OpenCharities

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

← Menter Caerdydd

2021-04-05-accounts

REGISTERED COMPANY NUMBER: 04576565 (England and Wales)

REGISTERED CHARITY NUMBER: 1098606

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

FOR

MENTER CAERDYDD

Watts Gregory LLP Chartered Accountants & Statutory Auditors Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

MENTER CAERDYDD

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

Page Report of the Trustees 1 to 5 Report of the Independent Auditors 6 to 8 Statement of Financial Activities 9 Balance Sheet 10 Cash Flow Statement 11 Notes to the Cash Flow Statement 12 | Notes to the Financial Statements 13 to 21

MENTER CAERDYDD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2021

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of 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 treland (FRS 102) (effective 1 January 2019).

AMBITION The Welsh language becoming a centra! part of life in Cardiff.

OBJECTIVES AND ACTIVITIES

Objectives and alms The object of the charity is to boost community education and general information by promoting the Welsh language.

MISSION STATEMENT

To promote and expand the social use of the Welsh language in Cardiff.

The work of Menter Caerdydd is central to supporting and delivering the Welsh Government's vision of one million Welsh speakers by 2050 and Cardiff Council's strategy of creating a fully bilingual city.

Our work supports the Well-being of Future Generations (Wales) Act 2015 in creating a Wales that we aff want to live in, now and in the future. Central to our ambition Is to see Cardiff as a place of vibrant culture in which the Welsh language thrives fogether with a soclety that promotes and protects our culture, heritage and language.

Each one of us, as partners, funders, stakeholders, volunteers and citizens, has an important contribution to make in achieving this.

STRATEGIC AIMS

~ Promating opportunities to use the Welsh language

~ Supporting employment and training opportunities for young people and adults through the medium of Welsh - Organising Tafwyl to celebrate the Welsh language and culture ~ Ensuring that Menter Caerdydd has an effective digital platform for the Welsh language - Partnership working with various bodies and organisations

Action Areas

Menter Caerdydd will work in the areas to support Cardiff Council's Local Strategies and the National Strategles of the Welsh Government:

Key Performance Indicators Menter Caerdydd's Board has agreed a range of Key Performance Indicators to help scruitinise progress and measure impact against objectives.

Public benefit

The trustees have had due regard to the Charity Commissions guidance on public benefit.

The entire work of Menter Caerdydd is designed for the benefit of the public. The principal object is to boost community education and general information by promoting the Welsh languagge. This Is done by delivering activities and events across Cardiff which are open to the public. The activities and events provide an opportunity for people of all ages to socialise and enjoy themselves in a friendly and inclusive environment. The service is widely publicised and new pecple encouraged to take part. There Is an increasing demand for the provision from the public in all parts of the county.

Some of the activities are free and when there Is a need to charge the costs are kept as low as possible to encourage participation and engagement.

Page 1

MENTER CAERDYDD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2021 nnte OBJECTIVES AND ACTIVITIES

Volunteers

Thanks go to the army of volunteers who serve on Menter Caerdydd's Board and committees and who work on our numerous projects. We have over 50 volunteers who work with us on a broad range of services throughout the year and provide an invaluable contribution to the delivary of activities provided by Menter Caerdydd across the city.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Menter Caerdydd provides a wide range of services through the medium of Welsh in Cardiff and its environs. An outline of the work can be seen on the Menter Caerdydd's website www.mentercaerdydd.cymru

Last year, despite the COVID-19 pandemic, Manter Caerdydd staff innovated and successfully moved muchof thelr offers and services online, and continued to find new ways to develop and deliver opportunities for people right across the city.

We succeeded in receiving funding from a number of departments within Cardiff Council including Play Services, the Leisure Department and Education Departmant. We also received funding towards our services from the Welsh Government and the Arts Council of Wales. Menter Caerdydd is a workforce of 9 staff (5 full-time, 4 part-time) and 146 casual staff.

Following the huge success of Tafwyi 2019 the concept of Tafwyl was further developed in 2020, under hugely challenging COVID-19 circumstances, via a virtual Tafwyl broadcast. The innovative event took place with an ambitious programme being streamed live from Tafwyl's most recant home, Cardiff Castle, diractly into people's homes, supported by our main funders Cardiff Council, the Arts Council of Wales and the Welsh Goverment, as well as other partners and sponsors. The festival was watched by a global audience of more than 24,000 who tuned in to enjoy a digital version of Tafwyl - Cardiff's annual celebration of Welsh arts and culture — with people watching from the USA, Japan, Netherlands, Spain and France to name but a few. Our core service had to change significantly during the year, with almost all activities being delivered digitally. This new approach drew in excellent attendance numbers as we diversified our programme of opportunities and we were able to deliver to new audiences and offer support packages of digital workshops for schools.

Accritical element for us was to ensure that people of all ages had opportunities to use their Welsh on a social level, outside the classroom/work, as well as a chance to develop new skills, meet new people and enjoy new experiences,

FINANCIAL REVIEW

Financial position

The charity's results are reported in the Statement of Financial Activities on page 8.

Asum total of £480,159 was recognised as income (2020 - £760,863) and a total of £447,490 was included as expenditure (2020 - £784,073). This gave a net income of £32,669 (2020: -£23,210). The profit on unrestricted funds in the year was £32,669.

The total funds carried forward are £148,080 (2020 - £115,411, after adjusting for funds tied up in fixed assets, free reserves were £145,482,

Principal funding sources

Menter Caerdydd is grateful to the Welsh Govemment, Cardiff Council and other sponsors for their continued financlal support to Menter Caerdydd's activities. Details can be seen in the notes to the accounts.

Reserves policy

The trustees have considered the needs of the charity for financial reserves in accordance with the guidelines given by the Charity Commission that trustees carry out an ongoing review of the reserves levels and the reserves policy to ensure they continue to be relevant in changing circumstances. As a result they have adopted the following policies -

Page 2

MENTER CAERDYDD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2024 a FINANCIAL REVIEW The current policy of the trustees is the financial reserve should be approximately 17% - 20% of expenditure In a nonCOVID-19 year (approx. £790k). This equates to £134,300 to £158,000. The trustees consider the current level of reserves to be sufficient to meet the charity's needs.

FUTURE PLANS

The COVID-19 pandemic has dominated our lives since March 2020. We have been forced to make the unprecedented decision to change the way we delivered our offers and services. This led to the cancellation of most of our face to face activities until April 2021. We have had to be more creative and innovative than ever in the way we engage our service users and how we continue to deliver our wide ranging programme of activities.

The Board and staff at Menter Caerdydd have worked tirelessly throughout, collaborating with colleagues from other organisations across Wales to ensure that Welsh language social opportunities have continued to be delivered and enjoyed.

Menter Caerdydd is committed to ensuring that our work continues to reflect the needs of the diverse Welsh communities in the capital city especially as we emerge from the pandemic. We will need to continue to challenge areas of expenditure in order to drive down costs as well as looking for new sourcas of income. We have been realistic in recognising that we face a challenging economic period going forward, but by continuing to Innovate, working in partnership with organisations throughout the city, and with partners from the third sector, the public sectorand and the private sectorwe are confident that we can continue to fulfil the objectives in our Corporate Plan (2019-22) that our services have a positive impact on the Welsh language In Cardiff,

~ Promoting opportunities to use the Welsh language

By concentrating on these main priorities Menter Caerdydd will continue to play a key role in the work of promoting the Welsh language in the city and will deal with the main strategic priorities of the Welsh Goverment of reaching a miltion Welsh speakers by 2050, and Cardiff Council's Bilingual Cardiff Strategy. Moving forwards, much of our face to face offers have begun to retum, although some of our digital offers continue to be delivered and enjoyed due to their popularity and keenness of some of our audience to remain online. We will adapt our offers in line with the needs of our customers to ensure that there are opportunities for all that want to engage with our work to continue. STRUCTURE, GOVERNANCE AND MANAGEMENT Goveming document The charity Is govemed by its Memorandum and Articles of Association and constitutes a company limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

The Board of Trustees are elected on an annual basis by the members of the charitable company at the Annual General Meeting. Invitations for nominations of new trustees are sent to all mambers with notice of the proposed Annual General Meeting, and nominations are accepted up seven days before the date of the meeting. Proposed trustees are required to be nominated by two different members of the charitabla company before their nomination can be considered.

Organisational structure

Menter Caerdydd Chief Executive is responsible for the day to day running of the organisation and all staff and financial needs of the organisation. The Board of Trustees meets 5 times per year and the CEO attended all meeting and presents a written and formal presentation of the service delivery of the organisation to date. Every aspect of govemance and finance are discussed during evary board meeting.

Induction and training of new trustees

We recognise that the work that trustees do is invaluable to the organisation, and that good governance Is a vital part of how we as an organisation operate and are held accountable for what we do. Menter Caerdydd was awarded the third sector Trusted Charity quality assurance mark in February 2021. This programme has provided the structure and framework to ensure that Trustees are given the support and leadership that they need in order to conduct their duties as Trustees to the best of their abilities and that induction and training is at the forefront of our support to them.

Page 3

MENTER CAERDYDD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL. 2021

a STRUCTURE, GOVERNANCE AND MANAGEMENT Key management remuneration This is discussed within the Finance sub-committea that meets before each Board meeting. The Chair, Treasurer, Trustee that supports the Treasurer as well as the CEO/Company Secretary are key members of this committee.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 04576565 (England and Wales)

Registered Charity number 1098606

Registered office Yr Hen Lyfrgell The Hayes Cardiff CF10 1BH

Trustees H O Jones { A Walters P G Williams L Ellis M Thomas RHWiliams - I G Roberts C S Robers M Phillips $B Jones JEAdams (Chalr) S Willams G M George SVM Poole SW Fén

Chief Executive and Company Secretary M Rees O'Brien

Auditors Waits Gregory LLP Chartered Accountants & Statutory Auditors Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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

ee

Page 5

MENTER CAERDYDD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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

In so far as the trustees are aware:

AUDITORS

The auditors, Watts Gregory LLP, have expressed a willingness to be re-appointed. Approved by order of the Board of Trustees on sabbeb db MAS ZY ese and signed on Its behalf by:

fhe ee sea ND vacoseensessonseaseuseesees

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MENTER CAERDYDD

Opinion

We have audited the financial statements of Menter Caerdydd (the ‘charitable company’) for the year ended 5 April 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, Including a summary of significant accounting policies. The financial reporting framework that has bean applied In their preparation {fs applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial stataments:

~ give a true and fair view of the state of the charitable company's affairs as at 5 April 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2008.

Basis for opinion

We conducted our audit in accordance with Intemational 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We belleve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

In auditing the financial statements, we have concluded that the directors' use of the going concem 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 company’s ability to continue as a going concer for a period of at least twelve months from when the financial statements are authorised for Issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going concem In excaptional or unforeseen circumstances.

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 Report of the Independent Auditors 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 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.

Opinions on other matters prescribed by the Companies Act 2006

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MENTER CAERDYDD

Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, wa have not identified material misstatements in the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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 forassessing the charitable company's ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concem 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.

Our responsibilities for the audit of the financlal 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 fo issue a Report of the Independent Auditors 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) wil 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.

Based on our understanding of both the company and industry, we identified the principal risks of non-compliance with laws and regulations, including those related to UK tax legislation and considered the extent to which any non-compliance might have on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and ensured that all those involved In the audit undergo regular update training, including on how to identify or recognise fraud and non-compliance with laws and regulations.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inaccurate journals. We addressed these risks by carrying out specifically targeted procedures, which included:

As outlined above, reasonable assurance is a high level of assurance, but is not a guarantees that a material misstatement may always be detected. The extent fo which our proceduras are capable of detecting material misstatements or irregularities, including fraud, is therefore subject to the inherent limitations of an audit. There is therefore, an unavoidable risk that a material misstatement may not come to light, in particular, where non-compliance with laws and regulations are remote from events and transactions reflected in the financial statements or where fraud or errors arise due to intentional misrepresentation, forgery, concealment, management override and/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 Report of the Independent Auditors.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MENTER CAERDYDD

Use of our report

This report is made solely to the charitable company's 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 charitable company's members 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Julia Mortimer (Senior Statutory Auditor) for and on behalf of Watts Gregory LLP Chartered Accountants & Statutory Auditors Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

16 December 2021

Page 8

MENTER CAERDYDD

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 5 APRIL 2021

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Unrestricted|2021|2020| |fund|Restricted|Total|Total| |Notes|£|funds£|funds£|funds£| |INCOME AND ENDOWMENTS|FROM| |Donations|and|legacies|3|142,486|295,933|438,419|492,501| |Charitable|activities|4| |The enhancement of community education|and| |general|information|by promoting|the Welsh| |language|16,300|16,484|32,784|222,874| |Other income|5|8,956|:|8,956|45,488| |Total|167,742|312,417|480,159|760,863| |EXPENDITURE ON| |Charitable|activities|6| |The|enhancement of community education|and| |general|information|by|promoting|the Welsh| |language|135,073|312,417|447,490|784,073| |NET INCOMEEXPENDITURE}|32,669|-|32,669|(23,210)| |RECONCILIATION|OF|FUNDS| |Total funds|brought forward|415,411|-|115,414|138,621| |TOTAL FUNDS CARRIED FORWARD|148,080|-|148,080|115,411|

----- End of picture text -----

The notes form part of these financial statements

Page 9

MENTER CAERDYDD

BALANCE SHEET 5 APRIL 2021

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2021|2020| |Unrestricted|Restricted|Total|Total| |Notes|fund£|funds£|funds£|funds£| |FIXED ASSETS| |Tangible|assets|13|2,598|-|2,598|4,198| |CURRENT ASSETS| |Debtors|14|14,341|94,095|108,436|106,579| |Cash|at bank and|in hand|206,587|30,217|236,804|63,787| |220,928|124,312|345,240|169,366| |CREDITORS| |Amounts|falling due within one year|15|(75,446)|(124,312)|(199,758)|(58,153)| |NET CURRENT ASSETS|445,482|-|145,482|111,213| |TOTAL ASSETS|LESS CURRENT LIABILITIES|148,080|-|148,080|115,411| |NET ASSETS|148,080|-|148,080|115,411| |FUNDS|17| |Unrestricted funds|148,080|115.411| |TOTAL FUNDS|148,080|415,411|

----- End of picture text -----

These financial statements have been prepared In accordance with the provisions applicable to charitable companies subject to the small companies regime.

The_nMfin ngalAD.fitm wr e nt. andwere Wereapproved signed onforitsissue behalfby by:the Board of Trustees and authorised for issue on

The notes form part of these financial statements

Page 10

MENTER CAERDYDD

CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2021

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2021|2020| |Notes|£|£| |Cash flows|from|operating|activities| |Cash generated from operations|||173,017|(25,505)| |Net cash|provided|by/(used|in) operating|activities|173,017|(25,505)| |Cash flows from|investing|activities| |Sale|of tangible|fixed|assets|-|450| |Net cash|provided|by|Investing|activities|-|450| |Change|In cash and cash|equivalents|In| |the reporting|period|173,017|(25,055)| |Cash and cash|equivalents|at the| |beginning of the|reporting|period|63,787|88,842| |Cash|and cash|equivaients|at the end|of| |the reporting period|236,804|63,787|

----- End of picture text -----

The notes form part of these financial statements

Page 11

MENTER CAERDYDD

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2021

1. RECONCILIATION OFNETINCOME/(EXPENDITURE) TONETCASH CASH FLOW FROM FLOW FROM OPERATING FLOW FROM OPERATING
ACTIVITIES
2021 2020
£ £
Net Income/(expenditure) forthe reporting period (as per the
StatementofFinancialActivities) 32,669 (23,210)
Adjustments for:
Depreciation charges
Profiton disposal offixed assets		 1,600
-		 1,600
(450)
(Increaseydecrease in debtors (2,857) 33,682
increase/(decrease) in creditors 141,605 (37,127)
Netcashprovidedby/(used In) operations 173,017 (25,505)
2. ANALYSIS OFCHANGES IN NET FUNDS
At 6/4/20 Cash flow At5/4/21
£ £ £
Netcash
Cash atbankand in hand 63,787 173,017 236,804
63,787 173,017 236,804
Total 63,787 173,017 236,804

The notes form part of these financial statements

Page 12

MENTER CAERDYDD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

ca

1. STATUTORY INFORMATION

Menter Caerdydd is a company limited by guarantee incorporated in Wales within the United Kingdom. The registered office is Yr Han Lyfrgell, The Hayes, Cardiff, CF10 1BH. The financial statements are presented in Sterling (£), the company’s functional currency, and rounded to the nearest pound. The principal activities and nature of the charity's operations is to create opportunities for Welsh speakers to use the language by supporting the present Welsh language activities and to encourage and promote a community ownership of the Welsh language. The reporting period end date is the 5 April 2021. The charity has opted to follow the Companies Act reporting within seven day rule therefore the financial statements cover the period up to the 31 March 2021. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

  1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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) (affective 1 January 2019)’, Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of the accounts on a golng concer basis

The financial statements have been prepared on a going concem basis, with the charity having confimation in place from many of Its funders up to 31 March 2022. In addition, the Charity continues to raise funds from Trusts and individuals, enabling a range of support programmes. The trustees are confident that Menter Caerdydd will bo able to tailor service provision in line with the funding available and will look to obtain additional funding from other sources. As a result, the trustees consider it appropriate for the financial statements to be prepared on a going concarn basis.

The trustees and key management personnel are satisfied that despite the Coronavirus pandemic, it is appropriate for the charity's financial statements to be prepared on a going concem basis. The pandemic has resulted in a number of uncertainties arising and the trustees have taken steps to minimise the effect on the charity and will continue to do so. In the circumstances they have concluded that no adjustments or additional disclosures are required to the financlal statements at this fime.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the Income will be receivad, and the amount can be measured reflably.

This includes capital grants.

Donations and legacles Income

Donations and legacies income includes donations, gifts and grants that provide core funding or are of a general nature and is recognised where there Is entitlement, probability of receipt and the amount can be measured with sufficient refability. Such income is only deferred when the donor specifies it must be used in future accounting Perlods or the donor has Imposed conditions which must be met before the charity has unconditional entifement.

Income from charitable activities Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability, Income Is deferred when the arnounts received are in advance of the performance of the service or event to which they relate.

eee

Page 13

continued...

MENTER CAERDYDD NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL. 2021

2. ACCOUNTING POLICIES - continued

Investment Income

Investment income is recognised on a receivable basis.

It is not the policy of the charity to show income net of expenditure.

Expenditure

Liabilities are recognised as expenditure as soon as there Is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Expenditure includes any VAT which cannot be fully recovered and [s reported as part of the expenditure fo which It relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activitias and services for its beneficiaries. it includes both costs that can be allocated directly to such activities and those costsof an indirect nature necessary to support them.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. This Includes governance costs which are thosa costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management ofthe charity as well as a proportion of salaries based on an approximation of time spent in this area,

Tangible fixed assets Fixed assets are initially recorded at cost.

Depreciation is calculated so as to write off the cost of an asset, less its estimate residual value over the useful economic life of the asset as follows:

Plant and equipment

~ 20% - 33% per annum of cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds are available for use at the trustees’ discretion for any purpose within the objects of the charity.

Restricted funds have been received with stipulatlon from the donor as to the purpose for which they may be used.

Designated funds are unrestricted funds earmarked by the board for particular purposes in the future.

Transfers from unrestricted to restricted funds are made when required to support underfunded activities.

Financlal Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as a basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

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

Creditors

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

Page 14

continued...

MENTER CAERDYDD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2021

2. ACCOUNTING POLICIES - continued

Pension costs and other post-ratirement benefits The charitabie company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

The charitable company makes contributions to personal pension schemes on behalf of its employees. Contributions are charged to the Statement of Financial Activities In the period to which they relate.

Employee benefits

When employees have rendered service to the company, short-term employes benefits to which employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Operating leases

Rentals applicable to operating leases where substantially all of the banefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

----- Start of picture text -----
3.
----- End of picture text -----

DONATIONS AND LEGACIES

DONATIONS ANDAND LEGACIES
2021 2020
£ £
Gifts
Donations
Grants
Sponsorship		 78
-
438,341
-		 -
4,011
451,190
37,300
438,419 492,501
Grants received, included In the above, areasfollows:
2021 2020
£ £
Welsh Government -Welsh Promotion
CardiffCountyCouncil -Playgrant
CardiffCountyCouncil -Holiday activities grant
CardiffCountyCouncil -Leisure grant
CardiffCountyCouncil-Caregrant
Arts Council ofWales-Tafwylfestival
Artsand Business Tafwy!
Urdd Gobalth Cymru -Grant leuenctid
ForCardiff-Tafwyl		 186,736
59,483
30,000
15,000
32,954
40,000
3,000
14,000
-		 196,736
85,000
30,000
15,000
32,954
30,000
10,000
14,000
25,000
Cronfa Gari
Groundworks
Hodge Foundation		 -
-
-		 §,000
7,000
2,500
The British Council - 4,000
WVCAgranthenoed
Menter Iaith BroMorgannwg
Moondance Foundation
CardiffCouncil -Covid-19fund
Welsh Government -CRFTafwy!		 12,860
5,500
3,000
10,000
3,136		 -
-
-
-
-
Welsh GovernmentJRSgrants 22,672 -
438,341 451,190

Page 15

continued...

MENTER CAERDYDD

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL 2021

4. INCOMEFROM CHARITABLEACTIVITIES
2021 2020
£ £
Feeincome
Rental income
Weishforbusiness		 14,504
1,796
16,484		 188,519
11,935
22,420
32,784 222,874
Theonlycharitable activity IstheenhancementofCommunity educationand general
Welsh Language.		 information bypromotingthe
5. OTHERINCOME
2021 2020
£ £
Gain on sale oftangiblefixed assets - 450
Secondment income - 38,438
CardiffCouncil
-SHEPscheme		 7,259
Broadband Contributions 1,697
Stage performances curated byTafwyl - 6,600
8,956 45,488
6. CHARITABLE ACTIVITIES COSTS
Direct Support
Costs (see costs (see
note 7) note 8) Totals
£ £ £
Theenhancementofcommunity
education and general Information by
promoting theWelshlanguage 402,202 45,198 447,490
7. DIRECTCOSTS OF CHARITABLEACTIVITIES
2021 2020
£ £
Staffcosts
Activities
Playschemes
Tatwyl
Clubsandchildren'sclubs
Room rental costs		 196,934
20,909
37,323
133,366
12,160
-		 275,439
47,186
97,550
276,347
26,035
7,044
Bad debt - 152
Depreciation 1,600 1,600
402,292 731,353

Page 16

continued...

MENTER CAERDYDD

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL 2021

----- Start of picture text -----
|||||| |---|---|---|---|---| |8.|SUPPORT COSTS|.| |2021| |£| |Rent,|rates and water|15,378| |Insurance|1,359| |Telephone|5,583| |Computer|costs|4,490| |Postage and|siationery|435| |Sundries|139| |Management and|administration|2,769| |Travel and subsistence|143| |Professional|costs|6,253| |Equipment|hire|and|maintenance|5,449| |Govemancs|costs|4,200| |Total|support costs|45,198| |9.|NET INCOME/(EXPENDITURE)| |Net Income/(expenditure)|ts|stated|after charging/(crediting):|

----- End of picture text -----

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2021|2020| |£|£| |Auditors'|remuneration|4,200|4,380| |Depreciation|- owned assets|1,600|1,600| |Surplus|on|disposal|of fixed|assets|-|(450)| |Operating|leases|- other assets|2,415|2,860|

----- End of picture text -----

  1. TRUSTEES’ REMUNERATION AND BENEFITS

There were no trustees’ remuneration or other benefits for the year ended 5 April 2021 or for the year ended 5 April 2020.

Trustees’ expenses

There were no trustees’ expenses paid for the year ended 5 April 2021 or for the year ended 5 April 2020.

:

  1. STAFF COSTS

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Salaries|219,239|329,204| |Social security|14,468|13,890| |Pension contributions|12,535|16,989| |246,242|360,084|

----- End of picture text -----

The charity employs 5 full-time and 4 part-time staff (2020 - 7 full-time and 4 part-time staff} and 146 casual staff.

No employee earned more than £60,000 per annum (2020: NIL).

The total key management personnel remuneration benefits paid during the year was £61,773 (2020: £57,976).

Page 17

continued...

MENTER CAERDYDD

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL 2021

12. COMPARATIVES FORTHESTATEMENTOF FINANCIALACTIVITIES COMPARATIVES FORTHESTATEMENTOF FINANCIALACTIVITIES
Unrestricted
fund
£		 Restricted
funds
£		 Total
funds
£
INCOMEAND ENDOWMENTS FROM
Donationsand legacies 144,036 348,465 492,501
Charitable activitles
Theenhancement ofcommunityeducation
and general Information bypromoting the
Welsh language		 200,454 22,420 222,874
OtherIncome 45,488 - 45,488
Total 389,978 370,885 760,863
EXPENDITUREON
Charitable activities
Theenhancementofcommunityeducation
and general informationbypromoting the
Welshlanguage		 413,188 370,885 784,073
NETINCOME/(EXPENDITURE) (23,210) - (23,210)
RECONCILIATION OF FUNDS
Totalfundsbroughtforward 138,621 - 138,621
TOTAL FUNDSCARRIEDFORWARD 115,411 - 145,411
13. TANGIBLE FIXEDASSETS
Plant and
machinery
£
Cost
At6April2020and 5April2021 10,682
DEPRECIATION
At6 April2020 6,484
Charge foryear 1,600
At§April2021 8,084
NETBOOKVALUE
At5April2021 2,598
At5April2020 4,198

Page 18

continued...

MENTER CAERDYDD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED § APRIL 2021

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2021|2020| |£|£| |Grants|-|21,500| |Other debtors|12,658|16,118| |Prepayments|and accrued|income|95,778|67,961| |108,436|105,579| |15.|CREDITORS:|AMOUNTS|FALLING|DUE WITHIN|ONE YEAR| |2021|2020| |£|£| |Trade|creditors|14,588|1,534| |Social|security and|other taxes|4,351|§,570| |Other creditors|2,002|2,212| |Accruals and deferred|income|178,817|48,837| |199,758|58,153| |Included|within accruals and|deferred|income above|is the following|deferred|income:| |2021|2020| |£|£| |Deferred|income|brought forward|40,550|30,458| |Released|to SOFA|(18,050)|(30,458)| |Additional|income|deferred|in|the year|127,005|40,550| |149,505|40,550|

----- End of picture text -----

The deferred income relates to funding received in advance of service delivery.

  1. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fail due as follows:

----- Start of picture text -----
|||||| |---|---|---|---|---| |2021|2020| |£|£| |Within one year|2,813|2,813| |Between one and|five years|4,219|7,032| |7,032|9,845| |MOVEMENT|IN|FUNDS| |Net| |movement|At| |At 6/4/20|In|funds|5/4/21| |£|£|£| |Unrestricted|funds| |General fund|*|415,411|32,669|148,080| |TOTAL FUNDS|115,411|32,669|148,080|

----- End of picture text -----

17. MOVEMENT IN FUNDS

Page 18

continued...

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL 2021

MENTER CAERDYDD

17. MOVEMENT IN FUNDS- continued

Net movement in funds, included in the above are as follows:

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Incoming|Resources|Movement| |resources|expended|in funds| |£|£|£| |Unrestricted|funds| |General fund|167,742|(135,073)|32,669| |Restricted|funds| |Tafwyl|131,636|(131,636)|-| |Care|32,954|(32,954)|-| |Play|74,483|(74,483)|-| |Holiday activities|30,000|(30,000)|-| |Welsh medium youth|services|14,000|(14,000)|-| |Welsh for business|16,484|(16,484)|-| |Gwelthgareddau|Henoed|12,860|(12,860)|-| |312,417|(312,417)|-| |TOTAL FUNDS|480,159|(447,490)|32,669| |Comparatives|for movement|in funds| |Net| |movement|At| |At 6/4/19|in|funds|5/4/20| |£|£|£| |Unrestricted|funds| |General fund|138,621|(23,210)|115,411| |TOTAL FUNDS|138,621|(23,210)|115,441| |Comparative|net movement|in funds,|included|in|the above|are as follows:| |Incoming|Resources|Movement| |resources|expended|in funds| |£|£|£| |Unrestricted|funds| |General fund|389,978|(413,188)|(23,210)| |Restricted|funds| |Tafwyi|171,511|(171,511)|-| |Cara|32,954|(32,954)|-| |Play|100,000|(100,000)|-| |Holiday activities|30,000|(30,000)|-| |Welsh medium youth services|14,000|(14,000)|-| |Welsh for business|22,420|(22,420)|-| |370,885|(370,885)|-| |TOTAL FUNDS|760,863|(784,073)|(23,210)|

----- End of picture text -----

Page 20

continued...

MENTER CAERDYDD

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL 2021

17. MOVEMENT IN FUNDS- continued

Restricted funds

Tafwyl - Tafwyl restricted fund represents all restricted funding received in relation to Tafwyl festival that is held annually in June/July. income received is made up of restricted grants.

Care - Restricted funding from Cardiff County Council for Care programmes run by Menter Caerdydd across Cardiff.

Play - Restricted funding from Cardiff County Council for play programmes run by Menter Caerdydd across Cardiff.

Holiday activities - Restricted funding from Cardiff County Council for language support programmes run by Menter Caerdydd across Cardiff during school holidays.

Leisure - Restricted funding from Cardiff County Council for leisure programmes run by Menter Caerdydd and the Sports Department of Urdd Gobalith Cymru across Cardiff.

Welsh medium youth services - Restricted funding from Urdd Gobaith Cymru to run Weish medium youth services across Cardiff.

Welsh for business - Restricted funding from the Welsh Government to assist In funding Cardiff and Vale of Glamorgan's Welsh in Business Support Officer.

Gwelthgareddau Henoed - Restricted funding from WVCA for programmes for the elderly run by Menter Caerdydd.

  1. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in independently administered funds. The pension cest charge represants contributions pald by the charityto the fund and amounted to £12,535 (2020: £16,989). Contributions owed at the year end amounted to £1,626 (2020: amounts due £1,712).

  1. RELATED PARTY DISCLOSURES

There were no related party transactions that required disclosure in the year ended 5 April 2021.

Page 21