2024-03-31-accounts

Charity registration number 1001347

WELSH WATER ELAN TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

WELSH WATER ELAN TRUST

CONTENTS

	Page
Trustee report	1 - 6
Statement of trustee responsibilities	7
Independent auditor's report	8 - 10
Statement of financial activities	11 - 12
Balance sheet	13
Statement of cash flows	14
Notes to the financial statements	15 - 31

WELSH WATER ELAN TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustee	Elan Valley Limited
Directors of Elan Valley Limited	R Davies
	D Evans
	W Evans
	I Joyce
	A Leonard
	R Morgan
	H Scrase
	R Vaughan
Land Agent	C P M Harley
Charity number	1001347
Principal address	Elan Estate Office
	Elan Village
	Rhayader
	Powys
	LD6 5HP
Auditor	RCH Accountants Limited
	Wellfield House
	Temple Street
	Llandrindod Wells
	Powys
	LD1 5HG
Bankers	HSBC Bank PLC
	Middleton Street
	Llandrindod Wells
	Powys
	LD1 5EU
	Unity Trust Bank
	PO Box 793
	Planetary Road
	Willenhall
	WV1 9DG

WELSH WATER ELAN TRUST

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

The Directors of Elan Valley Limited - the sole corporate trustee of Welsh Water Elan Trust (colloquially known as the Elan Valley Trust) - present the annual report together with the financial statements of the charity for the year ended 31 March 2024.

Objectives and activities of the Elan Valley Trust

Charitable Objects

The Objects of the Trust as written into the Trust Deed are:

1. The preservation maintenance and enhancement for the benefit of the public of the area of great natural beauty comprising of the Elan Valley and its natural aspect and features (and its animal and plant life);

2. The facilitation and encouragement of access to and the study of the Elan Valley (and its animal and plant life) by the general public;

3. The provision at the Elan Valley or such part of it as should be appropriate in the interests of social welfare and for the purpose of improving the conditions of life for the persons for whom the same are intended of facilities for physical recreation which shall be available to members of the public at large;

4. The facilitation and encouragement of the use of the whole or part of the Elan Valley for charitable purposes.

Strategic Objectives:

The Trust has revised its strategic plan during the year 2022-23 and summarised its strategic objectives:

Natural Resources; To manage our natural resources in ways that:

1. Contribute positively to the quality (and quantity) of the water from the catchment.

2. Foster a landscape rich in nature with:

3. Habitats in good condition

4. Flourishing native wildlife

5. Designated sites in favourable condition.

6. Are ambitious in mitigating the impacts of climate change.

7. Value our historic landscape but allow change where this brings overall benefits.

8. Foster opportunities to maintain a vibrant local community.

9. Provide the charity with a viable income over the long term.

People & Community; Our objectives are to:

1. Foster opportunities to maintain a vibrant local community.

2. Enable people to access recreational opportunities that enhance health and wellbeing.

3. Enable people to study, engage with, and value Elan’s heritage and nature.

4. Foster the use of the estate for social welfare purposes.

5. Manage access to the estate in ways that conserve its special qualities and support people to access the estate in a way that is safe and responsible

Climate and sustainability; Our objectives are to:

1. Be ambitious in setting targets for and delivering measures for mitigation and adaptation such as:

2. reduction in fossil fuel use from our activities;

3. carbon sequestration and storage from the land we manage;

4. production of renewable energy where opportunities arise.

5. measures to manage increased risks brought about by climate change

6. Have regard to the impact on our heritage and nature when evaluating climate mitigation & adaptation proposals.

7. Foster opportunities and work with tenants and other partners to support climate goals and sustainability.

Activities

Strategies and activities to manage our natural resources:

For centuries the uplands of the Cambrian Mountains including the Elan Valley Estate lands have been open, unenclosed and grazed by hefted flocks of sheep and cattle. Maintaining this system of traditional high nature value farming is therefore a key part of Directors' strategy for managing for nature conservation and landscape. At the same time, Directors are aware of the need to take and promote more targeted actions where there is an identified need for nature conservation and landscape purposes. Since large areas of the Estate are designated under nature conservation legislation and the landscape is of considerable significance, the support and advice of NRW is highly valued in this regard.

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WELSH WATER ELAN TRUST

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

As part of this strategy, the Trust manage around 2800 hectares of land in-hand including some of the key sites such as the National Nature Reserve at Claerwen. In so doing the Trust is not only able to ensure appropriate management but can also ensure it has a full understanding of the opportunities and problems associated with managing land on the Estate. All of this land is managed under a Glastir Advanced agri-environment agreement until 31st December 2023 and the newly launched Habitat Wales Scheme from January 2024.

The rest of the land is let out to some 28 agricultural tenants. Through the terms of the tenancy agreements and through entry into Glastir and Habitat Wales tenants are encouraged to use traditional high nature value farming systems. During the 2023-24 year, we understand that all of the Elan Valley Estate tenanted holdings and Cwmdauddwr Common are subject to Glastir agreements.

During the year the Trust have had a carbon audit undertaken to better understand the current emissions and will develop plans in response to this.

Peat restoration totalling 28 hectares has been completed this year on in-hand land with capital funding support from NRW, other projects are in development for forthcoming years.

In recent years, the Elan Links National Lottery Heritage Fund programme, with the Elan Valley Trust as lead partner, has invested in the valley, protecting its heritage, offering new opportunities for local people and increased accessibility for visitors. Elan Links projects delivered a wide array of positive outcomes. Built around four central themes – Celebrating heritage, Enjoying Elan, Experience and education, and Enhancing nature and wildlife. This programme has been an important vehicle for undertaking targeted action for nature conservation in partnership with farming tenants as well as on in-hand land. Much of this programme was largely concluded by December 2023, with project close-down commencing in January 2024.

The scheme has delivered significant outcomes:

1. developed with the support of RSPB and NRW an outcomes-based approach to upland bird conservation for curlew, golden plover, ring ouzel and merlin;

2. worked with farmers to ensure cattle grazing for conservation benefits;

3. tested new approaches to managing cattle grazing including the trial of “no fence collars”.

4. undertaken peat restoration works extending to a total of 108ha;

5. developed management plans and actions for key areas of dry heath, ffridd and management of in-bye land on the Estate.

6. commissioned a woodland management plan for Elan’s woodlands and undertaken a range of management activities to improve the nature conservation status of our important ancient woodlands;

7. worked to secure a number of traditional farming practices on the Estate that benefit nature, e.g. production of rhos hay on the open hill; application of appropriate levels of lime and farmyard manure to hay meadows to secure their botanical interest; traditional mixed grazing.

8. undertaken monitoring work for a range of different species of conservation interest so that we can better understand their needs and the impact of our actions.

Strategies and activities to promote the use of the Estate for access, recreation, education and other charitable purposes:

The Elan Valley Estate is highly valued for recreational, educational and other uses. It is the aim of the Trust to provide benefits and facilities for local people and also to increase the use of the Estate by visitors from further afield including those who benefit from provision of water from the catchment across parts of Wales and the West Midlands. This ‘audience’ has an intimate link with the Estate already and there is a real opportunity to use this link to develop educational, recreation, wellbeing and health provision / benefits.

The Elan Links programme takes account of these aims. To date, Elan Links has:

1. opened up public access to previously under visited sites at the Elan Valley with the implementation of signage and interpretation, waymarked routes and family friendly hubs;

2. hosted artist residencies, and built partnerships with key stakeholders in Wales and Birmingham, including an exhibition in Birmingham attracting over 10,000 visitors

3. developed an archiving strategy for critical components of Elan’s heritage and continued the process of archiving materials and loading them onto the online MODES system;

4. recorded oral histories from people in the area / or and with connections to the Elan Valley;

5. developed a range of digital interpretative media including an app and historical recreations of sites of interest and a suite of videos.

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WELSH WATER ELAN TRUST

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

1. undertaken a series of 12-week courses including most recently the creation of an accessible ramp to one of our outdoor sites built by socially isolated trainees giving them a route into work;

2. Uncovered new sites of archaeological interest

3. Developed an education resource for use in school with key stages 2 and 3.

4. Held major events attracting over 2000 visitors in the financial year

5. The creation of a book to widely publicise our achievements

6. Secondment of a member of staff to a local museum for 6 months to enable them to open a newly refurbished and redesigned museum.

In order to support access to the estate, the Trust maintains four cottages on a ‘self-catering accommodation’ basis and two mountain bothies. The mountain bothies are freely available to users. For people who work and / or wish to live locally the Trust maintains residential properties to let on the Estate.

Following an extensive development of Cwm Clyd farmstead as a bunkhouse, the usage of the site has developed with 665 guests staying during the year.

To promote access and recreation more generally the Trust maintains Estate infrastructure such as bridges, roads and paths in good repair for users and provides in association with DCWW and with the help of a range of volunteers an annual programme of events and walks.

Other Initiatives for 2023-24:

Dark Skies. The Elan Valley Estate has for a number of years held the status of International Dark Sky Park. During 2023-24 the Tynllidiart Stargazing Shelter hosted a number of successful stargazing events. In addition, a number of planetarium shows took place to bring the dark sky experience to a wider audience – in particular these have proved popular with schools across the region.

Electrification. A long-held ambition of the Trust has been to develop an alternative to the diesel generators that primarily power the properties on the wider estate – to this end there is a focus on installing renewable energy sources where possible. Discussions with key partners and stakeholders have opened up a number of avenues to further explore a wider agenda of electrification which are being progressed.

To maintain its properties in good repair and fit-for-purpose, a range of works were completed at properties across the estate to renovate and upgrade, in addition to performing routine maintenance tasks.

Public benefit

The Trust benefits the public by implementing the objects of the Trust Deed: promoting nature and landscape conservation on the Elan Valley Estate; while encouraging public access and recreation and use of the Estate for educational and charitable purposes.

During the 2023-24 period the Trust managed and encouraged management that benefited nature on the Estate; undertook works to secure the historic landscape; maintained paths and other infrastructure to enable enjoyment of the Estate by the public; promoted the use of the Estate by the public through a variety of means including an events programme and provision of accommodation; and supported the use of the Estate for educational and charitable purposes.

The Directors confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Financial review

2023-24 was marked by significant changes in the funding available to the Trust. As part of the transition towards a Welsh policy to replace the European Union’s Common Agricultural Policy following Brexit, Welsh Government replaced Glastir with an interim scheme called the Habitat Wales Scheme. This change, reduces our projected income for 2024-25 significantly, while other costs have increased substantially due to inflationary pressures on wages, goods and services.

In order to manage this situation while ensuring that the core activities of the Trust are met and our strategic priorities are funded, Directors are implementing a number of measures:

1. Reviewing our operational model. During 2024-25, Directors and senior staff will review our operations costcentre by cost-centre. The objective will be to identify potential efficiencies in the way we work and to map

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WELSH WATER ELAN TRUST

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

these against our strategic priorities. We will then develop an action plan to ensure we can efficiently and effectively meet our objectives and future challenges within our budgetary constraints. We started this process in 2023-24 by undertaking a detailed review of our offering at Penbont House, which has been operated by the trust at a financial loss, and taking the difficult decision to close this facility to allow directors to review the use of this valued local asset in the future.

1. Investing in developing income from grants. Directors are aware that grant funding is available to fund some of our strategic objectives, for example peatland restoration. We have therefore taken the decision to invest in staff capacity that can be used to draw down funds for these objectives.

2. Strategic use of reserves. The Trust has a very long-term responsibility (now some 963 years) and in line with its Reserves Policy maintains reserves to secure the functions of the charity in the future. The Trust now faces considerable uncertainty about its future income as a result of the transition to the new Welsh farming schemes over the next few years. Directors have reviewed the income-generating capability of Trust investments and have concluded that it is now appropriate to draw income from investments to fund a proportion of our activities at least in the near term.

The total incoming resources from charitable activities in 2023-24 was in the order of £2,200k. Of this income, some £2,162k was spent on charitable activities, the remaining allocated to reserves. Investment into the National Lottery Heritage Fund scheme was in the order of £39k during 2023-24

At year-end 2023-24 the Trust had unrestricted funds in the order of £15,606,854. Approximately 23% of these reserves are held as tangible assets (principally in residential properties held locally), while the majority of the remainder is held in a diversified portfolio of pooled charitable funds through CCLA. A small portion of funds is held in a current account to meet short term needs.

Plans for future periods

Over the past 8 years much of the work of the Trust has been focused on developing and then delivering as lead partner the Elan Links programme. With this programme now concluded we will take the opportunity to take stock, build on the legacy of Elan Links and refocus the work of the Trust. During 2024-25 we will refresh our organisational strategy to take account of lessons learned from Elan Links and to develop priorities for the years ahead.

An area which we already know will be a high priority is implementing our transition towards Net Zero. We have already made good progress in understanding the scale of this task with an estate-wide carbon audit undertaken this year. In recent years, we have also taken key practical steps towards delivering this transition such as through testing strategies for peatland restoration and exploring the best solutions for upgrading the energy efficiency of our properties. This work will enable us to roll out these works more widely in a planned way. In some areas, uncertainties remain in how to achieve the Net Zero transition– such as the best way of managing our widespread Molinia-dominant peatlands to secure their carbon stores. Where this is the case, we will make it a high priority to resolve these issues, experimenting and trialling different solutions where this is needed.

Other areas we will develop during 2024-25 are:

• new funded programmes to pursue our goals for nature conservation projects across the estate

• reviewing Cwm Clyd bunkhouse as a facility for delivery of the Trusts key objectives;

• fostering and encouraging appropriate access, recreational, educational and scientific use of the Estate;

• • pursuing opportunities to carry out appropriate works of restoration in respect of the built and natural environment in line with the Elan Links Heritage-at-Risk survey;

• promoting and developing the Elan Valley Dark Sky Park through a range of targeted events;

• investigating and evaluating the options for providing electric to properties on the Estate including options for producing renewable energy.

• seeking to engage with and influence consultations relating to Welsh Government Policy and forthcoming agri-environmental schemes.

Structure, governance and management

Nature of governing document and organisational structure

Welsh Water Elan Trust was established by a Trust Deed dated 13th October 1989 as part of the water privatisation process. The deed stipulated that Dŵr Cymru Welsh Water (DCWW) intended to establish ‘a Foundation to preserve for public benefit land in the Elan Valley and has for that purpose vested in the Trustees a leasehold interest in the property for a term of 999 years.’ The deed goes on to describe the charitable objects, role of Trustees and various powers of the Trustees to further the objects. The accompanying lease included all the agricultural land and buildings

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WELSH WATER ELAN TRUST

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

on the Estate. Excluded from the lease were the dams, the surfaces of the reservoirs, their operating paraphernalia, most of the forestry, the Visitor Centre, houses and land in Elan Village, and certain houses on the Elan Estate. The Trust is thus responsible for some 43,000 acres out of a total of 45,000 in accordance with the terms of the lease. Since 1989, a number of properties on the Estate and in Elan Village have been added to the lease or acquired as has the freehold of neighbouring Cwmdauddwr Common.

More recently, to resolve complexities around the recruitment of new Trustees in the face of liability issues with the original arrangement, the company Elan Valley Limited was established and registered with Companies House (No. 09001046) and on 2nd November 2018 the transfer to Elan Valley Limited as the sole corporate trustee took effect, at which point the six trustees of the legacy body retired and were appointed as Directors of Elan Valley Limited. As sole corporate trustee, Elan Valley Limited now has responsibility for fulfilling the charitable objectives of the Trust in accordance with the Trust Deed.

Directors of Elan Valley Limited are (in accordance with the objects and powers of the charity) responsible for setting the strategic direction and policies of Elan Valley Trust and for major operational and investment decisions. Using a system of delegations to staff that are formalised in respect of financial accountability and general governance, these and routine operational matters are then implemented by the senior staff.

Decisions in fulfilment of their role are principally taken by Directors at Elan Valley Limited board meetings held at least five times a year.

Executive / management functions of the charity are the responsibility of the Estate Manager, who is supported in this role by the Business Manager.

Elan Valley Limited does not in itself hold any assets or trade. The Charity Commission has therefore authorised that the charity’s funds may be used to purchase insurance for the trustee and its Directors (including a “Directors and Officer liability insurance policy”).

Recruitment and appointment of trustees

A number of organisations have the ability to nominate Directors to the Board of Elan Valley Limited. These are Dŵr Cymru Welsh Water; Powys County Council; Ceredigion County Council; Natural Resources Wales (two Directors) and Welsh Government / National Assembly for Wales.

In addition, as a consequence of the appointment of a sole corporate trustee there is provision for an ‘open’ recruitment process to ensure a wider and appropriate balance of skills is available to the Board. Directors appointed through this process sit for a five-year term in the first instance with provision to extend this for a further five years. Under this provision two directors are in their first five-year term.

Induction and training of trustees

Directors bring with them a wealth of professional expertise in matters relating to the operation and function of the charity and receive ongoing training and information provision in matters pertaining to the charity through a system of regular updates from relevant professional organisations, verbal updates and papers for information prepared by staff as well as site visits both on and off the Estate.

Relationships with related parties

Dŵr Cymru Welsh Water (DCWW):

While the terms of the lease clearly delineate the responsibilities of the charity in terms of management of the leasehold there are inevitably many areas of mutual policy, management and operational interest with DCWW. The charity therefore works closely with DCWW in matters relating to the operation of the Estate. This is facilitated by regular day-to-day contact between staff members of the two organisations and is further strengthened by the DCWW-appointed director, Roger Morgan. The national and European importance of the Estate for nature conservation and a range of ecosystem services means that another key relationship is that with Natural Resources Wales (NRW). Again, this relationship is maintained by regular contact between staff members of the two organisations, by the two Directors appointed by legacy bodies of NRW, Robert Vaughan and Dr Ieuan Joyce.

The charity as part of a wider network:

Since December 2017, the charity has been Lead Partner in the 5-year (now extended) Elan Links Landscape Partnership Scheme awarded by the Heritage Lottery Fund and based principally within the Elan Valley Estate boundary. Apart from the Trust, the Elan Links partnership includes DCWW, NRW, Community Arts Rhayader and

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WELSH WATER ELAN TRUST

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

District (CARAD) and Tir Coed. Stakeholder organisations include Royal Commission for Ancient and Historic Monuments Wales, Arts Council Wales, Elan Valley Tenants Association, Cwmdauddwr Commoners Association and a range of recreational user groups. In future the Trust will seek to continue to develop and enable future networks and partnerships to further its objectives.

Major risks and management of those risks

During the 2023-24 period, Directors continued to identify and manage risks using a RAG (Red-Amber-Green) risk register system. Reviewing the risk register is a standing item at Trust Board meetings and an annual review allows for a thorough review.

The Directors are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities requires the Directors 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 of the charity for that period. In preparing these financial statements, the Directors 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 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 business.

The Directors are responsible for keeping proper 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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The directors 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.

The annual report was approved by the Directors of the charity on 30 January 2025 and signed on its behalf by:

Dr I Joyce Director, Elan Valley Limited

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WELSH WATER ELAN TRUST

STATEMENT OF TRUSTEE RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2024

The trustee are responsible for preparing the Trustee Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources of the trust for that year.

In preparing these financial statements, the trustee 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 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 trustee are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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WELSH WATER ELAN TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF WELSH WATER ELAN TRUST

Opinion

We have audited the financial statements of Welsh Water Elan Trust (the ‘trust’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2024 and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustee are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the trustee report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

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WELSH WATER ELAN TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF WELSH WATER ELAN TRUST

Responsibilities of trustee

As explained more fully in the statement of trustee responsibilities, the trustee are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustee are responsible for assessing the trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the charity through discussions with management, and from our knowledge and experience of the charity sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including relevant legislation such as the Charities Act 2011, taxation legislation, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

• We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• reviewed nominal ledgers and tested journal entries reports to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• reviewing correspondence with HMRC.

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WELSH WATER ELAN TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF WELSH WATER ELAN TRUST

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustee and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RCH Accountants Limited

30 January 2025

Chartered Accountants Statutory Auditor Wellfield House Temple Street Llandrindod Wells Powys LD1 5HG

RCH Accountants Limited is eligible for appointment as auditor of the trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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WELSH WATER ELAN TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Current financial year Unrestricted Unrestricted funds funds general designated 2024 2024 Notes £ £ Income and endowments from: Donations and legacies 3 - - Charitable activities 4 1,509,988 - Other trading activities 5 - 5,399 Investments 6 13,767 - Other income 7 6,451 - Total income 1,530,206 5,399 Expenditure on: Charitable activities 8 1,433,491 6,500 Total expenditure 1,433,491 6,500 Net gains/(losses) on investments 13 1,299,363 - Net income/(expenditure) 1,396,078 (1,101) Transfers between funds 845 - Net movement in funds 10 1,396,923 (1,101) Reconciliation of funds: Fund balances at 1 April 2023 14,209,931 7,539 Fund balances at 31 March 2024 15,606,854 6,438	Restricted funds 2024 £ - 664,530 - - - 664,530 721,987 721,987 - (57,457) (845) (58,302) 617,460 559,158	Total 2024 £ - 2,174,518 5,399 13,767 6,451 2,200,135 2,161,978 2,161,978 1,299,363 1,337,520 - 1,337,520 14,834,930 16,172,450	Total 2023 £ 7,000 1,880,308 5,399 10,843 15,401 1,918,951 1,891,511 1,891,511 (200,292) (172,852) - (172,852) 15,007,782 14,834,930

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

• 11 -

WELSH WATER ELAN TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Prior financial year Unrestricted Unrestricted funds funds general designated 2023 2023 Notes £ £ Income and endowments from: Donations and legacies 3 - - Charitable activities 4 1,574,120 - Other trading activities 5 - 5,399 Investments 6 10,843 - Other income 7 15,401 - Total income 1,600,364 5,399 Expenditure on: Charitable activities 8 1,517,974 7,050 Total expenditure 1,517,974 7,050 Net gains/(losses) on investments 13 (200,292) - Net income and movement in funds (117,902) (1,651) Reconciliation of funds: Fund balances at 1 April 2022 14,327,833 9,190 Fund balances at 31 March 2023 14,209,931 7,539	Restricted funds 2023 £ 7,000 306,188 - - - 313,188 366,487 366,487 - (53,299) 670,759 617,460	Total 2023 £ 7,000 1,880,308 5,399 10,843 15,401 1,918,951 1,891,511 1,891,511 (200,292) (172,852) 15,007,782 14,834,930

• 12 -

WELSH WATER ELAN TRUST

BALANCE SHEET

AS AT 31 MARCH 2024

Notes Fixed assets Tangible assets 15 Investments 16 Current assets Stocks 17 Debtors 18 Cash at bank and in hand Creditors: amounts falling due within one year 19 Net current assets Total assets less current liabilities Income funds Restricted funds 21 Unrestricted funds - designated Unrestricted funds - general	2024 £ £ 4,184,006 11,180,481 15,364,487 73,728 636,649 320,667 1,031,044 (223,081) 807,963 16,172,450 559,158 6,438 15,606,854 16,172,450	2023 £ £ 4,279,608 10,021,131 14,300,739 77,587 274,548 501,106 853,241 (319,050) 534,191 14,834,930 617,460 7,539 14,209,931 14,834,930	2023 £ £ 4,279,608 10,021,131 14,300,739 77,587 274,548 501,106 853,241 (319,050) 534,191 14,834,930 617,460 7,539 14,209,931 14,834,930
			14,300,739 534,191
			14,834,930
			617,460 7,539 14,209,931
			14,834,930

The notes on pages 15 to 31 form part of these financial statements.

The financial statements were approved by the Trustee, and authorised for issue on 30 January 2025 and signed on their behalf by:

Dr I Joyce, Director, Elan Valley Limited

• 13 -

WELSH WATER ELAN TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2024

		2024		2023
	Notes	£	£	£	£
Cash flows from operating activities
Cash (absorbed by)/generated from	27
operations			(217,648)		398,020
Investing activities
Purchase of tangible fixed assets		(129,487)		(293,091)
Proceeds from disposal of tangible fixed
assets		12,916		33,400
Purchase of investments		(9,987)		(159,978)
Proceeds from disposal of investments		150,000		199,996
Investment income received		13,767		10,843
Net cash generated from/(used in) investing
activities			37,209		(208,830)
Net cash used in financing activities			-		-
Net (decrease)/increase in cash and cash
equivalents			(180,439)		189,190
Cash and cash equivalents at beginning of year			501,106		311,916
Cash and cash equivalents at end of year			320,667		501,106

The notes on pages 15 to 31 form part of these financial statements.

• 14 -

WELSH WATER ELAN TRUST

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

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with the trust's governing document, the Charities Act 2011, 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 trust is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the trust. 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 trustee have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustee 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 trustee in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trust.

1.4 Income

Income is recognised when the trust 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 trust 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.

Legacies are recognised on receipt or otherwise if the trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

• 15 -

WELSH WATER ELAN TRUST

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

1 Accounting policies

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.

1.6 Tangible fixed assets

Tangible fixed assets that individually cost £500.00 or more are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Leased sheep originally bred in house are valued at £10 per head. Purchased additions are valued at cost.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings 3% on cost Furniture and equipment 25% on reducing balance Leased Sheep Not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Sheep in stock which form part of the sheep farming operation are valued at £10 each.

1.10 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.

• 16 -

WELSH WATER ELAN TRUST

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

1 Accounting policies

1.11 Financial instruments

The trust 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 trust's balance sheet when the trust 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 trust’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the trust’s accounting policies, the trustee 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.

• 17 -

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

3 Donations and legacies

	Total	Restricted
		funds
	2024	2023
	£	£
Government grants	-	7,000

• 18 -

WELSH WATER ELAN TRUST

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

4 Charitable activities

Income Grant funding Rental receipts Analysis by fund Unrestricted funds - general Restricted funds Grant funding Heritage Lottery Fund Arwain Natur Natural Resources Wales Arts Council of Wales UK Government - Energy Bill Support Welsh Government - Access Broadband Cymru Midlands Arts Centre Other	Tenanted Farms 2024 £ - - 491,569 491,569 491,569 - 491,569 - - - - - - - - - -	Residential Rent 2024 £ - - 126,056 126,056 126,056 - 126,056 - - - - - - - - - -	Farming 2024 £ 94,010 512,943 - 606,953 606,953 - 606,953 - - - - - - - - 512,943 512,943	Tourism Estate Management Development Projects 2024 2024 2024 £ £ £ 280,524 2,794 - 2,064 - 664,558 - - - 282,588 2,794 664,558 280,524 2,794 2,092 2,064 - 662,466 282,588 2,794 664,558 - - 463,044 - - - - - 21,390 - - 178,032 - - - 1,500 - - 564 - - - - 2,092 - - - 2,064 - 664,558	Total 2024 £ 377,328 1,179,565 617,625 2,174,518 1,509,988 664,530 2,174,518 463,044 - 21,390 178,032 - 1,500 564 2,092 512,943 1,179,565	Total 2023 £ 444,704 829,155 606,449
						1,880,308
						1,574,120 306,188
						1,880,308
						245,736 1,274 35,000 21,778 2,400 - - - 522,967
						829,155

• 19 -

WELSH WATER ELAN TRUST

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

4 Charitable activities

For the year ended 31 March 2023

Income Grant funding Rental receipts Analysis by fund Unrestricted funds - general Restricted funds Grant funding Heritage Lottery Fund Arwain Natur Natural Resources Wales Arts Council of Wales Other	Tenanted Farms £ - - 491,734 491,734 491,734 - 491,734 - - - - - - -	Residential Rent £ - - 114,715 114,715 114,715 - 114,715 - - - - - - -	Farming £ 73,788 522,967 - 596,755 596,755 - 596,755 - - - - - 522,967 522,967	Tourism Estate Management Development Projects £ £ £ 368,058 2,586 272 - - 306,188 - - - 368,058 2,586 306,460 368,058 2,586 272 - - 306,188 368,058 2,586 306,460 - - 245,736 - - 1,274 - - 35,000 - - 21,778 - - 2,400 - - - - - 306,188	Total 2023 £ 444,704 829,155 606,449
					1,880,308
					1,574,120 306,188
					1,880,308
					245,736 1,274 35,000 21,778 2,400 522,967
					829,155

• 20 -

WELSH WATER ELAN TRUST

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

5	Income from other trading activities
		Unrestricted	Unrestricted
		funds	funds
		designated	designated
		2024	2023
		£	£
	Estate management - fund raising activity	5,399	5,399
6	Income from investments
		Unrestricted	Unrestricted
		funds	funds
		2024	2023
		£	£
	Interest receivable	13,767	10,843
7	Other income
		Unrestricted	Unrestricted
		funds	funds
		general	general
		2024	2023
		£	£
	Net gain on disposal of tangible fixed assets	6,451	15,401

• 21 -

WELSH WATER ELAN TRUST

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

8 Expenditure on charitable activities

Direct costs Staff costs Depreciation and impairment Direct costs Grant funding of activities (see note ) Share of support and governance costs (see note 9) Support Governance Analysis by fund Unrestricted funds - general Unrestricted funds - designated Restricted funds	Tenanted Farms Residential Rent 2024 2024 £ £ 4,241 144 33,991 49,546 43,709 55,302 81,941 104,992 - - 63,583 43,254 12,154 8,557 157,678 156,803 156,273 156,803 - - 1,405 - 157,678 156,803	Farming 2024 £ 110,829 22,562 210,482 343,873 - 112,349 16,238 472,460 466,973 - 5,487 472,460	Tourism Estate Management Development Projects 2024 2024 2024 £ £ £ 134,762 24,413 163,495 56,058 38,842 17,140 205,046 55,395 567,160 395,866 118,650 747,795 - 6,500 - 40,598 40,962 10,241 6,734 5,765 1,926 443,198 171,877 759,962 424,857 148,905 79,680 - 6,500 - 18,341 16,472 680,282 443,198 171,877 759,962	Total 2024 £ 437,884 218,139 1,137,094
				1,793,117 6,500 310,987 51,374
				2,161,978
				1,433,491 6,500 721,987
				2,161,978

• 22 -

WELSH WATER ELAN TRUST

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

8 Expenditure on charitable activities

Previous year: Direct costs Staff costs Depreciation and impairment Direct costs Grant funding of activities (see note ) Share of support and governance costs (see note 9) Support Governance Analysis by fund Unrestricted funds - general Unrestricted funds - designated Restricted funds	Tenanted Farms Residential Rent 2023 2023 £ £ 220 607 33,808 44,157 55,913 25,556 89,941 70,320 - - 59,598 44,172 11,813 8,317 161,352 122,809 159,948 122,809 - - 1,404 - 161,352 122,809	Farming 2023 £ 83,411 18,169 145,237 246,817 - 89,141 15,784 351,742 350,529 - 1,213 351,742	Tourism Estate Management Development Projects 2023 2023 2023 £ £ £ 242,465 15,494 133,687 61,995 26,283 24,751 203,039 85,733 356,224 507,499 127,510 514,662 - 7,050 - 39,061 34,354 11,452 6,545 5,603 1,872 553,105 174,517 527,986 536,450 164,413 183,825 - 7,050 - 16,655 3,054 344,161 553,105 174,517 527,986	Total 2023 £ 475,884 209,163 871,702
				1,556,749 7,050 277,778 49,934
				1,891,511
				1,517,974 7,050 366,487
				1,891,511

• 23 -

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

9 Support costs

Support costs Governance costs £ £ Depreciation 485 - Staff costs 239,923 14,957 Office costs 65,984 8,278 Subscriptions 4,404 1,468 Motor costs 191 - Audit fees - 8,000 Legal & professional fees - 5,424 Accountancy fees - 531 Other governance costs - 12,716 310,987 51,374 Analysed between Charitable activities 310,987 51,374	2024Support costs Governance costs £ £ £ 485 510 - 254,880 183,005 12,817 74,262 85,449 8,707 5,872 3,876 1,292 191 4,938 - 8,000 - 9,000 5,424 - 4,761 531 - 2,724 12,716 - 10,633 362,361 277,778 49,934 362,361 277,778 49,934	2023 £ 510 195,822 94,156 5,168 4,938 9,000 4,761 2,724 10,633
		327,712
		327,712

Governance costs includes payments to the auditors of £8,000 (2023- £9,000) for audit fees.

10	Net movement in funds	2024	2023
		£	£
	Net movement in funds is stated after charging/(crediting)
	Fees payable to the company's auditor for the audit of the company's financial
	statements	8,000	9,000
	Depreciation of owned tangible fixed assets	218,624	209,673
	Profit on disposal of tangible fixed assets	(6,451)	(15,401)

11 Trustee

None of the trustee (or any persons connected with them) received any remuneration during the year, but five of them were reimbursed a total of £6,549 in expenses (2023- six were reimbursed a total of £6,439).

• 24 -

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

12 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
Farming General maintenance Heritage Lottery Fund project Administration Management Visitor accommodation Total Employment costs Wages and salaries Social security costs Other pension costs	2024 Number 4 3 8 4 2 10 31 2024 £ 610,674 48,338 32,797 691,809	2023 Number 4 3 8 4 2 16
		37
		2023 £ 597,797 42,928 30,981
		671,706

The total employee benefits of the key management personnel of the charity were £115,292 (2023 - £102,275).

The number of employees whose annual remuneration was more than £60,000 is as follows:

	is as follows:
		2024	2023
		Number	Number
	60,000-70,000	1	-
13	Net gains/(losses) on investments
		Unrestricted	Unrestricted
		funds	funds
		general	general
		2024	2023
		£	£
	Unrealised gain/(loss) on revaluation of investments	1,296,808	(195,031)
	Gain/(loss) on sale of investments	2,555	(5,261)
		1,299,363	(200,292)

• 25 -

WELSH WATER ELAN TRUST

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

14 Taxation

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

15 Tangible fixed assets

Cost At 1 April 2023 Additions Disposals At 31 March 2024 Depreciation and impairment At 1 April 2023 Depreciation charged in the year Eliminated in respect of disposals At 31 March 2024 Carrying amount At 31 March 2024 At 31 March 2023	Land and buildings Furniture and equipment Leased Sheep £ £ £ 5,731,125 513,285 97,770 43,119 76,138 10,230 - (28,836) - 5,774,244 560,587 108,000 1,754,717 307,856 - 154,222 64,402 - - (22,372) - 1,908,939 349,886 - 3,865,305 210,701 108,000 3,976,409 205,429 97,770	Total £ 6,342,180 129,487 (28,836) 6,442,831 2,062,573 218,624 (22,372) 2,258,825 4,184,006 4,279,608

• 26 -

WELSH WATER ELAN TRUST

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

16 Fixed asset investments Cost or valuation At 1 April 2023 Additions Valuation changes Disposals At 31 March 2024 Carrying amount At 31 March 2024 At 31 March 2023 17 Stocks Stocks 18 Debtors Amounts falling due within one year: Trade debtors Prepayments and accrued income 19 Creditors: amounts falling due within one year Notes Other taxation and social security Deferred income 20 Trade creditors Accruals

Listed investments £ 10,021,131 9,987 1,296,808 (147,445) 11,180,481 11,180,481 10,021,131 2024 2023 £ £ 73,728 77,587 2024 2023 £ £ 594,363 238,320 42,286 36,228 636,649 274,548 2024 2023 £ £ 56,947 61,910 28,862 32,337 85,757 169,832 51,515 54,971 223,081 319,050

• 27 -

WELSH WATER ELAN TRUST

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

20 Deferred income Other deferred income Deferred income is included in the financial statements as follows: Deferred income is included within: Current liabilities Movements in the year: Deferred income at 1 April 2023 Released from previous periods Resources deferred in the year Deferred income at 31 March 2024	2024 £ 28,862 2024 £ 28,862 32,337 (24,262) 20,787 28,862	2023 £ 32,337 2023 £ 32,337 37,304 (36,695) 31,728 32,337

Deferred income is in relation to rental deposits and deposits paid in advance in relation to holiday let accommodation.

21 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

	At	1 April 2023	Incoming	Resources	Transfers	At 31 March
			resources	expended		2024
		£	£	£	£	£
Capital grants		199,981	-	(14,052)	-	185,929
Nature Fund		24,351	-	(1,710)	-	22,641
CADW		95,644	-	(3,571)	-	92,073
Elan Links		297,484	484,434	(522,618)	(845)	258,455
UK Government - Energy Bill
Support		-	1,500	(1,500)	-	-
Welsh Government - Access
Broadband Cymru		-	564	(564)	-	-
Natural Resources Wales		-	178,032	(177,972)	-	60
		617,460	664,530	(721,987)	(845)	559,158

• 28 -

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

21 Restricted funds

Previous year:	At 1 April 2022	Incoming	Resources	Transfers	At 31 March
		resources	expended		2023
	£	£	£	£	£
Capital grants	206,979	7,000	(13,998)	-	199,981
Nature Fund	26,351	-	(2,000)	-	24,351
CADW	99,214	-	(3,570)	-	95,644
Elan Links	338,215	306,188	(346,919)	-	297,484
	670,759	313,188	(366,487)	-	617,460

Capital Grants represent funds received in repect of the restoration of properties.

Nature Fund represents funds received from the Welsh Assembly Government in respect of this project.

CADW Grant represents funds received in respect of the work being carried out at Cwm Elan Mines.

Elan Links is a partnership project which brings together a range of local and strategic partners to secure the heritage of the Elan Valley and create future opportunities under four key themes:

• Celebrating heritage; restoration and archiving

• Enjoying Elan; increasing access and recreational opportunities

• Experience and education; providing educational course and volunteering opportunities

• Enhancing nature and wildlife; restoration and enhancement of natural environments

• The managing partners are: - Elan Valley Trust (Lead)

• Dwr Cymru Welsh Water

• CARAD – Rhayader Museum & Gallery

• Tir Coed

• Natural Resources Wales

• Rhayader & District Community Support

• Powys County Council

UK Government - Energy Bill Support represents funds to support energy costs

Welsh Government - Access Broadband Cymru represents funds to support internet connectivity

Natural Resources Wales represents funds received in respect peat restoration work

• 29 -

WELSH WATER ELAN TRUST

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

22 Unrestricted funds - designated

These are unrestricted funds which are material to the trust's activities.

At 1 April 2023 £ 7,539 Previous year: At 1 April 2022 £ 9,190	Incoming resources £ 5,399 Incoming resources £ 5,399	Resources expended At 31 March 2024 £ £ (6,500) 6,438 Resources expended At 31 March 2023 £ £ (7,050) 7,539

The trustees have allocated the income received from Airwaves rental for the use of the estate to a fund controlled by a joint committee of Trustees and tenants. This fund is used in the support of local organisations having appropriate charitable or relevant public purposes.

23 Analysis of net assets between funds

Unrestricted Unrestricted funds funds general designated 2024 2024 £ £ At 31 March 2024: Tangible assets 3,630,908 - Investments 11,180,481 - Current assets/(liabilities) 795,465 6,438 15,606,854 6,438 Unrestricted Unrestricted funds funds general designated 2023 2023 £ £ At 31 March 2023: Tangible assets 3,684,838 - Investments 10,021,131 - Current assets/(liabilities) 503,962 7,539 14,209,931 7,539	Restricted funds 2024 £ 553,098 - 6,060 559,158 Restricted funds 2023 £ 594,770 - 22,690 617,460	Total 2024 £ 4,184,006 11,180,481 807,963
		16,172,450
		Total 2023 £ 4,279,608 10,021,131 534,191
		14,834,930

• 30 -

WELSH WATER ELAN TRUST

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

24 Capital commitments 2024 £ Amounts contracted for but not provided in the financial statements: 2024 £ Acquisition of property, plant and equipment 9,950 25 Related party transactions There were no disclosable related party transactions during the year (2023 - none). 26 Analysis of changes in net funds The trust had no material debt during the year. 27 Cash generated from operations 2024 £ Surplus/(deficit) for the year 1,337,520 Adjustments for: Investment income recognised in statement of financial activities (13,767) Gain on disposal of tangible fixed assets (6,451) (Gain)/loss on disposal of investments (2,555) Fair value gains and losses on investments (1,296,808) Depreciation and impairment of tangible fixed assets 218,624 Movements in working capital: Decrease/(increase) in stocks 3,859 (Increase)/decrease in debtors (362,101) (Decrease) in creditors (92,494) (Decrease) in deferred income (3,475) Cash (absorbed by)/generated from operations (217,648)

2023 £ 2023 £ - 2023 £ (172,852) (10,843) (15,401) 5,261 195,031 209,673 (3,247) 195,906 (541) (4,967) 398,020

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