2021-03-31-accounts

Registered number: 03419138 Charity number: 1064144

VEOLIA ENVIRONMENTAL TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

CONTENTS

	Page
Reference and Administrative Details of the Trust, its Trustees and Advisers	1 - 2
Trustees' Report	3 - 13
Independent Auditors' Report on the Financial Statements	14 - 17
Statement of Financial Activities	18
Balance Sheet	19
Statement of Cash Flows	20
Notes to the Financial Statements	21 - 36

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE TRUST, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

The Veolia Environmental Trust

The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2021.

Administrative Details and Trustees

The Directors of the Charitable Company ("the Charity") also referred to as the Trust, are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. As set out in the Articles of Association, the Chairman of the Trustees is nominated by the members of the Board.

The Trustees below served during the year, and up to the date of the signing of this report.

The Trustees below served	during the year, and up to the date of the signing of this report.
Trustees	Mr O A Dodds MBE, Chairman
	Mr A Ali (appointed 8 September 2020)
	Mr J Bowden-Williams
	Mr J F Brown
	Ms J Demetrius
	Mrs R Forbes (appointed 8 September 2020)
	Mr D J Goodenough
	Mr K A Hurst
	Mr D J F Macphail
	Mr M Marshall
	Mrs C M S Schwaller MBE
	Mr M D Smith
Company registered number 03419138 Charity registered number 1064144 Registered office 210 Pentonville Road London N1 9JY

The Charity is incorporated in England and Wales

Secretary	Ms J Demetrius
Senior Management	Elizabeth Cooke - Head of Grants
Team	Lorraine Womack - Head of Finance and Operations
Independent auditors	WR Partners
	Chartered Accountants
	Belmont House
	Shrewsbury Business Park
	Shrewsbury
	Shropshire
	SY2 6LG

Page 1

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE TRUST, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Bankers

Barclays Bank plc 54 Lombard street London EC3V 9EX

Page 2

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the Veolia Environmental Trust for the year 1 April 2020 to 31 March 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the second edition Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (October 2019).

Since the Trust qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The Veolia Environmental Trust was set up in 1997 following the introduction of the Landfill Communities Fund in 1996. The Trust is registered with ENTRUST as an environmental body under the Landfill Tax Regulations and is also a registered charity. The Landfill Communities Fund is regulated by ENTRUST on behalf of HM Revenue & Customs.

Veolia Environmental Services (UK) plc and its subsidiaries (Veolia) voluntarily donated 5.3% of its landfill tax liability to the Trust in the year ending 31 March 2021. This was the maximum amount allowed for the period. The Trust is enrolled to receive such funding.

The principal objectives of Veolia Environmental Trust are to support community and environmental projects, as set out in the Trust's Memorandum and Articles of Association. The principal activities continue to relate to the meeting of these objectives.

The Trust uses the contribution of landfill tax payments for two of the five major categories of grants permitted under the Landfill Tax Regulations, as follows:

• Category D - public amenities.

• Category DA - conservation of biodiversity.

b. Public benefit

In order to ensure the Trust continues to benefit the public, it aims to award grants, correctly, fairly and proportionately to projects which meet its criteria, are needed, and will lead to long-term and sustainable improvements to the natural and built environment therefore increasing people's quality of life.

The Trust works to ensure that its operations are compliant with the requirements of the Landfill Communities Fund and Trustees have had regard to the guidance issued by the Charity Commission on public benefit.

The Trust supports many projects where volunteers make a vital contribution. As well as providing a vital source of labour and expertise that will benefit the wider community, the Trust believes volunteers can also develop new skills that will benefit them in the future.

One of the principal requirements of the Trust is that an applicant consults with local people in order to identify a need for the project and provide the opportunity for input and influence. Without this consultation, a project's public benefit may be reduced.

Page 3

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

The Trust has ensured that such consultations have taken place and the need for the project has been identified, although Trustees appreciate and take into consideration at this time the difficulties the current restrictions brought about by the Covid-19 pandemic have been causing.

“Ownership” of a project is also important to the Trust, which considers the public benefit is maximised by supporting projects that will be owned and operated by the community, or a committee or group appointed by that community.

The sustainability and environmental aspects of projects also have a high priority. To have wider public benefit, projects must have a long-term future and need to positively improve the built or natural environment.

Achievements and performance

a. Review of activities

The government’s March 2020 Budget set the potential value for the LCF for 2020/21 at £35 million and the percentage credit that our landfill site operator could claim against their Landfill Tax liability for LCF contributions made to the Trust was maintained at 5.3% from 1 April 2020.

Early contribution estimates for the year indicated a similar level of funding the Trust received the previous year, with contributions expected to be around £5,100,000 (2019/20 - £5,697,651). However with the emergence of the Covid-19 pandemic it brought with it the first lockdown in the UK, and as such the levels of waste significantly reduced during this period. The Trust saw the first contribution of the financial year reduced by 20%. In response to this, the contributions were re-forecasted by the landfill operator and were re-estimated to be approximately £4,647,200. By the end of the year the Trust received contributions totalling £4,712,600. The Trust did not have to make any significant changes to ensure the running of the Trust remained at the same level as previous years in terms of staffing, administration costs and the funding of projects.

Trust staff have remained focused through the year on making the application process more accessible and communication clearer for applicants. The Habitat and Biodiversity Grant Criteria was also established, improving guidance regarding Category DA applications. More support and guidance to assist both applicants and beneficiaries of grants during the pandemic has also been provided.

Some applicants have however been unable to establish with certainty estimated start and completion dates or obtain quotes. Beneficiaries have seen work stop, prices fluctuate, contractors unable to complete work or in many cases facilities have had to close temporarily or have had to adapt activities to meet the current needs of their communities and government guidelines.

In December 2019 the Trust agreed to assist the Veolia Havering Riverside Maintenance Trust (VHRMT) and Veolia Pitsea Marshes Maintenance Trust (VPMMT), known collectively as the Veolia Maintenance Trusts (VMTs) as they move towards closure. This process is still ongoing. During this financial year, the Trust received the transfer of funding from VHRMT of £165,950 for two approved projects that were also transferred, together with £12,446 for associated administration costs. The Trust also received £501,031 for 4 approved projects that were transferred from VPMMT and £37,577 for administration costs.

Page 4

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Two of the projects that were transferred to the Trust during this financial year, were subsequently withdrawn giving the Trust the amount of £116,340 to be re-allocated. Trustees have re-allocated most of those project funds to three projects that came through the Trusts application process and were eligible for awards under the terms of the original transfer agreement between the Trust and the VMTs.

The Trust welcomed two new Trustees; Atif Ali and Ruth Forbes, in September 2020. Atif is a Public Health Officer for Inequalities at Birmingham City Council and is passionate about social justice and change, and is a Community Fund Panel Member at Severn Trent Community Fund. He is also a Housing & Community Services Committee Co-opted Independent Member at Bournville Village Trust, Fellow of the Royal Society of Arts and Fellow of the Lunar Society. Atif has previously served on the Youth Steering Committee at Beatfreeks and is a longstanding volunteer for Abid Welfare.

Ruth Forbes is UK Head of Responsible Business Projects at Japan Tobacco International (JTI). During a decade long career at JTI she has held various positions of increasing levels of responsibility with the Sustainability Team. Prior to joining JTI, Ruth worked for a political consultancy and had clients including McDonalds, the alcohol industry and the Scout Association. She has also worked as a political adviser in the charitable sector and, for three years, worked as an adviser in Parliament for a Shadow Minister. Ruth is a member of the Independent Tobacco Trade Benevolent Fund Welfare Committee and currently volunteers for Contact the Elderly and Recruit for Spouses.

The current Trust Chair Oswald Dodd MBE, will be stepping down in October 2021 after being with the Trust for 16 years and as Chair for over 10 years. Trustees acknowledge his long standing dedication, support and wealth of knowledge that he has brought to the Trust. At the December 2020 Board meeting, Trustees approved the successor Chair, Caroline Schwaller MBE. Caroline was appointed as a Trustee in June 2015 and all Trustees welcomed Caroline’s knowledge of the Trust, the scheme and the continuity that she will bring to the role of Chair.

Impact of COVID-19

The Trust, the sector as a whole and the scheme regulator ENTRUST, have responded swiftly and compassionately to the difficulties that the current pandemic has left us all facing, especially of applicants and beneficiaries. An assessment in February 2021 of the impact of the pandemic on organisations collated by ADEB (Association of Distributive and Environmental Bodies), of which the Trust is a member, highlighted some of those responses by the sector in a letter to HMRC:

• Members swiftly and successfully adapted their organisations to deliver their activities from home offices

• • Members reported being busier than ever, especially during the early months of the pandemic, and no staff have been made redundant or participated in the Government’s furlough scheme

• Significant additional attention was given to ‘live’ projects to reassure organisations that their funding was secure. This close and regular contact has continued

• Deadlines on projects were extended where applications were unable to meet targets due to the lockdowns

• Criteria were relaxed to remove the need for match funding, allowing applicants to apply for 100% of their project costs

• Members reported offering top-up grants to recipients to ensure match funding targets could be met and projects could start

• Additional claims were accepted so that further payments could be released to contractors at a time when they were reporting problems with their cash flow

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VEOLIA ENVIRONMENTAL TRUST (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

In direct response to assist applicants during the pandemic, Trustees extended deadlines to organisations unable to progress their finance agreements and end dates for projects where works had halted as a result of government Covid regulations/guidelines. Trustees agreed to accept documents signed via digital signature in addition to those signed by hand. At the December 2020 Board meeting Trustees also removed the requirement for applicants to have secured 15% of the total projects costs before applying for funding. This will be reviewed again by Trustees after a 12 month period.

In February 2021, the Trust changed its application process from a two stage application to a single stage application. This aims to simplify the process for applicants, capture relevant and appropriate information without duplication, ensures that the application can be assessed to the highest of standards when presented at Board meetings, and also reduces the Trust’s administration of applications received.

b. Achievements and performance

Contributions totalling £4,712,600 were received from Veolia during 2020/21 (2019/20 - £5,697,651) and Veolia has advised the Trust that, during the period, Veolia received £474,664 (2019/20 - £437,728) from third parties.

In 2020/21, the Board made 108 awards in the various permitted categories, with a total value of £4,445,979. Since incorporation, over 2,547 projects with a total value of more than £91,000,000 have been supported. A total of £4,269,360 (2019/20 - £4,872,038) was either paid to projects during the year or is considered to be an obligation at the year end. Further details of current projects are given in the notes to the financial statements and the overall number of projects approved for funding during the year under review and the value of awards made are summarised in the charts below.

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VEOLIA ENVIRONMENTAL TRUST (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Total funds as at 31 March 2021 are £4,326,401 (2019/20 - £3,561,861) of which £2,621,395 are general funds and £1,705,008 are designated funds (2019/20 - £2,781,328 and £1,357,135 respectively).

Based on the ENTRUST 2020/21 annual return the administration costs for the financial accounting period 2020/21 amounted to £215,771, which represented 3.8% (2019/20 £208,612 and 4.28%) of expenditure on LCF projects, against the government target of 7.5%.

During the year under review, quarterly meetings were held via conference calls with Trustees to enable the funding of awards to projects, review the progress of projects and to continue to oversee the running and management of the Trust. Trustees reviewed the organisation's policies during the year, in line with the Trust’s Policies Review Schedule.

c. Factors relevant to achieve objectives

The Trustees consider that the objectives of the Trust have been achieved during the period by making grant payments to 170 applicants. The Trust will continue to work to achieve these objectives in the future.

In October 2020 ENTRUST, conducted a Control Framework Inspection of the Trust to ensure that:

• Project expenditure is compliant with the Regulations;

• Statutory reporting requirements have been met;

• The Trust is appropriately governed and managed;

• Projects are delivered and managed according to regulatory requirements and ENTRUST guidance/good practice; and

• Unspent LCF funds are committed to approved projects within two years of receipt.

Inspectors reviewed and analysed project files and tested the actual activity against the procedures operated by the Trust, our control expectations and best practice. ENTRUST concluded all areas were operating satisfactorily with no findings to report or actions arising, which is a very satisfactory outcome and reflects well on the Trust staff and Trustees.

Page 7

(A Company Limited by Guarantee)

VEOLIA ENVIRONMENTAL TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Financial review

a. Going concern

The Trust has a strong balance sheet and cash reserves, and ability to manage costs to income. After making appropriate enquiries, and despite the effects of the Coronavirus Covid 19 pandemic, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

b. Financial review

The Annual Accounts for the year to 31 March 2021 are set out at pages 18-37. In 2021 the unrestricted operating surplus was £186,940 (2020: £576,602 surplus). The movement in fixed assets is set out in note 13 of the financial statements. The Trust has a strong balance sheet and cash reserves, and ability to manage costs to income. Despite the effects of the Coronavirus Covid 19 pandemic, the Trustees have adequate resources to continue in operational existence for the foreseeable future.

The Veolia Environmental Trust is fortunate to be in a robust financial position and has reserves sufficient to withstand the challenging issues caused by the Covid-19 pandemic.

c. Principal risks and uncertainties

The Trustees have assessed the major risks to which the Trust is exposed. The risks considered include payment of fictitious or otherwise fraudulent claims and the mis-management of the funds available to the Trust.

The Trustees are satisfied that systems are in place to manage these risks.

d. Reserves policy

Reserves are held in the Trust's bank accounts and the current account is balanced on a monthly basis.

It is the policy of the Trust to hold £130,000 to cover costs in the event of the wind up of the Trust.

It is the policy of the Trust to hold a minimum of £500,000 in its current account to meet day-to-day running costs to ensure that the Charity can remain operational.

The Trust’s free reserves, excluding designated funds at the year-end, amounted to a surplus of £2,615,461 (2019/20 - £2,776,495). Included within these reserves is £2,343,493 (2019/20 - £2,578,000) of approved financial support, not yet comprising binding commitments and £129,743 VMTs administration funding set aside for any future costs.

The Trust only places funds on treasury deposit when cash flow allows in order to maximise income.

Page 8

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

a. Structure, governance and management

The Trust is registered as a charitable company limited by guarantee (charity number 1064144) and was set up by a Trust deed on 8 August 1997.

The principal objectives of The Veolia Environmental Trust are to support community and environmental projects, as set out in the Trust's Memorandum of Association. The principal activities continue to relate to the meeting of these objectives.

b. Methods of appointment or election of Trustees

The management of the Trust is the responsibility of the Trustees who are elected or co-opted under the terms of the Trust deed. During the last year, Trustees established a sub group to develop a more structured approach to the recruitment of Trustees which was agreed and followed to recruit 2 new Trustees – see below. A Trustee Skills Audit was also conducted during the year to enhance the recruitment process. Trustees have agreed to use the new approach to fill any future Trustee vacancies.

c. Organisational structure and decision-making policies

The Trust is a company limited by guarantee and a registered charity. Its expenditure is directed in furtherance of its charitable objectives. The Trust has made a number of grants during the period to other charitable organisations; these are detailed in the notes to the financial statements.

The Veolia Environmental Trust's Board currently comprises twelve Trustees. Up to seven plus the Chairman, are independently appointed, and up to four are appointed by Veolia No member of the Board benefits financially for their services.

The Trustees can already nominate new Trustees and this approach will continue in addition to the Trust advertising any vacancies. Trustees are recruited for their specific skills and experience to ensure the Trust has a broad depth of knowledge. Upon appointment, each Trustee receives an induction pack and is offered a visit to the Trust's offices, in order to understand more fully the way in which the organisation operates. Although our new Trustees have yet to make a visit to the Trust’s office, as soon as government guidelines allow they will be given the opportunity to visit. Trustees are regularly kept abreast of changing circumstances relevant to the Trust via email and at Trustee meetings.

The Trustees meet quarterly to consider applications, discuss the business of the Trust and review projects already underway.

The Trustees take reasonable steps to:

1. Ensure that funds from the Landfill Communities Fund are used only for purposes approved by the regulator, ENTRUST;

2. Ensure there are appropriate financial and management controls in place to safeguard public funds and funds from other sources; and

3. Secure the commercial, efficient and effective management of the Trust's resources and expenditure.

Page 9

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

Applicants applying for any of the Trust’s grants are requested to check that their potential project meets the funding criteria on the Trust's website. Applicants are given access to the Trust’s online grant management system, where they are invited to create a Veolia Environmental Trust User Account and submit their application form for review. All applications are assessed by Trust staff ensuring they are compliant with the governing regulations and the Trust's criteria. At this stage, an applicant may be asked for more information as it is assessed for how well they meet the Trust's objectives for funding and before they are reviewed by the Board of Trustees, who decide whether funding should be awarded and if so, the amount to be given.

If a grant is awarded the Trust ensures the project is registered with ENTRUST. Applicants, unless instructed otherwise, are required to secure a third-party contribution of 10% of the award amount, payable to Veolia. Once the Trust is satisfied all the required documentation is complete, a Finance Agreement is issued. The project can start once this is in place, or equivalent consent by the Trust has been granted. The beneficiary of a grant is required to maintain contact with the Trust throughout the duration of the project. This includes reporting progress and expenditure via their Veolia Environmental Trust User Account as well as a final report on completion of the project. Some grant recipients hold events to celebrate and raise awareness of the supported project within their community, although during this year events have often been placed on hold or been virtual due to the current restrictions.

d. Policies adopted for the induction and training of Trustees

As two independent Trustee vacancies opened up this year, a Trustee Skills Audit was completed prior to the posts being advertised.

Following the interviews two candidates were successful and were asked to observe at the September 2020 Board meeting. Following the meeting a session of questions, answers and feedback for both the candidates, Atif and Ruth and for Trustees took place before they were both formally appointed.

Following from this an induction pack was provided to each new Trustee along with a video conference with the Chair to discuss the role and responsibilities and answer any questions. This was in place of the usual visit to the Trust’s office due to the Covid restriction in place.

The process of recruitment was successful and will be used again next year when further independent Trustee positions become available.

e. Pay policy for key management personnel

Although technically, all employees working on behalf of the Trust are Veolia employees, the terms and conditions of employment of all such personnel are determined by Trustees. This includes hours of work, salaries, any increases, for example because of cost of living increases, etc. The practice is to create appropriate job descriptions/ person specifications and to have them evaluated (Veolia use the term benchmarked) through the Veolia HR function. This ensures a consistent and recognised approach but in every case, final approval is given by Trustees, usually by the Trust’s Staffing Committee which has delegated powers (within its Terms of Reference) for all staffing matters.

Page 10

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

f. Related party relationships

There are a number of related party relationships that the Trust is involved in, these have been summarised in note 23 of these financial statements. It should be noted that up to four Trustees can be appointed by Veolia and the names of those so appointed are listed on page 1 of this report. No Trustee receives any remuneration for their services except for the reimbursement of any travel and related expenses where these are claimed. None of the Veolia appointed Trustees made any expenses claims during the year. All expense claims are made in accordance with the Trustee Expense Guidance, Appendix C of the Finance Policy and receipts must be attached to all claims where appropriate.

g. Financial risk management

The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

h. Trustees' indemnities

Veolia has agreed to indemnify one or more Trustees of the charitable company against liability in respect of proceedings brought by third parties subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the report of the Trustees.

Plans for future periods

The future of the Trust is dependent upon the government continuing to offer, and its landfill operator continuing to participate in, the LCF. In the 2021 Budget, the Government confirmed the continuation of the scheme and maintained the LCF diversion rate at 5.3% from April 2021.

In February 2021 ADEB also reported to HMRC on the impact of Covid-19 on income, demand, and distribution of funding and whether the LCF was now providing a greater percentage of total projects costs due to local and national funding sources being diverted for Covid-19 emergency support. In summary the findings were:

• The number of projects completing reduced during the last 9 months and a clear indication on the impact of lockdown on construction and delivery

• The number of payments to projects was not significantly different, demonstrating that members were able to continue to provide vital funds and cashflows to organisations

• Application numbers and the total value requested was slightly down compared to the previous year but not significantly, demonstrating the continued demand for LCF funding throughout the pandemic

• The value awarded and number of projects supported has slightly reduced from last year but expected considering the economic slowdown and reduction of landfill tax generally

• The value of LCF funding in proportion to the total project cost increased from 34% to 48% during this period, suggesting the greater importance of the LCF as other funds were diverted to Covid-19 emergency funds.

The LCF has proven, during this year, to be in greater demand than before and is seen as ever more essential to the provision of amenities to the community and to improvements to local wildlife and habitats, as funding elsewhere becomes more scarce.

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VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Plans for future periods (continued)

The Trust therefore anticipates another year of the effective and efficient distribution of whatever LCF monies are available to worthwhile community projects.

Members' liability

The Members of the Trust guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

Engagement with employees and employment of the disabled

Employees have been consulted on issues of concern to them by means of regular staff meetings and have been kept informed on specific matters directly by management and by the Chairman of the Trustees. The Trust carries out exit interviews for all staff leaving the organisation and has adopted a procedure of upward feedback for senior management and the Trustees.

The Trust has implemented a number of detailed policies in relation to all aspects of personnel matters including:

• Equal opportunities policy

• Volunteers' policy

• Health & safety policy

In accordance with the Trust's Equal Opportunities Policy, the Trust has long established fair employment practices in the recruitment, selection, retention and training of staff with disabilities.

As part of its commitment to ensuring that the Trust’s activities are fair and open to all potential applicants, Trustees have agreed to review its activities and policies against the recommendations made by a 2027 Programme secondee employed during 2018/19. It will also use the opportunity to re-examine its procedures to ensure that it takes the issues of diversity, equity and inclusion into account during a forthcoming review of its strategy, mission and vision due to begin during the autumn of 2021. The outcomes from these will be reported in the next Trustee Report.

Finally, in order to maximise public benefit, the Trust has long supported projects that improve access for people with disabilities, and those from disadvantaged sectors of society.

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VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Trust for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. 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 Trust and of its incoming resources and application of resources, including its income and expenditure, 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 of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust's transactions and 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 Companies Act 2006. 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.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

• so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

Auditors

The auditors, WR Partners, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Joanne Demetrius (Jun 9, 2021 15:34 GMT+1)

................................................ Ms J Demetrius Company Secretary and Trustee Date: 9 June 2021

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VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VEOLIA ENVIRONMENTAL TRUST

Opinion

We have audited the financial statements of Veolia Environmental Trust (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of 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 charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Page 14

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VEOLIA ENVIRONMENTAL TRUST (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; 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.

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Page 15

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VEOLIA ENVIRONMENTAL TRUST (CONTINUED)

Auditors' 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 there under.

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 Auditors' 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.

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 reviewed the susceptibility of the Charity’s financial statements to material misstatement and identified the principal risks, implementing a series of testing procedures to provide us with sufficient comfort to issue our opinion.

• We reviewed the Charity’s regulatory environment to ensure we could conclude that it had acted in accordance with the framework relevant to the Charity and its environment and identify any instances of non-compliance.

• We also assessed the Charity’s internal control procedures to ensure we could appropriately scrutinise these controls and establish whether our understanding of the control environment was sufficient to supplement our additional testing procedures.

• The engagement team consisted of a team that the engagement partner believes is equipped with the relevant level of technical and Charity awareness to carry out our work to the required standard.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 16

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VEOLIA ENVIRONMENTAL TRUST (CONTINUED)

Use of our report

This report is made solely to the charitable company'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 charitable company's Trustees those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

W R Partners

W R Partners (Jun 10, 2021 18:40 GMT+1)

WR Partners

Chartered Accountants Statutory Auditors Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG 9 June 2021

WR Partners are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 17

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note Income from: Donations and legacies 4 Charitable activities 5 Investments 6 Total income Expenditure on: Charitable activities 9 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward 16 Net movement in funds Total funds carried forward	Unrestricted funds 2021 £000 4,725 50 1 4,776 4,589 4,589 187 4,139 187 4,326	Total funds 2021 £000 4,725 50 1 4,776 4,589 4,589 187 4,139 187 4,326	Total funds 2020 £000 5,706 108 6
			5,820
			5,243
			5,243
			577
			3,562 577
			4,139

The notes on pages 21 to 36 form part of these financial statements.

Page 18

VEOLIA ENVIRONMENTAL TRUST (A Company Limited by Guarantee) REGISTERED NUMBER: 03419138

BALANCE SHEET AS AT 31 MARCH 2021

Note Fixed assets Tangible assets 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total net assets Charity funds Unrestricted funds 16 Total funds	7 5,117 5,124 (804)	2021 £000 6 6 4,320 4,326 4,326 4,326	9 5,641 5,650 (1,516)	2020 £000 5
				5 4,134
				4,139
				4,139
				4,139

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 144 of the Charities Act 2011. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Date: 9 June 2021

The notes on pages 21 to 36 form part of these financial statements.

Joanne Demetrius (Jun 9, 2021 15:34 GMT+1)
Joanne Demetrius	Oswald A Dodds
Jun 9, 2021	Jun 9, 2021

Page 19

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Note Cash flows from operating activities Net cash used in operating activities 18 Cash flows from investing activities Purchase of tangible fixed assets Interest receivable and similar income Net cash (used in)/provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 19 The notes on pages 21 to 36 form part of these financial statements	2021 £000 (522) (3) 1 (2) (524) 5,641 5,117	2020 £000 2,007
		- 6
		6
		2,013 3,628
		5,641

Page 20

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The Trust is a company limited by guarantee, incorporated in England. The registered office is disclosed on the Trust information page. The members of the Trust are the Trustees named on page 1. In the event of the Trust being wound up, the liability in respect of the guarantee is limited to £1 per member of the Trust.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the second edition Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Veolia Environmental Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The financial statements have been prepared on the going concern basis.

After making enquires, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. The Trust has a strong balance sheet and cash reserves, and ability to manage costs to income. After making appropriate enquiries, and despite the effects of the Coronavirus Covid 19 pandemic, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

2.3 Income

All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations and legacies

Income under the Landfill Communities Fund is recognised on the basis of amounts received.

Investment Income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank.

Page 21

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.4 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 allocated on the portion of the asset’s use.

Support costs are those costs incurred directly in support of expenditure on the objects of the Trust and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the Trust and compliance wuth constitutional and statutory requirements.

Charitable activities and Governance costs are costs incurred on the Trust's educational operations, including support costs and costs relating to the governanace of the Trust apportioned to charitable activities.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Trust; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

• Fixtures and fittings 3 - 10 years straight line basis

Page 22

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.7 Debtors

Prepayments are valued at the amount prepaid net of any discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.10 Financial instruments

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.12 Pensions

The Trust operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Trust to the fund in respect of the year.

Page 23

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust and which have not been designated for other purposes.

The Trust may, at its discretion, designate funds for specific purposes that would otherwise form part of general reserves. The designated funds comprise of amounts due under special project awards where the financial agreements have been signed but certain conditions are yet to be satisfied and hence the awards are conditional. Until the conditions are met to the satisfaction of the Trust, no obligation exists and no liability is recognised. As such, the amounts within the designated fund are not available for other purposes. Project payments are included in the Statement of Financial Activities and Grants payable in the furtherance of the Charity's objects where they are paid in the year, or valid requests for payment are received and approved by the Trust by the end of the accounting period.

3. Critical accounting estimates and areas of judgment

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The Trustees do not consider that there are any significant areas of estimation or uncertainty in preparing the financial statements for the current or the prior period.

Page 24

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from donations and legacies

Unrestricted funds 2021 £000 Donations Landfill Tax Credits 4,713 Project Refunds 12 4,725 Total 2020 5,706	Total funds 2021 £000 4,713 12 4,725 5,706	Total funds 2020 £000 5,697 9
		5,706

Donations were received from Veolia ES Landfill during the current and prior year.

5. Income from charitable activities

Unrestricted funds 2021 £000 Agent Income 50 Total 2020 108 Investment income Unrestricted funds 2021 £000 Interest receivable on bank deposits 1 Total 2020 6	Total funds 2021 £000 50 108 Total funds 2021 £000 1 6	Total funds 2020 £000 108
		Total funds 2020 £000 6

6. Investment income

Page 25

(A Company Limited by Guarantee)

VEOLIA ENVIRONMENTAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Grant making

Analysis of Grants Category A - remediation of land Category B - reduction of pollution Category D - public amenities Category DA - conservation of bio-diversity Category E - restoration of religious buildings or places of historical interest Total	2021 £000 - - 4,114 155 - 4,269	2020 £000 - - 4,527 345 -
		4,872

Page 26

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Grant making (continued)

The support costs associated with grant-making are £Nil (2020: £Nil)

The principal objectives of the Veolia Environmental Trust are to support community and environmental projects, as set out in the Trust's Memorandum and Articles of Association. Grants recognised in the year relate to projects approved by the Trustees after the consideration of their compliance with the governing regulations and the Trust's criteria.

The Trust does not offer grants to individuals. The material grants to institutions are set out below:

	2021	2020
	£000	£000
Grant Recipient:
Barrow Hill Community Trust	63	75
Basildon Borough Council	59	71
Birmingham City Council	60	162
Blidworth Parish Council	71	59
Community Forest Trust, trading as City of Trees	57	171
Friends of Stretford Public Hall	69	71
Henbury Village Hall	67	75
Hillsborough Arena Sports Association	57	69
Linacre Bridge Community Hub	67	71
Mersey Rivers Trust	60	79
Mind in Tower Hamlets and Newham	55	65
St George the Martyr Church Brentwood	75	56
St Germains Church PCC	75	74
St Richard's Parochial Church Council	71	52
The Barlow Institute	71	114
The Conservation Volunteers	75	238
The Lancashire Wildlife Trust	80	100
The Pakistan Muslim Centre (Sheffield) Limited	57	75
The Parochial Church Council Of The Ecclesiastical Parish Of Binley
Coventry	71	71
The Parochial Church Council of the Ecclesiastical Parish of St Peter & St
Paul, Mansfield	60	75
The Royal Liverpool & Broadgreen University Hospitals NHS Trust
Charitable Funds	-	75
The Royal Society for the Protection of Birds (RSPB)	-	60
The Wildlife Trust for Birmingham and the Black Country	-	60
Walsall Metropolitan Borough Council	-	60
Watford Borough Council	-	64
Wellbeing At Garon Park	-	60

Page 27

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Woodland Trust Total grants < £50,000 (147 grants)	300 2,649 4,269	157 2,513
		4,872

9. Analysis of expenditure by activities

Grant-making Total 2020	Grant funding of activities 2021 £000 4,269 4,872	Support costs 2021 £000 320 371	Total funds 2021 £000 4,589 5,243	Total funds 2020 £000 5,243

Analysis of support costs

Staff costs Depreciation Other staff costs Marketing and publicity Other resources expended Meeting Expenses ENTRUST Fees Audit of the financial statements Total 2020	General funds 2021 £000 165 2 2 4 29 1 107 10 320 371	Total funds 2021 £000 165 2 2 4 29 1 107 10 320 371	Total funds 2020 £000 155 2 2 4 32 5 161 10
			371

Page 28

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Net Income/(Expenditure)

Net Income/(Expenditure) is stated after charging:

Audit fee Accountancy fee Depreciation	2021 £000 8 2 2 12	2020 £000 8 2 2
		12

11. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	2021 £000 135 14 17 166	2020 £000 128 13 14
		155

The Trust has no employees. Staff who work full time for the Trust are employed by Veolia and the costs of employment are re-charged to the Trust. Above show the aggregate payroll costs of these staff.

The average number of persons employed by the Trust during the year was as follows:

	2021	2020
	No.	No.
Management and Administration	4	4

No employee received remuneration amounting to more than £60,000 in either year.

The total employee benefits, including employer pension contributions and national insurance, of the key management personnel of the charity were £93k (2020: £90K).

Page 29

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, expenses totalling £ 231 were reimbursed or paid directly to 3 Trustees (2020 - £2,634 to 6 Trustees) . The expenses were paid to Trustees in relation to travel, subsistence and out of pocket expenses.

13. Tangible fixed assets

Cost or valuation At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Fixtures and fittings £000 12 3
	15
	7 2
	9
	6
	5

14. Debtors

Due within one year Prepayments and accrued income	2021 £000 7 7	2020 £000 9 9

Page 30

(A Company Limited by Guarantee)

VEOLIA ENVIRONMENTAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Creditors: Amounts falling due within one year

Amounts held as Agent Other creditors Accruals and deferred income	2021 £000 699 80 25 804	2020 £000 1,438 50 28
		1,516

Included within the creditors above are monies received from the Landfill Communities Fund (LCF) to which the Trust are acting as agents in administrating these funds to 8 pre-existing agreed projects alongside ENTRUST. Of the monies received, £1,104,706 has been paid out as at 31 March 2021.

Page 31

(A Company Limited by Guarantee)

VEOLIA ENVIRONMENTAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds

Statement of funds - current year

					Balance at
	Balance at 1			Transfers	31 March
	April 2020	Income	Expenditure	in/out	2021
	£000	£000	£000	£000	£000
Unrestricted funds
Designated funds
Designated Funds - all funds	1,357	-	(4,269)	4,617	1,705
General funds
General Funds - all funds	2,782	4,776	(320)	(4,617)	2,621
Total Unrestricted funds	4,139	4,776	(4,589)	-	4,326
Statement of funds - prior year
					Balance at
	Balance at			Transfers	31 March
	1 April 2019	Income	Expenditure	in/out	2020
	£000	£000	£000	£000	£000
Unrestricted funds
Designated funds
Designated Funds - all funds	991	-	(4,872)	5,238	1,357
General funds
General Funds - all funds	2,571	5,820	(371)	(5,238)	2,782
Total Unrestricted funds	3,562	5,820	(5,243)	-	4,139

Page 32

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2021 £000 Tangible fixed assets 6 Current assets 5,123 Creditors due within one year (803) Total 4,326	Total funds 2021 £000 6 5,123 (803) 4,326

Analysis of net assets between funds - prior year

Tangible fixed assets Current assets Creditors due within one year Total	Unrestricted funds 2020 £000 5 5,650 (1,516) 4,139	Total funds 2020 £000 5 5,650 (1,516) 4,139

Page 33

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Analysis of net assets between funds (continued)

General Fund

As of 31st March 2021, the Trustees have approved the financial support for a number of projects. These projects which are expected to lead to awards of approximately £2,343,000 (2020: £2,578,000) do not comprise binding commitments because financial agreements had not been signed as at 31 March 2021.

Taking these projects into account, the total fund surplus at 31 March 2021 is £143,323 (2020: £199,000) The transfer of £4,668,205 (2020: £5,238,000) made from the general fund to the designated fund is in respect of the value of approved awards which have had a finance agreement signed during 2020/2021 and so are considered an obligation at the period end.

Designated Fund

The designated fund amounting to £1,705,000 (2020: £1,357,000) has been allocated to projects permitted under the Landfill Tax regulations where financial agreements have been signed and upfront payments made, leaving the balance of the award to be claimed once evidence of expenditure relating to the payment is received. The balance on the designated fund is therefore considered to represent a contingent liability for which no amounts have been accrued. Designated funds are not disclosed by the due dates as the Trustees are not able to determine with certainty the timing of projects.

A contingent liability is considered due in respect of the total balance of £1,705,000 of grants permitted but projects not completed at 31 March 2021 (2020: £2,036,000).

During the course of the period, there has been £12,000 (2020: £12,000) released due to under spending projects and £Nil (2020: £261,000) released due to withdrawn projects. These monies have been reallocated into the general fund.

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Investment income Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash provided by/(used in) operating activities	2021 £000 187 2 (1) 2 (712) (522)	2020 £000 577 2 (6) (1) 1,435 2,007

Page 34

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Analysis of cash and cash equivalents

Cash in hand Cash held on deposit Total cash and cash equivalents	2021 £000 5,117 - 5,117	2020 £000 5,041 600
		5,641

20. Analysis of changes in net debt

Cash at bank and in hand	At 1 April 2020 £000 5,641 5,641	Cash flows £000 (524) (524)	At 31 March 2021 £000 5,117
			5,117

21. Contingent liabilities

Grants offered subject to conditions which have not been met at the year end are included below as a contingent liability, but not accrued as expenditure in the year.

Grants Grants approved - no binding agreement at 31/03/2020 Grants permitted - projects not completed at 31/03/2020	2021 £000 2,343 1,705 4,048	2020 £000 2,578 2,036
		4,614

22. Operating lease commitments

The Trust had no commitments under non-cancellable operating leases at 31 March 2021.

Page 35

VEOLIA ENVIRONMENTAL TRUST

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

23. Related party transactions

The table below shows the income received from related parties into the Trust during the year to 31 March 2021:

Veolia ES Landfill Limited Veolia Pitsea Maintenance Trust Funds transfer Veolia Havering Maintenance Trust Funds transfer	2021 4,712,000 538,608 178,396 5,429,004	2020 5,697,651 32,155 1,513,486
		7,243,292

Certain expenses of the Trust amounting to £169,000. (2020: £177,000) have been paid by subsidiaries of Veolia, and then recharged at cost to the Trust. This principally relates to recharging of employee costs. At the year end, balances with related parties were accruals £14,000 (2020: £15,000).

Page 36