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← Litter Watch

2022-07-31-accounts

Draft Financial Statements at 24 February 2023 at 11:33:10

Charity registration number 1098378

LITTER WATCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Lindsay Richmond (Vice Chair)
Jane Mitchell-Barnes
Ian Jones (Chair)
Adam Lloyd
Joanna Haydon
Charity number 1098378
Principal address C/O Serco
Eagle Transfer Hub
Danks Way
Tipton
West Midlands
DY4 7BT
Bankers Barclays Bank PLC
West Bromwich Branch
313 High Street
West Bromwich
West Midlands
B61 8LP

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the accounts 6 - 10

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022

The Trustees present their annual report and financial statements for the year ended 31 July 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's constitution, applicable law and the requirements of the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.

Objectives and activities

The object of the charity is to promote the conservation, protection and improvement of the environment for public benefit, nominally in Sandwell and the surrounding areas.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the should undertake.

The aims adopted by the charity to achieve these objects are as follows:

The trustees achieve these aims by the employment of a Project Manager who, as well as giving direct support to the public, also consults with partners and advises volunteers throughout the borough.

Achievements and performance

At the start of the pandemic, few could have anticipated its prolonged and destructive impact. Although the vaccination programme has since served to improve the outlook, the residual impact on aspects such as mental health and wellbeing may remain with us for some time. We now also face other wider global events from the horrific war in the Ukraine to the rapidly growing cost of living crisis - a whole new set of challenges that will impact on our local community.

I’m so proud of the work that our talented community have delivered to make positive contributions to the society we all share. I am immensely proud how resilient the staff have been. With the arrival of the Covid-19 Pandemic severely affecting our service we continued to grow as an organisation and expand our volunteer data base far beyond our expectations.

However, like other charities across the UK, the pandemic has wide reaching implications on the governance, delivery and financial sustainability of our charity.

The Trustees and Chief Officer identified the effect of Covid-19 and associated risks. We continued to implement our risk management plan and the Governments social distancing rules, on how our Charity, staff, volunteers and service delivery would be impacted for the rest of the financial year.

The social and economic impact of the pandemic had wide reaching implications on staff members and key partners.

  1. Operationally, the delivery of some of Litter Watch’s key community projects were cancelled to limit the spread of the virus. For example, Big Spring Clean (community).

  2. The Eco Bus was unable to visit schools due to pandemic restrictions as advised by our partners. From March 2022 the Eco Bus was back in action and saw us deliver environmental workshops to 17 schools.

  3. Our Adopt a Street initiative, recruiting more volunteers and increasing our volunteer count to over 2400.

  4. We continued to work with food-based projects, such as Incredible Surplus (RJFP) and Fareshare. Distributing over 5200 meals to our volunteers and supporters.

I would like to thank our Chief Officer for her ongoing hard work and our volunteers for their support. We continue to strive forward with our partnership with Serco and Sandwell Council ensuring that Sandwell is kept clean and tidy.

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

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

Financial review

The trustees have decided that an independent examination of the accounts should be carried out. This is permitted by both the Constitution and the Charities Act 2011.

Income received for the year amounted to £85693 and resources expended amounted to £91718.

The charity's financial position at the end of the year was satisfactory and was sufficient to meet its ongoing items of expenditure, future commitments and obligations.

Funding for the charity has been secured until 31 March 2022.

No other important significant events affecting the finances or operation of the charity have occurred between the balance sheet date and the signing of this report.

It is the policy of the that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

There are no specific restrictions imposed by the constitution. There are no specific investment powers set out in the constitution.

To continue with the existing objects of the charity and to expand litter watch across the Sandwell Borough.

Structure, governance and management

The charity whose operational name is 'Litter Watch' is governed by a constitution adopted by the members on the 26th April 2003.

The Management Committee is elected annually by members of the charity. There is to be a minimum of three Trustees elected at one time to manage the charity.

The Trustees who served during the year were: Lindsay Richmond (Vice Chair) Jane Mitchell-Barnes Ian Jones (Chair) Adam Lloyd Joanna Haydon Shane Allen (Resigned 16 December 2022)

The committee meets as and when required but not less than once every three months and this meeting usually requires the co-ordinator's presence.

The Trustees' report was approved by the Board of Trustees.

Ian Jones (Chair)

Trustee Dated: 24 February 2023

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LITTER WATCH

I report on the financial statements of the for the year ended 31 July 2022, which are set out on pages 4 to 10.

Respective responsibilities of Trustees and examiner

The ’s Trustees are responsible for the preparation of the financial statements. The charity's Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In connection with my examination, no other matter except that referred to in the previous paragraph has come to my attention:

Nigel Kirkham FCCA

Neal & Co Business Services Limited Shakespeare Buildings 26 Cradley Road Cradley Heath West Midlands B64 6AG

Dated: 24 February 2023

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2022

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2022 2021
Notes £ £
Income and endowments from:
Donations and legacies 2 84,191 109,131
Other incoming resources 3 1,502 1,800
Total income 85,693 110,931
Expenditure on:
Charitable activities 4 91,718 117,279
Net expenditure for the year/
Net movement in funds (6,025) (6,348)
Fund balances at 1 August 2021 55,610 61,958
Fund balances at 31 July 2022 49,585 55,610

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

All income and expenditure derive from continuing activities.

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

BALANCE SHEET

AS AT 31 JULY 2022

Notes
Fixed assets
Tangible assets
7
Current assets
Debtors
8
Cash at bank and in hand
Creditors: amounts falling due within
one year
9
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2022
£
4,999
47,780
52,779
(3,251)		 £
57
49,528
49,585
49,585
49,585		 2021
£
10,600
51,219
61,819
(6,285)		 £
76
55,534
55,610
55,610
55,610

The financial statements were approved by the Trustees on 24 February 2023

Ian Jones (Chair) Trustee

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

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

1 Accounting policies

Charity information

Litter Watch promotes the conservation, protection and improvement of the environment for the public benefit.

1.1 Accounting convention

The accounts have been prepared in accordance with 'the Charities Act 2011' and “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)” (as amended for accounting periods commencing from 1 January 2016). The is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the . Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the .

1.4 Incoming resources

Income is recognised when the is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

1.5 Resources expended

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

Resources expended on charitable activities include all costs incurred in the pursuit of the charitable objects of the registered charity. Expenditure is recognised when a liability is incurred.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment 25% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Donations and legacies

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 3,500 3,096
Grant Income 80,691 106,035
84,191 109,131

3 Other incoming resources

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Other income 1,502 1,800
Charitable activities
Raising
Raising
public
public
awareness
awareness
of the
of the
environment environment
2022 2021
£ £
Staff costs 70,533 84,171
Depreciation and impairment 19 26
Admin expenses 21,166 33,082
91,718 117,279
91,718 117,279

4 Charitable activities

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

5 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year.

6 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Total - -
Employment costs 2022 2021
£ £
Wages and salaries 66,827 79,760
Social security costs 3,706 4,411
70,533 84,171

There were no employees whose annual remuneration was more than £60,000.

7 Tangible fixed assets

Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 August 2021 768
At 31 July 2022 768
Depreciation and impairment
At 1 August 2021 692
Depreciation charged in the year 19
At 31 July 2022 711
Carrying amount
At 31 July 2022 57
At 31 July 2021 76

Draft Financial Statements at 24 February 2023 at 11:33:10 LITTER WATCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

8
Debtors
Amounts falling due within one year:
Trade debtors
9
Creditors: amounts falling due within one year
Other taxation and social security
Accruals and deferred income		 2022
£
4,999
2022
£
1,199
2,052
3,251		 2021
£
10,600
2021
£
877
5,408
6,285