## Yorkshire Water Community Trust
Trustees’ Annual Report for the year ended 31 March 2021
**Registered No. 1047923**
## ANNUAL REPORT
## AND
## FINANCIAL STATEMENTS
2021
_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
Trustees’ Annual Report for the year ended 31 March 2021
## **Contents**
||Page|
|---|---|
|Annual report for the year ended 31 March 2021|2|
|The Trustees’ responsibilities statement|15|
|Independent auditor’s report to the Trustees of Yorkshire Water Community Trust|16|
|Statement of Financial Activities for the year ended 31 March 2021|21|
|Balance Sheet as at 31 March 2021|22|
|Statement of cash flows for the year ended 31 March 2021|23|
|Notes to the Financial Statements for the year ended 31 March 2021|24|
1
_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Annual report for the year ended 31 March 2021**
Yorkshire Water Community Trust (YWCT), Western House, Halifax Road, Bradford, BD6 2SZ, is registered with the Charity Commission (No. 1047923) and constituted by Deed of Trust dated 27 June 1995 that operated for an initial period of 21 years. A new trust deed was approved and signed on 9 June 2016.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Bankers and Independent Auditor**
Bank:
National Westminster Bank Plc City Office Park Row Leeds LS1 1QS
Independent auditor:
Deloitte LLP Statutory Auditor
1 City Square Leeds LS1 2AL United Kingdom
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Objectives and Activities**
The primary aims and legal purpose of the Trust are:
- To help those who are in conditions of need and who are unable to meet or pay for charges for the supply of water and sewerage;
- To enable applicants to break the circle of debt and to resolve their debt problems in the long term;
- To make donations to charitable or other institutions as the Trustees in their absolute discretion think fit; and
- To play a role in the establishment of Trust Funds throughout the water industry.
All these key activities are of significant public benefit.
It is important to encourage and maintain enthusiasm from all Trustees, to get their commitment to fulfil the role effectively, playing an important part in the process. It is particularly important that new Trustees participate in customer application audits, so they can get a real feel for our customers. This helps them to make decisions around the criteria, ensuring that the Trust continues to help the most in need, right across the region.
The need is recognised by Trustees and Officers to continue to raise the profile of the Trust in the right areas, and to demonstrate a strong business case to Yorkshire Water Services Limited (Yorkshire Water) for its continued evolvement.
## **Reference and Administrative details**
The charity Trustees who served during the year and up until the date of signing the Annual Report were:
Mrs K Pinnock (Chairperson) Mr P M Leadbetter MVO Mr B Miah Mr D Pickering (resigned 5 June 2020)
Mrs G P Pilling Mr C Clement (resigned 5 June 2020) Ms E White Mr A Rose Mr A Hunt 4 Ms S Clayton Mrs N Browne (appointed 16 June 2020)
_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
The Trustees collectively provide the diverse mix of skills, experience and knowledge required to run the Trust effectively:
- Baroness Kathryn Pinnock (Kath) was appointed to the Board of Yorkshire Water as an independent nonexecutive director in March 2008. Kath stepped down from the Board of Yorkshire Water in August 2017. Kath has been a councillor with Kirklees Council since 1987 and has held the post of Leader of the Council from 2000 to 2006. She is a vice president of the Local Government Association and was both a board member of Yorkshire Forward from 2000 to 2012 and a member of the executive of Yorkshire and Humber Regional Assembly from 2000 to 2006. Kath was a regional peer for the Local Government Improvement and Development Agency which involved working with councils and councillors to improve the quality of local government.
Kath was awarded an honorary doctorate by the University of Huddersfield in 2015 for services to Local Government. She was appointed to the Governing Body of the University in 2016. In 2014 Kath was awarded a Peerage and speaks on Local Government and children’s issues in the House of Lords.
- Phil Leadbetter MVO retired in March 2004 with the rank of Wing Commander after a 37-year career in the Royal Air Force. He is a member of the Soldiers Sailors Airmen and Families Association (SSAFA) - Forces Help and served as a Divisional Secretary for three years. He is also a former Chairman of the local branch of the Royal Air Force Association.
- Babul Miah is a practising solicitor and specialises in litigation disputes including civil, personal injury, employment and immigration matters. He has worked for leading Yorkshire firm Gordons LLP and was a former partner at Derbyshire firm Chapman & Chubb. He is currently working as a Consultant at Larkman Lodh Solicitors in Sheffield & Nottingham. He is also a trained mediator, dealing with probono neighbour disputes.
- Penny Pilling previously used to manage Advocacy Services in the Hambleton and Richmondshire areas of North Yorkshire until retirement. She now works part-time on the Allocation Panel for Avalon, a service for adults with learning disabilities. She is also an Independent Custody Visitor for the North Yorkshire Police Authority.
- Nicola Browne has worked for Yorkshire Water/Loop for the past 25 years having commenced her journey with Yorkshire Water in Sept 1995 as a Customer Service Graduate. Around 1998, she moved to Advertising and Publicity and then to Sales and Marketing. In 2000, she transferred to Loop where she undertook a variety of roles within Account Management, Marketing, Internal and External Communication and then took over the management of Loop’s Change Programme. She currently works
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
in the wider Integration and Improvement Team as Business Change Manager and manage a team of Implementation Managers and the Loop Communication Specialist.
- Elaine White is a Trustee who has been involved in the voluntary sector for a number of years, both organisationally and fund raising. She is also an accredited Victim Support volunteer.
- Andrew Rose is a Tenancy Support Manager for the Beyond Housing while concurrently managing the Money Management Service and Tenancy Support Service. He also works closely with the local Credit Union and other financial support agencies. Andrew became a Senior Money Management Officer in 2013, growing the team and managing three officers. Andrew is currently one of three officials at Beyond Housing that is empowered to authorise hardship funds.
- Adrian Hunt enlisted in May 1975 to the Royal Armoured Corps Junior Leaders Regiment stationed in Bovington, Dorset. The highlight of his career was being nominated as the Queens driver for the Royal Tank Regiments Standard Parade in 1985. Adrian left the regular army in 1998 after a full career (23 years). Adrian joined the Army Reserves in 2000 and commissioned in 2005. He is currently serving with the Army Reserves in Co Durham with 102 Battalion Royal Electrical Mechanical Engineers as the Battalion 2nd In Command and Operations Officer. Adrian holds the appointment of Branch Secretary for SSAFA South Yorkshire and sits on a number of Local Authority Armed Forces Community Covenant Boards as the SSAFA military representative.
- Sarah Clayton is the Head of Housing Management at Kirklees Neighbourhood Housing managing services to 23,000 council homes across Kirklees. Previous to this, she was the Head of Housing Strategy for Salford City Council for ten years which included dealing with the regeneration schemes in deprived areas to help develop new affordable homes. She has worked in the housing sector since 1986.
The expenses of the Trustees are covered by the Trust. The Trustees have taken into consideration the Charity Commission guidance on public benefit. The trust aims to benefit the public through helping to relieve water poverty in Yorkshire Water region.
The Trustees consider the key management personnel of the charity to be the Board of Trustees. The Trustees are in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give their time freely and no trustee remuneration was paid in the year (2020: £nil).
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Trust Officers**
The Trust has a part-time Trust Manager (Claire Gott) with two part-time Assistant Trust Officers (Justine Gardner and Alison Dibb) and a full-time Trust Officer (Tasleem Salaq). All resources are funded by Kelda Group Limited (Kelda Group) and work within a Service Level Agreement for the Trust. The employment and associated costs of these individuals are disclosed in the Statement of Financial Activities.
A Trust Secretary (Kathy Smith) and a Treasurer (Elliott Pashley) provide their services on a voluntary basis. Nicola Browne replaced Charles Clement as a Trustee, who resigned on 5 June 2020.
## **Structure, Governance and Management**
## **Induction and Training of new Trustees**
Trustees are appointed for an initial period of three years, after which they may resign or offer themselves for re-election for a further term of office. Trustees are appointed by way of general advertising via the local Citizen Advice Bureaux, Debt Agencies and Chambers of Trade. Applications are invited from anyone. The process of appointment involves a potential candidate submitting their CV to the Trust Officer which is then considered initially by the Trustees at a quarterly Trust meeting to draw up a short list. Candidates are then invited for interview by a panel comprising the Chairman of the Trust, one or two Trustees and the Trust Manager. Once interviewed, selected, and references confirmed, the panel puts forward successful candidates for appointment to the next Trust Board meeting for approval.
- There are no provisions for any other person or body to appoint one or more Trustees.
- Trustees are appointed by deed by the existing Trustees pursuant to the provisions of the Trust Deed and the Trustee Act 1925.
- There are no restrictions imposed by the governing document concerning the way in which the charity operates or any specific investment powers that this requires to be described.
- The charity does not make any investments and accordingly does not have an investment policy.
On appointment, all new Trustees are given a copy of the Trust Deed, a copy of the most recent YWCT Business Plan, a Trust Information Pack and copies of the minutes from the past year’s Trust meetings.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
They also receive a copy of appropriate information from the Charity Commission website – e.g. CC3(a) The Essential Trustee.
Trustee Audits are an important part of training where a Trust Officer is present. Here they have the opportunity to see actual application forms, giving them an insight into the individuals and families they have a responsibility to help.
At least once each year, the Trust Manager gives a presentation at a quarterly meeting. This reminds all Trustees of the background to the Trust, etc. along with a review of the current criteria and recent activities. The Trust Officers are always available for advice and information.
## **Award Approval Process**
All decisions regarding the payment of awards are made by the Trustees at their quarterly meetings or midaudits. Authority to reject applications which do not meet the criteria for awards is delegated to the Trust Officer, but these are formally confirmed retrospectively by the Trustees. The Trustees also have the opportunity to review the applications for awards at mid-audits and final audits held each quarter.
## **Risks**
The Trustees have examined the major strategic business and operational risks, which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The major risks identified are:
- Inadequate funding; which is mitigated by timely and accurate annual budget submissions made to the Kelda Group board, as well as quarterly reporting of financial returns and operations status.
- Dependency on sole income source; which is mitigated by the Trust Chairman liaising with the Kelda Group Board and providing updates on the charity’s activities.
- Restrictions on types of award; which is mitigated by the criteria for awards being revised to reflect restrictions and forward funding requests are made to Yorkshire Water if appropriate.
- Misuse of funds, including fraud (internal and external); which is mitigated by monitoring and auditing of applications by the Trustees and keeping an audit trail of the systems processing.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
- Inadequate IT systems, which is mitigated by technical support provided by Kelda Group, regular data backups and system updates, disaster recovery procedures and security and authorisation procedures.
- Non-compliance with legislation and regulations, which is mitigated by monitoring compliance procedures and identification of issues where advice is required and access where necessary.
## **Achievements and Performance**
- The Trust Officers have continued to maintain and create good relationships throughout the advice and support agencies in Yorkshire.
- In accordance with criteria set by the Trustees, awards totalling £836,584 (2020: £899,999) were made to 1,870 (2020: 2,108) successful applicants. These were identified as being the individuals and families most in need from the 2,172 (2020: 2,425) applicants.
- Trustees and the Trust Officers have actively monitored and reviewed the criteria, in order to maximise the budget and to help them target the groups, individuals and families most in need in the community.
- During the year, every applicant who met the criteria received an award for the full amount to which they were entitled within the funding received from Kelda Group. Any additional applications entitled to awards in the year will be considered in next year’s funding. External influences were inevitably an issue, due to the high levels of utility debt throughout the region, and indeed nationwide. As expected, external issues continued to affect the Trust, but it has continued to grant awards by passing on all funds received from Kelda Group.
- Of the Trustees, Elaine White and Nicola Browne are also employed by the Kelda Holdings Limited group of companies.
- Throughout the financial year, due to Covid-19 lockdowns and the related furlough scheme, the Trust saw a decrease in applications. However, it is expected that there will be a delayed effect and any unused budget from 2021 will likely be utilised in 2022.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Analysis of Applications to YWCT**
- During the year ended 31 March 2021, the Trust Officers sent out 10,087 (2020: 15,376) application forms to individuals which was a decrease of 34% (2020: 15% decrease) on the previous year. The majority of individual requests for Application Forms originated from referrals from Yorkshire Water credit control staff, with other requests from the various advice agencies and individuals direct. Literature enclosed with Yorkshire Water bills made clear reference to the Trust.
- Awards were made according to the criteria set by Trustees and after full consideration of the applicants’ individual circumstances based on details given on their Application Form (a few of which were confirmed by letter / telephone). In order to be successful, applicants must have firstly shown that they were in a multiple priority debt situation and must not have received a previous award from the Trust within the past two years. The whole situation of the household was then considered, particularly with regard to regular income and outgoings, overall level of debt, financial dependants, long-term illness or disability, and physical, emotional or financial vulnerability.
- Whilst it is accepted that not all applicants will have been helped, from the applications received, 86% (2020: 87%) have been assisted by the Trust. The following graphs show trends for the Trust over the last four years.
## **Number of applications received and approved at each Trust Meeting**
**----- Start of picture text -----**
Applications
Approved
900
800
700
600
500
400
300
200
100
0
Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
£'000
**----- End of picture text -----**
_The Yorkshire Water_ COMMUNITY TRUST
10
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
The average award for the year ended 31 March 2021 was £447 (2020: £427).
**----- Start of picture text -----**
Total award made at each Trust meeting
**----- End of picture text -----**
**----- Start of picture text -----**
350
300
250
200
150
100
50
Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
£'000
**----- End of picture text -----**
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Financial Review**
## **Policy on Reserves**
- It is the policy of the Trustees to pay awards to the full level of funding and throughout the year to maintain the Reserves at a minimum level.
- The minimum level is approximately £5,000 (2020: £5,000) and is used to meet short term financing needs. This is unrestricted and available to be applied for the general purpose of the charity. Reserves as at 31 March 2021 were £7,357 (2020: £5,856), in line with the policy.
## **Principal Funding Source**
The principal funding source for the Trust is Kelda Group, it is the trustees’ expectations that this funding will continue for the foreseeable future.
## **Investments**
No investments are held by the Trust.
## **Review of Awards**
YWCT approved awards as follows:
|**Date of Meeting**|**Amount Paid**|**No of Awards**|
|---|---|---|
||**(£)**||
|June 2020|193,209|423|
|September 2020|145,554|351|
|December 2020|171,848|386|
|March 2021|325,973|710|
These awards amounted to a total of £836,584 (2020: £899,999).
_The Yorkshire Water_ COMMUNITY TRUST
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## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
The Trust Manager formally reports at least quarterly to Trustees, to show the budgetary position and other relevant information. No awards are made until formally approved by Trustees, as set out below:
- the application is checked for completeness and signature;
- decision made on basis of current criteria;
- unsuccessful and potentially successful applicants are advised in writing;
- application and decision checked by third party;
- Trustees approve awards at mid-audit or quarterly meeting; and
- awards made and successful applicants informed in writing.
## **Going concern**
The Trustees believe that preparing the Financial Statements on the going concern basis is appropriate. YWCT has no commitments and has total discretion over grants made from available cash reserves received from Kelda Group, please see page 25 for full going concern considerations.
## **Plans for the future**
- The Trust will continue to play a role in moving charitable organisations forward within the utility sector, particularly in the Yorkshire region.
- Trustees and Trust Officers will continue to work with advice agencies and Kelda Group colleagues in raising awareness of the Trust across the region, targeting the most appropriate groups of individuals and families.
- There will be an ongoing process of reviewing the criteria and operating procedures of the Trust, maximising the budget.
- Trustees will continue to look for evidence that they are making a difference to the lives of some of our most vulnerable individuals and families.
- The Trust will continue to make awards in line with its objectives, listed on page 4, for the foreseeable future.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Independent auditor**
Deloitte LLP has expressed their willingness to be reappointed for another term and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.
## **The Trustees’ responsibilities statement**
The Trustees are responsible for preparing the Trustees' Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
The law applicable to charities in England and Wales requires the Trustees to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and application of resources of the charity for that period.
In preparing these Financial Statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed; and
- prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees 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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
Under company law the Trustees must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
on behalf of the Trustees
Date: 9 September 2021
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Yorkshire Water Community Trust**
## **Report on the audit of the Financial Statements**
## **Opinion**
In our opinion the Financial Statements of Yorkshire Water Community Trust (the ‘charity’):
- give a true and fair view of the state of the charity’s affairs as at 31 March 2021 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, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
- have been prepared in accordance with the Charities Act 2011.
We have audited the Financial Statements which comprise:
- the statement of financial activities;
- the balance sheet;
- the statement of cash flow; and
- the related notes 1 to 8.
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).
## **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 charity in accordance with the ethical requirements that are relevant to our audit of the Financial Statements in the UK, including the Financial Reporting Council’s (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.
_The Yorkshire Water_ COMMUNITY TRUST
16
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Yorkshire Water Community Trust** (continued)
## **Conclusions relating to going concern**
In auditing the Financial Statements, we have concluded that the trustees’ 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 charity’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 trustees 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 trustees 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.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees 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 trustees determine is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Yorkshire Water Community Trust** (continued)
In preparing the Financial Statements, the trustees are responsible for assessing the charity’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 trustees either intend to liquidate the charity or 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.
A further description of our responsibilities for the audit of the Financial Statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the charity’s industry and its control environment, and reviewed the charity’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the charity operates in, and identified the key laws and regulations that:
- had a direct effect on the determination of material amounts and disclosures in the Financial Statements. These included the Trust Deed and the UK Charities Act; and
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Yorkshire Water Community Trust** (continued)
- do not have a direct effect on the Financial Statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the Financial Statements.
As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our specific procedures performed to address it is described below:
- we presume a risk of material misstatement due to fraud in revenue recognition which is related to the accuracy of donation income. To address this risk, we reviewed the Trustees’ meeting minutes, all bank statements in the period, and post year end records up to the date of this report to test whether income had been appropriately included in the Financial Statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we assessed the design and implementation of controls over the assessment and approval of grant awards, tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
- reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the Financial Statements;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- enquiring of management concerning actual and potential litigation and claims, and instances of noncompliance with laws and regulations; and
- reading minutes of meetings of those charged with governance.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Yorkshire Water Community Trust** (continued)
## **Report on other legal and regulatory requirements**
## **Matters on which we are required to report by exception**
Under the Charities (Accounts and Reports) Regulations 2008 we are required to report in respect of the following matters if, in our opinion:
- the information given in the Financial Statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept; or
- the Financial Statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
## **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.
Deloitte LLP Statutory Auditor Leeds, United Kingdom
9 September 2021
Deloitte LLP is eligible for appointment as auditor for the charity by virtue of its eligibility for appointment as audit of a company under section 1212 of the Companies Act 2006.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Statement of Financial Activities for the year ended 31 March 2021**
|**Notes**
**Income**
**Income from Donations**
Donations and Legacies
Donations received from Kelda Group
3
Donations for support and other costs
Total Income
**Expenditure**
Charitable Activities
Charitable grants paid during the year
7
Support and Other Costs
4
Total Expenditure
Net movement in funds
Fund balances brought forward at 1 April
**Fund balances carried forward at 31 March**
All amounts related to continuing operations.|**Total funds**
**for the**
**year ended**
**31 March**
**2021**
**£**
**838,085**
**57,023**
**895,108**
**(836,584)**
**(57,023)**
**(893,607)**
**1,501**
**5,856**
**7,357**|Total funds
for the
year ended
31 March
2020
£
900,000
52,256
952,256
(899,999)
(52,256)
(952,255)
1
5,855
5,856|
|---|---|---|
The charity has no gains and losses other than those included in the results above. There is no difference between the results for the years stated above and their historical cost equivalents. All funds are unrestricted.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
Trustees’ Annual Report for the year ended 31 March 2021
|**Balance Sheet as at 31 March 2021**|||||||
|---|---|---|---|---|---|---|
||||||||
|||||**31 March**||31 March|
|||||**2021**||2020|
|||||**£**||£|
||||||||
|**Current Assets**|||||||
||||||||
|Cash at Bank and in hand||||**7,357**||5,856|
||||||||
|**Net Assets**||||**7,357**||5,856|
||||||||
|**The Funds of the Charity**|||||||
||||||||
|Unrestricted funds||||**7,357**||5,856|
||||||||
|**Total Charity Funds**||||**7,357**||5,856|
These Financial Statements on pages 21 to 277 of YWCT, registered number 1047923, were approved by the Trustees and authorised for issue on 9 September 2021. They were signed on its behalf by:
......................................
Trustee
22
_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
Trustees’ Annual Report for the year ended 31 March 2021
## **Statement of cash flows for the year ended 31 March 2021**
|||**Year ended**
**31 March**|
|Year ended
31 March|
|---|---|---|---|---|
|||**2021**||2020|
|||**£**||£|
|Donations from Kelda Group|3|**838,085**||900,000|
|Charitable grants payable|7|**(836,584)**||(899,999)|
||||||
||||||
|Net movements in funds for theyear||**1,501**||1|
|Net cash flows from trust activities||**1,501**||1|
|Cash at bank and in hand at the start of theyear||**5,856**||5,855|
|Cash at bank and in hand at the end of the year||**7,357**||5,856|
## **Material Non-Cash Transactions**
During the period ended 31 March 2021 £57,023 (2020: £52,256) of costs were incurred in relation to support and other costs however the costs of these services were donated in full by Kelda Group. This has nil impact on profitability for the trust.
23
_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Notes to the Financial Statements for the year ended 31 March 2021**
The following notes form part of these Financial Statements.
The charity is a public benefit charity and is an unincorporated charitable trust.
## **1. Accounting Policies**
## **Basis of preparation**
The Financial Statements have been prepared 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) (effective 1 January 2019) – (Charities SORP (FRS 102)).
Income is recognised when the Trust has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
Donated support and other services are recognised on receipt on the basis of the value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Charitable expenditure is recognised in the Financial Statements once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity’s activities.
The Financial Statements have been prepared on the historic cost basis and accounting policies have been consistently applied.
24
_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Notes to the Financial Statements for the year ended 31 March 2021 (continued)**
The functional currency of the Trust is pounds sterling and the Financial Statements are presented in pounds sterling. Cash at bank and in hand comprise cash balances.
The Trust is a registered charity, and as such is entitled to certain tax exemptions on surpluses on any trading activities carried on in furtherance of the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.
## **Going concern**
The Trustees believe that preparing the Financial Statements on the going concern basis is appropriate. YWCT is a trust which provides support to those who are in conditions of need and who are unable to meet or pay for charges for the supply of water and sewerage. The nature of the trust is inherently linked with the operations of Yorkshire Water and Yorkshire Water’s parent company Kelda Group. The Yorkshire Water and Kelda Group accounts have been prepared on a going concern basis following a thorough review of Yorkshire Waters key risks and uncertainties, including Covid-19, further information is provided in the Yorkshire Water’s annual report and Financial Statements. YWCT has no commitments and has total discretion over grants made from available cash reserves; the trust is funded by donations from Kelda Group and the level of support YWCT is able to offer its beneficiaries is determined by the level of funding received. The trustees anticipate receiving similar levels of funding in future periods. YWCT is able to ensure that all financing obligations are met. The Trustees therefore believe that the trust has sufficient resources to continue in operational existence for at least one year after the Financial Statements are authorised for issue.
## **2. Accounting estimates and judgements**
The preparation of Financial Statements in accordance with FRS 102 requires the use of certain critical accounting estimates. It also requires Trustees to exercise their judgement in the process of applying the Trust’s accounting policies. There were no such areas of judgement or estimation uncertainty deemed significant in these Financial Statements.
## **3. Funds**
The income funds of the charity are all unrestricted.
All funding is received by way of donations from Kelda Group.
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_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Notes to the Financial Statements for the year ended 31 March 2021 (continued)**
## **4. Support and Other Costs**
The following support and expense costs were incurred by the charity during the year.
|**Kelda Group**
Support costs
Other costs including audit fees
**Trustees**
Trustee expenses paid to 9 Trustees (2020: 10)
**Total**|**2021**
2020
**£**
£
**50,963**50,962
**5,500**
-
**560**1,294
**57,023**
52,256|
|---|---|
Support costs included the following full time and part-time staff resources and associated costs who are employed within the Kelda Group: full time - 1 (2020: 1), part-time - 3 (2020: 3). The Trust has no directly employed staff.
Support costs included governance costs of £nil (2020: £nil).
The Trustees receive no remuneration for their services.
## **5. Auditor’s Remuneration**
|**ditor’s Remuneration**|||
|---|---|---|
||**2021**|2020|
||**£**|£|
|Audit of these Financial Statements|**5,500**|3,000|
|Non audit fees|**-**|**-**|
Audit fees are paid by Kelda Group.
26
_The Yorkshire Water_ COMMUNITY TRUST
## Yorkshire Water Community Trust
## Trustees’ Annual Report for the year ended 31 March 2021
## **Notes to the Financial Statements for the year ended 31 March 2021 (continued)**
## **6. Related-party transactions**
There are no related party transactions in the reporting period that require disclosure (2020: none).
## **7. Grant-making activities 2021**
||**Grants to**
**Individuals**|**Support**
**Costs**
**Total**
**£**
**£**
**57,023**
**893,607**|
|---|---|---|
||**£**||
||||
|Charitable grants payable for the benefit of individuals
in financial need|**836,584**||
||||
|2020|Grants to
Individuals|
Support
Costs
Total|
||£|
£
£|
||||
|Charitable grants payable for the benefit of individuals
in financial need|899,999|
52,256
952,255|
## **8. Ultimate Controlling Party**
The charity’s ultimate controlling party is the Board of Trustees.
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_The Yorkshire Water_ COMMUNITY TRUST