REGISTERED COMPANY NUMBER: 04576565 (England and Wales) 

REGISTERED CHARITY NUMBER: 1098606 

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 

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 2022 

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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 

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MENTER CAERDYDD 

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022 eeca eee 

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 2022. 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 Ireland (FRS 102) (effective 1 January 2019). 

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

## OBJECTIVES AND ACTIVITIES 

## Objectives and aims 

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 all 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 together with a society 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 - Promoting opportunities to use the Welsh language - Increasing confidence and improving attitudes towards the Welsh language - Strengthening/increasing the use of Welsh within families - 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 Strategies of the Welsh Government: 

## - THE FAMILY 

- CHILDREN 

- YOUNG PEOPLE 

- ADULTS 

- TAFWYL 

- THE COMMUNITY 

## Key Performance Indicators 

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

## Se 

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MENTER CAERDYDD 

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022 

## ee 

## OBJECTIVES AND ACTIVITIES 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 language. 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 people 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. 

## 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 80 volunteers who work with us on a broad range of services throughout the year and provide an invaluable contribution to the delivery 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 the surrounding area. An outline of the work can be seen on the Menter Caerdydd's website www.mentercaerdydd.cymru 

Last year was another successful year for Menter Caerdydd as we continued to develop our service across the city. An outline of the work can be seen on Menter Caerdydd's website and social media platforms. 

We succeeded in receiving funding from a number of departments within Cardiff Council including Play Services, the Leisure Department, Education Department and Youth Services. We also received funding towards our services from the Welsh Government and the Arts Council of Wales. Menter Caerdydd is a workforce of 10 staff (4 full-time, 6 part-time) and 146 casual staff. 

This year was another successful year for Tafwyl in partnership with main funders Cardiff Council, the Arts Council of Wales and the Welsh Government as well as more than 60 partners and sponsors. Tafwyl became one of Welsh Governments test events in 2021 ensuring that 500 could attend the festival under tight covid measures whilst over 30,000 tuned in at home to watch the digital stream of the festival. 

Much of our delivery was adapted to run on-line and enable us to continue to provide a service in all areas. When possible and safe to do so we retumed during the year to run as much face to face delivery.as possible. 

The weekly out-of-school and work activities are essential in order to ensure that the community have 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. 

A sum total of £624,897 was recognised as income (2021 - £480,159) and a total of £581,599 was included as expenditure (2021 - £447,490). This gave a net income of £43,298 (2021: £32,669). The surplus on unrestricted funds in the year was £16,786. 

The total funds carried forward are £191,378 (2021 - £148,080), after adjusting for restricted funds and funds tied up in fixed assets, free reserves were £163,449, which is higher than in previous years as a result of the financial support that has been available throughout the pandemic, the trustees feet it is prudent to hold reserves at a higher level than normal due to the economic uncertainty prevalent at the current time. 

## Principal funding sources 

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

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## MENTER CAERDYDD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022 

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## FINANCIAL REVIEW 

## Reserves policy 

The trustees have considered the needs of the charity for financial reserves in accordance with the guidelines given by the Charity Commission and have adopted the following policies - 

## The need for a reserve funds is: 

- a) To have money to earmark for special projects in order to develop them or realise them in a short period of 

   - time. 

- b) To ensure that money is available for administration and support costs which enable the charity to operate especially during the period at the beginning of a new financial year. 

- c) To provide a sufficient reserve to enable its voluntary fundraising scheme to operate. 

The current policy of the trustees is the financial reserve should be approximately 14% - 18% of expenditure. This equates to £81,000 to £105,000. The trustees consider the current level of reserves to be sufficient to meet the charity's needs. 

The additional spend against budgets are mainly due to 2 areas of higher planned expenditure. 

- ~ upgrade costs of the holiday childcare website to improve administrative efficiency and customer service. - ensuring appropriate cover and overlap during 2 matemity leave periods - to maintain service/programme delivery during both pre/post maternity leave periods. 

## FUTURE PLANS 

Menter Caerdydd is committed to ensuring that our work continues to reflect the needs of the diverse Welsh communities in the capital city. We have been realistic in recognising that we face a challenging economic period but by working in partnership with organisations throughout the city, and with partners from the third sector, the public sector and the private sector we are confident that we continue to fulfil the objectives in our new Corporate Plan (2022-27) and that our services have a positive impact on the Welsh language in Cardiff. 

- Promoting opportunities to use the Welsh language 

- Increasing confidence and improving attitudes towards the Welsh language 

- Strengthening/increasing the use of Welsh within families 

- 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 

By concentrating on these main priorities Menter Caerdydd will 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 Government of reaching a million Welsh speakers by 2050, and Cardiff Council's Bilingual Cardiff Strategy. 

The COVID-19 pandemic has dominated our lives since March 2020. We were forced to make the unprecedented decision to change the way we delivered our offers and services. This led to the cancellation of all face to face activities until late August. We have been 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 the other organisations across Wales to ensure that Welsh language social opportunities have continued to be delivered throughout. 

## STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document 

The charity is governed 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 members 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 charitable company before their nomination can be considered. 

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MENTER CAERDYDD 

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022 

## aeeeeeee 

## STRUCTURE, GOVERNANCE AND MANAGEMENT 

## 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 every 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 is working towards the third sector Trusted Charity quality assurance mark. This programme will provide the structure and framework to ensure that Trustees are provided with 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. 

## Key management remuneration 

This is discussed within the Personnel sub-committee that meets once per year to discuss and make decisions on any remuneration issues within the organisation. The Chair, Vice Chair and 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 Elis M Thomas Resigned 29/11/2021 R H Williams | G Roberts CS Roberts M Phillips S B Jones JE Adams (Chair) S Williams G M George SVM Poole S W Fon Resigned 29/11/2021 

Chief Executive and Company Secretary Heulyn Rees 

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; 

## MENTER CAERDYDD 

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2022 

## a 

REFERENCE AND ADMINISTRATIVE DETAILS Auditors Watts 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). 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to 

- ~ select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

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: 

- there is no relevant audit information of which the charitable company's auditors are unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, Watts Gregory LLP, have expressed a willingness to be re-appointed. Approved by order of the Board of Trustees on sO, Novewbet kong signed on its behalf by: 

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## REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MENTER CAERDYDD i 

## Opinion 

We have audited the financial statements of Menter Caerdydd (the 'charitable company’) for the year ended 5 April 2022 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 been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

## In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company's affairs as at 5 April 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. 

## Basis for opinion 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 

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 concer 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 concern 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 concern in exceptional 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 

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

- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Report of the Trustees has been prepared in accordance with applicable legal requirements. 

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- REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MENTER CAERDYDD ca 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, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or . 

- - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received ail the information and explanations we require for our audit; or - the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing 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 intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. in preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going 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 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 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) 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. 

- Based on our understanding of both the company and industry, we identified the principal risks of non-compliance with laws and regulations 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: - discussions with management, including consideration of any known or suspected instances of non-compliance with laws and requlations and/or fraud; 

- - reading minutes of meetings of those charged with governance; - the appropriateness of journal entries and other adjustments; - evaluating the reasons for any large or unusual transactions; - reviewing disclosures in the financial statements to underlying supporting documentation 

As outlined above, reasonable assurance is a high level of assurance, but is not a guarantee that a material misstatement may always be detected. The extent to which our procedures 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. 

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MENTER CAERDYDD 

## ne 

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

15 December 2022 

we 

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## MENTER CAERDYDD 

## STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 5 APRIL 2022 

**==> picture [502 x 380] intentionally omitted <==**

**----- Start of picture text -----**<br>
|||||||||
|---|---|---|---|---|---|---|---|
|a|
|2022|2021|
|:|Unrestricted|Restricted|Total|Total|
|fund|funds|funds|funds|
|Notes|£|£|£|£|
|INCOME|AND|ENDOWMENTS|FROM|.|
|Donations|and|legacies|3|121,151|424,148|545,299|438,419|
|Charitable|activities|
|The|enhancement|of community|education|and|
|general|information|by|promoting|the|Welsh|
|language|77,498|-|77,498|32,784|
|Investment|income|4|5|-|5|-|
|Other|income|.|6|2,095|-|2,095|8,956|
|Total|200,749|424,148|624,897|480,159|
|EXPENDITURE|ON|
|Charitable|activities|7|
|The|enhancement|of community|education|and|
|general|information|by|promoting|the|Welsh|
|language|183,963|397,636|581,599|447,490|
|"NET INCOME|16,786|26,512|43,298|32,669|
|RECONCILIATION|OF|FUNDS|
|Total|funds|brought forward|148,080|-|148,080|115,411|
|TOTAL FUNDS CARRIED|FORWARD|164,866|26,512|191,378|148,080|

**----- End of picture text -----**<br>


, The notes form part of these financial statements 

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## MENTER CAERDYDD 

BALANCE SHEET 5 APRIL 2022 

**==> picture [461 x 322] intentionally omitted <==**

**----- Start of picture text -----**<br>
||||||||
|---|---|---|---|---|---|---|
|ee|ace|
|2022|2021|
|Unrestricted|Restricted|Total|Total|
|fund|funds|funds|funds|
|;|Notes|£|£|£|£|
|FIXED ASSETS|
|Tangible|assets|14|1,417|-|1,417|2,598|
|CURRENT ASSETS|
|Debtors|15|29,348|§5,215|84,563|108,436|
|Cash|at bank and|in hand|201,153|66,064|267,217|236,804|
|230,501|121,279|351,780|345,240|
|CREDITORS|
|Amounts|falling due within one year|16|(67,052)|(94,767)|(161,819)|(199,758)|
|NET CURRENT ASSETS|163,449|26,512|189,961|145,482|
|TOTAL ASSETS LESS CURRENT LIABILITIES|164,866|26,512|191,378|148,080|
|NET ASSETS|164,866|26,512|191,378|148,080|
|FUNDS|18|
|Unrestricted|funds|164,866|148,080|
|Restricted funds|26,512|-|
|TOTAL FUNDS|191,378|148,080|

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

The financial statements were approved and authorised for issue by the Board of Trustees and authorised for issue on 3A. MM LAVA RRA.AOR... and were signed on its behalf by: 

## JEAdams-Trustee 

## a 

The notes form part of these financial statements 

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MENTER CAERDYDD 

## CASH FLOW STATEMENT FOR THE YEAR ENDED5 APRIL 2022 

|CASH FLOW STATEMENTSTATEMENT<br>FOR THE YEAR ENDED5THE YEAR ENDED5YEAR ENDED55 APRIL 20222022||||
|---|---|---|---|
|aan EEIEEenneeeeeeeee||||
|||2022|2021|
||Notes|£|£|
|Cash flows from operating activities||||
|Cash generated from operations|1|30,408|173,017|
|Netcash provided by operating activities||30,408|173,017|
|Cash flows from investing activities||||
|interest received||5|-|
|Netcash provided byinvesting activities||5|-|
|Change in cash and cash equivalents in||||
|the reporting period<br>Cash and cash equivalents atthe||30,413|173,017|
|beginning of the reporting period||236,804|63,787|
|Cash and cash equivalents at the end of||||
|thereportingperiod||267,217|236,804|



The notes form part of these financial statements 

mn 

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MENTER CAERDYDD 

## NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2022 

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## 1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 

||||2022|2021|
|---|---|---|---|---|
||Net incomeforthe reporting period {as perthe Statement ofFinancial<br>Activities)<br>Adjustments for:||£<br>43,298|£<br>32,669|
||Depreciation charges<br>Interest received<br>Decrease/(increase) indebtors<br>(Decrease)/increase in creditors||1,181<br>(5)<br>23,873<br>(37,939)|1,600<br>-<br>(2,857)<br>141,605|
||Netcash provided byoperations||30,408|173,017|
|2.|ANALYSIS OFCHANGES IN NETFUNDS||||
|||At 6/4/21|Cash flow|At 5/4/22|
||Net cash|£|£|£|
||Cash atbankand in hand|236,804|30,413|267,217|
|||236,804|30,413|267,217|
||Total|236,804|30,413|267,217|



The notes form part of these financial statements 

Sasa ESS neeneneneeeeeeeeeeeee 

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MENTER CAERDYDD 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED5 APRIL 2022 annec anne eee 

: 

- 1, STATUTORY INFORMATION 

Menter Caerdydd is a company limited by guarantee incorporated in Wales within the United Kingdom. The registered office is Yr Hen 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 2022. 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 2022. 

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. 

2. 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) (effective 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 going concern basis The financial statements have been prepared on a going concern basis, with the charity having confirmation 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 be 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 concern basis. 

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 received, and the amount can be measured reliably. 

This includes capital grants. 

## Donations and legacies 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 reliability. Such income is only deferred when the donor specifies it must be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement. 

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 amounts received are in advance of the performance of the service or event to which they relate. 

Investment income investment income is recognised on a receivable basis. 

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

## aan 

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continued... 



## MENTER CAERDYDD NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL. 2022 eea ne 2. ACCOUNTING POLICIES - continued 

## 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 is reported as part of the expenditure to which it relates. 

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of 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 those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the 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 stipulation from the donor as to the purpose for which they may be used. Designated funds are unrestricted funds earmarkedby the board for particular purposes in the future. 

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

## Financial 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 result 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. 

Pension costs and other post-retirement benefits 

The charitable 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. 

ee Page 14 continued... 



MENTER CAERDYDD 

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL 2022 

## ee 

2. ACCOUNTING POLICIES - continued 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 employee 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 benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. 

3. DONATIONS AND LEGACIES 

|DONATIONS ANDAND LEGACIES|||||
|---|---|---|---|---|
||||2022|2021|
|Gifts<br>Grants<br>Sponsorship|||£<br>-<br>538,549<br>6,750|£<br>78<br>438,341<br>-|
||||545,299|438,419|
|Grants received, included in the above, are as follows:|||||
||||2022|2021|
||||£|£|
|Welsh Government -Welsh Promotion<br>CardiffCounty Council - Play grant<br>CardiffCounty Council - Holiday activities grant<br>CardiffCounty Council - Leisure grant<br>CardiffCountyCouncil -Caregrant<br>Arts Council ofWales -Tafwyl festival<br>Artsand Business Tafwyl<br>Urdd Gobaith Cymru -Grant leuenctid<br>WVCAgranthenoed<br>Menter faith BroMorgannwg<br>Moondance Foundation<br>CardiffCouncil -Covid-19 fund<br>Welsh Government -CRF Tafwyl<br>Welsh GovernmentJRS grants<br>Menter laithCymru<br>Y Loteri Genediaethol - Henoed<br>CardiffCounty Council - Winter ofWellbeing<br>CardiffCounty Council<br>-Summer ofSmiles<br>Welsh Government - KickstartScheme|.|.|152,737<br>89,837<br>30,000<br>15,000<br>34,954<br>15,000<br>2,000<br>14,000<br>-<br>-<br>-<br>-<br>129,424<br>353<br>164<br>32,933<br>10,000<br>5,000<br>7,147|186,736<br>59,483<br>30,000<br>15,000<br>32,954<br>40,000<br>3,000<br>14,000<br>12,860<br>5,500<br>3,000<br>10,000<br>3,136<br>22,672<br>-<br>-<br>-<br>-<br>-|
||||538,549|438,341|



## ce 

eee continued... 

Page 15 



NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL. 2022 aanEmenee eee 

## MENTER CAERDYDD 

## 4, INVESTMENT INCOME 

**==> picture [439 x 148] intentionally omitted <==**

**----- Start of picture text -----**<br>
||||||||
|---|---|---|---|---|---|---|
|2022|2021|
|Deposit|account|interest|£|5|g|-|
|INCOME|FROM|CHARITABLE|ACTIVITIES|
|2022|2021|
|Fee|£|£|
|income|77,498|14,504|
|Rental|income|-|1,796|
|Welsh|for business|-|16,484|
|77,498|32,784|

**----- End of picture text -----**<br>


5. INCOME FROM CHARITABLE ACTIVITIES 

The only charitable activity is the enhancement of Community education and general information by promoting the Welsh Language. 

## 6. OTHER INCOME 

**==> picture [437 x 72] intentionally omitted <==**

**----- Start of picture text -----**<br>
|||||
|---|---|---|---|
|2022|2021|
|Cardiff|£|£|
|Council|- SHEP scheme|-|7,259|
|Broadband|Contributions|1,945|1,697|
|Summer|Party|150|~|
|2,095|8,956|

**----- End of picture text -----**<br>


## 7. CHARITABLE ACTIVITIES COSTS 

**==> picture [467 x 211] intentionally omitted <==**

**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|Direct|Support|
|Costs|(see|costs|(see|
|note|8)|note|9)|Totals|
|The|enhancement|of community|£|£|£|
|education|and|general|information|by|
|promoting|the Welsh|language|530,902|50,697|581,599|
|8.|DIRECT COSTS|OF|CHARITABLE|ACTIVITIES|
|2022|2021|
|Staff|£|£|
|costs|205,365|196,934|
|Activities|59,591|20,909|
|Play schemes|60,249|37,323|
|Tafwy!|182,714|133,366|
|Clubs|and|children's|clubs|21,802|12,160|
|Depreciation|1,181|1,600|
|530,902|402,292|

**----- End of picture text -----**<br>


## eee 

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continued... 



MENTER CAERDYDD 

NOTESFOR THE TOYEAR THE FINANCIALENDED 5 APRILSTATEMENTS2022 - continued 

## ee 

## 9. SUPPORT COSTS 

**==> picture [467 x 272] intentionally omitted <==**

**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|2022|
|£|
|Rent,|rates and water|14,320|
|Insurance|1,980|
|Telephone|6,458|
|Computer costs|5,758|
|Postage|and|stationery|§12|
|Sundries|1,048|
|Management and|administration|2,737|
|Travel|and|subsistence|3,105|
|Professional|costs|1,976|
|Equipment|hire|and|maintenance|8,603|
|Governance|costs|4,200|
|Total|support|costs|50,697|
|10.|NET|INCOME/(EXPENDITURE)|
|Net|income/(expenditure)|is|stated|after charging/(crediting):|
|2022|2021|
|£|£|
|Auditors'|remuneration|4,200|4,200|
|Depreciation|- owned|assets|1,181|1,600|
|Operating|leases|- other assets|2,425|2,415|

**----- End of picture text -----**<br>


11. TRUSTEES' REMUNERATION AND BENEFITS 

There were no trustees' remuneration or other benefits for the year ended 5 April 2022 or for the year ended 5 April 2021. 

## Trustees‘ expenses 

There were no trustees’ expenses paid for the year ended 5 April 2022 or for the year ended 5 April 2021. 

12. STAFF COSTS 

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**----- Start of picture text -----**<br>
|||||
|---|---|---|---|
|2022|2021|
|Salaries|£|£|
|Social|248,073|219,239|
|security|14,606|14,468|
|Pension|contributions|13,813|12,535|
|276,492|246,242|

**----- End of picture text -----**<br>


The charity employs 5 full-time and 6 part-time staff (2021 - 5 full-time and 4 part-time staff} and 105 casual staff. No employee earned more than £60,000 per annum (2021: NIL). 

The total key management personnel remuneration benefits paid during the year was £59,398 (2021: £61,773). 

a Page 17 continued... 



MENTER CAERDYDD 

## NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2022 

|NOTES TO THETO THETHE FINANCIAL STATEMENTS - continuedcontinued<br>FOR THETHE YEAR ENDED 5 APRILAPRIL 2022|NOTES TO THETO THETHE FINANCIAL STATEMENTS - continuedcontinued<br>FOR THETHE YEAR ENDED 5 APRILAPRIL 2022|NOTES TO THETO THETHE FINANCIAL STATEMENTS - continuedcontinued<br>FOR THETHE YEAR ENDED 5 APRILAPRIL 2022|NOTES TO THETO THETHE FINANCIAL STATEMENTS - continuedcontinued<br>FOR THETHE YEAR ENDED 5 APRILAPRIL 2022|NOTES TO THETO THETHE FINANCIAL STATEMENTS - continuedcontinued<br>FOR THETHE YEAR ENDED 5 APRILAPRIL 2022|
|---|---|---|---|---|
|Sea<br>RRR<br>ea|||||
|13.|COMPARATIVES FORTHESTATEMENTOF FINANCIAL ACTIVITIES||||
|||Unrestricted<br>fund|Restricted<br>funds|Total<br>funds|
||INCOME AND ENDOWMENTS FROM|£|£|£|
||Donationsand legacies|142,486|295,933|438,419|
||Charitable activities||||
||The enhancement ofcommunity education||||
||and general information by promoting the<br>Welsh language|16,300|16,484|32,784|
||Otherincome|8,956|-|8,956|
||Total|167,742|312,417|480,159|
||EXPENDITURE ON||||
||Charitable activities||||
||The enhancement ofcommunity education||||
||and general information by promoting the||||
||Welsh language<br>NET INCOME|135,073<br>32,669|312,417<br>-|447,490<br>32,669|
||RECONCILIATION OF FUNDS||||
||Totalfunds broughtforward|115,411|-|415,411|
||TOTALFUNDSCARRIEDFORWARD|148,080|-|148,080|
|14,|TANGIBLE FIXED ASSETS||||
||:|||Plant and|
|||||machinery|
||COST|||£|
||At6<br>April 2021 and 5April 2022|||10,682|
||DEPRECIATION||||
||At6April2021<br>Charge foryear|||8,084<br>1,181|
||At5 April2022|||9,265|
||NET BOOK VALUE||||
||At5April2022|||1,417|
||At5April2021|||2,598|



## a 

Page 18 

continued... 



MENTER CAERDYDD 

## NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL 2022 

Saaaannn EERSREReeeeeeeeeeee reer 

**==> picture [477 x 362] intentionally omitted <==**

**----- Start of picture text -----**<br>
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|15.|DEBTORS: AMOUNTS|FALLING|DUE WITHIN|ONE YEAR|
|2022|2021|
|Other|£|£|
|debtors|26,650|12,658|
|Prepayments and|accrued|income|57,913|95,778|
|84,563|108,436|
|16.|CREDITORS:|AMOUNTS|FALLING|DUE|WITHIN|ONE YEAR|
|2022|2021|
|Trade|£|£|
|Social|creditors|16,895|14,588|
|Other|security and other taxes|5,492|4,354|
|creditors|2,633|2,002|
|Accruals|and|deferred|income|136,799|178,817|
|161,819|199,758|
|Included|within|accruals|and|deferred|income|above|is|the|following|deferred|income:|
|2022|2021|
|Deferred|£|£|
|Releasedincome brought forward|149,505|40,550|
|Additional|to SOFA|(118,905)|(18,050)|
|income|deferred|in|the year|93,317|127,005|
|123,917|149,505|
|The|deferred|income|relates|to funding|received|in advance|of service|delivery.|
|17.|LEASING AGREEMENTS|

**----- End of picture text -----**<br>


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

**==> picture [468 x 221] intentionally omitted <==**

**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|2022|2021|
|Within|£|£|
|one|year|2,813|2,813|
|Between one and|five|years|1,406|4,219|
|4,219|7,032|
|18.|MOVEMENT|IN|FUNDS|
|Net|
|At|6/4/21|movementin|funds|5/4/22At|
|Unrestricted|funds|£|£|£|
|General|fund|148,080|16,786|164,866|
|~|Restricted|funds|
|Tafwy!|148,080|26,512|26,512|
|TOTAL FUNDS|148,080|43,298|191,378|

**----- End of picture text -----**<br>


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MENTER CAERDYDD 

NOTESFOR THETOYEAR THE FINANCIALENDED 5 APRILSTATEMENTS2022 - continued 

SE ERRaReeee 

## 18. MOVEMENT IN FUNDS- continued 

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

**==> picture [442 x 190] intentionally omitted <==**

**----- Start of picture text -----**<br>
||||||||
|---|---|---|---|---|---|---|
|Incoming|Resources|Movement|
|resources|expended|in|funds|
|Unrestricted|funds|£|£|£|
|General|fund|:|200,749|(183,963)|16,786|
|Restricted|funds|
|Tafwyl|192,424|(165,912)|26,512|
|Care|34,954|(34,954)|-|
|Play|104,837|(104,837)|-|
|Holiday|activities|30,000|(36,000)|-|
|Welsh|medium|youth|services|14,000|(14,000)|-|
|Gweithgareddau|Henoed|32,933|(32,933)|-|
|Winter of Weillbeing/Summer|of Smiles|15,000|(15,000)|-|
|421,148|397,636)|__26,512|
|TOTAL FUNDS|624,897|(581,599)|43,298|

**----- End of picture text -----**<br>


## Comparatives for movement in funds 

**==> picture [443 x 326] intentionally omitted <==**

**----- Start of picture text -----**<br>
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Net|
|At|6/4/20|movementin|funds|5/4/21At|
|Unrestricted|funds|£|£|£|
|General|fund|115,411|32,669|148,080|
|TOTAL FUNDS|116,411|32,669|148,080|
|Comparative|net|movement|in|funds,|included|in|the|above|are|as|follows:|
|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)|-|
|Gweithgareddau|Henoed|12,860|(12,860)|-|
|312,417|(312,417)|-|
|TOTAL FUNDS|480,159|(447,490)|32,669|

**----- End of picture text -----**<br>


## rrrrenee see 

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continued... 



MENTER CAERDYDD 

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 5 APRIL 2022 

nN nneeemmemmeeneeeeee ere 

18. MOVEMENT IN FUNDS- continued 

## Restricted funds 

Tafwyl - Tafwy! 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 Gobaith Cymru across Cardiff. 

Welsh medium youth services - Restricted funding from Urdd Gobaith Cymru to run Welsh medium youth services across Cardiff. Gweithgareddau Henoed - Restricted funding from the National Lottery for programmes for the elderly run by Menter Caerdydd. 

Winter of Wellbeing/Summer of Smiles - Restricted funding from Cardiff County Council to provide activities for young people following the isolation experienced during the Covid pandemic. 

## Prior Year restricted funds 

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

19. 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 cost charge represents contributions paid by the charity to the fund and amounted to £13,813 (2021: £12,535). Contributions owed at the year end amounted to £2,133 (2021: amounts due £1,626). 

20. RELATED PARTY DISCLOSURES 

There were no related party transactions that required disclosure in the year ended 5 April 2022. 

Enna EE eeeeeeeeeneeeee ee 

Page 21