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2022-03-31-accounts

Registered number: 03443349 Charity number: 1070942

THE MARCHES ENERGY AGENCY

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 9
Independent auditors' report on the financial statements 10 - 13
Statement of financial activities 14
Balance sheet 15 - 16
Statement of cash flows 17
Notes to the financial statements 18 - 32

(A company limited by guarantee)

THE MARCHES ENERGY AGENCY

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees Andrew Bryers
Sarah Hopkins
Frances Cullen (appointed 20 October 2021)
Dr Mark Smith, Chairman
Stephen Marsh
Company registered
number
03443349
Charity registered
number
1070942
Registered office
The Pump House
Coton Hill
Shrewsbury
SY1 2DP
Independent auditors
WR Partners
Chartered Accountants
Statutory Auditors
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG
Bankers
The Co-operative Bank
P.O. Box 250
Skelmersdale
WN8 6WT
Executive Director
Simon Ross

Page 1

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the financial statements of the company for the year ended 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) (update effective 1 January 2019).

Since the company 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.

Marches Energy Agency (MEA), a registered charity, is a company limited by guarantee and, not having share capital, is governed in accordance with the provisions contained in its Articles of Association. The charity operates under the name The Marches Energy Agency.

Objectives and activities

a. Policies and objectives

Marches Energy Agency is a charity working with individuals, organisations and communities in the East and West Midlands and beyond. MEA specialises in the delivery of practical, effective and creative ways of promoting energy reduction and renewable energy solutions.

MEA grew out of the Shropshire Energy Team, which was established within Shropshire County Council with European funding in 1995. In 1998, it became an independent charitable company. MEA receives no public subsidy, and funding to employ its staff members comes from energy efficiency and renewable energy projects. More information about Marches Energy Agency and its activities are on the MEA website at www.mea.org.uk

The charitable objectives of Marches Energy Agency are:

MEA Vision

We see a future in which buildings are warmer and cheaper to run; where those most in need live in warm and secure homes; where carbon emissions and energy use are being significantly reduced in line with carbon budgets; where trusted local installers have the confidence and technologies in place to achieve the reductions; and where people and communities want this. Towards this we work every day.

Page 2

THE MARCHES ENERGY AGENCY (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities (continued)

Business Plan Objectives

MEA’s business plan sets out objectives for the following year, as well as longer term goals. In the last year, this has become the key operational document. It’s development has been with in conjunction with personnel at all levels and progress is shared at quarterly Trustees meetings as well as regularly with staff. The three main sections are: delivery, development and operations.

b. Activities undertaken to achieve objectives

Context

The Financial Statements for the year 2021-2022 are set out on pages 10-31 of the financial statements.

2021-22 has continued to see strong growth, with staff numbers increasing from 21 – 38 over the year. This was a consequence of growth in demand for our service during the C19 pandemic which then fed through into the Energy/ Cost-of-living crisis, impacting severely on vulnerable customers, alongside a greater drive for action to reduce carbon emissions at a local level. MEA has been able to unlock financial resource to help meet objectives, by successfully bidding for funds and contracts.

As the nation has begun to emerge from the Covid-19 pandemic, MEA has continued to adapt its work practices and operational structure. Staff have returned to the use of our offices, with remote working remaining a significant feature of our work. A strong local presence in our project areas as well as cross-region, and team collaboration using remote working tools such as Teams and the roll out of a customer service CRM using the Microsoft Dynamics Platform. Our area-based teams in Shropshire, Telford and Wrekin, Derby and Derbyshire and the Black Country have continued to grow and flourish. In addition, our governance and support functions have been strengthened with the introduction of a Senior Management Team, Project Administration and Support Team and organisation-wide roles such as a Data and Reporting Manager and Marketing and Communications Manager.

Looking to the future, we expect the demand for our work to continue to build, with the implications of deepening of the Energy Crisis on vulnerable customers beginning to unfold over the course of Winter 2022-23. In addition, as the present and future consequences of climate change become apparent, the calls for real action to reduce carbon emissions will become increasingly more urgent.

Summary

In Financial year 2021-22 MEA provided energy advice and support to over 9,500 householders, a doubling from last year. We trained over 1000 front line workers, increasing their capacity to provide basic fuel poverty advice and refer into our service, and partnered with over 200 organisations. We have referred householders for over 1000 energy efficiency improvements to their homes, including Air Source Heat Pumps, internal and external wall insulation, pv, as well as more basic measures around loft and cavity wall insulation.

Page 3

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities (continued)

Progress Against Business Plan

MEA’s business plan sets out objectives for the following year, as well as longer term goals. In the last year, this has become the key operational document. Development has been with in conjunction with personnel at all levels and progress is shared at quarterly Trustees meetings as well as regularly with staff. The three main sections are: delivery, development and operations.

• Delivery – key achievements and developments include:

Providing an outstanding, person-centred service. A person-centred approach is a key value that is reflected throughout our activity, from induction, team meetings, publicity materials and reporting. For example, Marketing and Communication includes a focus on case studies and person-centred video testimonials. Our staff are updated weekly with positive feedback from customers.

• Development – key achievements and developments include:

Whole house developed & strengthened – both for vulnerable householders and ‘able to pay’. In each of our areas of work, householders can access holistic support including a range of home energy efficiency measures under the LADS programmes, referrals to ECO, and wrap-around support for householders, of free low-cost measures; advice in the home or via the phone, events etc.; small grants and vouchers and onward referrals for energy efficiency measures, further development of a framework of installers.

• Operations – key achievements and developments include: Staff development. Programme of activity to develop staff to ensure they have access to internal expertise, and that external training and qualifications are provided. This includes development of Senior Energy Advisor and Senior Project Manager roles, regular training on emerging technologies for staff, whole staff training including in safeguarding, lone worker and GDPR and specialist qualifications. We have in-house Domestic Retrofit Assessor (DEAs) and Retrofit Assessors qualified, with other staff working towards these qualifications.

Area based activity

Cross area collaboration, partnership working and building the capacity of other organisations has featured strongly in our work. MEA has continued to act as West Midlands Regional Coordinator for the Affordable Warmth programme for Western Power Distribution and Big Energy Saving Network. We have delivered home visits and telephone advice across our areas as part of a new partnership with Cadent.

Shropshire, Telford & Wrekin

Activity in Shropshire, Telford & Wrekin is undertaken by the Marches Team, much of it under the local branding of Keep Shropshire Warm and Telford Energy Advice.

In Shropshire, MEA has continued to work strongly with Shropshire Council to deliver Keep Shropshire Warm and has delivered multiple energy advice and capital retrofit projects for householders under this branding. These include:

• Healthy Homes Shropshire, in partnership with Citizens Advice and Age UK Shropshire, Telford & Wrekin. • Warm Home Fund, in collaboration with E.ON, Shropshire Council and Herefordshire Council for the installation of first time central heating systems.

• Customer journey support for Green Homes Grant Local Authority Delivery Schemes 1a & 2, in partnership with Shropshire Council and;

In Telford & Wrekin, Telford Energy Advice has continued to establish itself as the point of contact for energy advice for residents. With Telford & Wrekin Council MEA has delivered top-up funding for grants for home energy efficiency works as well as providing home visits and advice as part of projects funded by WPD and others.

In Shropshire, Telford & Wrekin we have delivered home visits under the LEAP programme, monitoring and

Page 4

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities (continued)

evaluation work as part of the Connexus Warmer Homes Project, and delivered small grant and crisis funding including prepayment meter vouchers.

Derby & Derbyshire

Our Derby & Derbyshire Team have grown, with our fuel poverty building further on the long-established Local Authority Energy Partnership climate communications. Under the branding of Warmer Derby & Derbyshire, our work has included:

Dudley, Sandwell, Walsall & Wolverhampton (Black Country)

Under the banner of Warmer Homes West Midlands, our work in the Black Country gained further traction over the year, providing valuable energy advice services to vulnerable customers in the LA areas of Dudley, Sandwell, Walsall & Wolverhampton. Our work in this region also includes provision of customer journey support for Green Homes Grant LADS 2, in partnership with local councils, local communities and contractors.

c. Volunteers

MEA welcomes volunteers for limited roles within the charity. In the past year, three people have volunteered for MEA. In addition to that, all Trustees are voluntary. Remote working can present challenges to supporting and monitoring volunteers.

d. Main activities undertaken to further the Company's purposes for the public benefit

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit and in particular to its supplementary public benefit guidance.

Achievements and performance

a. Review of activities

The major expenditures in the past year have included:

The charity’s funds have all been applied in accordance with its objects. The charity’s assets are all being maintained in furtherance of these objects.

b. Investment policy and performance

Under the Memorandum and Articles of Association, the charity has the power to invest and deal with the monies of the charity, not immediately required for the purposes of the Objects, in investments and securities. During this reporting period such monies have been placed in an interest-bearing account.

Page 5

THE MARCHES ENERGY AGENCY (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Financial review

a. Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the company 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. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

b. Reserves policy

MEA employs 38 FTE staff, all of whom have a specialised knowledge and experience. Retaining this workforce in order to maintain our services to the community is reflected in these reserves. Funding our projects is an area in constant change and our reserves are flexed to reflect this. The Policy agreed by the Board of Trustees is to aim for a minimum reserves level of £193,496. This level of reserves is sufficient in order for the Charity to settle any non-cancellable liabilities as they fall due, including statutory staff costs.

The free reserves at the end of the year stood at £263,722 (2021: £200,994), and indicates a reasonable level of organisational stability.

c. Principal risks and uncertainties

The Board of Trustees have explored and assessed the major risks to which the charity is exposed, notably those relating to the operations and finances of the charity, and are satisfied that systems are in place to mitigate exposure to the major risks facing the charity. The adoption of a reserves policy and the meeting of the reserves target identified within that policy have further mitigated exposure to the major risks facing the charity.

MEA expects an increase in the need for their services as nationally we come out of the Covid 19 lockdown.

d. Income generation

The main sources of income during the last year have been from:

e. Summary

MEA has made a surplus again this year, and this is excellent news. In addition, the pipeline of potential work is looking encouraging and long-standing customers continue to support our work. MEA will continue to trim costs and overheads where possible.

Page 6

THE MARCHES ENERGY AGENCY (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management

a. Constitution

Marches Energy Agency, a registered charity, is a company limited by guarantee and registered in England and Wales. Not having share capital, it is governed in accordance with the provisions contained in its Articles of Association. The Charity operates under the name The Marches Energy Agency.

b. Methods of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

c. Organisational structure and decision-making policies

The Executive Director, Simon Ross is appointed by the Trustees to manage day-to-day operations.

WR Partners has been appointed as the Auditors for the year 2021-2022.

d. Policies adopted for the induction and training of Trustees

All potential new trustees are briefed on the work of MEA by the Director and by the Chair of trustees. All new trustees are provided with a copy of MEA’s Memorandum and Articles and with a copy of the Charity Commission’s CC3 – The essential trustee what you need to know guide, - which they read. When available, new trustees are sent on induction training.

e. Pay policy for key management personnel

MEA’s pay for key management personnel is reviewed annually by the Board and recommendations implemented on 1 Oct each year. Pay is linked to performance as determined through MEA’s performance appraisal process. Pay structures are recorded in MEA’s Salary policy. Director’s pay is reviewed biannually by the Board and the recommendations, based upon their independent review, recorded in the minutes.

f. Related party relationships

All Trustees are volunteers, and no remuneration is paid. Travel expenses may be reimbursed, if requested by a trustee, but none have been requested in this financial year. All trustees complete annual conflict of interest forms. There have been no transactions with those persons and entities that are closely connected to the charity or its trustees.

g. Financial risk management

The Board of Trustees have explored and assessed the major risks to which the charity is exposed, notably those relating to the operations and finances of the charity, and are satisfied that systems are in place to mitigate exposure to the major risks facing the charity. The adoption of a reserves policy and the meeting of the reserves target identified within that policy have further mitigated exposure to the major risks facing the charity.

Page 7

THE MARCHES ENERGY AGENCY (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

h. Trustees' indemnities

MEA holds appropriate levels of Professional Indemnity and Public Liability Insurances as protection against errors of judgement and mistakes in our professional undertakings.

Plans for future periods

MEA will continue to develop its offer and support for fuel poor householders including understanding better the health and wellbeing benefits of our work. MEA will also be looking to develop its climate change work again, after a long period of very limited work and a difficult policy environment.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company 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 Company 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:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 Company 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:

Page 8

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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:

Dr Mark Smith Chair

Date: 13 December 2022

Page 9

(A company limited by guarantee)

THE MARCHES ENERGY AGENCY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MARCHES ENERGY AGENCY

Opinion

We have audited the financial statements of The Marches Energy Agency (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:

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 10

(A company limited by guarantee)

THE MARCHES ENERGY AGENCY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MARCHES ENERGY AGENCY (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:

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 11

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MARCHES ENERGY AGENCY (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 charitable Company'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 charitable Company's regulatory environment to ensure we could conclude that it had acted in accordance with the framework relevant to the charitable Company and its environment and identify any instances of non-compliance.

• We also assessed the charitable Company'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 charitable Company 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.

Other matters

The comparative information is unaudited as an audit was not required for 2021.

Page 12

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MARCHES ENERGY AGENCY (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 Date:

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

Page 13

THE MARCHES ENERGY AGENCY

(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
Total expenditure
Net income
Transfers between funds
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2022
£
-
990,991
-
990,991
805,856
805,856
185,135
(49,535)
135,600
116,799
135,600
252,399		 Unrestricted
funds
2022
£
1,153
635,015
36
636,204
614,502
614,502
21,702
49,535
71,237
206,064
71,237
277,301		 Total
funds
2022
£
1,153
1,626,006
36
1,627,195
1,420,358
1,420,358
206,837
-
206,837
322,863
206,837
529,700		 Total
funds
2021
£
8,106
689,180
154
697,440
558,198
558,198
139,242
-
139,242
183,621
139,242
322,863

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 18 to 32 form part of these financial statements.

Page 14

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2022

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
13
Unrestricted funds
13
Total funds		 236,747
439,987
676,734
(160,613)		 2022
£
13,579
13,579
516,121
529,700
529,700
529,700
252,399
277,301
529,700		 99,372
273,400
372,772
(54,979)		 2021
£
5,070
5,070
317,793
322,863
322,863
322,863
116,799
206,064
322,863

Page 15

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

BALANCE SHEET (CONTINUED) FOR THE YEAR ENDED 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:

Dr Mark Smith

Chair

Date: 13 December 2022

The notes on pages 18 to 32 form part of these financial statements.

Page 16

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Net cash provided by financing 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
The notes on pages 18 to 32 form part of these financial statements		 2022
£
180,264
(36)
(13,641)
(13,677)
-
166,587
273,400
439,987		 2021
£
109,696
-
-
-
-
109,696
163,704
273,400

Page 17

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. General information

The Marches Energy Agency is a private company limited by guarantee, incorporated in England and Wales, with its registered office and principal place of business at The Pump House, Coton Hill, Shrewsbury, SY1 2DP.

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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (update effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Marches Energy Agency 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 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member.

Page 18

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.3 Income

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

For legacies, entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Donated services or facilities are recognised when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised and refer to the Trustees' report for more information about their contribution.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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 company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

Page 19

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the statement of financial activities as the related expenditure is incurred.

2.6 Tangible fixed assets and depreciation

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Motor vehicles - 4 year straight line - Office equipment 5 year straight line - Computer equipment 5 year straight line

2.7 Going concern

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

The Trustees assess whether the use of the going concern basis is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the abillity of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 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.

Page 20

THE MARCHES ENERGY AGENCY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.10 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 company 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 within interest payable and similar charges.

2.11 Financial instruments

The Charity 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.

2.12 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity 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 Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 21

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

3. Income from donations and legacies

Donations
Government grants
Total 2022
Total 2021		 Unrestricted
funds
2022
£
1,153
-
1,153
8,106		 Total
funds
2022
£
1,153
-
1,153
8,106		 Total
funds
2021
£
823
7,283
8,106

4. Income from charitable activities

Project income
Total 2021		 Restricted
funds
2022
£
990,991
189,104		 Unrestricted
funds
2022
£
635,015
500,076		 Total
funds
2022
£
1,626,006
689,180		 Total
funds
2021
£
689,180

5. Investment income

Investment income
Total 2021		 Unrestricted
funds
2022
£
36
154		 Total
funds
2022
£
36
154		 Total
funds
2021
£
154

Page 22

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

6. Analysis of expenditure by activities

Charitable Activities
Total 2021		 Activities
undertaken
directly
2022
£
1,266,921
512,253		 Support
costs
2022
£
153,437
45,945		 Total
funds
2022
£
1,420,358
558,198		 Total
funds
2021
£
558,198

Analysis of direct costs

Wages
Project costs
Total 2021		 Activities
2022
£
560,101
706,820
1,266,921
512,253		 Total
funds
2022
£
560,101
706,820
1,266,921
512,253		 Total
funds
2021
£
287,921
224,332
512,253

Page 23

THE MARCHES ENERGY AGENCY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

6. Analysis of expenditure by activities (continued)

Analysis of support costs

Support staff salaries
Depreciation
Motor expenses
Travel & subsistence
Office expenses
Rent
Accountancy
Postage and stationery
Sundry
Website costs
Advertising and promotion
IT & Telecommunication provision
Staff training & recruitment
Insurance
Governance costs
Total 2021		 Activities
2022
£
80,484
5,132
2,863
810
6,604
10,248
27
1,721
643
365
475
19,016
8,495
2,560
13,994
153,437
45,945		 Total
funds
2022
£
80,484
5,132
2,863
810
6,604
10,248
27
1,721
643
365
475
19,016
8,495
2,560
13,994
153,437
45,945		 Total
funds
2021
£
-
2,538
2,343
-
19,918
9,817
11
2,488
2,780
380
167
3,548
-
-
1,955
45,945

7. Auditors' remuneration

The auditors' remuneration amounts to an audit (2021: independant exam) fee of £7,000 (2021 - £1,875).

Page 24

(A company limited by guarantee)

THE MARCHES ENERGY AGENCY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
575,510
44,294
20,781
640,585		 2021
£
265,924
15,264
6,733
287,921

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

2022 2021
No. No.
Employees 27 13

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

Key management personnel received remuneration of £81,342 (2021: £31,240) during the year. No benefits were received.

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 25

(A company limited by guarantee)

THE MARCHES ENERGY AGENCY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

10. Tangible fixed assets

Cost or valuation
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Debtors
Due within one year
Trade debtors
Prepayments and accrued income		 Motor
vehicles
£
7,350
-
7,350
3,676
1,838
5,514
1,836
3,674		 Office
equipment
£
1,530
-
1,530
1,130
200
1,330
200
400		 Computer
equipment
£
17,625
13,641
31,266
16,629
3,094
19,723
11,543
996
2022
£
203,791
32,956
236,747		 Computer
equipment
£
17,625
13,641
31,266
16,629
3,094
19,723
11,543
996
2022
£
203,791
32,956
236,747		 Total
£
26,505
13,641
40,146
21,435
5,132
26,567
13,579
5,070
2021
£
87,922
11,450
236,747 99,372

11. Debtors

Page 26

(A company limited by guarantee)

THE MARCHES ENERGY AGENCY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
54,686
20,165
808
84,954
160,613		 2021
£
24,731
12,212
1,817
16,219
54,979

13. Statement of funds

Statement of funds - current year

Balance at 1 Transfers Balance at 31
April 2021 Income Expenditure in/out March 2022
£ £ £ £ £
Unrestricted funds
General Funds 206,064 636,204 (614,502) 49,535 277,301

Page 27

THE MARCHES ENERGY AGENCY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. Statement of funds (continued)

Restricted funds
Local Authority Energy
Partnership – Notts and
Derbyshire
Derbyshire County Council -
Food for Fuel
Flex Eligibility Fees
Connexus Warmer Homes
Keep Shropshire Warm
Prepayment Meter Vouchers –
Energy Saving Trust
Give Back £150
Forrester Trust
LAD2 Black Country (21-22)
LAD2 – Derby and Derbyshire
(21-22)
LAD2 – Marches (21-22)
Sustainable Warmth
Competition LAD3 & HUGS1
Marches (22.23)
T&W Training
Telford Energy Advice
Private Donation to Individual
Shropshire Council Crisis
Fund
Smarten Up, Power Down –
Cadent Foundation
Telford & Wrekin Council
Capital Fund
Wrekin Housing Group Virtual
Power Plant
Sustainable Warmth
Competition LAD3 & HUG1
Black Country (22.23)
Total of funds		 Balance at 1
April 2021
£
4,500
74,743
-
4,400
-
33,156
-
-
-
-
-
-
-
-
-
-
-
-
-
-
116,799
322,863		 Income
£
21,050
64,000
4,500
7,735
15,583
166,334
147
2,000
123,525
147,156
237,934
42,800
10,000
15,499
3,000
65,382
1,860
53,934
4,149
4,403
990,991
1,627,195		 Expenditure
£
(20,961)
(105,169)
(5,939)
(15,222)
(32,095)
(175,067)
-
(824)
(44,162)
(45,694)
(187,644)
(250)
(2,100)
(35,027)
(315)
(71,503)
(7,206)
(48,126)
(4,149)
(4,403)
(805,856)
(1,420,358)		 Transfers
in/out
£
Balance at 31
March 2022
£
(789)
3,800
12,036
45,610
1,439
-
3,087
-
16,512
-
(1,592)
22,831
-
147
-
1,176
(41,551)
37,812
(63,772)
37,690
(4,613)
45,677
-
42,550
-
7,900
24,049
4,521
-
2,685
6,121
-
5,346
-
(5,808)
-
-
-
-
-
(49,535)
252,399
-
529,700

Page 28

(A company limited by guarantee)

THE MARCHES ENERGY AGENCY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Restricted funds
Local Authority Energy Partnership – Notts
and Derbyshire
Derbyshire County Council - Food for Fuel
Flex Eligibility Fees
Connexus Warmer Homes
Keep Shropshire Warm
Prepayment Meter Vouchers – Energy
Saving Trust
Total of funds		 Balance at
1 April 2020
£
163,030
2,100
-
4,842
260
13,389
-
20,591
183,621		 Income
£
508,336
18,600
96,000
-
10,800
-
63,704
189,104
697,440		 Expenditure
£
(465,302)
(16,200)
(21,257)
(4,842)
(6,660)
(13,389)
(30,548)
(92,896)
(558,198)		 Balance at
31 March
2021
£
206,064
4,500
74,743
-
4,400
-
33,156
116,799
322,863

Page 29

THE MARCHES ENERGY AGENCY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14. Restricted Funds

COVID-19 PPM Voucher Crisis Fund - emergency funding for struggling householders on prepayment meter vouchers.

Give Back 150- ongoing - Set up by MEA to encourage those who do not need the £150 rates rebate to donate the discount to those in fuel crisis.

Much Wenlock Forester Charitable Trust-(1.3.22-31.7.22)- Provide support for elderly householders unable to access support through existing funding and whose quality of life and safety at home is jeopardised by fuel poverty.

Nottingham Energy Partnership Green Home Grant Local Authority Delivery Phase 2- (1.4.21-31.3.22now extended to 30.9.22) MEA provide customer service journey to support Local Authority Delivery in in Derby and Derbyshire retrofitting energy inefficient homes in areas of poverty and need.

Nottingham City Council/ Midland Energy Hub- Sustainable Warmth Competition- 1 year to 11th April 2023. MEA provide the customer journey support for this grant to deliver retrofit measures for domestic properties eligible to apply for either the Home Upgrade Scheme 1 or Local Authority Delivery phase 3. The first funding payment was invoiced 28th February to cover mobilisation costs for the forthcoming project.

Nottinghamshire & Derbyshire Local Authorities’ Energy Partnership- (1.4.21-31.3.22)- Climate change communications and advisory service project. The closing balance represents bookings under the current Service Level Agreement which will take place after 31st March 2022.

Energy Saving Trust Winter Hardship Prepayment Meter Voucher Scheme- (10.12.21-10.6. 22)- emergency funding for struggling householders on prepayment meter vouchers in the West and East Midlands.

Telford and Wrekin Council Public Health Training- (1.12.21-31.3.23). This funding covers the production of various health-related educational materials, including animated videos and a brochure to be shared with health professionals. It also funds fuel poverty and health training for public health professionals in Telford.

Telford Energy Advice- (1.6.20-31.5.22). is an MEA umbrella project in Telford and Wrekin, funding core activities including calls, casework support, home visits, small measures, and events. There is a small crisis fund associated with the project.

Donation to individual- a public donation to support needs of a struggling individual.

Page 30

THE MARCHES ENERGY AGENCY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Restricted
funds
2022
Unrestricted
funds
2022
£
£
Tangible fixed assets
-
13,579
Current assets
252,399
424,335
Creditors due within one year
-
(160,613)
Total
252,399
277,301
Analysis of net assets between funds - prior year
Restricted
funds
2021
Unrestricted
funds
2021
£
£
Tangible fixed assets
-
5,070
Current assets
116,799
255,973
Creditors due within one year
-
(54,979)
Total
116,799
206,064
16.
Reconciliation of net movement in funds to net cash flow from operating activities
2022
£
Net income for the year (as per Statement of Financial Activities)
206,837
Adjustments for:
Depreciation charges
5,132
Dividends, interests and rents from investments
36
Increase in debtors
(137,375)
Increase in creditors
105,634
Net cash provided by operating activities
180,264		 Total
funds
2022
£
13,579
676,734
(160,613)
529,700
Total
funds
2021
£
5,070
372,772
(54,979)
322,863
2021
£
139,242
2,538
-
(33,792)
1,708
109,696

Page 31

(A company limited by guarantee)

THE MARCHES ENERGY AGENCY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2022
£
439,987
439,987		 2021
£
273,400
273,400

18. Analysis of changes in net debt

Cash at bank and in hand At 1 April
2021
£
273,400
273,400		 Cash flows
£
166,587
166,587		 At 31 March
2022
£
439,987
439,987

19. Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £20,998 (2021: £6,733). £808 (2021: £1,817) was payable to the fund at the balance sheet date and is included in other creditors due within one year.

20. Related party transactions

During the year, sales of £2,963 were made to South Shropshire Climate Action (2021: £2,053). Purchases totalling £5,257 (2021 £500) were received from South Shropshire Climate Action. Frances Cullen (Trustee) and Simon Ross (Executive Director) are Communications Chair and Lead Member respectively for South Shropshire Climate Action.

Page 32