cov1￿19 pandc]ni¢ duriThg 2020-21. Our r¢sw>ns¢ was a balanccd oli¢. c1￿Ur111X Iha( we our obligaiions to protecl our cniploycts. contraciors aiid m¢mbeTs of Ilie public. Ivhile mainiainithg e$8eniial operaiioJLS and .*ckin8 10 supjkn iht $ltXlcgies of the autjiorities in r¢lalion lo lo Ihc vallcy. In resFX)nse to th¢ pandetnir and lh¢ 5vbwwil nati(Thl Iwkdowry5 ¢hc Trust quickly implemcii(ed 5y51cms wher¢by some siaff were able 10 work from home. others were fijdouxhed. attd wt implemenied a lange or Ine&suTe% In pro(eci Ihosc siaff were esselllial at￿1 needed lo continue lo wotk throughout ilie ycar. Sonie of rhe key activities plann¢d for th¢ y¢ar have btt'n Severely imparted,. rbot3bly all of our Iiospitality funciion had io Llose for laT¥e part5 of th¢ year lor ￿rate undv ie5rriLlionsl. Lon51iwrlion piojeLis w¢r¢ dddy¢d and much ot.the Elan Links promraminc of wotk wa5 delayed. Pagc 2 Welsh Water Elan Trust Trustees, Report we are also iii iiC&JOlia110115 I1'Sih our luiidci's to allow u¥ 10 exiend DUI. ¥r41i1 periud 10 eiiiiblc works 10 be Sume resiritliuns reniain we InDV¢ inio 2021-22 bul we air hopcfiil i)fT¥lurniii¥ l(1 A 8iraier level L)f acliviiy v¢r Ihc couise of the year T¢sITiLiions have bren signifi¢ai)Ily rclllxcd diirin8 .Siimiiicr 2021 so aLliYity is ObjeciiibeSk 511aiegie& oriii'iiie Th¥ Vallcy Tjusl's 2030 Lan be foiind liiips.'Ilwww.elani'all¢>',Ofg.uklsii¢sldLfNuliirileslH5S¢151EVTYo2081l.AicBlC¢I&2oP1￿n°￿20F¢b.￿20I9rykn2oEn￿lish.pdf For LL'niuriLs tlie iiplmiids of Ilie Ldll)bi'iun Mouliinins inLliidirs¥ IhL Elnn VAIILY F.%tniL llliid5 1)niie bLpcnies. a major xchcin¢ of Irnovaiion 15 in dev¢lopm¢nt for Iwo fiirthcr propcitlC5 41nd rangc of inor¢ Ininor renovbtions apd up¥r8de8 havr b¢¢rt made ¢ib'vwh¢r¢. PaBe 5 We15h Water Elan Trust Trustees, Report Piibli£' bgnefii TlJe Trusi bciiefil$ Ilic publiL liy itnpleiiieiiliiiB Ili¥ objeLl$ of Ilie Trubi tk,ed.' proinotirt¥ iiaiure aiid landscape 0¢1scryHlioii oil Ilie Flan V£ill¥y F.slaiL'. wliile enLuiii'd¥ing publi¢ alless and r¢Liralioii and iise ofilie F.siai¢ ft>r eduLaliunal and LhHrilRble pi1r￿se$. Durin¥ Ihe 2020-2021 pcriod Ihe Ttw$i Inaii£18¢d and encoul￿ged lilali￿lgeMenl Ihrii bci)¢fiied 11Olut¢ on thc Esl*i¢- uiidcno(kk works to s¢¥uiT th¢ historic laiidscapc.. niaiiilaiiied pailis iiiid ptlicr iiifr451niclure 10 enable ¢iijoyiiieiii of Ilie E%illi¢ by Il)e piiblie: PiolDO¢¢d Ihe iise of Ihe Eiiale by Ihe piiblic Ilueiigh a vai'iely of mcaii includin¥ an cvciit5 pIDBr411)iiie atjd provi5ioiI of a¢¢o)miiodJiioii' ttiid sUp￿ried Ilie of tli¢ Eslule tor edu¢Aiional and chai'ilable piii'i)0s&4. Tlic long-lcriii provisioii of i)ublic benefii froni Ilic E¥lute liag b¢¢n furtlier ￿'¢￿red during 2020-2021 by Ilie The 1111$iees coiifinii Iliul Ili¢y h￿ve coiiipli¢d willi Ihe requii'emeiiis ol. Se6lioii 17 of the Charilies Act ?01 I lo have due Kgui'd lo Ilie publi¢ b¢ii¢lil ¥uidunL¢ puI?li%l)¢d by the ChHriry Coinniissioi? for En81gnd nnd W Ale¥. Fln*nelil r¢vl¢iv Tlie ioi•l invoiiiiiig rcsoiirces fiY)In rliai'illlblc a¢liiiiliL% irt 2020-21 wa8 in Ilie ordLI' vf £1.9M. ()r Iliis iniome, 501nc L1,49(Ik wa$ 61)¢nl oli LhJi'ilable HLiivilies, Ihe l'en￿1nlng all￿#(C{j lo ￿$¢¢￿¢S, Inii¢simenl inio the NLHF 5LIicillc wll5 in the ord¢r of164k diirin8 2020-21. TlJ¢ Tru&l hub # v¢ry lon￿-1¢r1￿ Ir¥poiixibiliiy (l￿W &thi)e 969 y¢ttiil #lid considci'iible fuiiir¢ liJbililies iii Icmis aw41'e Iliai Ilic 1118jol.iiy uf in¢uiiiiiiu rebourLes lo Ilic Tiusr are dependelli ui)011 111¢ twin vB8uri¢s of upl4nd rariiJin¥ and W¢lsli ayTiculiurnl and LnvironJiJ¢Thial policy Ih81 1$ cui'iynily ¢volving fi'oii) Ilic Europcen Unioii Conimon A¥riculiiiral Policy posl.Br¢xi¢. Al year-¢iid 2020.21 Ilic Tiijst hod uiircsiricled fuiids iii Ui¢ ordri. of £l.Ini. Approxirnulcly 2¥Dl• ol. 11)ese lield in a Lurrcnl Accouiit 10 iiicei 51ion icrin ¢iccd¥. Direiior% rc¥ularly review Il)e iiii'tlilinini $lroi¢gy porifolio. Pag¢ 6 Welsh Water Elan Trust Trustees, Report Plgns foi. futui'e peJ'iDd$ During 2020-21 cliai"ituble delii'Lry by Ilie T￿5¢ 5ignifitanily impaclLd by lh¢ COVID-19 pandemic. Iliis is erlain lo ¢onlinue into 2021-22 and ai Ilie liiiic ofwriiin¥ IAugu%i 20211 I'eslriciions liave continued io i￿1p&Cl Ilie 110spilality parl ol. Ilie T1￿$¢ dui'iiig Il)e rjrsl quarier of Ihc ycar, alihoii¥h re511.iciioiis hai'e iioiv eased Lx>n¢inuiiibi 10 sci as Lead PAilner foi. ElTrn Link% aiid implcineiiiinL( a ran¥¢ of Elan Links proj¢cls'. inipleinenlaiioii ot'tli¢ Flan Link8 ALC¢SS and R¢Lr¢o1ion PIAII oiid Inierpiel81ioii Plyn,. 3. puJ'suii)y tlie conservnii(In uf IloiTr L2nd fniiiih Ihroiigh IIJC Nniurlll Hcr¢iA8e piY)j¢¢lii in Elllii Links iiid oih¢r oppoiluiiiiies such as pcuilai)d Irsioraiion fuiided Ihi'oiigli NR W I WG., 4. eompleiion ofihe ¢oi)vcision of Cwiiiclyd FaiimAlead 11110 a facility foi. 8roup accoJnniiKIAIioLI', 3. fo8lering and encouraging 4pproi)I'iaie abLcss. rrc¥ealional, educalional and Ki¢niifi¢ use ofilie Esiaie. 7. pronivlinu uiid dev¢l()piiiu diL ￿101) Vall¥y Dllrk Sky Pllrk; TILC Flo11 Links proLtrl1 iiiin¢ wsll i()niiniic 10 lillve a 5i¥nifiLuni rolc ID play Di'ci. Ilic ¢i)ur.%¢ nf Ihc nc%i feiv y¢at¥ and Il is likcly Ihal IiK)ni¢s Saved diii'iii8 2020.21 as 8 re5ulI of furlough and budseiry r¢¥iroini will cnoblc Ih¢ leL¢d¢y foi. lh¢ fulure will Inciiii Ihe ijiipact ib fcli ivcll b¢yond lh¢ d¢livciy pLriuil. Sli'uciurei goi'erngnce And niwiiA%eiiii'nt NAI￿re ol¥oipernliig Alocmnieiil vr%sTiiisAilwul.iiruelNre Wc15h Water El￿n Trusi w•s cslablislied by 4 TNsi Deed dol¢d 13ih OLlobcT 198() ths p411 of Ihc wal¢r i?riv&ii$2tion i)iYJicsB. Tlic dc¢d $lipulaied thai Dwr CyinAI Wclsh Waier IDLWWI inlcnded 10 ¢Slybli$h FoundJlivn 10 pi.ese￿¢ for i)ublic bcncfii lond in Ihc Clan Vallty and119s foi. Ilial i)Iii'ix>s¢ vesicd in Ihc Trusiec5 Icmschold iiii¢irsl iii Ihc prupcrty fvi J Iciiii o(999 ycai's.. The dccd BUCS 10 dc6ci.ibr lh¢ clini'iinble objccts, rule ofTrns(cc5 and various powcrs nf Ilic TLIJSlccs lo fuiiliEI' Ihc objccis. The dLLompanying leuse includcd ill Ili¢ agricultural land lliid buil(Jing% nji Ili¢ Es1al¢. Excludcd frojii th¢ lusc were the dains, Ilir surfaces of Ilie rcservoirs. Iheii, opcraling i)aiaphernHlia. niosl of Ilie foresiry. Ilie Vistlor Ceniir, Iiovse5 and land in Elan Village. and certaiii liou%cs on Ilie Elaii Eslale. Tlie fiusi is Ihus responsiblc for some 43.000 acJ'c% Oul nfl ioiil of 45.000 in accordon¢¢ willi Ihe lenM.¥ of Ilie lea%c. Since 1989, a nuiiib¢r uf pi'op¢rti¢s on Iht E%iate and in Elull Villa¥¢ Iiave bccs) added 10 dic lease or aCqUilEd os has Ihc freeliold of n¢ighbouriiig CwiKdauddivr Coiniiion. Page 7 Welsh Water Elgn Trust Trustees, Report Morc recertily. io resolvc Col￿pECXl1l0% #rourtd lhc recnjiiiii￿I of new Trnsiee8 in the face of liability is5u￿ iipjlll Ili¢ original arranuenieftL Ili¢ Compony Elaii Valley Limiied was cstabli5hed ond registered iyitli Colmi￿nIc5 Hotssc (No n900104Cil aiid on 2nd NoYellib¢r 2018 Ihe Iwis(cr io Elath Valley Limit¢d as ilie sole corrx7raie Iruslce look cfTeci. ai whith poiiil ihe six In￿ltt5 ofihc legacy Ixxly r¢li[￿ aiid were appoiiii¢d ab Dire¢iors ur Valley Liiniied. A$ sol¢ corporatc Irusitt. Elon Valley Limilcd now has responsibilily for fulfilling Ih¢ cliarilablc objeciives of ihe Trnsl in accordan¢¢ with iht Trusi Deed. Dire¢iors of Clan Vgllcy Liiniied aye (in accordance M'iih ¢he obje¢i% and ￿?WerS nf Ihc ih8rityl ￿SPi￿51blc for SLllin8 th¢ sti*i¢BiL d¢r¢iiiun and ￿ll¢le$ of Illin Valley T￿￿1 and ftsr Indjur opciuiional and inv¢Slin¢DI dcrisions. Usin8 a sysiem of d¢lcualivn¥ io JIJIT thal air fvnn4liseii in ttspeci of finAn¢ial a¢¢ouniAbilily geiicral 8OVtrnaiir¢. th￿¢ rouliiie operJlion*l mailers are Ihen in)plem¢Thlcd by Ihc senior siaff. D￿ls1OnS irb fuifilinenl of their role ar¢ principally 18ken by Dire¢tOTS #i Elan Valley Limited boArd ni¢¢lin8s held ￿ leasl flve times 8 yegr. Exe¢iiiive I m8naM¢m¢ni fvn¢iioDS ofihe charity art Ihe resP￿Ibility of ilie Land Ag¢ni. They are 8UPPOrted ii) Ihis rolr by the Deputy Lond A8eiii. EIJJ) Valley Liiniied doe$ noi in iisclf liold any Assets or Iradc. nie Choriiy Coniini85ion lias therefore tsilioris¢d ihai Ihe chariry's funds Inay be used to purrha5c in$uT8n¢¢ for the Im$ie¢ and Direciots liii£ludinB 'Dircciors OITi¢tt liubiliiy injurancc policy-l. A numb¢i" ol'or¥allisaiions h&i'e Ihe abiliiy to rnmiiiaie Direci¢NS 10 ihe Bo•rd of Elan Valley Liii)il¢d. Tliese • Dwr Cynuu Welsli Wai¢r.' c￿ntY Council: Ceredigion County CwKil.. NaMTrl Rewurce% Wales Ilwo Dire¢iorsl and Wc1511 Governnieiii l N￿lon01 Assenibly for Wales. In addiiion. as a ¢￿$¢qUence of the ap￿linE1￿¢￿ of a sole ¢orrAx41¢ iNxi¢e Is provisiort for in 'op¢n' rccruiliii¢n¢ piffj¢css ¢0 ¢￿U[C a widcr lliid appropTiale balaiice of skills is ai'ailablc 10 Ilie Board. Direct￿5 appoinled Ilirou¥h Illi% piw¢ss %ii r()r 8 fivc.y¢or iemi in the first ins￿￿Le willi provision lo cxtend Ili¢% for (urth¥r fi￿ yLars. A rLLruiiiiiLnl pr()cLss i￿& followcd LI￿rin¥ 2019-20 10 sttk 10 Bui)pleiiiLtii aiid Slren¥iliiii Ili¢ Bo#rd wilh Ilie final %lag¢s ini¢miWcd by Coi'id lockdown its ik prriod. Th¢ pr￿¢58 Wa5 wmplclrd llllc Suinmer 2020 wilh Ihrec new T)Ire¢iors Joinin¥ ihc ljoard. t)ireclors brin8 with Ilieiii a wc811li of WDfessiunal exwli¥e in m8iie¥s rel*iing lo ihe operaiion anil funcii4m of Ihe ¢haiily ind r¢L*ivc ongoing Iraining and infomwiiw provision in inaltcrs pertaining lo t1￿ charity Iliro￿8h a syslesii of re8ul8r upddie& frvin relevani professional orBanisaiions, i'¢ibsl uwlai¢s papers for infomiaiion piepxred by 5tRff a5 w¢ll as sil¢ visits both on •nd otTihe tstalc. gc8 Welsh WAter El*n Trust Trustees, Reptsrt Relati¢bn$hlps Ivi¢h rd4l*d p•rtlt5 D￿Y C)'Inru Wthh lvater While I1￿ Icms of the IcBse clearly delineaie the re5wynsibililics of Ihe chariiy tn term$ of m8ni8em¢ni Of the leasclK>ld Ih¢re are in¢i'itably iiuny area5 of Inullwl ￿licY, nianagenKni and opersiional inlcre%i willi DCWW. The cliarily lI￿refOre works r105ely willi DCWW iii niaiieTS relaiing io ilie OPCllLiion of ili¢ F3iaic. This is ra¥iliilllcd by r¥Bular day-ltrilay LoiiiaLI b¢1￿¢n in¢niiKY5 uf Ilie iwu or&I)ni￿li1)I7S And is furtli¢r Irenwli¢ned by aiiendanL¢ of Tr local tKWW r¢pLs¢niaiii'e ai Trusi Unai'd ￿7￿1111&S and Ili¥ DC.WW.appoisiled Iru4tce t)r. NorrnHn LO￿￿. Tli¢ iiatiunul European importjnce of the Esiait ftsi naiurc cc>iiscn'81jon Artd a range of ccosystejn servi¢¢s Ihai ani)di¢r key rtla11￿7slilp is Ihai H'iili NJlutal Flcsuurces Wales INRWI. Again, Ihis relaiiorbship 15 Iniin(ain¢d by regulor ¢ontsc4 bel￿￿¢￿ Slaff Inciiibcrs of Ihe two or8anisaiioiis. by attcnd4nG¢ of an NR W otyiier 81 Trusi Board meetin8s and by Ihc nvo Directo￿ appoiiiied by l¢gA¥y b(￿1¢8 of NRW. Vaughan and Dr. l¢uan Joyce. The Lharity Ai p¥rt of a wider network: Elan Unki Partnershlp SinLe fJL%irllb¢r 2017. Ihc Lhariiy has l*rrJ iA'ad PthrtllL'T iii ilie S-ye4r Elaii Link6 LHiidsL8PL P8rtn¢rsliip sihc1i￿ awdlylL￿ by Ili¢ Hcri1118c L￿1¥ry FurKi and basrd pnzicii)dlly wiiliiii Ilic El8n Vall¢y Eslaie LxTrundary. Apart froin tlic Tnjsi. Ih¢ Ilaii Liiiks partnetship inLlu(l¢s DCWW. NRW. c￿nI11U￿Il>, Arls Rhuy8d¢r and District ICARADI Nnd Tir C'oed. Siakcholdcr or8fjnisativn5 i￿11¥1¢ Royal Lommissiwi foi. An¢i¢rti and Hisloric Muniimrni$ Wal¢s. Arts Louiicil Wal￿. El¥n Vall¢y T¢nBni$ A￿0¢l4110n. CwiT¥Jlluddwr colnm￿KtS A550ClllliOrt and a ran8e of w¢rulivnal user 8rwps. Durin¥ the 202￿2] perI￿L Di¥c¢ior5 coniinued 10 idcnlify mjnwgc risks usinx ¥ RAts (Re&Alnb￿..(IreC￿j risk r¢bTrisier sys1￿n. R¢vi¢M'iiig lh¢ risk re8isi¢r 1$ a slandin8 Ilcin ai Tru51 Ilodrd Liieeiiiigs. Stal¢m¢MI ofTru51tti' R¢$ponilblllilu The Irusiees are res￿l￿1b1¢ for pr¢parihg ihe In￿et$. re&￿ and ihe financial $14iemMts in oc£ord•nce ivilh ihe Uiii¢cd Kingdum A¢cLiiiniin8 Siandards (Unikd KIng￿M G￿￿llY A¢¢eMed Accouiitin8 PrAC¢icc) and llpplic4blc low thnd rexiilaiions. The law appli¢4blc lo cliariiie5 requir¢8 the iru51ees ￿ pryre finarKiil <sl¢ryKTht5 fw e•ch financial ycv whi¢h 8ive a Inje and fair view of Ili¢ Slilc of alTairs of t1￿ ¢I￿rIry and of Ihc inconiin8 resoiirt&i •nd application or r¢sour¢¢s of Illt charity for Ihai p¢riod. Irb prepatiiig these fitb)nci•I iiaicmcnis, Ilie InL%I¢¢s •Te requircd 10.. 8¢lect %uiiable actourtling policics and Ihen apply Iliem cvnsi51aiily* ob5¢rn'¢ IhL' ni¢iho&% principleb in th¢ Ch4Lriii¢$ SORP: Inllkc jud8cment$ Aiid csliinale5 Ihol ar¢ reasonable and pnMILiit' statc wheth¢r applicablc accouthiittg SI￿dardS have bctn followed. subjeci lo kny nJat¢ri81 depanures di8¢losed and explaiDed in Ihe financial siaiem¢nts: and prepair th¢ financial stiiem¢niS on Ihe 8OLn8 conccrn ba$15 unl￿3 li is inappropria¢e to prr5umc that the ehariiy will conlinue in ￿Sine￿. Tli¥ tru51e¥s ar¢ rebwn¥ibl¢ for k¥¢piTh¥ proper accouniin¥ records Ihal di%close wilh rea50nabl¢ aL¢urncy al aiiy li11￿ Ihc financial pDsilion of Ihc ehariiy ¢noble ihem lo Ihdi ihe finatbciBI s￿1¢111¢¢71S coinply wilh th¢ Chariti¢b Aci 2011. Ihc applicable Chariibe5 (Arcounts &rKI Rcpoiisl Rc8ulalion5, and Ilie i)rovision5 uf (lie on51iluiiun. Th¢ iru51¢c5 arc also re$pM$ible for s*fe8uardin¥ the 8s$¢ts of Ihc charity and h¢nr¢ for taking rL'ssonabl¢ 5t¢P5 for th¢ prev¢ntion aThJ d¢icLiion of frnud ￿h¢r irre¥LslaL?tJes. Page 9 Welsh Waler Elan Trust Trustees, Report Disclosurt ofithform•tllJD lu auditor Each Irusiee has iaken sieps Ihwi Ihey oughi io ljave i#keTr as a Ir￿￿te in order EO make Ilieniselves a￿re of aiiy r¢lcvani audii iDfo¢Thaiion and 10 tstab115h Ihal the charity's audilor 15 aThSLie of ilial infottrwlion. The In￿te confimi Ihai t11¢￿ is no ielcvant inf0M￿li0n Ihai ihey k[￿ of and of which tty knthv the audiior is Unawd￿. The aruiual rwrt ivas appmed by the ofthe lianty oii...... sigThed on tts behalf by.. t)r l Joycc. Dirccior Elan Vall¢y Limtled Pa8e 10 Welsh Water Elan Trust Independent Auditor's Repvrt to the Trustees of Welsh Water Elan Trust Opinto We liave audited Ilie finaneial Etateiiicnis of W¢1511 WJl¢r Elaii Tw51 lilie 'cliariiy'l for the year ciidcd 31 Marcli 2021. wliich coinprise th¢ SiatciJ)eni of FinanLi¥I Aciiviiies, Balance Sheti, CJ5h Floiv Siaicineni, 8nd Noie5 10 Il)e Financial Sialeinenis. including a Sunimary of significaiil accouniing i)uliLies. Tlie fiiiancial reportiog franieivork Iliai lias beer) ai)pliLd iii Ilieir preparaiion is Uiiiied Kin&kdoni Accouiiliiig Siaiidard5lUiiiled Kingdoni Generally Accq)led ALcounling Praciic¢l. IVL 4 Ii-u¢ and tiiir i'iem. of Ihc 518ie of Ihe rharily's iiffdiii ds al 31 M4rLh 2021 and of ils incoming resourc¢s and applicativn of Lrsouir¢s for ihc ycar ihen ended. have been prop¢TIy Prcpaied in JLcordance wilh Unile(l Kingdom G¢nciTrlly ALLepied Accounting Praclice,. dnd l)avc bccii piepaTcd in accoi'daiiLL wilh th¢ rcqutrenienLS of Ihc Charitics A¢1 2011. Ba¥1$ for oplnlo We condiiticd our aiidii in accordance willi Iiilcrnalional Standw￿$ on Audiiing IUKI IISAS IUK)) and Applicable law. Oiir T¢5ponsibilili¢$ under ihosc siandards are furth¢i' descrtb¢d iii Ihc Auditor's i'csponsibLlilies (or thc xudil of tlic finaiicial 51al¢iii¢iiis &L'elioth of oui. r¥p011. W¢ ar¢ indepeLidcxJi of Ilie ehariiy in accordancc wilh the eihical Tequi￿nicnIS Il)al Rrc Irlevani lo oui. audit of the financial 81a(gin¢n15 in th¢ UK. includtn¥ th FRC'S Ethical Siaiidard. ￿ld iv¢ liave lulfilled our oiheJ' ¢ihical I'c.4p0115ibililies In accorddiice willi Ihe5e requirenienis. We believ¥ Iliai Ilie aiidii ei'ideiice H'e have obiaiiied is sullicieni and appropriate 10 providL a Con¢lu$lons relalliig to golng conccrii In auditing ihe tinartrial Slaleinenis. w¢ have concludcd iliai ihe Irusiec5' Lise of Ihc 8oin¥ conceiv basis of occounting in Ilic pr¢paralioiJ of Ili¥ finanLial S￿leMentS is appropjiaie. Based on Ihe WVTk ￿ have perforn)e4J, have iiot idcntificd Riiy Inaieiial ui)ceilainli¢s relgting lo evLlll& or ctrJiditlD115 Ilial, iiidividually oi. colleLiively, MAY casi si¥nificani 4loiibi <>ii th¢ chariws abiliiy 10 ¢onliiiu¢ a5 a ¥oiiig concem lor a period of ill least Iw¢lvc Jiionih% li'om whett Ihc fJnlliiLial sialejiieiiig dre auihoTised for issue. Our ￿5ponSibl11t1t5 and Ihe r&%i)0115ibiliiies of ilie tn￿lee$ ividi respeci lo goiiig concei'ii are desciibrd Jn the relcvaftl se¢iiotts of Ihi5 report. Other Inform4tlon Tli¢ Irusl¢¢s #re responsibl¢ foi. Ihc ollier intollllrfltion. Tlie 011￿r Iiifurnialioii Loiiiprises tlitr iiifuriiiaiion inilud in tlie Annudl R¢poi1, oih¢i' than Ili¢ linancial bl¥icmcnts and oiii. Rcport of the Iiid¢p¢ndciit Auditors ihei'con. Our opinion on the fLnaiJcial slalemeii15 does noi cover ihe oihcr infoiniaiic)n and. ¢¥rcpt to Ihe cxieni oihenvise explicitly 5¢aled in our r¢port, ￿,¢ do noi express any fonT) of assuidllC¢ Conclusion ThCr￿n. In conniition with our Biidii of IhL. findnrial 51alcin¢nts. our rLspon5ibiliiy is lo read the other infonnalion and. in doin8 SO, LOll5id¢r whcther ihc tsih¢r infomiation is maicrially inLonsisicni with ihc fiiianLial sial¢meiiis or our knowled¥¢ obtsincd in ihc audit or otheThvise appeiitE 10 be malcrially missiai¢d. If ive identify such material irtcotlS15tcncics or 8ppaiTnl tnaterial Inissiai¢tneJ)ts, w¢ arc requiitd to d¢t¢rniine whether this 8lV¢S li% to a Jiia*Tial mi&siaiemettt in th¢ financial s¢Jlcmenis Ihcmsclvcs. If, bascd on Ilie wtsik we hav¢ p¢i'fuimed. wc conclude that IhcTC 15 a nialeiial rtiisslalemeni of Ihis oiher informaiion. we 8r¢ r¢quired 10 report thai farl. We have noihing to report in Illi$ rcgard. Page 11 Welsh W•ter El*n Trust Independent Auditor's Report to the Trustees of Welsh Ivater Elan Tryst Motters Dn iihilh we are rtquirvd to report by e%tep¢ion W¢ have noiliing 10 report in resp¢¢i of th¢ folloiviJiB maiiu5 where the Chariiie5 (Aceouiits and Reponsl Re8ulaiion$ 2(X18 req￿1r¢S us 10 report 10 you If. in our opittion.. the infonnalion given in thc of Ihe TA￿1￿5 is uKoJtsi$ioil ith any nulLriiil with th¢ fiiiaiKiwl 51al¢meiits.' or Su￿1Clen1 aCLouniing re¢ords hove noi b¢gn kw.. or lh¢ finuncigl stsiemenis are t)01 Lll 18r¢vrhertl wilh ihe accounlinB rccords rclurns: or we have nol received all th¢ infomiiiion •ThJ ¢xplanaiiTh￿ require for Lwaudil. R¢5ponslbllliles of irusiees As expldin¢d Enore fully in th¢ S￿leMen1 of T￿51￿5. RwM>nsibiliiic6 Isth uui on pll¥e 91, Ilic irusiees ure respu￿SIble for Il* pr¢pnraiiun vf Ili¢ financial sla1¢n￿nIS wliich give a IruL di￿ fair vi¥w, and r()r %uLh iiilLrnil conirol a$ lh¢ tn151ee5 d¢i¢nnine is ne¢￿ary 10 cntsbl¥ ihc prL'parAiion of financinl siaieinL'nls Ihal are freL froni niJtCTial misstsiemeni. wheih¢r due io ortrmr. Iii preporinB the financial 518ltiiients. the InLSlttS are rtsponsible for ossessins Ilie chartty¥ ability io coniiiiue &s 80in8 concern. dts¢losin8. 43 appli¢abl¢. Inaii¢rs related 10 going ¢onr¢rn and using tli¢ 80ing ron¢¢rn basis or .1ecouniin¥ unless Ihe Iru%irts eiiher iniend 10 liquid•ie Ihe charily or lo ¢Lwe orKralions. or have no reBIi51ic Iicrnalive bui IL) do so. Uur rtsponslbllitld lor the Audli ofthe firt*#¢lil ￿*1￿￿￿￿15 We hDve been opiioiiii¢d 1$ audil0Tr Scrlioii 144 ofihe Ch•riii¢s Ad 2011 report in 8¢¢ordgn¢e willi IIK Aci iiid rclevaiil re8ulalions mad¢ or havin8 etTect Ihercunder. Our objtclive5 are lo obiain reawnable as￿￿￿¢¢ about wl%11￿r IIK finaTh¢i•l sia*ments a5 I M,liole arc frc rroni Inaterial ini$S￿le1￿CnI. wlwher du¢ io fraud or ern)r. ind 10 ikwe * Report of Ihc Indepeiideiii AudiloT5 Iliai iiicludcs our opiiiion. R¢a50nablL assuranc¢ is • high I￿¢1 of35SUTancc. bul is iiol a guaranlce Ihai #ii audil Loiiducird in a¢¢ordaii¢i wilh ISA$ IUKI ￿.111 always d¢te¢i a nwierial iiiis$iaieincni wliLn il exi515. Mi$stsien*nlS can arise f￿￿n fraud or error ind are Considered Inilcriwl if, l￿dIVIdUally or in Ihe oggrcgute, they could rLaM¥n•bly be ¢xw¢i¢d io influ¢th¢e the ¢¢onomic dectsityis of users thken on ihc bjsis of Ili¢s¢ finon¢ial IIT¢8ularilic5, ifi¢ludin8 fraud, arc iMlantt5 ofn¢Trcompli•thc¢ wilh laws Ind rcgul•tiMs. Wt design procedures in li*e will) oui rtsponsibililb¢S, oiiilin¢d above, 10 deleci inaierial niissiaienbcnls In rcspcci ol. Iiresularillcs, including fToud. Thc cxlcnl io wthich our ore ca￿ble of ddcding ilTCBulaTilies, iiKluding fiaud is deiailed b¢low: Our appr4M¢li to ideniifyiily and Ihc ribk¥ of muleri*l mibWt¢maii in rL%rrtcl of irre8ularilie8. iIKludiii8 fraud no11-l￿nip1i￿I￿r wiih laws and rryulaiiths. wjs as follow$'. -the en8a8eJneni partner ensured Iliai ihe eng8gcmcnl ieam collc¢iively had Ihe appropriaic ¢oinpeiencc. ¢apabiliiic5 und skills to idcntify or rccogni5e nOn•compliHnce willi applirnb1cl4￿ •fid rc8ulalion$; -we ideniified lh¢ law% and rc8ulali(￿5 applicable lo Ihe ¢h&riry Ihrougli discussiotu wilh niana8eiiienl, aiid rroin our knowlLMIKe and ¢XPffiLncc of Ilie (J￿rItY s¢L¢(r. -wL foLu$id un SpL￿￿rIL laws and fL'8ulalion5 whiih wr LonsidL're¢J Imy have a dirril iiiaiL'rial etYLci on the financial slalem¢nl$ or lh¢ opErJlions of Ihc rhariiy. includin8 rclevaD¢ It￿lS7￿110n •* Ihc ChariliE5 A¢1 2011. 18xaiion Itgbslaiion. employmeni, environwKntal aiid healih and Mleiy legislaLlOn' -*'e asstssed Ihe exiethi of compliance with the laws atKI re¥ulalions ideniified above ihnjugli inaking enquirie$ of ma￿8Lm¢￿l Afbd inspc¢ling tcl¢v8ni correspmd¢nr¢. Pagc 12 Welsh Water Elan Trust Independent Auditor's Report ¢0 the Trustees of Welsh W*ter E14n Trust We assessed the sus¢ewibiliry ofthc ch&ritys financial Slatem￿ts to inaierial mis51aianeni. in¢ludinx Dbikining 8n understhnding of how fraud nii8hi occur. by= -makiiig enquines ot. 1iiana8en￿￿l as 10 where they cortsiderttl there wxs su5CCPtibility lo frdud, their k[￿wledge of ¥iual. sus￿led and alle8¢d fraud- -considering the internal rontrols in placc to mitig8ie ri.%ks of fixud and pon-cfAnpli2ncc ivith laws and re8ulat¢oiis. To address the risk of frdud throu8h mana8emeJJi bias and oyerrjde of controls. we.. -perfomLd analyliral pr￿¢￿￿[eS lo i(Jeniify any or unexp¢cied rclaiionshJp5.' -rcvieweii nomin41 Itd¥us and iesied journal entries re￿rtS 10 idcniify UthLL%ual irdnsaciions- -wssessed whether judb*¢ments and aSSUTllPtions made Jn (ktcrminin8 ih¢ accounl¢ii8 ¢siim4ies wer¢ Indicativ¢ of w)lential bias. In re5p(Trnse ￿ di¢ risk i)f irre8ulariti¢5 and not￿￿11a￿re wilh ]aws and regulaii(ms. we desi¥ncd PToredurcs wliich irttltsded. bul wcre not li1￿lIed lo". -agi"e¢ing financial staternenl diselosur¢s 10 und¢flying sutvorling dOcu￿￿￿tiOn- -readin8 Ihe minulcs of meciings of I1￿Se eharged wilh goycmakce" -reviewing corre5pondert¢c with HMRC. There are ittheTcnl liniiiaiiojjs Ln our audit Pl￿d￿￿$ dcs¢nb￿ abovc. llie nK¥rt trmovcd that laws and re8ul81ions are from fiThJnGial Iratksarlions. the less likely il is thai we would bEcome aw8re of nOn-con)plia￿c. Auditirt8 Standards also limit the audit prwcdures required ￿ Id￿lify non-conipliance with and regulations lo ¢nquiry of the Iruslee and othw mwiagemenl and Ihe insrttiion of tcguiatory and legal wJYesrK>ndeiice, tf airy. M21erial Ini&siaiemertlS thai aris¢ d￿e lo fraud can k harder to de*cL than those that 8rise from e￿or as Ih may involv¢ deliberate eoncealtnenl or ¢ollu5iOll. A furthcr descripiioD of 0￿r reSp￿SIbIlitieS for the a￿111 of the financ￿1 stair￿￿Trts is I￿aled on the Financial Reportin8 Council's websit¢ at ww¥.fr¢.org.ukl#WJit(wsrcs￿Th$iblliI1¢& This dtscriplion fowms part of our Rcport of Ihe Ind¢Kxndeni Audilors. Use of our report This re￿il is madc solely io ihr chariWs tnL￿ees. u5 a bryjy. in accordance with Pari 4 of ihe Churilic (Accounts and Reports) Regulailo￿$ 2008. Our oudii work has bcen undcrtaken so that we miBlii stsi¢ to ihE charitys ituslees Il¥w iiia(i¢Fs we arc required io sthie 10 ih¢tn in an auditOTS' re[￿rt and for no oih¢r purw. To Ihe fullcsl exiejil FKrmill¢d by law. WE do rK)l a￿¢pl or raErA)Jtsibilily Lts anyone oiher than the cl￿niY and il)¢ charity's In]¥lE¢5 a5 a tM)dy. for ow aydil MThk. for this r¢Fwi. or foi ihe opinions we I￿ve fomi¢d. Morgan GritTiilis LLP CliartCTed A¢countsnts Statuiory Aiidilor Cross Chambers 9 High Stre¢l N¢wtown Powys SY16 2NY Dale.. zLJ.I iJ.21 Page 13 Welsh Water E14n Trust Statenienl of Fiuaiicial Actii'ities for the Yeai. Ended 31 March 2021 Tolgl 2021 I'otol 2020 Note Unre5trlLted RestJ'lLiod Intoin¢ and EthdoM'men15 from: Doiiaiions and l¢gari¢5 20,01 20.IM)O 1.484.3¥¥ 431,447 1.915.835 1.8?6.167 Oih¢r Iradi118 aclivitie5 10.971 10,971 15,836 Tnvesiin¢ni in¢oine 40 40 1.579 other inLoiiie 123 125 1.558 1,515,524 4.11.447 1,946.971 1.845,143 Lxp¢hdlture on,. 11,085.RIXII 1410,4351 11,496.325) {1.345.2651 Toial ExpLiidilurL 410,435 1,4516,325 11.345.265 1.710,240 1,710.240 126,()771 2.139.874 21.012 2,160.886 473.201 GIDs5 Iran5f¢i7 bclwccji funds 20.(187 120.6871 2,16Q,561 325 2,160,886 473,201 R¢evn¢lll*tlort or runds Toldl fiiiids brou8hi fol￿r￿ Toial funds ¢aiYi¢d rOtw￿ 10,879.170 383,783 11,262,953 10,789,7SI 21 13.039.731 384,108 13.423.8J9 11.262.952 All of Ihe ¢hiii'iiy'¥ il¢liVStie> del'iv¢ fTOliI roniiiiiiin¥ op¢raiion¥ durin¥ Ihc ubovc two pcriod5. The fuiids breukdowii for ?020 is bhowii iii nolL 21. Page 14 Welsh Water El*n Trusl (Registration Dumber: 1001347) B$l*nee Sheet is xt 31 March 2021 Note 2U21 2020 Fixtd Assets TaiigiTrJl¢ asseis 14 3.7￿.384 3.688.730 Inve5ttncnts ¥.859,392 6.999.152 12.649,776 10,687.882 CurrtiiE asse15 Stocks 16 33,787 39.390 17 536Jlg 494.083 Cash ai bank and in hand 399.229 241.424 969335 774.897 Crcditnrs: Amounls f•llsng due withln on¢ ye¥T N¢t rurrenl assets 19 1195,272 (199,8271 774.063 575.D70 'tt 2S5els 13,423.839 11262.952 Funds of the f harity: R¢5tricted 384.108 383.782 Unrgstricted Income fund$ Unresirit¢d 13.019,731 10.879.170 Total funds 13.423,839 11.262.952 Tlie fLnancial St￿(eInents on paKe$ 14 10 Jl %%l.i.i.l.z.l. and siwKd on their behalf by.. r¢ approved by die intsi¢es. and autlK>rised lor issuc on Dr l Joyce. Director Elan Valley Limiltd Page15 Welsh Water Elan Trust Cash Flow Statemeni for the Year Ended 31 Nqarch 2021 Nole 202J 20ZO C*sh nowi frvth opcritlng x¢tli4tlts Nel ca%li incomc 2.160.8116 473.201 Adjy51ments to rash flows from lietyl Dcprcciaiion 160,498 156,933 Investm￿1 incojne 1401 11,5791 Revaluaiivn vf invcslinents (1.673,296) 52.535 (Profily L068 on disposal of fixcd as8¢ts h¢ld for the dthrity's oivn Use 10 2,2961 1,730 643,752 682,822 Workln8 cxpllal #dJu¥lmvntS Ekcr¢astliiri¥r¢w¥cl in SI￿kS 16 5,603 I4.6(￿) IlncreaseydeLrea¥e in d¢bio 142,236) 272,059 ID¢cr¢As¢Vin¢rease in ¢redilorn 19 19,354) 62.132 In¢reas¢lld¢¢r¢a8¢) in d¢f¢rn¢d in¢omc 4,799 (5,3501 Nti eish flows from operniin8 a¢iiviiiex 60?,564 1.007,063 C•sh llvws frvni Invt$tinx a¢tivitl Inter￿ r¢ccivable and siiiiilor incthi 40 I,S79 Purchas¢ of thn8ibl¢ fixed assds 14 1262.8471 1677,6751 Sgle ofiangible fixed asse¢s 1.250 Purchase of inv¢slmenis 15 {350.1KKII {650.(WI SNIC of inve511nents 165.058 274.142 cash flows from ithY¢SlillB JElivilic5 1444.7591 11.05U.71J41 Net im¢fL*.4dlilLLria¥l in cash and ¢ash equivalents Cash ￿]d ¢￿h wuiv#l¢iits at l April Cash and ¢osh equivJl¢nlS at 31 M•rch 157,¥05 14J,6411 241,424 285.(K?S 399.229 241.424 All of lh¢ IIow5 arc d￿1ved Irom t(￿lin￿ltI8 o￿all0n5 during the above two peiiods. P88e 16 Welsh Water E14n Trust Notes to th¢ Financial Statenients for the Year Ended 31 Mai'ch 2021 l Accountlng policies Siilement of iornpliance Th¢ fiiianctal 51aleineiits liave b¢¢Ji piepared ill a¢¢ordance wilh Accounti￿g and Reporiii)g by Cliarilies-. Slaiem¢ni of Recoll￿nertded Pi?ctit¢ applicable to cliariiics prepai'ijigi tlieir aecouiils in 1lccordanc¢ with the Financial Reporiiiig Siaiidard ai)plicable in Ili¢ UK aiid Republic of Ir¢land IFRS 1021 lefTECtiv¢ I lalluary 201 51- Icliai'iiies SORP IFRS 10211. Il)¢ Financial Repoiiing Siaiidard 4?pplicable in ihe UK aiid Republic of Ireldiid IFRS 1021 aiid Ihc CliariiiB5 Aci 2011. Basls of preparation Wclsh Walcr Elaii Trnsi niecls Ilje defjiiitioi) of a public bcttcfit cijtlty Iliidcr FRS 102. A5SCt5 aiid liabjliiies are initially re¢ogJiiscd ai liisltsi'irdl cost oi. traiisriciioii valJ¢ uiJle5S OtlieTWiSe slated ii) lh¢ relevant accountiiig policy iioies. Gviug cvncern Tlic Iiu.4lLcs consider Iliai Iheje *re ii(Tr tnal¢rial iincertainlies Jboiil Ihe cliarily's rtbilily lo conlitiiic ns a 801118 oiiccrn. and endoi¥men15 D•iiulit711s uiidleghL'iés DoIiatiorts Icgacie% arc r¢cogniscd oil a ￿￿eivable b45is wlieii receipi is probable wid Ihc amouiil can be reliably ineasuTCd. Grohls Teceivuble Granls are reiv¥nis¢d Ivhin lh¢ ¢liarity lias an eniiilLmLnl lo lh¢ fiiii¢Js anil aiiy ¢ondilioiJ5 link¢d iu Ilie graiiis liave been ni¢l. WIILre PLrfoi-iiianLL Londitions ar¢ aiiach¢(I lo IhL granl and arc y¢1 10 b¢ iiiLI, Ihe illLQIIIC 15 recogiiisrd d* d lidbilily aiid included 011 Ili¢ b￿l￿1nce slicei ds dcfetred iliLoine lo bc rLlcas¢d. Deferred income Deferred incoine r¢presenls ainounis ￿CtiVed for fiilurc peri(K15 and 15 rclcascd lo in¢omLll¥ ￿8011rCrs in the periDd for wliich, li has been rcceii'ed. InV￿1￿¢￿t incoiiie ib Irltrgiiiseil on M I'eceivabl¢ bllsis. Chariiable 4CiiPiiies Incuinc ¢harilable llLliviti¢s inLludcs irtLoine reeo8rti$¢d as eamcd la8 the r¢laicd goods or setViLrs arc provided) undcr Lonirarl oi. where Cniiilemenl to grnnl funding i$ subj¢¢t 10 5PtLitic peifonnan¢¢ ctsndilions. Grani incorne incliided in iliis calcgory providcs fundin8 lo supJx)it pJiigr4mine acliviiies and is ie¢o¥nised where IheiE is entitl¢nictLI. ceJ1llinty ofirccipi and the ainouni bc n)¢8surcd wiih sufficient reliabiliiy. xptnditure All expcndiiure is rccogiiiscd once Ilierc 1% a legal or co¢isin2cliv¢ obli¥atioii lo Ihal expetJdilui¢, 11 15 probablc seiilemenl is requircd aimi Ili¢ ainouni can ￿ measured Teliably. All COSIS art allocated lo 111¢ opplieable expendilure headli1￿ Iliai a￿￿r¢¥￿te siiiiilar rosts lo thal Cale&trury. Wliere co51s cantioi be directly alli'ihiilcd to pailicular lieadings Iliey liavc bccn alloc3ted o¢i a basis consislEnl witli Ilie use of resouices, wilh ceniral 51aff cosis alloLdied un th¢ basis of lim¢ spcni. aiid deprL'ciaiion chargcs allu¢aied on Ehe poriion of Ilie #ssei's iise. Oiher support f05ts are alloLaicd bas¢d on ihe spredd ofsthff ¢u5ts. Page 17 Welsh W*ter Elan Trust Notes to the Financial Statements for the Year Ended J l March 2021 ChfjFiluble Chariiable expendiiur¢ compri$¢s thD5¢ fts51$ ItiLurred by the chariiy iii ihe d¢livery of its Xliviiies and servic¢5 for its bcnefLciaries. It includes b￿h costs thal can bt allocated diTECLly 5ULh aiiiVilieS and th05c costs of an indircd nalU￿ ￿re$s2ry to support Ihem. Support eosts Support costs include ceniral fuiKiions 8pd have been allocated io aciiviiy rosl caie8orits oil a basi5 CQnSj$tei)I Ivitli Ilie of resources. for e¥ainple, all￿all11¥ PTOWlly costs by fl￿r areas. OT PCI UPLia. siaff costs by ilic lime Sp￿71 and 0ihcT cos15 by IhciT u%age. GovL'rninct COSts Thes¢ ii)¢lude Ibe cosis allribulabl¢ ro the rlwily's COIDpliaLice wilh consLilulioi￿l and statutory Irquitemenls. Includin8 audit. strategic m3nag¢tn¢DI atkl ￿￿￿eeS.5 triedings 3￿j ￿lmI￿￿e￿ expenses. Govtrnrnent gr8nt5 Gove1'i)n￿li1 grdiits are tecognised bascd on Ihe acrn￿l m(MleT are Ineasured ai Ihe falr value Dr tlie a%scl reLeivL'd vr rtieivable. Gjaiits aTe cla5s1fied as relalin8 eitlier lo revcnuc or lo Gran15 rclaiing (o rei'¢nuc Ir ￿lognised in i￿L￿nc uv¢r Ili¢ p¢r1£￿ iti whiih the rela￿] Losts are rccognised. Grants relating io assets air ¢ognised over iht expcLlcd u%ful life of the a￿[. wh¢￿ part of a 8taiit relaling lo assci is defcrrcd, il is rccogn15ed a5 defewred incorne. Taxation Tlic cllarity 15 consideTed 10 pass the tes15 xl out in ParaBraph I Schedule 6 of the Finance Ati 2010 arbd Ih¢Tefore IL meeis Ilie dcfinition of a charitsble c￿￿panY UK corrx)ralion lax purposes. Accordingly, Ihc liaiily is wieniially ex¢inM fruni laxdiion In rcspecl of or Gapiial gaiiis rcccii'td iviihin caicgories eovered by Chaptcr 3 Pari I l of ihe Corpordlion Tax Acl 2010 or Scctii>n 256 of Ihe Taxalioth of C.hai¥eable Gain5 Arl 1992. 10 Ihe exicni thJl sudi incomL vr gdin> applied LX(1￿81VL]y io ¢liarilable purw5. TanEible fixed asset5 Individual fixed a￿elS cosling £5¢KI.00 or more are initially tecorded * cosr. Depre¢i4tion imortisatio Depreci&lion is provided on tangible fixed Lssets so a% io ThTile otr the cost or valiiaiion, less arly estli￿aled Irsidu31 value. tsvcr their expected useful eLononiic life as follows: A5$¢1 ¢lasS Depreri*tion method ind r¥1¢ 25Y• on reducing bal#n¢e Plant and machincry Fixlurts and fitlinBS 25Yo 011 reducing balance Property 3% on ¢051 Flxed asset investment$ Ftxed asset iThv¢51mtrbts are included al marke¢ valuc al th¢ balancc sh¢￿t dale. Ciain5 and lotses on invc51men15 are reflected in the Stalen)eni of Financial Aciivitits. Poge 18 Welsb Water Elan Tryst Notes to the Finoneial Statements for the Year Ended 31 March 2021 Stork Slie¢p in 51ock which fonl) part ofihe Sheep fanning opetaEiQTh vahjrd at £10 rdch. Tradc dcbtor5 Trad¢ deknors aTe amounis due CUMOTll¢ts for inerchwdise sold or s¢Th'iLes p¢rfomied in th¢ ortlinary LQUTSC of I￿1￿¢55. Trade debtW5 are r¢cogni5cd at Ihc IransaCti￿ pri¢e. A provi5ioN for the impHim¢ni of irw1¢ d¢bion4 is csiablishcd wheji ther¢ is objtClJv¢ ¢vidrn¢¢ thai the InKs1 will ThDI be able lo colle£1 811 anN)un15 due according to the original i¢nns of Ihc reccivablcs. Cash c4sh equiiJlent5 Cash aiid rash WUiViilcn15 comprise casli on hand and rall dcp051t& and i)ihLr sh(iTi-iem) higlily liquid inveslmenLS Uiai are reiidily Loni'¥rtible io a know'n aimwni of Laslj arc subjeul 10 an insigwif)caNI risk of hang¢ in valu¢. Tr4d¢ rrdltors Tradc Crcdilors aTC obligaiions io pay for goods or services Iliat hai'e be¢n acquiTed in the ottlinary ¢ou¥se of busines$ froin suppliers. Accounts p)yable fj￿ ¢I￿lfied as curretti liabiliiiG4 if ihc tru￿ doe5 not have a uncoiidiiional iiglii, ai IhL Lnd of ihc re￿)rting 10 (kfw 5ffl11cincnl of Ihc CT¢diior for ai l¢a51 ￿e1Ve ¢iionihs after lh¢ reporting daic. If Ihcrc 1.4 an unwndiiirjnal tight io d¢f(¥ 5eMlemeni for al leasi iwelve Inonihs afier Ilic rcpTrrting daic. IhLy afc wcycnicd as rM)n-curTL￿l liabslilies. Tradc cr¢diiors ar¢ r¢cwib¢d ai Ihc tran%acLir￿ pri¢¢ Fuhd slru¢ture Untesiri¢¢ed income fvnds are gffleral funds arc 8v8ilablc for ￿ at Ilie In￿ttes.5 discretion in furtherdli¢¢ of ihe objeciives of the cliariry. D¢signaid funds atc utUE5IT]CtLYI fund5 asi(le for 5pxific purt#)ses at rhc discretion of Iru51ee5. Resnic¢ed incoinc funds ure thrKS¢ donHicd for w in a partictslar or %]Kcific piiwes. Ilic use olwliich is rcsiriLicd 10 Ihai are￿1 or puwc. Pensions and other post retirement oblig¥t10115 The chariiy operaies a dcfincd coiiiribuiion r￿[￿lon schcmc. Thc rharily contribuiiott is r¢sirict¢d lo the contribution5 di%loscd in Dote 12. Flnan¢lAI Instruinents The Trust only fii)aiicial ￿ets financial liabilÉu¢s of a kind ihai qualify a5 b•si¢ fiD&nrial iDsin]ni¢rtlS. Basic financial in5tnyn¢nts arr initially r¢cogthised ai rranSa￿l0ft value and subsequcnlty mcasurcd ai Ihcir sciilemcni value. Pagc 19 Welsh Water Elan Trust Notes to ¢he Financial Stalements for the Year Ended 31 March 2021 2 Incoint from doth#tloD$ and lei•cles Uhrtsirleitd rynd5 Gtn¢r*l Total TolAI 2021 2020 Donsiions Govcrnincnl grants 20.0(KI 20.000 20.0(M) 20.000 J Intome from chgrliAble 4ctlYl¢l¢$ UnTestrl¢i¢d Central Resirl¢itd TotAI 2021 Total 2020 48.1.733 95,738 725.026 179,775 483,733 95,738 725.026 486,644 102,856 671.552 149,725 415,390 Ani)in8 1)peraiioii$ Holid4y Let Est81¢ M&n8gemeni Job Rcleniion Scheme 179,775 320.333 320.217 1.4¥4.3¥¥ 431.447 .915.¥35 .826.167 P4ge 20 Welsh Wxter Elan Trust Notes lo the Fln8nciAI St•tcm¢nts for the Year Ended 3 I MArch 2021 4 E$tatt MonABement- rtstrkied Ineome Restrlcled Tot•1 Total 2021 2020 Herilag¢ L￿rery Welsli Govemmeni ITA TSI Arts Council of Wales 241.683 18.458 18.458 128,991 10,8(K> 10.8 lo,￿0 t)wr Cyiiiru Wcl&li Watrr Br¢¥vn IJ¢au1115 N31ional Park IRTEF) 11,229 S.722 5.722 22,*502 Fllnncrs Co511 N4alch 460 460 ¥s Claerwen Peal 170.567 170.567 320.217 320.217 415.390 5 lth¢ome from oihtr ¢r•dlnK •r¢lYliles Unrulrteted Cener*l Tol*l 2021 Tot&1 2020 Eslaie InarhW8emeni- fund raisi118 activity 5.322 5.649 10.971 15.836 5.322 5.64Y 10,971 15.836 6 Inveitnienl IDtome Unre$trttted Gtneral To(*1 2021 Toial 2020 Intere￿ on ¢ash deposit$ 40 40 1,579 PaBe21 Welsh Water Elan Trust Note5 to the FinAn¢ial St)It¢ments for the Year Ended 3] MAreh 2021 7 Oihtr Illtutnt UDrrsirfjetEd G¢ntral Total 2021 TotAI 2020 Fees and suN)li 125 125 1.558 8 EX￿n￿lI￿re on LhNrii*ble i&tii'ili¥s A¢tlvli>' Cr*Thl und¢ri8ken fundliiR ol Artlylty, support Toial 2021 Tot•1 2020 Tenanicd fom 77.058 29.537 106.595 119,746 Ri%id¢niiAI rrni 99.6J¥ 211.¥52 1211,490 1411,422 Famiiii8 op¢ration$ 201,081 64.854 265.935 259.959 Holithy Icl J03.624 27.59$ J31.219 288,731 EEIHl¢ Mana￿lA￿li1 77J67 2.650 35.-189 115.J06 81,732 Developm¢ni woj¢cl8 including Elan Link$ 381,039 11,797 392.836 408.171 Job Retenliun SLhcin¢ 111,230 111.230 (iovcrnance 34,893 9,821 44,714 38,504 1,285.830 2.650 207.845 ,49CI,325 1.345.265 £1.085.8YO 120•0 - £Y49,2951 of the 8bove ex￿ndI￿Jr¢ w•s alirtt￿iab1e lo unr&stri¢ied and £410.43S 12020- £395,970) io rcslTiria fithds. Page 22 Welsh Water EIAn Trust otes to tlie Finanelal Statements for the YeAr Ended 31 March 2021 9 Aii*lysSs of xovern911C¢ And Support ¢o$ti s￿ppOrt Costs ¥llv¢atlon Stifl Costl omce costs Sub5CJ'jPtloris Motor Cosls ToiAI 1021 Totul 2020 rartl) 14.?67 13,070 1,292 908 29,537 61,951 13.587 lJ,065 1.292 908 28,852 38.117 01)eiulion¥ 57,197 6.318 4.11 908 (14.1154 77,(K>9 20,219 6,037 431 908 27,595 2J,177 E&laie 29,747 4,639 322 18.556 Developin¢nl projccls 9,916 1.546 io¥ 227 11.797 0,186 Govenionce 2.958 5,571 1.292 9,821 10.203 147.891 50.240 5,168 4,540 207.845 235,259 B*sls of wllocaflon Refercnct M¢thod ol, Illo¢nilon SIRffLUSIS Time Olyicc Cover Subs¢riplioiis Cov¥r Secrclary Tim¢ Motol. C051s Usage Oih¥r Cover Bank rhar8CS Usa8C Pa8c 23 Welsh Woter Elan Trust Nutes to the Financial Statements for the YL#i' EDdi.d 31 March 2021 Goi'ern4nc¢ eosts UnrL'*lriLlvd TolAI 2021 Total 2020 Audit fccs 4,500 4,500 5,500 4.325 Oilier lees i)aid 10 audiioi's L¢gal and profes5ioJial fee5 9.050 9,050 3.343 AcLouiilaiiLy FI￿5 10.239 10.23Y Oilici 8ovcrn4ncc (usii AII¢x81rd suppori ¢0$18 9.798 9,798 10.203 44,712 44,712 38,$04 10 Nei Ineoiiiliigltsulgoliig rcsourccy 2021 2020 Aiidii f¢¢5 4,5VO 5.500 Oihcr iioii.Huilil S¢lVj¢¢S 4,325 (Proliil l L055 un di¥p05al ol. fiyLd Iicl¢J fvr IliL' cliariiy'5 UWII 115¢ 12.2971 1,730 D¢p¢riialioii of fix¢d 855c15 160,591 157.508 I l Truitots r¢inuncralloii expenses No INslees. nor iiiy persoi)s coiineci¢d iviili tliem. Iinve I'cccivcd Any reiiiuiieralioii froin Ilie cliariiy dui'iii¥ Ilic year. Durin¥ the ￿Or 2 (2020 41 Iiusiees weil reiii)burned expeiises in¢ui'ird lolalliiig £5,575 {2020- £7.5781 No Irust¢¢s have received any oiher bencfils fr(km Ihe charity diiriiig Ihc y¢&r. Page 24 Welsh Water El4n Trust Notes to the Financial Statements for the Year Etjded 31 March 2021 J2 StAff costs The abgrespate payroll costs iveiE a$ lollows.. 2021 2020 Wabltrs and Salarics Social Sccui'ily Other Pcnsion C0815 463,861 21.921 20.668 513,450 J9.S,886 27.637 18.979 J43.YlO The monilily av¢i7gL numbrr ol. pcr5o115 lill¢ludbtJ8 %cnior manygemeni Icainl cmpluycd by Ihc charity dui'in8 lh¢ y¢oi' ¢xpressed lls f￿11 Itme equii'al¢iiis w68 Os foll&ws'. 21111 2020 No (ien¢ral Inaini¢nJiir¢ Iqcrilaue Loiieiy Fiind Pi'oj¢¢i Mana¥eineni Vi51tor AccoiiiJiiod81iOLI 32 25 2512020- 19} of Ilie above einployL¥$ pailiLipai¢LI iti ili¥ D¢finLd Coiilribiiiloii Peiision SLIILIlI￿. No ¢niploy¢c Tcccivrd einoliimciils ofinr)re th811 £CIQ.000 during Ili¢ y¢Ar Tli¢ lolal einployec bencfJi% ol'tlie kcy niana8¢1)Icnl personnel vfili¢ cliarily ivcre £109,49012020 £97,349). The Land AM¢nl. gs th¢ highesl paid niember of51otl', ￿¢r]Ved beiiefii$ IolAllin8 £3R,R8112020- £56,522). 13 TA%%tlon I'lie cliai'iiy is a Ingisicred Lliarily and 1$ ih¢itforc ¢x¢mpi froin laxalion. Po8e25 Welsh Wgter Elan Trust Notes to the Flnanclal Statements (or the YeAr Ended 31 MAreh 2021 14 Txngiblt fix¢d Ass¢15 LAnd A•d buildinES FurDityrt *iid Othcr t¥ngible fixed 91Stt Tot*1 Cost At l April 2020 4.758.otg) 372.925 97.770 5.228.755 Addiiions 207.011 55.836 262,847 Disposa15 19.2151 19,2151 Al J l March 2021 4.lJ65.071 41 V.54(1 97.77U 5,482.387 Depr¥cl*tlvn Al l April 2020 l J49.379 IW,647 1.540.026 Char8e for lh¢ year 125.6S6 34.842 100.498 liniinal¢d on dispwls 18.521) Al 31 March 2021 1,475.035 216.968 1,692.003 Nei book Ai JI MarLh 2021 3.490.036 202,578 97.770 3.790.384 Al 31 Ma￿h ?U20 3.4011,6¥1 1 ¥2,27¥ 97,770 3.6¥8 729 IS Flied is5el Inv*stmenti Llsted In¥'¢itm¥ni$ T(bt¥l Al l April 2020 6,999,152 6,999,152 Rev41￿[10￿ 1.673.293 1,675.298 Addiiions 350.¢KK 350.000 Disposals (165.058) 1165.0581 Al 31 MaT¥h 2021 8.859.392 8.859.392 N¥t buvk value Ai 31 Marih 2021 8,859.392 8,859,392 Al 31 March 2020 6.999.1 $2 6.999.152 Page 26 Welsh Water Elgn Trust Notes to the Fin4nel81 .Stgtemen¢s for the Year Ended 31 March 2021 InY¢slineni fynds ure iiow hcld in ae¢uiMulation iinits. wli¢fe iio dividend or iiilQLSt Is plid. i￿£(Cad aiiy rctuiTr oib Ihc iiivestsntnl is refleLled In Ihc vallle unils. The increase iii ilir value ol'ihe inYe51mthits are included as a reval￿tiOn gftin. Showi) thlK>Y¢. 16 Stock 2021 2020 Sti￿ks JJ.787 39,3 17 Debio 2021 2020 Trade debiors 508.219 467,409 Prepayiiicnls 28,1 26,674 5.10319 494.083 l¥ Caih Ind ¢A$h equiv4lt•ts 2021 2020 Cash it bank 399.229 241.424 J9 Credltori.. fAlllnR due M'lihln ont ye*r 2021 2020 Trnde CTediiors 113.72$ 93.414 Other laxaiion iiid %ociol Sffurily 8.58.1 1,962 VAT 22,662 33,556 pensi￿ scheme Credil 12,372 12.450 A¢¢iNAIs 15.791 41,105 Income in 22,139 17,340 195.272 199,827 Pag¢ 27 Welsh Water Elan Trust Notes to the Financial St*tements for the Yegr Ended 31 M*rch 2021 20 Commlim¢nis C4pltil tommltmen15 Contract foi. Il)¢ impiovem¢nl ora residtnliil propury12020 ienanied famil The ieial an)ount tortira(ied for bui I￿t prnvided in Ik financial slaicmeni$ wa$ C107.94612020- E145,9091. 21 Fuhd$ Balance it l Apr51 2020 iher retognlsed 31 haarch g•lnslllos$esl 2021 Tr•D•f¢r& resources txptiidtd Unresirl¢i¥d Geiifrnl Uiirts1ri¢1¢4t iii¢ome fund 10.869.852 1.510.202 11.083,240) 20.687 .710.240 13.027,741 Deslxiioie D¢sigiiaicd fund 5.322 12.650) 11,990 Tolil unresirltltd 111,¥79.170 1.51 5.524 11,0¥5.¥901 20.687 ,710.240 13,039.731 R¢$trltied l J2.-$82 31.636 106,354 113.209 110.9441 (2.901) (3.570) {281.7901 {111.230) 121.638 28.737 102.784 130,949 Naluir Fund CADW 320.217 120.6871 Jijh RLILnliiJn 8LhLmr Tut&1 rt51rlrted 383,783 431.447 1410.435) 120.6871 384.108 Tutwl funds 11.262.953 1.946.971 11,496,325) ,710.240 IJ.423,839 Page 28 Wclsh Water Elaj) Trust Notes to the Fin#ncial Statements for the Year Ended 31 March 2021 B4lAn 9.318 442.025 11262.Y52 13 An#ly5is of ntl lundi At l Aprll 2020 At 31 M¥i'ch 2021 Cash 81 bank •nd in h•nd 241.424 157,fi05 399,229 Ncl d¢bi 241,424 399,229 Af J Apwll 2019 Fln4nclni clih A¢31 M*rch 2020 Ctssh Al bank arml in h•nd ?115.065 143.641) 241,424 Net debi 285.065 {4J.0411 241,424 Pa8¢31