Registered number: 0341938 Charity number: 1064144
VEOLIA ENVIRONMENTAL TRUST
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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 - 15 |
| Independent Auditors' Report on the Financial Statements | 16 - 19 |
| Statement of Financial Activities | 20 |
| Balance Sheet | 21 - 22 |
| Statement of Cash Flows | 23 |
| Notes to the Financial Statements | 24 - 39 |
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 2022
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, Chair (resigned 31 October 2021) |
| Mr A Ali (resigned 8 October 2021) | |
| Mr L Bailey (appointed 9 June 2021) | |
| Mr J Bowden-Williams (resigned 2 January 2022) | |
| Mr J F Brown | |
| Ms J Demetrius | |
| Mr J Dennison (appointed 9 June 2021) | |
| Mrs R Forbes | |
| Mr D J Goodenough (resigned 31 October 2021) | |
| Mr R P Hulland (appointed 31 January 2022) | |
| Mr K A Hurst (resigned 31 December 2021) | |
| Mr D J F Macphail | |
| Mr M Marshall (resigned 31 October 2021) | |
| Mr D Moore (appointed 1 March 2022) | |
| Ms M Price (appointed 9 June 2021) | |
| Mrs C M S Schwaller MBE, Chair | |
| Mr M D Smith (resigned 31 October 2021) |
Company registered number 03419138 Charity registered number 1064144 Registered office 210 Pentonville Road London N1 9JY
The Charity is incorporated in England and Wales
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 2022
| Secretary | Ms J Demetrius |
|---|---|
| Senior Management | Andrew Brown - Executive Director |
| Team | Elizabeth Cooke - Head of Grants |
| Lorraine Womack - Head of Finance and Operations | |
| Independent auditors | WR Partners |
| Chartered Accountants | |
| Belmont House | |
| Shrewsbury Business Park | |
| Shrewsbury | |
| Shropshire | |
| SY2 6LG | |
| 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 2022
The Trustees present their annual report together with the audited financial statements for the year 1 April 2021 to 31 March 2022. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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 2015) as amended by SORP Update Bulletin 2 (effective 5 October 2018).
Since the Trust qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required, however the Trust feels that it is important to produce a strategic report and ensures transparency and clarity to the vital funding that the Trust distributes and is set out below.
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 2022. 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:
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Category D - public amenities.
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Category DA - conservation of biodiversity.
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VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Objectives and activities (continued)
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 wellbeing and quality of life in communities.
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 practical resource, and expertise that will benefit the wider community, volunteers can also develop new skills and make personal connections 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 engagement and influence. Without this consultation, a project's public benefit may be limited. The Trust has ensured that such community engagement has taken place and the need for the project has been identified. However, Trustees appreciate and take into consideration the fact that the restrictions brought about by the Covid-19 pandemic have affected applicants’ ability to effectively engage with their communities.
Community “Ownership” is also important to the Trust, which considers the public benefit is maximised by supporting projects where the community has been genuinely involved in the project design and will continue to play a meaningful role in its delivery.
The sustainability and environmental impact 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. Trustees place additional value on projects that can demonstrate a reduction in CO2 emissions and a net gain in biodiversity.
Page 4
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance
a. Review of activities
The Trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 March 2022.
The government’s March 2021 Landfill Tax Briefing set the potential value for the LCF for 2021/22 at £34.4 million and the percentage credit that Veolia, as the landfill site operator could claim against its Landfill Tax liability for LCF contributions made to the Trust was maintained at 5.3% from 1 April 2021.
Early contribution estimates for the year indicated a slightly reduced level of funding to the previous year, with contributions expected to be around £4,450,000 (2020/21 - £4,647,200). However after a re-forecast by the landfill operator in October 2021, contributions were re-estimated to be approximately £4,772,000. By the end of the year, a significant upturn in landfill volumes resulted in the Trust receiving contributions totalling £5,414,000. 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.
Although the Trust itself has successfully adapted its working practices to cope with the Covid-19 pandemic, applicants and funded projects continued to experience significant difficulties with applying, starting and completing projects. Rising prices of building materials coupled with shortages of labour and transportation have affected funded projects’ ability to obtain quotes for work (necessary as part of the Finance Agreement process), engage contractors and establish with certainty estimated start and completion dates for works. These project delays have resulted in a subsequent increase in the age of contribution due to a significant slow down in grant claims and payments.
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 no transfer of funding or projects from either trust, and it is anticipated that the final transfer will take place in the 2022/23 financial year.
The Trust gave its best wishes and thanks to three long-serving Trustees who had reached the end of their terms of office this year. Derek Goodenough, Malcolm Marshall and Mike Smith had provided steadfast service to the Trust for many years, and their expertise and dedication will be missed.
The Trust also said goodbye to our Chair, Oswald Dodds MBE, who stepped down in October 2021 after being with the Trust for 16 years and as Chair for over 10 years. Trustees acknowledged his long standing dedication, support and wealth of knowledge that he brought to the Trust. At the December 2021 Board meeting, Caroline Schwaller MBE was elected as the new Chair. Caroline was appointed as a Trustee in June 2015 and all Trustees welcomed Caroline’s knowledge of the Trust, the LCF and the continuity that she will bring to the role of Chair.
The Trust received the resignations of two Veolia appointed Trustees during the year. Kevin Hurst who has now retired from Veolia was an active and committed Trustee bringing much knowledge of the waste industry, Veolia and a vital support mechanism to the Trust since December 2018. Julian Bowden-Williams joined the Trust in September 2019 and brought invaluable knowledge of the landfill tax scheme and accounting support to the Trust.
Atif Ali also stepped down as Trustee in October 2021 after joining the Trust in September 2020. During his time with the Trust Atif Ali was awarded BEM at the Queen’s Birthday Honours listing June 2021 for services to the community in Birmingham during the Covid-19 pandemic.
Page 5
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance (continued)
The Trust would like to thank all those mentioned above for their support, dedication and commitment to the Trust and wish them all well on their new endeavours.
The Trust welcomed three new Trustees; Luke Bailey, James Dennison and Melanie Price, in June 2021. Luke is a civil servant working in energy policy development and delivery. He has experience of low carbon heat policy, renewable electricity policy and energy efficiency auditing. Currently he is working on developing the UK’s carbon capture, use and storage strategy. In the civil service he has held a range of policy delivery, policy development, operational and compliance roles all focussed on decarbonising energy use in the UK.
James currently works as an Enterprise Manager with Canal and River Trust covering the Black Country and Staffordshire. This role involves working with a wide range of local authorities, statutory bodies and local communities to develop projects to improve the canal network for benefit of local people and the environment. Projects range from complex multi-million capital infrastructure schemes through to small scale community led initiatives and everything in between. Prior to joining the Trust’s Board in 2021 James was a member of the former Midlands Regional Panel of the Trust which used to act in an advisory capacity to assess and prioritise applications prior to consideration by the main board. These panels ceased a number of years ago, but have provided James with a useful insight into the range of project applications that come forward in each funding round.
Melanie brings over 20 years of local government experience in waste management, strategic partnerships, behaviour change, and digital transformation of customer services. Currently she is Head of Volunteer Innovation and Transformation at the British Red Cross, redesigning the volunteer experience. Melanie approaches her work from a human-centre perspective, coupled with strong personal values of fairness, transparency and kindness. With a first degree in biology with environmental studies, and a masters in plant biotechnology, these personal interests have grown to include landscape design and the power of healing plants. As a qualified performance coach, Melanie also draws on the benefits of the local environment by practising outdoor coaching.
Two Veolia Trustees have been appointed during the year Richard Hulland in January 2022 and Dean Moore in March 2022. Richard is the Chief Risk & Assurance Officer and a member of Veolia UK & Ireland Executive Committee (ExCo). Richard is responsible for the Risk & Assurance support team who set the vision and strategy for Risk, Health & Safety, Insurance, Environmental, Quality, Estates and Operational Training & Development. This also means developing a positive safety and risk culture, as well as providing assurance through internal and external audits and performance reporting, such as leading and lagging KPIs.
Dean Moore is the General Manager for Veolia’s Commercial activities across the Midlands, Dean’s remit includes responsibilities for 12 sites which include Depots, Transfer Stations and Treatment facilities. Dean’s previous role included the responsibility for the Midlands Landfill operations at Ling Hall and the closed landfill at Moira in Derbyshire.
It is with deep sadness and sorrow that the Trust’s Honorary President, Lady Baroness Howe passed away in March 2022. Lady Howe was appointed a Board member 09th July 2003, and after many years of dedication, enthusiasm and devotion to the Trust, she announced her resignation in June 2015.
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VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance (continued)
The Trust also welcomed two new members of staff, Andrew Brown and Martin Brown. Andrew joined the Trust in April 2021 as Executive Director with a specific brief to rejuvenate the Trust’s strategic direction and bring a sense of renewed purpose and coherence to the staff team. Prior to joining the Trust Andrew gained ten years of grant-making experience at the National Lottery Community Fund, overseeing the strategic delivery of environmental and economic regeneration funding programmes. Before entering the grant-making sector, Andrew held a number of charity management roles with a focus on disability and mental health. Martin joined the team in January 2022 as a Grants and Administration Officer, replacing Alison Sutton who left the Trust to pursue a change of career in July 2021. Prior to joining the Trust Martin spent 16 years at Lloyds Banking Group across a number of customer facing functions, dealing with lending proposals and account management, as well as working within an IT project delivery function, managing stakeholders and project deadline management. He then moved to a small construction firm assisting the directors, by managing the day to day operations within the office, lead generation along with developing and managing their online presence.
Impact of COVID-19
The Trust continued to adapt to the ongoing impacts of the Covid-19 pandemic, providing additional support and flexibility to applicants and funded projects. The staff team maintained a hybrid working approach, allowing them to attend the office in-person when government restrictions allowed, and working from home at other times. The Trust continued to develop its processes and systems to support this virtual approach.
Applicants and funded projects continued to experience significant issues and delays with obtaining quotes for works, commencing and completing projects caused by labour, transportation and materials shortages. 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 restrictions or difficulties with contractor availability. At the March 2022 Board meeting Trustees agreed to indefinitely extend the removal of the requirement for applicants to have secured 15% of the total projects costs before applying for funding.
Page 7
(A Company Limited by Guarantee)
VEOLIA ENVIRONMENTAL TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance (continued)
b. Achievements and performance
Contributions totalling £5,414,000 were received from Veolia during 2021/22 (2020/21 - £4,712,600) and it has advised the Trust that, during the period, it received £526,838 (2020/21 - £474,664) from third parties.
In 2021/22, the Board made 98 awards in the various permitted categories, with a total value of £5,107,217. Since incorporation, over 2,645 projects with a total value of more than £97,000,000 have been supported. A total of £5,306,655 (2020/21 - £4,269,360) 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 chart below.
Total funds as at 31 March 2022 are £4,005,761 (2020/21 - £4,326,401) of which £2,248,165 are general funds and £1,757,596 are designated funds (2020/21 - £2,621,393 and £1,705,008 respectively).
Based on the ENTRUST 2021/22 annual return the administration costs for the financial accounting period 2021/22 amounted to £254,133, which represented 4% (2020/21 £215,771 and 3.8%) of expenditure on LCF projects, against the government target of 7.5%.
During the year under review, quarterly meetings were held via a mixture of in-person meetings and virtual meetings 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 Trust's policies during the year, in line with the Trust’s Policies Review Schedule.
Page 8
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance (continued)
c. Factors relevant to achieve objectives
The Trustees consider that the objectives of the Trust have been achieved during the period by making 170 grant beneficiary payments. The Trust will continue to work to achieve these objectives in the future.
In October 2021 ENTRUST, conducted a Control Framework Inspection of the Trust to ensure that:
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Project expenditure is compliant with the Regulations;
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Statutory reporting requirements have been met;
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The Trust is appropriately governed and managed;
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Projects are delivered and managed according to regulatory requirements and ENTRUST guidance/good practice; and
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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.
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 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 2022 are set out at pages 20-39. In 2022 the unrestricted operating deficit was (£320,000) (2021: £187,000 surplus). The movement in fixed assets is set out in note 12 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 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.
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VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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 it can remain operational.
The Trust’s free reserves, excluding designated funds at the year-end, amounted to a surplus of £2,242,429 (2020/21 - £2,616,559). Included within these reserves is £1,974,972 (2020/21 - £2,343,493) of approved financial support, not yet comprising binding commitments and £100,221 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.
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 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 maintained a sub group to deliver a more structured approach to the recruitment of Trustees which was agreed and followed to recruit three new Trustees.
Page 10
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management (continued)
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 Trust's Board currently comprises ten Trustees. Up to seven, plus the Chair, 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. 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:
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Ensure that funds from the Landfill Communities Fund are used only for purposes approved by the regulator, ENTRUST;
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Ensure there are appropriate financial and management controls in place to safeguard public funds and funds from other sources; and
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Secure the commercial, efficient and effective management of the Trust's resources and expenditure.
Applicants applying for any of the Trust’s grants are requested to check if their proposed 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, the 10% is then paid directly by the contributing third party to the landfill operator, 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. Projects and associated assets are monitored for a minimum period of three years following completion.
Page 11
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management (continued)
d. Policies adopted for the induction and training of Trustees
As three independent Trustee vacancies opened up this year, the Trustee Skills Audit was reviewed prior to the posts being advertised.
Following the interviews three candidates were successful and were asked to observe at the June 2021 Board meeting and AGM.
Following on 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 restrictions 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 and 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 uses 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 and Remuneration Committee which has delegated powers (within its Terms of Reference) for all staffing matters.
f. Related party relationships
There are a number of related party relationships that the Trust is involved in, these have been summarised in note 22 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.
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VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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 2022 Budget, the government confirmed the continuation of the LCF scheme and maintained the LCF diversion rate at 5.3% from April 2022.
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.
The Trust therefore anticipates another year of the effective and efficient distribution of whatever LCF monies are available, to worthwhile community projects.
During 2021, the Trust conducted a period of extensive consultation and research in order to inform the future strategic direction of the charity. In January 2022, Trustees formulated a new vision, mission, values and strategic goals for the Trust, placing increased emphasis on supporting communities to reduce their carbon footprint and enhance local biodiversity. A new three-year business plan is under development to support the delivery of the Trust’s new strategic goals. It is expected that the Trust will conduct a ‘soft relaunch’ in 2022/23, communicating its new vision to the public and adapting its funding criteria to support the implementation of its key strategic goals.
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.
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VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Employee engagement and Equity, Diversity and Inclusion
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:
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Equal opportunities policy
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Volunteers' policy
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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.
As part of its commitment to diversity, equity and inclusion (DEI), Trustees have agreed that a key strategic goal for 2022/23 will be to ensure its funding is fair, accessible and available to all. Current DEI performance will be benchmarked and a new diversity and inclusion strategy implemented. The Trust management will report its DEI performance on an annual basis to trustees.
In 2021/22 staff undertook Unconscious Bias training in order to identify and mitigate any bias or unfairness in the application and decision making process. Similar training will be undertaken by Trustees in 2022/23.
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 2022
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
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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
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of WR Partners as auditors of the Charity is to be proposed at the forthcoming Annual General Meeting.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................ Ms J Demetrius Company Secretary and Trustee Date: 7 June 2022
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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 2022 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 2022 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
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 charitable company'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.
Page 16
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VEOLIA ENVIRONMENTAL TRUST (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 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 17
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 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 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 finanical 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 envirnment 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 partners believes is equipped with the relevant level of technical and Charity awareness to carry out our work to the required standard.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 18
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.
WR Partners
Chartered Accountants Statutory Auditors Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG
8 June 2022
WR Partners are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 19
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022
| Note Income from: Donations and legacies 3 Charitable activities 4 Investments 5 Total income Expenditure on: Charitable activities 8 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £000 5,429 - - 5,429 5,749 5,749 (320) 4,326 (320) 4,006 |
Total funds 2022 £000 5,429 - - 5,429 5,749 5,749 (320) 4,326 (320) 4,006 |
Total funds 2021 £000 4,725 50 1 |
|---|---|---|---|
| 4,776 | |||
| 4,589 | |||
| 4,589 | |||
| 187 | |||
| 4,139 187 |
|||
| 4,326 |
The notes on pages 24 to 39 form part of these financial statements.
Page 20
VEOLIA ENVIRONMENTAL TRUST (A Company Limited by Guarantee) REGISTERED NUMBER: 03419138
BALANCE SHEET AS AT 31 MARCH 2022
| Note Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand 18 Creditors: amounts falling due within one year 14 Net current assets Total net assets Charity funds Unrestricted funds 15 Total funds |
6 4,302 4,308 (308) |
2022 £000 6 6 4,000 4,006 4,006 4,006 |
7 5,117 5,124 (804) |
2021 £000 6 |
|---|---|---|---|---|
| 6 4,320 |
||||
| 4,326 | ||||
| 4,326 | ||||
| 4,326 |
Page 21
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022
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:
................................................ Mrs C M S Schwaller MBE (Chair) Date: 7 June 2022
................................................ Ms J Demetrius Trustee
The notes on pages 24 to 39 form part of these financial statements.
Page 22
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022
| Note Cash flows from operating activities Net cash used in operating activities 17 Cash flows from investing activities Purchase of tangible fixed assets 12 Interest receivable 5 Net cash used in 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 18 The notes on pages 24 to 39 form part of these financial statements |
2022 £000 (813) (2) - (2) (815) 5,117 4,302 |
2021 £000 (522) (3) 1 (2) (524) 5,641 5,117 |
|---|---|---|
Page 23
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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, 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 24
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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.
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 25
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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.
Page 26
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
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.
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.
Page 27
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
3. Income from donations and legacies
| Unrestricted funds 2022 £000 Donations Landfill Tax Credits 5,414 Project Refunds 15 5,429 Total 2021 4,725 |
Total funds 2022 £000 5,414 15 5,429 4,725 |
Total funds 2021 £000 4,713 12 |
|---|---|---|
| 4,725 | ||
Donations were received from Veolia ES Landfill during the current and prior year.
4. Income from charitable activities
| Unrestricted funds 2022 £000 Agent Income - Total 2021 50 |
Total funds 2022 £000 - 50 |
Total funds 2021 £000 50 |
|---|---|---|
Page 28
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
5. Investment income
| Unrestricted funds 2022 £000 Interest receivable on bank deposits - Total 2021 1 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 |
Total funds 2022 £000 - 1 2022 £000 - - 5,192 114 - 5,306 |
Total funds 2021 £000 1 |
|---|---|---|
| 2021 £000 - - 4,114 155 - |
||
| 4,269 |
6. Grant making
Page 29
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
7. Grant making (continued)
The support costs associated with grant-making are £Nil (2021: £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 for the year came to a total of £5,307,000 (2021: £4,269,000) are set out below:
| 2022 | 2021 | |
|---|---|---|
| £000 | £000 | |
| Grant Recipient: | ||
| 1st Corringham Scout Group | 70 | 63 |
| Alt Valley Community Trust | 50 | - |
| Bury Metropolitan Borough Council | 64 | 57 |
| Derbyshire Wildlife Trust | 54 | 67 |
| Durham Wildlife Trust | 570 | - |
| Frenford Clubs | 63 | 75 |
| Friends of Coalville Park | 73 | 75 |
| Knowsley Council | 60 | 69 |
| Pitch 2 Progress CIC | 75 | 71 |
| Roupell Park Resident Management Organisation Ltd | 75 | 59 |
| Rugby Borough Council | 75 | 71 |
| Sefton Council | 60 | 57 |
| Shadwell Park Campaign | 75 | 67 |
| Great Dawley Town Council | 71 | 71 |
| Christ Church Heeley | 69 | 60 |
| Community Forest Trust, trading as City of Trees | 60 | 60 |
| Croft House Settlement | 75 | 71 |
| Friends of Stretford Public Hall | 71 | 60 |
| Knowsley Metropolitan Borough Council | 70 | 55 |
| Lancashire Wildlife Trust | 69 | 80 |
| Gasworks Dock Partnership | 270 | 75 |
| London Borough of Barking & Dagenham | 69 | - |
| London Wildlife Trust | 60 | 57 |
| Madeley Town Council | 75 | 300 |
| Total grants < £50,000 (147 grants) | 2,984 | 2,649 |
Page 30
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
8. Analysis of expenditure by activities
| Grant-making Total 2021 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 2021 |
Activities undertaken directly 2022 £000 25 - |
Grant funding of activities 2022 £000 5,307 4,269 |
Support costs 2022 £000 417 320 General funds 2022 £000 215 2 3 4 17 7 158 11 417 320 |
Total funds 2022 £000 5,749 4,589 Total funds 2022 £000 215 2 3 4 17 7 158 11 417 320 |
Total funds 2021 £000 4,589 |
|---|---|---|---|---|---|
| Total funds 2021 £000 165 2 2 4 29 1 107 10 |
|||||
| 320 | |||||
Page 31
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
9. Net Income/(Expenditure)
Net Income/(Expenditure) is stated after charging:
| Audit fee Accountancy fee Depreciation |
2022 £000 8 2 2 12 |
2021 £000 8 2 2 |
|---|---|---|
| 12 |
10. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2022 £000 172 19 24 215 |
2021 £000 135 14 17 |
|---|---|---|
| 166 |
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:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Management and Administration | 5 | 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 £158K (2021: £93K).
Page 32
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
11. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .
During the year ended 31 March 2022, expenses totalling £ 1,260 were reimbursed or paid directly to 5 Trustees (2021 - £231 to 3 Trustees) . The expenses were paid to Trustees in relation to travel, subsistence and out of pocket expenses.
12. Tangible fixed assets
| Cost or valuation At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation At 1 April 2021 Charge for the year On disposals At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Fixtures and fittings £000 15 2 (2) 15 9 2 (2) 9 6 6 |
|---|---|
Page 33
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
13. Debtors
| Due within one year Prepayments and accrued income |
2022 £000 6 6 |
2021 £000 7 |
|---|---|---|
| 7 |
14. Creditors: Amounts falling due within one year
| Amounts held as Agent Other creditors Accruals and deferred income |
2022 £000 274 4 30 308 |
2021 £000 699 80 25 |
|---|---|---|
| 804 |
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, £1,554,635 has been paid out as at 31 March 2022.
Page 34
(A Company Limited by Guarantee)
VEOLIA ENVIRONMENTAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
15. Statement of funds
Statement of funds - current year
| Balance at | |||||
|---|---|---|---|---|---|
| Balance at 1 | Transfers | 31 March | |||
| April 2021 | Income | Expenditure | in/out | 2022 | |
| £000 | £000 | £000 | £000 | £000 | |
| Unrestricted funds | |||||
| Designated funds | |||||
| Designated Funds - all funds | 1,705 | - | (5,307) | 5,359 | 1,757 |
| General funds | |||||
| General Funds - all funds | 2,621 | 5,404 | (417) | (5,359) | 2,249 |
| Total Unrestricted funds | 4,326 | 5,404 | (5,724) | - | 4,006 |
| Statement of funds - prior year | |||||
| Balance at | |||||
| Balance at | Transfers | 31 March | |||
| 1 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 |
Page 35
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
16. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £000 Tangible fixed assets 6 Current assets 4,308 Creditors due within one year (308) Total 4,006 |
Total funds 2022 £000 6 4,308 (308) 4,006 |
|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2021 £000 6 5,123 (803) 4,326 |
Total funds 2021 £000 6 5,123 (803) 4,326 |
|---|---|---|
Page 36
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
16. Analysis of net assets between funds (continued)
General Fund
As of 31st March 2022, the Trustees have approved the financial support for a number of projects. These projects which are expected to lead to awards of approximately £1,974,972 (2021 - £2,343,000) do not comprise binding commitments because financial agreements had not been signed as at 31 March 2022.
Taking these projects into account, the total fund surplus at 31 March 2022 is £167,236 (2021 - £143,323) The transfer of £5,359,243 (2021 - £4,668,205) 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 2021/2022 and so are considered an obligation at the period end.
Designated Fund
The designated fund amounting to £1,757,596 (2021 - £1,705,000) 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 £1,757,596 (2021- £1,705,000).
During the course of the period, there has been £13,000 (2021- £12,000) released due to under spending projects and £182,000 (2021- £0) released due to withdrawn projects. These monies have been reallocated into the general fund.
17. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Investment income Decrease in debtors Decrease in creditors Net cash used in operating activities |
2022 £000 (320) 2 - 1 (496) (813) |
2021 £000 187 2 (1) 2 (712) (522) |
|---|---|---|
Page 37
VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
18. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2022 £000 4,302 4,302 |
2021 £000 5,117 |
|---|---|---|
| 5,117 |
19. Analysis of changes in net debt
| Cash at bank and in hand | At 1 April 2021 £000 5,117 5,117 |
Cash flows £000 (815) (815) |
At 31 March 2022 £000 4,302 |
|---|---|---|---|
| 4,302 |
20. 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 31/03/2022 Grants permitted - projects not completed at 31/03/2022 |
2022 £000 1,974 1,758 3,732 |
2021 £000 2,343 1,705 |
|---|---|---|
| 4,048 |
21. Operating lease commitments
The Trust had no commitments under non-cancellable operating leases at 31 March 2022.
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VEOLIA ENVIRONMENTAL TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
22. Related party transactions
The table below shows the income received from related parties into the Trust during the year to 31 March 2022:
| Veolia ES Landfill Limited Veolia Pitsea Maintenance Trust Funds transfer Veolia Havering Maintenance Trust Funds transfer |
2022 £000 5,414,000 - - 5,414,000 |
2021 £000 4,712,000 538,608 178,396 |
|---|---|---|
| 5,429,004 |
Certain expenses of the Trust amounting to £219,000. (2021: £169,000) 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 £20,000 (2021: £14,000).
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