OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

Severn Wye Energy Agency Ltd

Trustees’ Report and Audited Financial Statements

For the year ended 31 March 2023

Charity Registration Number: 1083812 Company Registration Number: 03830608

Severn Wye Energy Agency Ltd

Trustees’ Report and Financial Statements

Year Ended 31 March 2023

Contents Page number
Reference and administrative information 1
Trustees’ Report 2
Independent auditor’s report to the members of Severn Wye Energy Agency
Ltd		 10
Statement of Financial Activities 14
Balance Sheet 16
Cash Flow Statement 17
Notes to the Financial Statements 18-32

Severn Wye Energy Agency Ltd

Reference and Administrative Information Year ended 31 March 2023

Trustees Mareike Schmidt (Chair)
Heather Watts (resigned 23rdAugust 2022)
Rowena Kay
Daniel Clegg (resigned 30thJune 2022)
Simon Burgess
Andrew Bull
Eileen Kinsman (resigned 30thSeptember 2022)
Vilislava Ivanova
Christopher Welby
Louise Cooke
Anna Griffin (resigned 22ndNovember 2022)
Leah Grint (resigned 16thDecember 2022)
Christopher Brierley (appointed 1stMay 2023)
Emma Voss (appointed 1stMay 2023)
Martin Smith-Lomas (appointed 1stMay 2023)
Company Registered Number 03830608
Charity Registration Number 1083812
Registered Office Unit 15
Highnam Business Centre
Highnam
Gloucestershire
GL2 8DN
CEO Sandy Ruthven (appointed 18thJuly 2022)
Simone Lowthe-Thomas (resigned 31stMarch 2022)
Company Secretary Hugh Boyes
Independent Auditor Godfrey Wilson Limited
5thFloor, Mariner House
62 Prince Street
Bristol
BS1 4QD
Bankers HSBC
The Cross
Gloucester
GL1 2AP

1

Severn Wye Energy Agency Ltd

Trustees’ Report

Year Ended 31 March 2023

The trustees, who are also the directors of Severn Wye Energy Agency Ltd (Severn Wye) for the purposes of company law, present their annual report and the audited financial statements for the year ended 31 March 2023. They confirm that the trustees’ report and financial statements comply with Charities Act 2011, Companies Act 2006 and Severn Wye’s memorandum and articles of association. They also conform to the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the United Kingdom and Republic of Ireland.

Objectives and Activities

Severn Wye's objects are:-

“The advancement of education for the public benefit in particular but not exclusively in relation to energy conservation, the efficient use of energy and the utilisation of renewable sources of energy” and

“The relief of poverty and the preservation and protection of health by promoting the efficient use of energy (including energy for heating purposes) and the utilisation of renewable sources of energy”

“To promote sustainable development for the benefit of the public by:

Sustainable development means “development which meets the needs of the present without compromising the ability of future generations to meet their own needs”.”

The trustees confirm that they refer to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing Severn Wye’s activities. To achieve the above objectives and public benefit Severn Wye has developed and implemented a range of projects which are noted within this report and further detailed in the annual Impact Report, which is published on Severn Wye’s website at www.severnwye.org.uk.

Structure, Governance and Management

Governing Documents

Severn Wye is a company limited by guarantee, governed by its memorandum and articles of association, incorporated on the 24[th] August 1999 and registered with the Charity Commission on the 27[th] November 2000. If Severn Wye is wound up, its members are liable to pay the sum £1 each.

Method of Appointment or Election of Trustees

The directors of Severn Wye are also trustees of Severn Wye for the purposes of charity law and under the Article of Association are also members of the Council of Management.

New trustees are appointed either by the members of Severn Wye at a general meeting or by the Council of Management. One third of the member of the Council of Management retire each year by rotation and are eligible to be re-elected. The Council of Management is in effect another name for the Board of Trustees.

Induction and Training of Trustees

New trustees are provided with appropriate information, induction and training, taking into account the nature of Severn Wye and their previous experience in the charity sector.

2

Severn Wye Energy Agency Ltd

Trustees’ Report

Year Ended 31 March 2023

Charity Governance Code of Practice

The Trustees have resolved to comply with the Charity Commission’s code of practice for good governance. There are seven principles which are considered to be necessary to qualify as a well governed charity. The trustees have formed a sub-committee who have assessed the evidence for performance of the Board of Trustees (the Board) against each of these principles:

  1. Organisational purpose 2. Leadership 3. Integrity 4. Decision making, risk and control 5. Board effectiveness

  2. Diversity 7. Openness and accountability

Following this assessment, the trustees concluded that the Board was broadly compliant with the principles. The ethos of the code of practice is to promote continual improvement and to that end the sub-committee highlighted areas for further improvement which have been addressed. The trustees have resolved to continue to embed this cycle of review and improvement on an annual basis.

Organisational Structure and Decision Making

The Board administers Severn Wye, meets quarterly and is responsible for the strategic direction and policy of Severn Wye. A minimum of three trustees is required for a meeting to be quorate. At present there are ten trustees from a variety of professional backgrounds. There are three sub-committees responsible for Finance, People & Welfare and Governance.

The Board appoints the CEO who manages the day to day operations of Severn Wye.

Risk Management

The trustees have a risk management strategy that comprises;

The trustees believe they have adequate procedures in place to mitigate the risks to which Severn Wye is exposed.

The main risks identified are;

These risks are being managed by the following actions;

3

Severn Wye Energy Agency Ltd Trustees’ Report

Year Ended 31 March 2023

Pay Policy

The trustees do not receive any remuneration from Severn Wye, but can claim reasonable costs for travel, sustenance and training (see Note 19).

Severn Wye has a remuneration policy to ensure fair pay and to retain suitably qualified staff to lead, manage, support and deliver its aims. A revised pay structure was introduced from April 2023. The People & Welfare Committee oversees the implementation of the policy.

Achievements and Performance

Severn Wye found itself at the very heart of many of 2022-23’s major crises, particularly the energy crisis and resulting impact on fuel poverty, energy security and energy conservation. This led to a year of high-performing flagship projects and numerous innovative services developed to meet the rapidly progressing crises.

Sustainable Home Energy

Severn Wye has witnessed a sharp rise in the number of households falling into fuel poverty for the first time. Steep increases in the cost of living, largely as a consequence of the current energy crisis have led to a surge in calls for support from an increasingly diverse range of clients. Estimates suggest that fuel poverty has rocketed to 28.1% in Herefordshire, and in Wales the estimates are even grimmer, with up to 45% of households facing unaffordable energy bills.

After decades of enhancing household energy efficiency through long-term changes, Severn Wye now finds itself providing a response that is more akin to crisis management. With soaring energy prices and a skyrocketing fuel poverty rate, Severn Wye is focused on supporting households in the present while also considering their longterm sustainability. Over the year, Severn Wye supported over 6,000 households, taking 12,500 phone calls and conducting 987 home visits.

Emergency support became a crucial aspect as Severn Wye observed a shift in the support needed by its clients. The demand for funds to assist desperate clients in emergency situations grew. Many households were unable to top up their energy meters, burdened with payment demands, and forced to live without heat or power. In the midst of the energy crisis, local household support funds became crucial for many, and Severn Wye were able to distribute over £650,000 of emergency funds to 2,400 households unable to afford the high energy prices needed to stay warm over the winter.

Particularly newsworthy was the Warmth on Prescription programme, in partnership with NHS Gloucestershire. Featured on local and national broadcast media, and in international journalism – this innovative project was funded by NHS Gloucestershire to channel short term winter energy bill relief (via local authority household support funds) to patients at high risk of hospitalisation over the winter due to not being able to afford to heat their homes despite health conditions. Crediting their energy accounts was combined with intense support from Energy Advocates to ensure the same isn’t repeated next winter.

Not only have we expanded our advocacy service further into Gloucestershire, Severn Wye also grew the service in Wales, securing over £300,000 to place three community-based energy advisors in key population centres across Powys.

4

Severn Wye Energy Agency Ltd

Trustees’ Report

Year Ended 31 March 2023

The funding landscape for energy efficiency improvements underwent significant changes. Government funding focused on retrofitting homes opened doors for Severn Wye to make large-scale efficiency improvements in homes occupied by the most vulnerable to cold homes. With the help of around £3m in grant funding, over 1,200 energy-saving upgrades were implemented in inefficient homes through schemes such as the Sustainable Warmth fund, combining Local Authority Delivery Scheme funding with the new Home Upgrade Grant for offgas properties. These improvements will collectively save over 11,000 tonnes of CO2 during their expected lifetime.

A significant new shift in the funding landscape is the growth of opportunities in the ‘able to pay’ sector, where a range of new projects aimed at mobilising the retrofit market and industry have proven a fitting home for Severn Wye’s technical services team. Future Ready Homes (Herefordshire and Powys) and Low Carbon Communities (Stroud and Tewkesbury) appear to be the first in a growing wave of initiatives.

Sustainable Organisations

Following a successful pilot last year, the Social Housing Decarbonisation Fund was rolled out to scale up energy efficiency improvements in dated housing association stock. Severn Wye is overseeing retrofit assessment and coordination for 200 social housing properties in Cheltenham Borough and Stroud District as part of a £3.4m improvement package. These efforts aim to make homes more comfortable, cost-effective, and environmentally friendly, and work closely with social housing providers to improve the efficiency of their properties via deep retrofit en masse.

The parallel Target 2030 business energy efficiency programmes in Gloucestershire and Swindon/Wiltshire have demonstrated continued success throughout 2022-23. Scheduled to conclude in June 2023, the programmes have hit their anticipated targets of supporting 368 and 100 SMEs respectively; saving 3,500 and 1,000 tonnes CO2; and motivating businesses to invest £3.6m and £1.1m into carbon-saving upgrades. The improvements will save businesses across the region in excess of £1.25m per year, very likely more now that energy prices for businesses are so much higher than when Severn Wye first began to work with them.

However, the Target 2030 projects and the Business Energy Efficiency Programme that Severn Wye completed this year in Herefordshire mark the end of the role of EU structural funds have played in SME energy efficiency support in the UK. This year’s UK Community Renewal Fund and the upcoming Shared Prosperity Fund have yet to demonstrate the same level of investment and strategic priorities appear to be shifting. Herefordshire Council have partnered with Severn Wye to deliver the technical energy efficiency aspects of their own carbon-saving SME initiative, ’30 for 2030.’ In Wales, programmes aimed at community organisations via the National Lottery Community Fund, the Welsh Rugby Union, Sport Wales and the Pen-y-Coed Community Windfarm Fund have led to Severn Wye’s expertise being commissioned to build medium-term plans and recommend energy-saving improvements for local organisations.

Sustainable Communities

‘The Hive,’ Severn Wye’s sustainability hub in the heart of Llandrindod Wells, has gone from strength to strength during 2022-23, adding new services and securing continued funding to keep the doors open for another two years to prepare for handing the projects over to the community to run. As well as the well-established baby bank (which has donated in excess of £100,000 in clothing and equipment to local families since 2020), uniform exchange and summer activity programme; this year Severn Wye opened a Children’s Clothing Exchange in November, helping over 500 families by exchanging £40,000-worth of clothing so that those in in-work poverty have low-cost ways of clothing their children via the circular economy.

5

Severn Wye Energy Agency Ltd

Trustees’ Report

Year Ended 31 March 2023

One of the highest-profile of these local projects is the HAF Llandrindod summer programme – six weeks of free and low-cost family activities providing entertainment, crafts, outdoor adventures and unique experiences to fill the school holidays. Co-designed by Llandrindod families and run with local organisation Play Radnor, 40 events took place over July and August – everything from graffiti art to live street theatre. Over 1,000 people attended on one day in August 2022 and overall attendance levels hit nearly 2,700.

Severn Wye’s work with rural communities across Wales has led to influencing policy at Welsh Government level. The years-long work of the Rural Futures team in Bro Machno highlighted the problem of second homes in the area, prompting a visit from Mark Isherwood MS who subsequently submitted a paper to the Senedd. Severn Wye’s local Place Coordinator was invited by the Welsh Government’s Local Government and Housing Committee to attend an evidence session as part of their inquiry into second homes. The committee’s final report was published this year, featuring contributions from Rural Futures and the Bro Machno Housing Partnership.

Sustainable Technologies

2022-23 was a landmark year for Severn Wye’s Sustainable Technologies work, as following the successful award of phase 2 funding for our Mersey Biochar project, work began to lay the organisational foundations to developing a carbon-negative energy solution at a site in Warrington that supports the local economy, improves energy security and contributes towards demonstrating the viability of local community woodland and local forestry industry. This project will invest nearly £5m into developing a small-scale pyrolysis plant with the potential to generate heat for a district network system. This year Severn Wye have been establishing the partnerships and legal frameworks required to deliver this high-value project, protecting the charity from any risk by establishing a joint venture with partners Pure Leapfrog.

The Three-C (Creating the Circular Carbon economy) project manages a hub of communications networks around the progress of a range of innovative energy technology sub-projects, two of which are substantial in their own right and Severn Wye are playing an active role in delivering. A pilot pyrolysis plant has been developed with Welsh Water and commissioned this year to demonstrate the value of pyrolysis and biochar for the water treatment industry. In addition, a zero-carbon sustainable bio-fuel developed in conjunction with partners in Ireland is being trialled, with the initial application of replacing the use of fossil coal in the heritage rail industry. Three trials have now been conducted in Ireland and Wales. Severn Wye anticipate that this could be a forerunner of a wider sustainable solid biofuel technology that may also address fuel poverty and sustainable home energy in areas which continue to rely on solid fuel.

Investment and Progress in Delivery of our Strategic Aims

During this year we have been working on a new Strategic Plan, this involved discussions with staff, managers and trustees, as well as a 2 day facilitated session with staff away from the office and an afternoon facilitated strategy session with the trustees. This concluded in a new five year strategic plan effective from the 1[st] April 2023 alongside a new staff structure to better implement that plan.

The plan is available on request. The plan prioritises the following activities for the next five years:

6

Severn Wye Energy Agency Ltd

Trustees’ Report

Year Ended 31 March 2023

KPIs have been set to achieve the strategic targets over the next five years linked to the above activities for 2023/24 and we will be working towards achieving those.

We have seen further growth in our activities, turnover and staff numbers. For example in April 2020 we had 28 staff, this had grown to 55 staff by March 2022 and by March 2023 we had 73 staff. The organisation has coped well dealing with such growth whilst at the same time dealing with Covid-19. However this continued growth has placed strains on systems designed for a smaller organisation and we are continuing to work on improvement so that Severn Wye is a great place to work.

We have continued to ensure that staff have received appropriate training and mentoring and we have a rolling programme of CPD for our technical staff.

Last year we had moved all our IT systems to the cloud, meaning nearly all staff could work equally well from the office or from home. Staff have continued to work at home for a significant part of the week, which is appreciated and will do so for the foreseeable future.

Financial Review

Results for the Year

The increase in the unrestricted funds in the year of £132,112 (2022: £80,068) shows further consolidation on the progress made over the last three years. Overall income has increased to £6.70m, excluding the Mersey Biochar project £5.02m (2022: £4.90m), the income excluding grants & Mersey Biochar has also increased to £2.65m (2022: £2.16m). On the expenditure side the grants allocated have increased along with the increased income, and expenditure elsewhere has increased to £4.20m, excluding Mersey Biochar £2.53m (2022: £1.98m).

Funding Sources

The main funding sources in the year are:

The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.

Reserves policy and going concern

The purpose of the Reserves Policy is to ensure the stability of the ongoing operations of Severn Wye and to enable the ongoing future of Severn Wye.

7

Severn Wye Energy Agency Ltd

Trustees’ Report

Year Ended 31 March 2023

Severn Wye’s unrestricted funds on the 31[st] March 2023 amounted to £723,406 (2022: £591,294). Severn Wye’s free reserves on the 31[st] March 2023 were £646,642 (2022: £562,135). The trustees expect to maintain or increase those reserves to try to achieve the target set in the Reserves Policy.

The Reserves Policy target is to have sufficient reserves to meet three months running costs, plus meet all the liabilities of the organisation and to provide sufficient cash to fund the organisation’s activities. Whilst falling short of the overall target of £812,000, the reserves are more than sufficient to meet the latter two aspirations.

The charity is currently projected to increase the unrestricted funds in 2023/24 by a further £108,000. The position will be under regular review by the trustees. The trustees are of the opinion that, in the light of the level of reserves above, the revised budget and the current strategic plan, that Severn Wye is a going concern.

Investment Policy

Severn Wye is committed to maintaining sufficient funds in instant access or short notice period accounts to meet its ongoing expenditure and cashflow requirements. Any funds beyond this will be invested in low risk deposit accounts or fixed-term bonds, with notice periods not exceeding one year.

The Trustees are satisfied with the investment returns in the current year, the policy will be reviewed annually.

Future Developments

The new strategic plan was approved by the trustees at their meeting in February and has been implemented from the start of April 2023. The budget based on that plan was agreed at the trustee meeting in May and it anticipates an increase in Unrestricted Funds by £108,000 and we are currently in line with that budget.

This year we look to have confirmed funding of over £4.5m of which £1.8m are grants to be allocated;

Statement of Trustees' Responsibilities in respect of the Financial Statements

The trustees, who are the directors of Severn Wye 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 and charity law require the trustees to prepare financial statements for each financial year that give a true and fair view of Severn Wye’s state of affairs and of its incoming and outgoing resources, including the income and expenditure for that period. In preparing these financial statements, the trustees are required to:

8

Severn Wye Energy Agency Ltd Trustees’ Report

Year Ended 31 March 2023

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time, Severn Wye’s financial position and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding Severn Wye’s assets and hence for taking steps for the prevention and detection of fraud and other irregularities.

Provision of Information to the Auditor

The trustees who held office at the date of approval of this trustees’ report confirm that, so far as they are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

The auditor is Godfrey Wilson Limited.

Approval

The trustees have prepared this report in accordance with the provisions applicable to companies subject to the small companies regime. This report was approved by the trustees on 22[nd] August 2023 and signed on their behalf by.

Simon Burgess

Mareike Schmidt - Trustee

Simon Burgess – Trustee

9

Severn Wye Energy Agency Ltd

Independent auditor's report to the members of Severn Wye Energy Agency Ltd

Year Ended 31 March 2023

Opinion

We have audited the financial statements of Severn Wye Energy Agency Ltd (the 'charity') for the year ended 31 March 2023 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, 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 opinions

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

Conclusions relating to going concern

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

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

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

Other Information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material

10

Severn Wye Energy Agency Ltd

Independent auditor's report to the members of Severn Wye Energy Agency Ltd

Year Ended 31 March 2023

inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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

11

Severn Wye Energy Agency Ltd

Independent auditor's report to the members of Severn Wye Energy Agency Ltd

Year Ended 31 March 2023

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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

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

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 auditor’s report.

12

Severn Wye Energy Agency Ltd

Independent auditor's report to the members of Severn Wye Energy Agency Ltd

Year Ended 31 March 2023

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 24[th] August 2023

Alison Godfrey FCA

(Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

13

Severn Wye Energy Agency Ltd

Statement of Financial Activities

Year ended 31 March 2023

Statement of Financial Activities Statement of Financial Activities Year ended 31 March 2023
(Incorporatingan Income and Expenditure Account)
Note
Income from:
Charitable Activities
Affordable Warmth
13 & 14
Business
13 & 14
Grant Making
13 & 14
Communities
13 & 14
Sustainable Technologies
13 & 14
Donations
Investment Income
Other Income
Total Income
Expenditure on:
Charitable activities
Affordable Warmth
4
Business
4
Grant Making
4
Communities
4
Sustainable Technologies
4
Total Expenditure
Net Income / (Expenditure) for the year
Transfer In / (Out) between Funds
13 & 14
Net Movement in Funds
Reconciliation of Funds
Funds brought forward at 01 April 2022
13 & 14
Funds Carried Forward at 31 March 2023
13 & 14		 Unrestricted
Funds
£
831,091
289,420
-
135,536
121,373
6,362
4,180
5,909		 Restricted
Funds
£
466,029
233,028
2,379,710
391,367
1,831,193
-
-
-		 Total
Funds
2023
£
1,297,120
522,448
2,379,710
526,903
1,952,566
6,362
4,180
5,909
6,695,198
1,187,285
555,435
2,132,501
525,915
1,928,961
6,330,097
365,101
-
365,101
1,586,808
1,951,909		 Total
Funds
2022
£
1,139,736
274,211
2,744,093
338,733
392,259
2,650
310
9,974
1,393,871 5,301,327 4,901,966
804,114
271,254
-
43,859
30,576		 383,171
284,181
2,132,501
482,056
1,898,385		 895,158
291,704
2,535,180
438,450
352,614
1,149,803 5,180,294 4,513,106
244,068
(111,956)		 121,033
111,956		 388,860
-
132,112 232,989 388,860
591,294 995,514 1,197,948
723,406 1,228,503 1,586,808

The statement of financial activities shows all gains and losses recognised in the year.

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

14

Severn Wye Energy Agency Ltd

Statement of Financial Activities (Continued)
(Incorporatingan Income and Expenditure Account)		 Year ended 31 March 2023
Restricted
Total
Funds
Funds
2022
£
£
493,262
1,139,736
213,638
274,211
2,744,093
2,744,093
313,126
338,733
297,013
392,259
-
2,650
-
310
-
9,974
4,061,132
4,901,966
286,970
895,158
250,252
291,704
2,535,180
2,535,180
424,311
438,450
344,556
352,614
3,841,269
4,513,106
219,863
388,860
88,929
-
308,792
388,860
686,722
1,197,948
995,514
1,586,808		 Year ended 31 March 2023
Restricted
Total
Funds
Funds
2022
£
£
493,262
1,139,736
213,638
274,211
2,744,093
2,744,093
313,126
338,733
297,013
392,259
-
2,650
-
310
-
9,974
4,061,132
4,901,966
286,970
895,158
250,252
291,704
2,535,180
2,535,180
424,311
438,450
344,556
352,614
3,841,269
4,513,106
219,863
388,860
88,929
-
308,792
388,860
686,722
1,197,948
995,514
1,586,808
Note
Income from:
Charitable Activities
Affordable Warmth
13 & 14
Business
13 & 14
Grant Making
13 & 14
Communities
13 & 14
Sustainable Technologies
13 & 14
Donations
Investment Income
Other Income
Total Income
Expenditure on:
Charitable activities
Affordable Warmth
4
Business
4
Grant Making
4
Communities
4
Sustainable Technologies
4
Total Expenditure
Net Income / (Expenditure) for the year
Transfer In / (Out) between Funds
13 & 14
Net Movement in Funds
Reconciliation of Funds
Funds brought forward at 01 April 2021
13 & 14
Funds Carried Forward at 31 March 2022
13 & 14		 Unrestricted
Funds
£
646,474
60,573
-
25,607
95,246
2,650
310
9,974		 Restricted
Funds
£
493,262
213,638
2,744,093
313,126
297,013
-
-
-		 Total
Funds
2022
£
1,139,736
274,211
2,744,093
338,733
392,259
2,650
310
9,974
840,834 4,061,132 4,901,966
608,188
41,452
-
14,139
8,058		 286,970
250,252
2,535,180
424,311
344,556		 895,158
291,704
2,535,180
438,450
352,614
671,837 3,841,269 4,513,106
168,997
(88,929)		 219,863
88,929		 388,860
-
80,068 308,792 388,860
511,226 686,722 1,197,948
591,294 995,514 1,586,808

15

As at 31 March 2023

Severn Wye Energy Agency Ltd

Companies House Registered Number 03830608

Balance Sheet

Note
Fixed Assets
Tangible assets
9
Current Assets
Debtors
10
Cash at bank & in hand
Current Liabilities
Creditors:
Amounts falling
due within one year
11
Net Current Assets
Net Assets
Funds of the Charity
Unrestricted funds
13
Designated funds
13
Restricted funds
14
Total Charity funds		 1,272,733
1,107,085		 2023
£
6,001

1,121,266
833,587		 2022
£
11,434





1,951,909 1,586,808
652,643
70,763
1,228,503		 573,569
17,725
995,514
1,951,909 1,586,808

These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.

The notes on pages 18 to 32 form part of these accounts. The financial statements were approved and authorised for issue by the Board of Trustees on the 22nd August 2023 and were signed on its behalf by:

Simon Burgess

Mareike Schmidt Trustee

Simon Burgess Trustee

16

Severn Wye Energy Agency Ltd

Cash Flow Statement
For the year ended 31 March 2023		 Cash Flow Statement
For the year ended 31 March 2023
Note
Net cash inflow from operating activities
20
Investing activities
Returns on investments and servicing of finance
Interest received
4,180
Payments to acquire fixed assets
-
Net cash outflow from investing activities
Increase in cash and cash equivalents
Cash or cash equivalents brought forward
20
Cash or cash equivalents carried forward
20		 2023
2022
£
£
269,318
199,533

310

(4,904)
4,180
(4,594)
273,498
194,939
833,587
638,648
1,107,085
833,587

No analysis of net debt is provided as the charity does not have any long-term sources of finance.

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

17

Severn Wye Energy Agency Ltd

Notes to the Financial Statements

Year ended 31 March 2023

1 General Information

The company was formed on the 24th August 1999, is limited by guarantee (No 03830608) and is a registered charity (No 1083812). The company is registered in England and Wales and the registered office is Unit 15, Highnam Business Centre, Highnam, Gloucestershire, GL2 8DN.

In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation in the financial statements are as follows.

a Basis of Accounting

The financial statements have been prepared in accordance with;

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The charity constitutes a public benefit entity as defined by FRS 102.

Severn Wye has demonstrated that it was able to cope with the effects of Covid-19 over the last two years. The war in Ukraine and the subsequent increase in utility costs has resulted in high demand for our services. The current budget for 2023/24 anticipates a reasonable unrestricted surplus.

Even if the unforeseen happens and a loss is incurred, Severn Wye has the reserves and cash to be able to cover a loss and have enough reserves and cash to go securely into 2023/24.

A draft budget has drawn up for the succeeding year. The position here is much less certain but with prudent assumptions it is hoped to achieve a breakeven position for the year. The financial position will be under regular review by the trustees along with the progress made against the strategic plan.

The trustees are of the opinion that, in the light of the level of reserves above, the new strategic plan, staff structure and budget put in place to meet the future challenges, there are no material uncertainties about the charity's ability to continue as a going concern.

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether 'capital' or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grant have been met, it is probable that the income will be received and the amount can be measured reliably.

18

Severn Wye Energy Agency Ltd

Notes to the Financial Statements (continued)

Year ended 31 March 2023

2 Principal Accounting Policies (continued)

Income received in advance of the provisions of a specified service or performance conditions is deferred until the criteria for income recognition are met (see note 12).

d Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT where VAT cannot be recovered.

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However the costs of the overall direction and administration of each activity is apportioned on the basis of the staff time directly attributable to that activity.

Grants paid are included in the Grant Making, in the period defined by the rules of the relevant scheme. Normally this is when the agreed work has been carried out, certified and paid for.

Governance costs are those incurred in the governance of the charity and are primarily associated with constitutional, regulatory and statutory requirements and are included within administration.

Administration include support and central functions and have been allocated to the activities on a basis consistent with the use of resources.

e 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.

f Significant Judgements and Estimates Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: Deferred Income:

Income is only deferred where it is clear that Severn Wye does not have legal entitlement to that income until the terms and conditions of the contract or agreement are satisfied. Depreciation:

As described in note 2h to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. Costs incurred during the feasibility phase of a project:

The decision to expense costs incurred during the feasibility phase is based on the principle that expenses related to assessing the viability of a project should be recognised as incurred, rather than being capitalised as an asset.

Unrestricted funds are expendable at the discretion of trustees in furtherance of the objects or the administration of the charity.

Restricted funds are to be used for the specific purposes laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

19

Severn Wye Energy Agency Ltd

Notes to the Financial Statements (continued)

Year ended 31 March 2023

2 Principal Accounting Policies (continued)

h Tangible Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation. As a general guide expenditure of less than £1,000 is not capitalised.

Depreciation is provided at rates to write off the cost of the asset over its estimated useful lives, as follows:

Computer Equipment 33% straight line

Office & General Equipment 20% straight line

i Cash at Bank and in Hand

Cash at bank and in hand includes current and short term liquid deposit accounts with a short maturity.

j Debtors

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

k Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount can be measured or estimated reliably. Creditors are recognised at their settlement amount after allowing for trade discounts.

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange at the Balance Sheet date and the gains or losses recognised in the Statement of Financial Activities (SOFA) in administration.

m Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity.

n Pensions

The charity contributes to a group and individual stakeholder pension scheme for some of its employees. The amount charged in the SOFA represents the contributions payable to the scheme in respect of the accounting period.

o Operating Leases

Operating lease rentals are charged to the SOFA on a straight line basis over the period of the lease.

p Redundancy and settlement

Redundancy costs arise from the periodic reviews of staffing levels and are charged to the SOFA in the year in which the company is demonstrably committed to the employee leaving the charity.

q Taxation

The company is a registered charity and as such is exempt from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year.

20

Severn Wye Energy Agency Ltd

Notes to the Financial Statements (continued)

Year ended 31 March 2023

3 Government Grant Income

The company had the following grants from the Government which were obtained through a bid / tendering process:- the Big Lottery Fund , (Llandrindod Wells, Rural Futures, Create, Sustainable Steps Wales), South Gloucestershire CC (SGC Grants, Household Support Fund, Step Up S. Glos, GEEG SGC Grants), Clinical Commissioning Group (CCG Grants), Warm Homes Fund (Warm Homes Grants), ERDF (Target 2030 Grants), Herefordshire Council (Keep Herefordshire Warm, Hereford Winter Grants, 30 for 2030, FRH Surveys), Stroud District Council (Winter Grants, Park Home Grants, SHDF Wave), Welsh Gov (Gwent Green Grids, SCW), BEIS (GHG LAD 1a & LAD 1b Glos, SHDF Wave, SWC LAD & HUG, Mersey Biochar),

Further details of these grants are given in note 13 and 14. The grants are recognised when the charity is in receipt of the grant, is entitled to that funding and there are no specific contingencies.

4 Total Expenditure

Expenditure 2023
Affordable Warmth
Business
Grant Making
Communities
Sustainable Technologies
Administration
Total 2023
Expenditure 2022
Affordable Warmth
Business
Grant Making
Communities
Sustainable Technologies
Administration
Total 2022		 Salaries
£
790,355
360,224
-
301,414
121,422
180,989
1,754,404
Salaries
£
622,561
197,670
-
248,493
112,719
120,429
1,301,872		 Grants
£
-
-
2,132,501
-
-
-
2,132,501
Grants
£
-
-
2,535,180
-
-
-
2,535,180		 Direct costs
£
191,998
102,028
-
139,302
1,776,130
233,734
2,443,192
Direct costs
£
113,796
42,047
-
125,396
209,039
185,776
676,054		 Overheads
£
204,932
93,183
-
85,199
31,409
(414,723)
-
Overheads
£
158,801
51,987
-
64,561
30,856
(306,205)
-		 2023
£
1,187,285
555,435
2,132,501
525,915
1,928,961
-
6,330,097
2022
£
895,158
291,704
2,535,180
438,450
352,614
-
4,513,106

Expenditure is allocated to a particular project where the costs relate directly to that project. All other costs are allocated to each project on the basis of the staff time attributable to that project.

21

Notes to the Financial Statements (continued)

Year ended 31 March 2023

Severn Wye Energy Agency Ltd

5 Governance Costs
Governance costs included within administration are made up as follows:
Audit
Salaries
Trustee Expenses & recruitment
Share of overheads
Total costs
Trustee expenses of £100 relate to travel costs for one trustee (2022: £Nil).
6 Analysis of Grants Paid
To institutions by Projects:
Rural Futures Grants
Target 2030 Wiltshire
Target 2030 Gloucestershire
To individuals by Projects:
CCG
GEEG SGC
Crisis Fund Fuel vouchers Grants
Gloucestershire Household Support Fund
GHG LAD Grants
Herefordshire Winter Grants
LAD1B Grants
Park Homes 2020 BTC Grants
Redress Herefordshire
South Gloucestershire Household Support Fund
Stroud District Council Winter Grants
SWC HUG Grants
SWC LAD Grants
Warm & Well
Warm Homes Fund 6
Warm Homes Fund
Warmth on Prescription Grants
Total grants paid		 2023
£
9,500
2,467
100
639
12,706
2023
£
4,149
235,069
435,993
675,211
2023
£
54,538
2,941
-
419,773
-
98,060
-
-
-
73,449
6,400
470,924
175,523
-
22,543
63,498
69,641
1,457,290
2,132,501		 2022
£
8,200
13,428
-
41
21,669
2022
£
3,186
246,581
235,080
484,847
2022
£
187,947
17,340
51,072
-
433,352
8,820
942,991
15,059
900
-
7,585
-
-
2,082
-
383,185
-
2,050,333
2,535,180

The grants are paid out in respect of work done for individuals and institutions, who qualify under the criteria of each project. The reimbursement of part of the cost of work are paid to the contractor once the work has been approved, completed, certified and the recipient's contribution paid by the recipient.

The support costs for the above are included in charitable activities expenditure. Please refer to the charity website for further details of grants awarded in the year. Examples of grant recipients can be found at https://target2030.co.uk/case-studies/. There were no material grants paid to any individual institution.

22

Notes to the Financial Statements (continued)

Year ended 31 March 2023

Severn Wye Energy Agency Ltd

7 Analysis of Staff Costs

Staff costs were as follows:

f costs were as follows:
Salaries and wages
National insurance costs
Pension costs		 2023
£
1,535,169
137,354
81,881
1,754,404		 2022
£
1,155,864
98,419
47,589
1,301,872

The total employee benefits of the key management personnel of the charity, who comprise the Senior Management Team, were £226,556 (2022: £174,343).

During the year one employee earned between £60,000 and £70,000 (2022 - 1). Redundancy and settlement costs for the year were £10,127 (2022: £6,707).

The average number of employees during the year was as follows:

2023 2022
Nos Nos
Average full time equivalent 54.3 39.6
Average head count 64.0 46.5
Net Income for the Year
2023 2022
This is stated after charging: £ £
Depreciation 5,433 6,348
Auditor's fees for audit 9,500 8,200
Auditor's fees for non-audit services 3,377 -
Operating lease payments in respect of land & property 41,314 41,314
Operating lease payments in respect of equipment 40,095 34,932

8 Net Income for the Year

23

Severn Wye Energy Agency Ltd

Notes to the Financial Statements (continued)

Year ended 31 March 2023

9 Tangible Fixed Assets
Office & General
Equipment
Cost
£
Brought forward
8,697
Additions
-
At 31 March 2023
8,697
Depreciation
Brought forward
2,930
Charge for year
1,620
At 31 March 2023
4,550
Net book value
At 31 March 2023
4,147
At 31 March 2022
8,697
10 Debtors
Trade debtors
Prepayments
Accrued income
11 Creditors: Amounts Falling Due Within One Year
Trade creditors
Social security and other taxes
Accruals
Other creditors
Deferred income (note 12)
12 Deferred Income
Balance at 1 April 2022
Amount released in the year
Amount deferred in the year
Balance as at 31 March 2023		 Computer
Equipment
£
24,205
-
24,205
18,538
3,813
22,351
1,854
24,205
2023
£
1,046,744
22,250
203,739
1,272,733
2023
£
119,932
115,716
88,386
80,336
29,540
433,910
2023
£
64,751
(64,751)
29,540
29,540		 Total
£
32,902
-
32,902
21,468
5,433
26,901
6,001
11,434
2022
£
677,078
23,551
420,637
1,121,266
2022
£
59,080
116,517
87,860
51,272
64,751
379,479
2022
£
9,794
(9,794)
64,751
64,751

Deferred income comprises income received under a contract which relates to work to be completed in future accounting periods and initial up front payments, where the work has yet to be performed or completed. The charity has no entitlement to these funds at the year end and they have therefore been deferred.

24

Notes to the Financial Statements (continued)

Year ended 31 March 2023

Severn Wye Energy Agency Ltd

13 Analysis of Movements in Unrestricted Funds
Unrestricted Funds
Designated Funds
Total Unrestricted Funds
Unrestricted Funds
Designated Funds
Total Unrestricted Funds
Analysis of Unrestricted Income
Affordable Warmth
CCG / SDC Grant Management
GHD LAD Admin
GHD LAD1B Admin
Gloucestershire Household Support Fund
Hereford Sustainable Warmth Competition
Keep Herefordshire Warm
LAD 2 Herefordshire
Powys CRF
PyC Community Energy Surveys
SHDF SDC
SWC LAD
SWC HUG
Warm & Well
Warm Home Prescription
Warm Homes Fund
Various small projects
Business Energy
Herefordshire FRH Surveys
SHDF Wave 1
30 for 2030
Various small projects
Communities
Create your Space
Llandrindod Wells - The Hive
Sustainable Community Wales
Sustainable Steps Wales
Waterfalls Country Future
Various small projects		 As at 1
April 2022
£
573,569
17,725
591,294
As at 1
April 2021
£
511,226
-
511,226		 Income
£
1,204,168
189,703
1,393,871
Income
£
823,109
17,725
840,834		 Expenditure
Transfer to
Restricted Fund
£
£
(1,058,668)
(66,426)
(91,135)
(45,530)
(1,149,803)
(111,956)
Expenditure
Transfer to
Restricted Fund
£
£
(671,837)
(88,929)
-
-
(671,837)
(88,929)
2023
£
6,000
-
14,548
78,750
76,090
40,379
17,120
156,360
30,000
20,650
37,938
58,062
207,630
10,000
56,935
20,629
831,091
17,500
207,800
20,898
43,222
289,420
19,167
20,270
37,874
15,300
-
42,925
135,536		 As at 31
March 2023
£
652,643
70,763
723,406
As at 31
March 2022
£
573,569
17,725
591,294
2022
£
10,500
54,055
72,000
-
-
62,178
54,800
46,217
-
41,300
-
-
208,445
-
44,000
52,979
646,474
-
-
-
60,573
60,573
22,083
15,075
(38,401)
-
26,850
-
25,607

25

Notes to the Financial Statements (continued)

Year ended 31 March 2023

Severn Wye Energy Agency Ltd

13 Analysis of Movements in Unrestricted Funds (continued)

Analysis of Unrestricted Income (continued)

Sustainable Technologies
Gwent Green Grids
Mersey Biochar SWEA
Rhonda Skyline
Welsh Water
Various small projects
Donations
Investment income
Other Income
Total Unrestricted Income		 2023
£
33,208
47,655
-
35,000
5,510
121,373
6,362
4,180
5,909
1,393,871		 2022
£
15,000
-
31,500
48,746
-
95,246
2,650
310
9,974
840,834

Designated Funds

The Hive (£35,345) - Whilst the running costs of the Hive are covered by the Llandrindod Wells BLF project, the income generated by the utilisation of the building is being set aside to meet the future costs of running the Hive once the BLF funding ceases. Donations (£7,918) - The funds freely donated to the charity have not been used in this year and are thus carried forward to be used in the next year.

Gloucestershire HSF (£9,000), Mersey Biochar SWEA (£10,000), Create Your Space (£2,000) & Herefordshire FRH (£6,500) - Funds put aside to cover the known costs to complete these projects.

14 Analysis of Movements in Restricted Funds

Analysis of Movements in Restricted Funds - Current Year

Affordable Warmth
Energy Aware Communities 2
EST Redress South Glos
EST Redress EAC Glos 2
Glos. Communities Warmer for Longer
HUG 2
Redress Herefordshire
Retrofit in the Marches
Revolving Retrofit Guarantee Fund
SEGB In Communities
Step up South Gloucestershire
Stonehouse Demonstrator
Summerfield Trust
SWC LAD & HUG Ancillary
W&W Referral Fees		 At 1 April
2022
£
-
-
-
-
-
442
-
75,000
-
-
4,690
736
10,000
110,089
200,957		 Income
£
4,620
3,700
135,197
10,000
30,000
21,698
53,098
-
8,576
74,956
-
-
-
13,292
355,137		 Expenditure
£
(5,359)
(4,213)
(134,631)
(10,000)
(19,565)
(21,697)
(54,554)
-
(7,828)
(59,897)
(3,564)
-
(1,242)
-
(322,550)		 Tr from/(to)
Unrestricted
Funds
£
739
513
(566)
-
-
(443)
1,456
-
(748)
(5,059)
-
-
-
(19,924)
(24,032)		 At 31 March
2023
£
-
-
-
-
10,435
-
-
75,000
-
10,000
1,126
736
8,758
103,457
209,512

26

Notes to the Financial Statements (continued)

Year ended 31 March 2023

Severn Wye Energy Agency Ltd

14 Analysis of Movements in Restricted Funds (continued)

Analysis of Movements in Restricted Funds - Current Year

Affordable Warmth (continued)
WECA Energy Advice
WPD Energy
Warmth on Prescription
W&W Support for Home Energy Advice
Business
Target 2030 Wilts
Target 2030 Glos
Grant Making
CCG Grants
GEEG SGC Grants
Glos Household Support Fund
Hereford Winter Grants
Park Homes (Better Care Fund) Grants
Rural Futures Grants
SDC Park Homes Grants
SDC Winter Grants
S. Glos Household Support Fund
SWC LAD Grants
SWC HUG Grants
Target 2030 Glos
Target 2030 Wilts
Warmth on Prescription
Warm Homes 6
Warm Homes Fund Grants
Communities
Energy Advocates Powys
Llandrindod Wells
Rural Futures
Sustainable Technologies
Three C
CapCall Re-Direct
Mersey Biochar BEIS
Total Restricted Funds		 At 1 April
2022
£
-
4,670
150,000
-
355,627
-
-
-
-
19,492
205,000
17,180
4,237
31,122
7,896
6,400
25,000
40,000
40,000
-
-
-
-
-
396,327
-
168,770
74,790
243,560
-
-
-
-
995,514		 Income
£
24,192
(3,300)
-
90,000
466,029
129,320
103,708
233,028
59,766
-
322,500
85,500
320,460
-
-
-
53,000
160,000
430,924
435,993
235,069
173,000
40,000
63,498
2,379,710
54,332
66,553
270,482
391,367
151,064
9,700
1,670,429
1,831,193
5,301,327		 Expenditure
£
(26,478)
445
(34,588)
-
(383,171)
(158,756)
(125,425)
(284,181)
(54,538)
(2,941)
(419,773)
(98,060)
-
(4,149)
-
(6,400)
(73,449)
(175,522)
(470,924)
(435,993)
(235,069)
(69,643)
(22,542)
(63,498)
(2,132,501)
(55,054)
(116,703)
(310,299)
(482,056)
(234,706)
-
(1,663,679)
(1,898,385)
(5,180,294)		 Tr from/(to)
Unrestricted
Funds
£
2,286
(1,815)
-
-
(23,561)
29,436
21,717
51,153
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
722
-
-
722
83,642
-
-
83,642
111,956		 At 31 March
2023
£
-
-
115,412
90,000
414,924
-
-
-
5,228
16,551
107,727
4,620
324,697
26,973
7,896
-
4,551
24,478
-
-
-
103,357
17,457
-
643,535
-
118,620
34,973
153,593
-
9,700
6,750
16,450
1,228,503

27

Notes to the Financial Statements (continued)

Year ended 31 March 2023

Severn Wye Energy Agency Ltd

14 Analysis of Movements in Restricted Funds (Continued)

Analysis of Movements in Restricted Funds - Previous Year

Affordable Warmth
Build 2 Low Carbon
Redress South Glos
Redress Herefordshire
Redress Glos 2
W&W Referral Fees
Revolving Retrofit Guarantee Fund
Crisis Fund Fuel Vouchers
WPD Energy
SWC LAD & HUG Ancillary
GCF Care Bags
CCG Advocacy
MEA Redress
Stonehouse Demonstrator
Summerfield Trust
Business
Target 2030 Wilts
Target 2030 Glos
Grant Making
SWC LAD Grants
SWC HUG Grants
GEEG SGC Grants
CCG Grants
Warm Homes Fund Grants
Rural Futures Grants
Target 2030 Glos
Target 2030 Wilts
SDC Park Homes Grants
GHG LAD 1A Grants
Park Homes 2020 Grants
SDC Winter Grants
S. Glos Household Support Fund
Hereford Winter Grants
Redress Herefordshire
Crisis Fund Fuel Vouchers
LAD 1B Grants
Warm and Well
Glos Household Support Fund		 At 1 April
2021
£
-
-
-
-
60,063
75,000
63,805
-
-
-
-
-
-
-
198,868
-
-
-
-
-
16,832
23,098
-
34,308
-
-
7,896
19,544
19,296
3,985
-
9,000
-
-
-
-
-
133,959		 Income
£
1,030
57,676
41,571
138,908
66,895
-
3,135
7,994
10,000
4,000
150,000
2,363
4,690
5,000
493,262
127,251
86,387
213,638
40,000
40,000
20,000
164,848
383,185
-
235,080
246,581
-
413,808
-
10,000
25,000
17,000
600
-
942,991
-
205,000
2,744,093		 Expenditure
£
-
(60,615)
(41,200)
(140,735)
(6,869)
-
(23,573)
(3,324)
-
(4,027)
-
(2,363)
-
(4,264)
(286,970)
(147,930)
(102,322)
(250,252)
-
-
(17,340)
(187,947)
(383,185)
(3,186)
(235,080)
(246,581)
-
(433,352)
(15,059)
(7,585)
-
(8,820)
(900)
(51,072)
(942,991)
(2,082)
-
(2,535,180)		 Tr from/(to)
Unrestricted
Funds
£
(1,030)
2,939
71
1,827
(10,000)
-
(43,367)
-
-
27
-
-
-
-
(49,533)
20,679
15,935
36,614
-
-
-
1
-
-
-
-
-
-
-
-
-
-
300
51,072
-
2,082
-
53,455		 At 31 March
2022
£
-
-
442
-
110,089
75,000
-
4,670
10,000
-
150,000
-
4,690
736
355,627
-
-
-
40,000
40,000
19,492
-
-
31,122
-
-
7,896
-
4,237
6,400
25,000
17,180
-
-
-
-
205,000
396,327

28

Notes to the Financial Statements (continued)

Year ended 31 March 2023

Severn Wye Energy Agency Ltd

14 Analysis of Movements in Restricted Funds (Continued)

Analysis of Movements in Restricted Funds - Previous Year (continued)

Communities
Rural Futures
Llandrindod Wells
Sustainable Community Wales
Foundational Economy
Sustainable Technologies
Three C
Mersey Biochar Phase 1
Total Restricted Funds		 At 1 April
2021
£
196,189
157,706
-
-
353,895
-
-
-
686,722		 Income
£
182,716
131,238
(2,126)
1,298
313,126
55,998
241,015
297,013
4,061,132		 Expenditure
£
(304,115)
(120,174)
-
(22)
(424,311)
(99,063)
(245,493)
(344,556)
(3,841,269)		 Tr from/(to)
Unrestricted
Funds
£
-
-
2,126
(1,276)
850
43,065
4,478
47,543
88,929		 At 31 March
2022
£
74,790
168,770
-
-
243,560
-
-
-
995,514

Purpose of Restricted Funds

Affordable Warmth

Build 2 Low Carbon - is to add value and strengthen collaboration between public, private and third sector to efficiently and effectively retrofit domestic properties to relieve fuel poverty and reduce carbon emissions. CCG Advocacy - working across Gloucestershire our energy advocates are working with local inclusion services to make sure everyone receives energy advice.

GCF Care Bags - to provide winter care bags for people living in Gloucestershire.

Glos. Communities Warmer for Longer - to fund the advocacy service for two months across Gloucestershire. Household Support Funds - to distribute grants to households in fuel poverty.

HUG 2 - to instal clean heat and insulation to off gas homes.

Redress / Energy Aware Communities - working across Gloucestershire, South Gloucestershire & Herefordshire our energy advocates are working with local inclusion services to make sure everyone receives energy

advice they understand.

Retrofit in the Marches - to work in partnership with MEA and others to provide mainly retrofit surveys in Herefordshire and Powys.

Revolving Retrofit Guarantee Fund - the fund was established by Stroud District Council for historic reasons, discussions are taking place to agree a future purpose.

Stonehouse Demonstrator - is to make recommendations for the improvement of the Stonehouse Pavilion, it will also assist with funded energy efficiency support to 10 example homes in the area.

Summerfield Trust - to provide winter care packages for people living in Gloucestershire.

WECA Energy Advice - to provide additional staff support for the Warm & Well advice line.

W&W Referral Fees - each year agreement is reached with the W&W funders as to how these fees are best utilised to help with our Affordable Warmth programme.

Warmth on Prescription - see Grants section.

W&W Support for Home Energy Advice - to provide additional adviceline support to households in Gloucestershire.

29

Severn Wye Energy Agency Ltd

Notes to the Financial Statements (continued)

Year ended 31 March 2023

14 Analysis of Movements in Restricted Funds (Continued)

Purpose of Restricted Funds (continued)

Affordable Warmth (continued)

Crisis Fund Fuel Voucher - the fund was set up in response to Covid-19 to help families in fuel poverty by allocating fuel vouchers to households referred to us by trusted third parties. Park Homes (Better Care Fund) - to fund energy efficiency measures for 15 to 18 park home residents in Gloucestershire.

SEGB in Communities - to deliver Smart Meter advice at events, drop-ins and home visits. SWC LAD & HUG Ancillary - funding to compliment the main project to fund small enabling works. Step up South Gloucestershire - Community advocate support service and an infrared camera project. WPD Energy - to undertake 35 household visits, 12 community events and install small measures.

Grant Making

GEEG SGC Grants - these are funds received from South Gloucestershire Council (SGC) and Stroud District Council (SDC) for households meeting age and income criteria, with Severn Wye acting as the principal for the scheme, to assist people with health conditions with energy saving measures. CCG Grants - these are funds received from the CCG through SDC for households in Gloucestershire meeting age and income criteria, with Severn Wye acting as the principal for the scheme, to assist people with health conditions with energy saving measures. Warm Home Funds Grants - are funded by SDC providing grants to private tenants, owner occupiers and social housing for central heating systems and insulation to improve energy efficiency. Rural Futures Grants - micro grants made to communities supported through the Rural Futures project. Target 2030 Gloucestershire - offers up to 5 days energy efficiency consultation to small and medium enterprises in Gloucestershire and up to 35% financial assistance to help install energy saving measures. Target 2030 Wiltshire - offers up to 5 days energy efficiency consultation to small and medium enterprises in Swindon & Wiltshire and up to 35% financial assistance to help install energy saving measures. SDC Park Homes & Park Homes 2020 Grants - to support residents of park homes in Gloucestershire to become more energy efficient by administering grants to fund energy saving measures. Green Homes Grant LAD 1A & 1B - fund provided to insulate park homes and assist with the installation of air sourced heat pumps in Gloucestershire. Stroud District Council & Hereford Winter Grants - to support vulnerable residents affected by Covid-19 by making small cash payments to assist with food and essential items, such as fuel bills. Crisis Fund Fuel Voucher - See Affordable Warmth.

SWC LAD & HUG Fund - to provide energy efficient retrofit works to low income homes in Gloucestershire and South Gloucestershire.

SGC & Glos Household Support Fund - to provide winter care bags, vouchers for Pre Paid Meters, energy debt write off and top up energy credits in the respective counties. Park Homes (Better Care Fund) - to fund energy efficiency measures for 15 to 18 park home residents in Gloucestershire.

Warmth on Prescription - to support vulnerable households with severe respiratory illness via grants to improve the dwelling or financial support with heating bills.

30

Severn Wye Energy Agency Ltd

Notes to the Financial Statements (continued)

Year ended 31 March 2023

14 Analysis of Movements in Restricted Funds (Continued)

Purpose of Restricted Funds (continued)

Business

Target 2030 Gloucestershire - see Grant Making. Target 2030 Wiltshire - see Grant Making.

Communities

Rural Futures - Big Lottery Fund grant to support rural communities to co-produce sustainable local projects and help those communities harness their potential and build a lasting future.

Llandrindod Wells - together for Wellbeing, working with families who are in employment , but struggling to make ends meet and balance the needs of their families. Through the project families will be enabled to co-design and co-deliver projects that can improve the quality of their lives. Energy Advocates Powys - Energy Advocacy work across Powys.

Sustainable Technologies

Three C - to promote innovation and business development in the circular economy based on alternative carbon products, technologies and services, using local carbon feedstocks. The 3C project has been moved from Communities to the new Sustainable Technologies theme as it is a more appropriate classification. CapCall Re-Direct - to build a timber framed, green roof and living wall community structure.

Mersey Biochar - to carry out a feasibility study into using a pyrolysis plant to develop a community-owned, carbon-negative energy solution. Now commissioned to build a prototype plant to demonstrate feasibility.

Transfers between Funds

W&W Referral fees - the funders agreed that £10,000 could be used to fund our business support services. SWC LAD & HUG - the loss on these projects will be met from General Reserves.

Target 2030 Wilts & Glos - this is an EU funded project that only funds a 15% overhead charge, this is insufficient. The balance is therefore met from General Reserves.

Three C - There is matched funding for this project from Welsh Water and Gwent Green Grids in Unrestricted Income that more than covers most of the costs, the rest is met from General Reserves.

15 Analysis of Net Assets Between Funds

Fixed assets
Other net current assets
Net assets at 31 March 2023
Fixed assets
Other net current assets
Net assets at 31 March 2022		 General
£
6,001
646,642
652,643
11,434
562,135
573,569		 Designated
£
-
70,763
70,763
-
17,725
17,725		 Restricted
£
-
1,228,503
1,228,503
-
995,514
995,514		 Total
£
6,001
1,945,908
1,951,909
11,434
1,575,374
1,586,808

31

Severn Wye Energy Agency Ltd

Notes to the Financial Statements (continued)

Year ended 31 March 2023

16 Operating Lease Commitments

At the 31 March 2023 the charity had the following total minimum lease payments commited under operating leases.

Operating leases which expire:
Within one year
Within two to five years		 Other
2023
£
10,706
15,309
26,016		 Land & Buildings
2022
2023
£
£
22,998
35,461
5,430
38
28,428
35,499		 2022
£
35,511
13
35,524

17 Related Parties

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity in this year or the previous one.

18 Pension Commitments

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension costs charge represents contributions payable by the charity to the fund and amounted to £47,589 (2022: £42,589). There was a liability at the end of the year of £1,857 (2022: £801).

19 Trustees' Remuneration

No remuneration has been paid to the trustees of the charity in the year under review or the prior year other than the reimbursement of travel costs of £100 (2022: £Nil).

20 Reconciliation of Surplus for the year to Net Operating Cash Flows

Net Movement of Funds as per the SOFA
Depreciation charges
Less interest received
Decrease/(Increase) in debtors
Increase/(Decrease) in creditors
Net Operating Cash Flows
Analysis of cash and bank deposits
Cash in hand
Bank deposits		 2023
£
365,101
5,433
(4,180)
(151,467)
54,431
269,318
2023
£
-
1,107,085
1,107,085		 2022
£
388,860
6,348
(310)
(395,984)
200,619
199,533
2022
£
-
833,587
833,587

21 Post Balance Sheet Event

The trustees have reviewed the strategic plan and the budget for 2023/24 and believe that on current projections the charity is a going concern.

32